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U.S.-Panama Supplementary Arrangement on U.S. Coast Guard Assistance

Bureau of Nonproliferation
Washington, DC

Supplementary Arrangement Between the Government of the United States of America and the Government of the Republic of Panama to the Arrangement Between the Government of the United States of America and the Government of Panama for Support and Assistance from the United States Coast Guard for the National Maritime Service of the Ministry of Government and Justice

Signed at Panama City, Panama February 5, 2002. Entered into force February 5, 2002.

[This arrangement was amended on May 12, 2004, to address proliferation of weapons of mass destruction (WMD), their delivery systems, and related materials.]

The Government of the United States of America and the Government of the Republic Panama (hereinafter, “the Parties”);

Bearing in mind that the Arrangement between the Government of the United States of America and the Government of Panama for support and assistance from the United States Coast Guard for the National Maritime Service of the Ministry of Government and Justice, signed at Panama, March 18, 1991 (hereinafter, “the Arrangement”), establishes a program for conducting bilateral maritime police operations within the territorial waters of Panama to stop illegal activities, such as the international trafficking of drugs, illegal fishing and transportation of contraband;

Whereas the transnational character of illicit traffic by sea and by air in narcotics and related offenses gives rise to the need for major international cooperation in the suppression thereof, which is recognized in the 1961 Single Convention on Narcotic Drugs and its 1972 Protocol, in the 1971 Convention on Psychotropic Substances, in the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (hereinafter, “the 1988 Convention”), and in the 1982 United Nations Convention on the Law of the Sea (hereinafter, “the Law of the Sea Convention”);

Recalling that Article 17 of the 1988 Convention provides, inter alia, that the Parties shall consider entering into bilateral and regional agreements to carry out, or to enhance the effectiveness of, the provisions of Article 17;

Desiring to promote greater and resolute cooperation between the Parties to combat illicit traffic by sea and by air in narcotics and related offenses;

Recalling the Treaty between the Parties on Mutual Assistance in Criminal Matters, with annexes and appendices, signed at Panama, April 11, 1991, that enables more effective cooperation between the Parties in the investigation, prosecution and suppression of serious crimes, such as narcotic trafficking;

Recalling further the Inter-American Convention against the illicit manufacturing of and trafficking in firearms, ammunition, explosives and other related materials, signed by Panama and the United States, on November 14, 1997; and

Recalling the annual programs of counter-narcotics assistance provided by the Government of the United States of America to the Government of Panama;

Have agreed as follows:

Article I
Purpose and Scope

The Parties shall continue to cooperate in combating illicit traffic by sea and air in narcotics and related offenses to the fullest extent possible, consistent with available law enforcement resources and priorities related thereto.

Article II
Definitions

For the purposes of this Supplementary Arrangement, unless the context otherwise requires:

(a) “illicit traffic” has the same meaning as in Article 1(m) of the 1988 Convention and includes illicit traffic by air.
(b) “illicit traffic” also includes other illegal activities prohibited by international law, including other international conventions to which both States are party, but only to the extent enforcement pursuant to this Supplementary Arrangement is authorized by the laws of both Parties.
(c) “territory, waters and airspace of a Party” means:

(i) For the Republic of Panama: the territory under the sovereignty of Panama, those waters within 12 nautical miles of Panamanian territory, and the airspace over Panamanian territory and waters.
(ii) For the Government of the United States of America: the Commonwealth of Puerto Rico, the United States Virgin Islands, Navassa Island and other territories and possessions in the Caribbean Sea over which the United States exercises sovereignty, those waters within 12 nautical miles of United States territory, and the airspace over such United States territory and waters.

(d) “continental territory” means the mainland territory of Panama situated within Panama’s boundaries with bordering States and between its maritime coasts.
(e) “contiguous zone” has the same meaning as in Article 33 of the Law of the Sea Convention.
(f) “international waters” means all parts of the sea not included in the territorial sea and internal waters of a State.
(g) “international airspace” means the airspace situated over international waters.
(h) “law enforcement authority” means, for the Government of Panama, the National Maritime Service (hereinafter, “SMN”) and National Air Service, (hereinafter, “SAN”), agencies of the Ministry of Government and Justice of Panama, and for the Government of the United States of America, the United States Coast Guard, an agency of the U.S. Department of Transportation.
(i) “law enforcement vessels” means armed and unarmed vessels belonging to the SMN and vessels of the United States Coast Guard, aboard which law enforcement officials are embarked, clearly marked and identifiable as being on government non-commercial service and authorized to that effect, including any boat or aircraft embarked on such vessels.

