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flag of convenience
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flag of convenience

National flag flown by a ship that has registered in that country in order to avoid legal or tax commitments (also known as offshore registry). Flags of convenience are common in the merchant fleets of Liberia and Panama; ships registered in these countries avoid legislation governing, for example, employment of sailors and minimum rates of pay.

In 1995 75 million gross tonnes of shipping was registered in Panama, making it the world's largest merchant fleet. Ships registered under flags of convenience accounted in 1993 for 34% of the world's fleet but 60% of all maritime accidents.
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