1. Article 1 of Law No.21 of 9 July 1980 prohibits all Panamanian flag ships navigating in international waters from discharging any contaminating substances.

The discharges which are in line with the exceptions enumerated in the international conventions dealing with pollution of the seas, to which the Republic of Panama is a signatory to, are not included in the above prohibitions.

2. The Directorate General of Consular and Maritime Affairs will adopt the necessary measures such as inspections, surveys, issuance and control of certificates, as well as the approval of equipment necessary to avoid the discharge of contaminating substances from ships into the international waters. The Directorate General of Consular and Maritime Affairs is authorized to order a ship's detention until such deficiencies as have been detected on board have been corrected, and may impose an admonition or a fine, which shall be or not less than one hundred dollars ($100.00) and not more than twenty-five thousand dollars ($25,000.00).