Business Ethic - Flag of convenience Coursework

Business Ethic - Flag of convenience - Coursework Example matters over ships flying its flag.† Prevented by the odium linked with flags of convenience, several new shipping registries have placed themselves up as tax havens, more suitably pertained to asquasi-flag of convenience registries that is provided with firm maritime laws and the administrative machinery to enforce and implement them. There are three foundations when it comes to. The first one is that the ship registration conveys nationality to a ship and carries it within the command of the national law of the country of registration. Article 6 of the Convention of the High Seas (1958) particularly indicates that ships shall sail under the flag o one country solely and shall be subject to that flags special jurisdiction. Another is that a ship should also comply with international laws embodied in conventions that have been approved by the flag state and that is enforced. Apart from this, a ship could also be subject to the laws imposed by a country in whose territorial waters or port it is at present functioning. However the "law of the flag" often has supremacy over the "law of the port of call." Since the country of registry together with the law of the flag primarily influence ship operating economics, the option of register is critical to ship-owners. Ship registries could be divided into two broad categories: closed and open registers. Closed registers limit flagging only to nationals, such that a German would not be able to register his ships under the Russian flag. On the contrary, open registers are available to any ship-owner in spite of nationality. For instance, the United Kingdom is considered as an open register in that an American shipowner could register his vessels in the name of the British flag. Amongst open registries, there are national registers which deal with shipping companies in fundamentally the similar manner as any other business in the country. It is also noted that there are international registers which have been particularly