(j) “law enforcement aircraft” means aircraft belonging to the SAN and SMN, and aircraft of the United States Coast Guard, clearly marked and identifiable as being on government non-commercial service and authorized to that effect.

(k) “technical support vessels and aircraft” means vessels and aircraft of a Party, clearly marked and identifiable as being on government non-commercial service and authorized to that effect, which, though not belonging to its law enforcement authority, may be temporarily under its authority and control for the achievement of the purposes of this Supplementary Arrangement or which, though not under its temporary authority and control, support law enforcement officials, vessels and aircraft in the performance of their functions and responsibilities under this Supplementary Arrangement.
(l) “technical support vessels and aircraft of third States” means vessels and aircraft of States other than the Parties, clearly marked and identifiable as being on government non-commercial service and authorized to that effect, with which the Republic of Panama or the United States of America has agreements or arrangements for combating illicit traffic, and which, when they are under the temporary authority and control of a law enforcement official of one of the Parties, may be authorized by agreement of the Parties, to be afforded the status of “technical support vessels” or “technical support aircraft” of the Party to which the law enforcement officials belong, and therefore be authorized to engage in operations under the terms and conditions of this Supplementary Arrangement.
(m) “law enforcement officials” means, for the Government of Panama, uniformed members of the SMN and SAN, and for the Government of the United States of America, uniformed members of the United States Coast Guard.
(n) “designated auxiliary personnel” means personnel of a Party who, while not law enforcement officials, support the law enforcement officials of that Party in the operations under this Supplementary Arrangement.
(o) “Shiprider Program” means the program of activities agreed upon for the performance of shipboarding pursuant to this Supplementary Arrangement.
(p) “shiprider” means a law enforcement official of one Party authorized to embark on a law enforcement vessel or aircraft of the other Party and to exercise the authority and control and perform the functions set out in this Supplementary Arrangement.
(q) “Shiprider Program Coordinator” means the law enforcement official of a Party designated to organize its program activities with the other Party.
(r) “Liaison Office” means the point of contact designated by the Parties as responsible for guaranteeing communication between the law enforcement authorities of the Parties.
(s) “liaison official” means a law enforcement official of a Party, who may or may not be embarked on a vessel or aircraft of that Party, who has been designated to perform the functions of the Liaison Office of that Party.
(t) “suspect vessel or aircraft” means a vessel or aircraft used for commercial or private purposes in respect of which there are reasonable grounds to suspect it is engaged in illicit traffic.

Article III
Designated Auxiliary Personnel

1. The Parties, by mutual agreement, shall define the number and functions of auxiliary personnel designated to lend technical support to the law enforcement officials and to the vessels and aircraft participating in the maritime and/or air operations, depending on their needs.

2. When the functions these personnel routinely perform are unrelated to the operation of such vessels and aircraft, the other Party shall be given advance notice of the nature of the technical support functions such personnel are to carry out.

3. The designated auxiliary personnel shall not have the powers conferred by this Supplementary Arrangement on law enforcement officials, and their actions shall be limited to providing the technical support described in the notice of their functions given to the other Party.

4. Nevertheless, in emergencies and under exceptional circumstances, the designated auxiliary personnel of one Party may be requested by a shiprider of the other Party to support the law enforcement officials in enforcing the law.

5. In any case, these designated auxiliary personnel shall be subject to the same requirements the Parties have defined for the other participants in the Shiprider Program.

Article IV
Shiprider Program

1. The Parties shall establish a joint law enforcement Shiprider Program between their respective law enforcement authorities. Each Party shall designate a Coordinator to organize its program activities and to identify the types of vessels and officials involved in the Program to the other Party.

