"Convenient flag" ship: essence and causes of appearance
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 11, Issue
Abstract
Introduction. The existence in the world of the practice of using «convenient flags» not only distorts the real picture of international shipping, but also leads to losses for some countries and for the enrichment of others. At the same time, those countries that «trade» with their flag are enriched, in fact, firstly, without fulfilling the conditions of a real connection between them and the courts; secondly, not fulfilling, in relation to international maritime law, any obligations imposed on them by conventions and treaties. Other countries suffer losses. All of the above determines the relevance of research on the existence of «flags of conve-nience», their application and regulation. Purpose. The purpose of the article is to examine the nature and reason for the emergence of the practice of using «flags of convenience». Results. The «flag of convenience» is the flag of a country that allows the registration of vessels on its territory under foreign control in conditions that are convenient and favorable for those registering a vessel for certain reasons. Today, the term «flag of convenience» is a consumer term for flags registered in public registries. Open registries are countries that, as a rule, «do not conduct maritime trade», but create open registries for ships simply as a source of income. Conclusion The emergence of «flags of convenience» and, as a result, the emergence of the possibility of open registration for the courts, was dictated, firstly, by political circumstances, and secondly, by economic considerations. Today, under the conditions of the principle of freedom of the high seas, «flags of convenience» help shipowners to solve the problems of rising operating costs, as well as costs associated with hiring a crew, etc., and states - to fill the budget, receiving income in the form of taxes and registration fees. The modern «convenient flag», although it provides the maximum economic benefits to the shipowner, still provides the minimum level of protection for the flag as a whole.
Authors and Affiliations
Vitalii Valentynovych Honcharenko
Keywords
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