Flag Shopping Law and Legal Definition

Flag shopping refers to the process of choosing a particular jurisdiction by a ship-owner, in order to register his/her ship. Flag shopping helps a ship-owner in determining crew pay, crew comfort and safety, taxes and ship safety. Flag shopping in the sixties was deemed an avoidance of the law. Today, it is considered to be an evasion of the law, because the flag state has neither control over, nor a genuine link with, the ship-owner.