Differences Of Cost Accounting And The Advantage

Background[ edit ] Open registries have been criticised, mainly by trade union organisations based in developed countries, especially those in the European Union, United States, Japan, Canada, or the United Kingdom.

One criticism is that shipowners who want to hide their ownership may select a flag-of-convenience jurisdiction which enables them link be legally anonymous. Some ships with flags of convenience have been found engaging in crime, offering substandard working conditions, and negatively impacting the environment, primarily through illegal, unreported and unregulated fishing. Prior to the implementation of the International Convention on Tonnage Measurement of Ships,shipowners may have selected a jurisdiction with measurement rules that reduced the certified gross register tonnage of a ship, to reduce subsequent port of call dock dues.

Weddings at sea are described as a lucrative market. On the other hand, maritime industry practitioners and seafarers from other countries contend that this is a natural product of globalisation.

Supporters of the practice, however, point to economic and regulatory advantages, and increased freedom in choosing employees from an international labour pool. Ship owners from developed countries use the practice to be competitive in a global environment.

The organization which actually registers the ship is known as its registry. Registries may be governmental or private agencies. Reasons for adopting a flag of convenience[ edit ] The reasons for choosing an open register are varied and include tax avoidance[11] the ability to avoid national labor and environmental regulations, [11] [12] and the ability to hire crews from lower-wage countries.

Conversely, open registries frequently offer on-line registration with few questions asked. The environmental disaster caused by the sinking of the MV Amoco Cadizwhich flew the Liberian flag, spurred the creation of a new type of maritime enforcement. In addition to shipboard living and working conditions, these inspections cover items concerning the safety of life at sea and the prevention of pollution by ships. The use of false flags was frequently used as a ruse de guerre by the British during the Napoleonic Wars and the United States during the War of ]

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