ps to their register by virtue of low fees, low or
nonexistent taxation of profits, and liberal manning requirements. True FOC
registers are characterized by having relatively few of the ships registered
actually owned in the flag state. Thus, while virtually any flag can be used
for ships under a given set of circumstances, an FOC register is one where
the majority of the merchant fleet is owned abroad.
It is also referred to as an open register.

Flag state - The nation in which a ship is registered and which holds legal
jurisdiction over operation of the ship, whether at home or abroad.
Differences in flag state maritime legislation determine how a ship is manned
and taxed and whether a foreign-owned ship may be placed on the register.

Internal register - A register of ships maintained as a subset of a national
register. Ships on the internal register fly the national flag and have that
nationality but are subject to a separate set of maritime rules from those on
the main national register. These differences usually include lower taxation
of profits, manning by foreign nationals, and, usually, ownership outside the
flag state (when it functions as an FOC register). The Norwegian International
Ship Register and Danish International Ship Register are the most notable
examples of an internal register.
Both have been instrumental in stemming flight from the national flag to
flags of convenience and in attracting foreign-owned ships to the Norwegian
and Danish flags.

Merchant ship - A vessel that carries goods against payment of freight;
commonly used to denote any nonmilitary ship but accurately restricted to
commercial vessels only.

Register - The record of a ship's ownership and nationality as listed with
the maritime authorities of a country; also, the compendium of such individual
ships' registrations. Registration of a ship provides it with a nationality
and makes it subject to the laws of the country in which registered (the flag
state) regardless of the nationality of the ship's ultimate owner.

Money figures: All are expressed in contemporaneous US dollars unless
otherwise indicated.

Net migration rate: The balance between the number of persons entering and
leaving a country during the year per 1,000 persons (based on midyear
population). An excess of persons entering the country is referred to as net
immigration (3.56 migrants/1,000 population); an excess of persons leaving the
country as net emigration