2. Each Party shall designate shipriders who, subject to its laws and policies and to the provisions this Supplemental Arrangement, shall embark on law enforcement vessels and aircraft of the other Party and exercise authority and control, in appropriate circumstances, to:

(a) search suspect vessels, seize property, detain persons, and authorize the use of force, including the use of weapons in accordance with the terms of Article XVII of this Supplementary Arrangement;
(b) authorize vessels or aircraft of the other Party aboard which they are embarked to pursue suspect vessels or aircraft in the waters and airspace of the Party they represent;
(c) authorize law enforcement vessels of the other Party aboard which they are embarked to patrol the waters of the Party they represent, for purposes of this Supplementary Arrangement;
(d) authorize the law enforcement aircraft of the other Party aboard which they are embarked to overfly, for purposes of this Supplementary Arrangement, the airspace of the Party they represent;
(e) enforce the laws of their respective countries in the waters and in the airspace over the waters of the Party they represent or seaward therefrom in exercise of the right of hot pursuit in accordance with international law of the sea; and
(f) request and authorize the law enforcement officials of the other Party to assist in the enforcement of the laws of the Party they represent.

3. The implementation of this Program shall not result in additional operating costs to the Party providing a shiprider to the other Party. Each Party shall assume the normal costs associated with the payment of its officials assigned to this Program.

4. Each Party shall endeavor to designate shipriders and liaison officials fluent in the language of the other Party.

Article V
Assistance in Law Enforcement

1. When a shiprider is embarked on the other Party's law enforcement vessel, and the enforcement action being carried out is pursuant to paragraph 2 of Article IV, any law enforcement measure, including any boarding, search or seizure of property, any detention of a person, and any use of force pursuant to this Supplementary Arrangement, whether or not involving weapons, shall be carried out by the shiprider in accordance with the laws and regulations of the shiprider's Government.

2. Law enforcement officials of the other Party's law enforcement vessel and, in emergencies and under exceptional circumstances, designated auxiliary personnel of the other Party, may assist in any such action if expressly requested to do so by the shiprider and only within the limits of such request and in the manner requested. Such request may only be made, agreed to, and acted upon in accordance with the applicable laws and policies of both Parties.

3. Such law enforcement officials and designated auxiliary personnel may use force in self-defense, in accordance with the terms of Article XVII of this Supplementary Arrangement.

4. The assistance requested may not be contrary to the laws or policies of the Party of which this assistance is requested.

Article VI
Law Enforcement in the Waters of a Party and in the Airspace Over Such Waters

1. The law enforcement authority of each Party is authorized to provide the other Party operational support and technical assistance in the suppression of illicit traffic in the waters of a Party and the airspace over such waters, by means of sea and air police operations involving law enforcement vessels or aircraft with embarked shipriders designated in accordance with this Supplementary Arrangement.

2. The law enforcement authorities of both Parties shall endeavor to exchange operational information on the detection and location of suspect vessels or aircraft and to make best efforts to communicate with each other.

3. If a law enforcement vessel or aircraft of a Party (“the first Party”) detects a suspect vessel or aircraft located in or entering the waters or airspace of the other Party, or the airspace over such waters, the first Party shall promptly notify the other Party.

4. In the event that the suspect vessel or aircraft is entering the waters or airspace of the other Party, and the law enforcement vessel or aircraft of the first Party does not have on board a shiprider of the other Party, the vessel or aircraft of the first Party may proceed as follows:

(a) It may pursue the suspect vessel into the waters of the other Party, in order to stop and secure the suspect vessel while awaiting the arrival of the law enforcement officials of the other Party, who shall conduct the search and assume jurisdiction of the suspect vessel, its cargo and persons on board;

(b) At the request of the law enforcement authority of the other Party, law enforcement officials of the first Party may search the suspect vessel, its cargo and persons on board, and if evidence of illicit traffic is found, detain the vessel pending instructions from the law enforcement authority of the other Party; and

(c) It may engage in pursuit of the suspect aircraft in the airspace of the other Party, in order to maintain contact and relay to the suspect aircraft the instructions of the aviation authority of the other Party.

