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Legal Terms - flag of convenience (FOC)
The national flag of a state shown by a vessel registered in that state but owned by a citizen of a different state. A jurisdiction permitting this practice can confer nationality and the right to display its national flag to nearly any vessel in exchange for cash compensation. For shipowners, flags of convenience offer a method to evade elevated fees and more rigorous safety and environmental laws in the nation of ownership. Refer to flag state jurisdiction.
The national flag of a state shown by a vessel registered in that state but owned by a citizen of a different state. A jurisdiction permitting this practice can confer nationality and the right to display its national flag to nearly any vessel in exchange for cash compensation. For shipowners, flags of convenience offer a method to evade elevated fees and more rigorous safety and environmental laws in the nation of ownership. Refer to flag state jurisdiction.
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