FLAG OF CONVENIENCE

Flag of Convenience



Flag of Convenience

Introduction

A ship flying the flag of convenience (FOC) is one that flies the flag of a country other than its owner. Flag of convenience is also interpreted as a "genuine link" between the ship owner and the State of which fly its flag is accidental. However, many countries or states do provide a registration system whose controls are minimal, and significant economic benefits for the country of origin. It also tends to be referred as open records or registers. The companies OEMs seeking flags of convenience in order to reduce operating costs and avoid strict regulations for security or tax rates, which otherwise would be required to meet the additional expenditure(Harry 2007,p.13) .

Although, it would be safe to conclude that flag of convenience indicates the ' sign of a nation being hoisted by a ship owned by nationals or companies of another country. Flag of convenience is also known as the open registry which is interpreted as the registry of a ship in a country that allows foreign owners to place their boat under their jurisdiction. Other than the different notions attached to flag of convenience (FOC) it is the requirement under the international law to be registered with any country preferably the country of its origin. However, the flag of convenience (FOC) tends to allow the ship to fly its civil pennant. However, Flag of Convenience (FOC) in this regard tends to have a significant place, although there are many disadvantages and advantages attached to the Flag of Convenience (FOC).

In the context of this paper the light will be thrown upon different aspects of Flag of Convenience (FOC) in order to develop a rather effective and efficient knowledge of the subject.

Discussion

This section of the paper tends to decipher the attached advantages and disadvantages to the flag of convenience (FOC). However, the fact needs to be kept in mind that other than any other preferable notion attached to the flag of convenience (FOC) it tends to be seen as a business practice.

Advantages

As this section will discuss the advantages attached to the flag of convenience (FOC) but those advantage tends to represent the perspective of the owners. The foremost advantage posted by the flag of convenience (FOC) is that it tends to provide employment to the citizens of the country which the owner has opted to fly with the flag. Many merchants tend to employ the crew of a country who otherwise would not have the opportunity to get the employment (Wayne 2012, p.284). Thus, it is used to enhance the trade with those countries which tends to have a lower employment rate and isles developed.

There are various advantages attached to flag of convenience (FOC) as most of them tend to be related to financial advantages. As indicated above in the course of this paper that flag of convenience (FOC) tends to serve the owners with the tax avoidance. The nature of the international law is such that it tends to bind the ...