5. In the event that the suspect vessel or aircraft is located in the waters or airspace of the other Party, and the law enforcement vessel or aircraft of the first Party does not have on board a shiprider of the other Party, the vessel or aircraft of the first Party may proceed as follows:

(a) upon receipt of authorization from the law enforcement authority of the other Party, it may enter the waters of the other Party, in order to investigate, stop and secure the suspect vessel and persons on board while awaiting the arrival of the law enforcement officials of the other Party, who shall conduct the search and assume jurisdiction of the suspect vessel, its cargo and persons onboard;
(b) at the request of the law enforcement authority of the other Party, law enforcement officials of the first Party may search the suspect vessel, and if evidence of illicit traffic is found, detain the vessel pending instructions from the law enforcement authority of the other Party; and
(c) upon receipt of authorization from the law enforcement authority of the other Party, it may pursue of the suspect aircraft in the airspace of the other Party, in order to maintain contact and relay to the suspect aircraft the instructions of the aviation authority of the other Party.

6. Each Party may permit, after notification to and coordination with appropriate officials, on the occasions and for the time necessary for the proper performance of the operations required under this Supplementary Arrangement:

(a) the temporary mooring of law enforcement vessels of the other Party at national ports in accordance with international norms for the purpose of resupplying fuel and provisions, medical assistance, minor repairs, weather and other logistics and related purposes;
(b) entry of additional law enforcement officials of the other Party; and
(c) entry of suspect vessels not flying the flag of either Party escorted from waters seaward of either Party=s territorial sea by law enforcement officials of the other Party.

7. The Government of Panama may permit, after notification to and coordination with appropriate officials, on the occasions and for the time necessary for the proper performance of the operations required under this Supplementary Arrangement, the escort of persons, other than Panamanian nationals, from suspect vessels escorted by United States law enforcement officials through and exiting out of Panamanian territory.

Article VII
Overflight Operations for Suppression of Illicit Traffic

1. Each Party (“the first Party”) authorizes the law enforcement aircraft and the technical support aircraft of the other Party, in accordance with Articles IV, V, and VI(1) of this Supplementary Arrangement, to overfly its waters, observing the laws, policies, and instructions of the civil aviation authority of the first Party.

2. For overflight of continental territory by technical support aircraft pursuant to Article VIII, the Parties shall agree upon an embarkation and disembarkation program for shipriders of the other Party at the air facilities from which these operations are to be conducted.

3. The civil aviation authority of the first Party may deny, in specific instances, the overflight of the first Party’s waters or territory, even in cases of pursuit of suspect aircraft, if it deems that such overflight endangers the safety of air navigation or the life or safety of third parties.

4. In the interest of flight safety, the law enforcement officials aboard these aircraft shall observe the following procedures:

(a) identify the aircraft and provide notification of its entry into and departure from the air traffic control zone assigned to the appropriate civil aviation authority;
(b) maintain open and ongoing communication with the civil aviation authority of the other Party;
(c) observe the air navigation regulations and practices stipulated by the ICAO and international law; and
(d) follow the flight safety instructions of the civil aviation authority of the other Party.

5. Subject to the laws of each Party, the aircraft may relay the orders of the competent authorities to suspect aircraft to land in the territory of the other Party.

(a) land and temporarily remain at international airports in accordance with international norms for the purposes of resupplying fuel and provisions, medical assistance, minor repairs, weather, and other logistics and related purposes; and
(b) disembark and embark law enforcement officials of the other Party, including additional law enforcement officials.

7. The Government of Panama may permit, after notification to and coordination with appropriate officials, on the occasions and for the time necessary for the proper performance of the operations required under this Supplementary Arrangement, United States law enforcement aircraft to disembark, embark and depart out of Panamanian territory with persons referred to in Article VI(7).

Article VIII
Law Enforcement Information from Technical Support Flights

The Parties agree that:

(a) the collection of law enforcement information from technical support flights over the continental territory of a Party provided for under this Supplementary Arrangement may take place only in the presence of and with authorization from the shiprider of the Party over whose territory the flights take place;

(b) both parties shall have total and unrestricted access to this material at all times;
(c) the law enforcement information obtained in these operations shall be classified in accordance with the laws and policy of the Party collecting the information, shall be supplied to the other Party under the appropriate laws and policies, and shall be used only for the purposes provided for in this Supplementary Arrangement; and

(d) the law enforcement information collected under this Supplementary Arrangement may not be communicated to third parties without the prior express consent of the Party in whose jurisdiction they were collected.

