al register offering
registration to a merchant ship not owned in the flag state. The major
flags of convenience (FOC) attract ships to their registers 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 registered ships 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.
A flag state is the nation in which a ship is registered and which
holds legal jurisdiction over operation of the ship, whether at home
or abroad. Maritime legislation of the flag state determines how a
ship is crewed and taxed and whether a foreign-owned ship may be
placed on the register.
An internal register is 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, use of foreign
nationals as crew members, 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.
A merchant ship is a vessel that carries goods against payment of
freight; it is commonly used to denote any nonmilitary ship but
accurately restricted to commercial vessels only.
A register is the record of a ship's ownership and nationality as
listed with the maritime authorities of a country; also, it is 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.
Military: This category includes the entries dealing with a country's
military structure, manpower, and expenditures.
Military branches: This entry lists the names of the ground, naval,
air, marine, and other defense or security forces.
Military expe
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