• After World War II, shipowners began registering their ships in countries such as Panama, Liberia, and Honduras to avoid expensive and restrictive national regulation of labor, safety, and other matters. Since the late 1950s, there has been increasing international pressure to require a “genuine link” between a ship and its flag state, but this reform has been slow in coming. — Abbr. FOC. [Cases: Shipping 2. C.J.S. Shipping § 1.]
flag of convenience
Int’l law. A national flag flown by a ship not because the ship or its crew has an affiliation with the nation, but because the lax controls and modest fees and taxes imposed by that nation have attracted the owner to register it there.