Article IX
Air Pursuit

This Supplementary Arrangement authorizes the pursuit for the purposes of and in accordance with its provisions, by law enforcement aircraft and technical support aircraft of one Party of suspect aircraft in or into the airspace over waters of the other Party and in or into the airspace over the continental territory of the other Party.

Article X
Operations in International Waters

1. Whenever the law enforcement officials of one Party (“the requesting Party”) encounter a suspect vessel flying the flag of or claiming to be registered in the other Party (“the requested Party”) located seaward of any State's territorial sea, the requesting Party may request that the Liaison Office designated by the requested Party:

(a) confirm the claim of registry in or the right to fly the flag of the requested Party; and
(b) if such claim is confirmed:

(i) authorize the boarding and search of the suspect vessel, cargo and the persons found on board by law enforcement officials of the requesting Party; and
(ii) if evidence of illicit traffic is found, authorize the law enforcement officials of the requesting Party to detain the vessel, cargo and persons on board pending instructions from the law enforcement authorities of the requested Party as to the exercise of jurisdiction in accordance with Article XI of this Supplementary Arrangement.

2. Each request should contain the name of the suspect vessel, the basis for the suspicion, the registration number, home port, the port of origin and destination, and any other identifying information. If a request is conveyed orally, the requesting Party shall confirm the request in writing as soon as possible.

3. If the registration or the right to fly its flag is verified, the requested Party may:

(a) decide to conduct the boarding and search with its own law enforcement officials;
(b) authorize the boarding and search by the law enforcement officials of the requesting Party;
(c) decide to conduct the boarding and search together with the requesting Party; or
(d) deny permission to board and search.

4. The requested Party shall answer requests made for the verification of registry or right to fly its flag within two (2) hours of the receipt of such requests.

5. If the registration or the right to fly its flag is not verified within the two (2) hours, the requested Party may:

(a) nevertheless authorize the boarding and search by the law enforcement officials of the requesting Party; or
(b) refute the claim of the suspect vessel to registration or the right to fly its flag under its laws.

6. If there is no response from the requested Party within two (2) hours of its receipt of the request, the requesting Party will be deemed to have been authorized to board the suspect vessel for the purpose of inspecting the vessel's documents, questioning the persons on board, and searching the vessel to determine if it is engaged in illicit traffic.

7. Notwithstanding the foregoing paragraphs of this Article, this Supplementary Arrangement authorizes the law enforcement officials of one Party (“the first Party”) to board suspect vessels claiming to be registered in the other Party that are not flying the flag of the other Party, not displaying any marks of its registration, and claiming to have no documentation on board the vessel, for the purpose of locating and examining the vessel’s documentation. If documentation is located, the foregoing paragraphs of this Article apply. If no evidence of registration or nationality is found, the first Party may assimilate the vessel to a ship without nationality in accordance with international law.

8. The authorization to board, search and detain includes the authority to use force in accordance with Article XVII of this Supplementary Arrangement.

9. Except as expressly provided herein, this Supplementary Arrangement does not apply to or limit boardings of vessels, conducted by either Party in accordance with international law, seaward of any State's territorial sea, whether based, inter alia, on the right of visit, the rendering of assistance to persons, vessels, and property in distress or peril, the consent of the vessel master, or an authorization from the flag State to take law enforcement action.

Article XI
Jurisdiction over Vessels or Aircraft Detained

1. As provided in Article 2(3) of the 1988 Convention, neither Party shall undertake in the territory of the other Party the exercise of jurisdiction and performance of functions that are exclusively reserved to the authorities of that other Party by its domestic law.

2. In all cases arising in a Party's waters, or concerning vessels registered in or flying the flag of a Party seaward of any State's territorial sea, that Party (“the first Party”) shall have the right to exercise jurisdiction over a detained vessel, cargo and/or persons on board (including seizure, forfeiture, arrest, and prosecution), provided, however, the first Party may, subject to its Constitution and laws, waive its right to exercise jurisdiction and authorize the enforcement of the other Party's law against the vessel, cargo and/or persons on board. The first Party has the right to exercise jurisdiction over aircraft that have landed in its territory and aboard which evidence of illicit traffic has been found.

