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23 Vand. J. Transnat'l L. 1017 (1990-1991)
Re-evaluating the Status of Flags of Convenience under International Law

handle is hein.journals/vantl23 and id is 1029 raw text is: NOTES Re-evaluating the Status of Flags of Convenience Under International Law ABSTRACT This Note re-examines the role and status offlags of convenience in the international shipping arena. The author argues that universal condem- nation of flags of convenience or open ship registration is unwarranted from legal and factual standpoints. The Note first examines the signifi- cance of ship nationality as a means of regulating conduct on ships when at sea or in foreign ports. This analysis leads into an examination of the methods states use to ascribe nationality to vessels. The author then ana- lyzes attempts to impose genuine link requirements in several conven- tions and questions whether such requirements are legitimate under cus- tomary international law. The Note then characterizes the various registration requirements of selected nationalist and open registry states. The Note next examines the economic benefits to shipowners with aflag of convenience. To attract business, flag of convenience states impose lit- tle or no taxes, allow for drastically reduced labor costs, and do not impose the strict safety standards as do closed registry states. The Note then analyzes policy reasons against flags of convenience. Commentators have criticized open registries for being slow in enforcing interniational agreements aimed to protect whales, prohibit pirate radio broadcasts, and restrict narcotics smuggling. Labor and environmental concerns have opposed flags of convenience because these nations have been lax in imposing the social benefits for the crews and the safety regulations for the ships that industrialized societies require. Several open registry states, however, recently have taken great strides to alleviate these criti- cisms. The author concludes that, in light of these strides, the poor repu- tation of flags of convenience has become outdated and unrealistic.