FLAG OF CONVENIENCE (FOC)
FLAG OF CONVENIENCE:-
It is also known as "flag of necessity", "open registers" and "free flags". FOCs are designated by the ITF's 'fair practice committee' which decides which flags are FOCs and which are not. The criteria which makes a FOC are --
1) Whether the country allows non citizens to own and control vessels.
2) Whether access to and transfer from the registry is easy.
3) Whether taxes on shipping income are low r non existent.
4) Whether the country of registration does not need the shipping tonnage for its own purposes but is keen to
earn the tonnage fees.
5) Whether manning by non-nationals is freely permitted.
6) Whether country lacks the power (or the willingness) to impose national or international regulations on the
ship owner using its flag.
In defining an FOC register, the ITF takes as the most important factor whether the nationality of the ship owner is the same as the nationality of the flag.
It is also known as "flag of necessity", "open registers" and "free flags". FOCs are designated by the ITF's 'fair practice committee' which decides which flags are FOCs and which are not. The criteria which makes a FOC are --
1) Whether the country allows non citizens to own and control vessels.
2) Whether access to and transfer from the registry is easy.
3) Whether taxes on shipping income are low r non existent.
4) Whether the country of registration does not need the shipping tonnage for its own purposes but is keen to
earn the tonnage fees.
5) Whether manning by non-nationals is freely permitted.
6) Whether country lacks the power (or the willingness) to impose national or international regulations on the
ship owner using its flag.
In defining an FOC register, the ITF takes as the most important factor whether the nationality of the ship owner is the same as the nationality of the flag.
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