3. In cases arising in the contiguous zone of a Party, not involving suspect vessels fleeing from the waters of that Party or suspect vessels flying the flag of or registered in that Party, in which both Parties have the authority to exercise jurisdiction to prosecute, the Party which conducts the boarding and search shall have the right to exercise jurisdiction.

4. If the evidence so warrants, the other Party may request that the first Party waive jurisdiction. Instructions as to the exercise of jurisdiction pursuant to this Supplementary Arrangement shall be given without delay.

5. A waiver of jurisdiction may be granted verbally, but as soon as possible, it shall be recorded in a written note from the competent authority and be processed through the diplomatic authorities, without prejudice to the immediate exercise of jurisdiction over the suspect vessel by the other Party.

6. Failure by the first Party to waive jurisdiction shall not be interpreted as authorization for the other Party to assume jurisdiction.

7. In no case shall such authorizations be understood to cover the boarding or inspection of vessels of a flag other than that of the first Party; in such case, the other Party shall proceed in accordance with the rules of international law.

Article XII
Liaison Office

Each Party shall identify to the other Party the Liaison Office and liaison officials responsible for communicating with its national authorities competent to receive and act on notifications under Articles III, IV, VI, VII, XIV and XVI, for processing requests under Article X for verification of registration and the right to fly its flag and authority to board, search and detain suspect vessels, and for instructions as to the exercise of jurisdiction under Article XI, in addition to any other communication necessary for the implementation of this Supplementary Arrangement.

Article XIII
Suspect Vessels and Aircraft

Operations to suppress illicit traffic pursuant to this Supplementary Arrangement shall be carried out only against suspect vessels and aircraft, including vessels and aircraft without nationality.

Article XIV
Notification of Results of Shipboardings and Actions Taken

1. Each Party shall promptly notify the other Party of the results of any boarding and search of the vessels of the other Party conducted pursuant to this Supplementary Arrangement.

2. Each Party, consistent with its laws, shall report in a timely manner to the other Party on the status of all investigations, prosecutions and judicial proceedings resulting from enforcement action taken pursuant to this Supplementary Arrangement where evidence of illicit traffic was found.

Article XV
Conduct of Law Enforcement Officials

1. Each Party shall ensure that its law enforcement officials, when conducting boardings, searches and air intercept activities pursuant to this Supplementary Arrangement, act in accordance with its applicable national laws and policies and with international law and accepted international practices.

2. In particular, while carrying out boarding and search activities pursuant to this Supplementary Arrangement, the Parties shall take due account of the need not to endanger the safety of life at sea, the security of the suspect vessel and its cargo, or to prejudice the commercial and legal interests of the flag State or any other interested State; and shall observe the norms of courtesy, respect and consideration for the persons on board the suspect vessel. While conducting air intercept activities pursuant to this Supplementary Arrangement, the Parties shall not endanger the lives of persons on board and the safety of civil aircraft.

3. Boardings and searches pursuant to this Supplementary Arrangement shall be carried out by law enforcement officials from law enforcement ships or aircraft, or from technical support vessels of a Party or of third States, and, in emergencies and under exceptional circumstances, may be assisted by designated auxiliary personnel from technical support vessels or aircraft of a Party or of third States.

4. When conducting boardings and searches law enforcement officials may carry regulation weapons.

5. Law enforcement vessels of a Party operating with the authorization of the other Party pursuant to this Supplementary Arrangement shall, during such operations, also fly, in the case of the United States of America, the Panamanian flag, and in the case of Panama, the United States Coast Guard ensign.

Article XVI
Identification of Technical Support Vessels and Aircraft

Prior to entry into the territory, waters or airspace of a Party, the law enforcement authority of the other Party shall furnish information on the technical support vessels and aircraft it will need for the conduct of the operations provided for in this Supplementary Arrangement, the type of service and support they will provide, their technical features, and the approximate period of time they will remain within the territory, waters or airspace of the other Party.

