CHAPTER V (DUTIES)
Article 30. Any party seeking benefits under this Law has the following duties:
Actually make the investment in the proposed tourist activities, as shown on its application, and maintain such an investment throughout the period stipulated in this Law.
Start the construction, remodeling, refurbishing, or restoration of the real property for the proposed tourist activities within a period of not more than six (6) months counted as of the date of registration in the National Tourism Registry, unless a longer period is required because of the nature of the tourist activity, as determined by IPAT.
Start rendering tourist services within a period of not more than three (3) years counted as of the date of registration, unless a longer period is required because of the nature of the tourist activity, as determined by IPAT.
Conduct tourist activities according to the regulations issued by IPAT.
Keep an accurate record of the exonerated items available for the competent officials of the Ministry of Finance and Treasury, the Ministry of Commerce and Industries, and IPAT.
Post a performance bond in the name of IPAT and the Office of the Comptroller General of the Republic, in an amount equivalent to one per cent (1%) of the amount invested. In no case may this bond be in excess of three hundred thousand dollars (US$300,000.00).
Comply with the ratio established in the Labor Code for hiring Panamanian citizens, except for the experts and skilled technicians deemed necessary, for which authorization by the competent Panamanian authorities is required.
Provide technical training to Panamanian citizens and maintain scholarships to train them abroad, if such training is not available at local industrial establishments or
schools.
Waive all rights to file claims through diplomatic channels in the event of differences or conflicts with the Republic of Panama. Submit said diff erences to the jurisdiction of Panamanian tribunals.
CHAPTER VI ( PENALTIES)
Article 31. Noncompliance with the duties described in Article 30 of this Law shall cause the revocation of the registration and forfeiture of the bond, unless it is proven that this noncompliance was due to force major or a fortuitous event. The revocation of a registration in the National Tourism Registry may be ordered by ordered by means of a resolution issued by the Board of Directors of IPAT, as notified to the concerned party. Nonetheless, any parties that consider themselves affected may file and appeal with the same authority for reconsideration. The period to make this appeal is of five (5) working days counted as of the notice of the resolution revoking
the registration.
Article 32. Any items imported under this Law may not be sold or transferred without first paying the corresponding taxes or assessments, calculated on the basis of the value of the property at the time of its sale or transfer. The sale or transfer of imported items between the companies covered by the provisions of this Law only requires the approval of the Ministry of Finance and Treasury (Ministerio de Hacienda y Tesoro). Except as provided in this article, any person importing items exonerated under this Law, and selling, leasing, transferring, disposing of or otherwise giving them a use other than that for which the exoneration was granted shall be punished with a
fine equivalent to three times the amount of the import duty due at the time of the sale, lease, transfer, or disposal of the items. Article 33. Violators of the provisions of this Law shall be punished with a fine equivalent to five (5) times the amount of the benefit claimed, and the revocation of any benefit to which they had been entitled, in addition to any other penalties under the Law.