Article XVII
Use of Force

1. All uses of force by a Party pursuant to this Supplementary Arrangement shall be in strict accordance with applicable laws and policies of that Party and shall in all cases be the minimum reasonably necessary under the circumstances, except that neither Party shall use force against civil aircraft in flight.

2. Nothing in this Supplementary Arrangement shall impair the exercise of the inherent right of self-defense by law enforcement or other officials of the Parties.

Article XVIII
Exchange and Knowledge of Laws and Policies of the Parties

1. To facilitate implementation of this Supplementary Arrangement, each Party shall ensure that the other Party is fully informed of its respective applicable laws and policies, particularly those pertaining to the use of force.

2. Each Party shall ensure that all of its law enforcement officials acting pursuant to this Supplementary Arrangement are knowledgeable of the applicable laws and policies of both Parties.

Article XIX
Disposition of Seized Property

1. Assets seized in consequence of any operation undertaken pursuant to this Supplementary Arrangement shall be disposed of in accordance with the laws of the Party exercising jurisdiction in accordance with Article XI of this Supplementary Arrangement.

2. To the extent permitted by its laws and upon such terms as it deems appropriate, the seizing Party may, in any case, transfer forfeited assets or proceeds of their sale to the other Party. Each transfer generally will reflect the contribution of the other Party to facilitating or effecting the forfeiture of such assets or proceeds.

Article XX
Technical Assistance

The law enforcement authority of one Party (the “first Party”) may request, and the law enforcement authority of the other Party may authorize, law enforcement officials of the other Party to provide technical assistance, such as specialized assistance in the conduct of search of suspect vessels, to law enforcement officials of the first Party for the boarding and search of suspect vessels located in the territory or waters of the first Party.

Article XXI
Follow-up and Evaluation

1. The Parties shall hold an annual meeting for the purpose of evaluating and following up on the implementation of this Supplementary Arrangement.

2. For the same purpose, either Party may invite, with sufficient advance notice, the other Party to special meetings.

Article XXII
Consultations and Dispute Settlement

1. In case a question arises in connection with implementation of this Supplementary Arrangement, either Party may request consultations with the other Party to resolve the matter.

2. The Parties undertake to settle by consultation any disputes that arise from the implementation of this Supplemental Arrangement.

Article XXIII
Claims

1. Any claim for damages, injury or loss resulting from an operation carried out under this Supplemental Arrangement shall be examined by the Party whose authorities conducted the operation.

2. If responsibility is established, the claim shall be resolved in favor of the claimant by that Party, in accordance with the domestic law of that Party, and in a manner consistent with international law, including paragraph 3 of Article 110 of the Law of the Sea Convention.

3. Neither Party thereby waives any rights it may have under international law to raise a claim with the other Party through diplomatic channels.

Article XXIV
Miscellaneous Provisions

Nothing in this Supplementary Arrangement:

(a) precludes the Parties from otherwise agreeing on operations or other forms of cooperation to suppress illicit traffic;
(b) supersedes any bilateral or multilateral agreement or other cooperative mechanism concluded by the Parties for the suppression of illicit traffic;
(c) is intended to alter the rights and privileges due any individual in any legal proceeding; and
(d) prejudices in any manner the positions of either Party regarding the international law of the sea or legal status of the Gulf of Panama.

Article XXV
Entry into Force

This Supplementary Arrangement shall enter into force upon signature.

Article XXVI
Termination

1. This Supplementary Arrangement may be terminated at any time by either Party upon written notification to the other Party through the diplomatic channel.

2. Such termination shall take effect six months from the date of notification.

Article XXVII
Continuation of Actions Taken

This Supplementary Arrangement shall continue to apply after termination with respect to any administrative or judicial proceedings arising out of actions taken pursuant to this Arrangement.

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Supplementary Arrangement.

DONE AT Panama City, Republic of Panama, this fifth day of February, 2002, in the English and Spanish languages, each text being duly authentic.

FOR THE GOVERNMENT OF THE
UNITED STATES OF AMERICA:
/s/ Frederick A. Becker
Frederick A. Becker
Chargé d‘Affairs a.i.
FOR THE GOVERNMENT OF
THE REPUBLIC OF PANAMA:
/s/ A. Salas
Anibal Salas
Minister of Government and Justice

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