4 ms·

> most [cruise ships] are registered under flags of convenience for tax purposes I wonder why countries allow this. For example, by withholding (dis)embarkati

by jzwinck 12y ago

> most [cruise ships] are registered under flags of convenience for tax purposes I wonder why countries allow this. For example, by withholding (dis)embarkation services from vessels known to be flouting the local tax system. It's one thing to travel around the world on a ship registered in Panama. It's another to book a one-night hotel stay on a ship which never leaves radio distance of your home, yet claims no tie to your country.

lwhalen 12y ago
I would wager it's because they have much bigger things to worry about than a (comparatively) small population of well-heeled folks who want to go get drunk, gamble, and get laid for a night or two. If it ever becomes a Problem(tm) such that the state feels like they're losing significant sums of revenue, I'd wager there would be a crackdown.
erehweb 12y ago
See the Jones act http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 which forbids this. Means that cruise ships can't go from one U.S. port to another. http://www.cruiselawnews.com/2011/09/articles/flags-of-convenience-1/why-cant-you-cruise-from-one-us-port-to-another-us-port/ http://www.cruiselawnews.com/2011/09/articles/flags-of-conve...
- Dylan16807 12y ago
  foreign cruise ships
  - erehweb 12y ago
    Yes, non-U.S.-flagged, which is almost all cruise ships.
    - Dylan16807 12y ago
      It may be a majority but that's only for tax reasons. A lot more ships would be locally-flagged if they weren't using it as a loophole.
- jmillikin 12y ago
  The Jones act is for cargo. The equivalent for passenger ships (including cruise liners) is the Passenger Vessel Services Act[1], and it has a number of exemptions carved out for popular cruise routes. For example, http://cruise.expedia.com/Itinerary5.aspx?item=849031 http://cruise.expedia.com/Itinerary5.aspx?item=849031 is a foreign-built foreign-flagged ship that departs from San Francisco, docks in Los Angeles, and has a final destination of Miami. This is permitted because the itinerary includes a port outside of North America. Plus, the PSVA is implemented as a monetary fine. There are cruise lines that will let passengers violate PSVA for an additional fee. [1] https://en.wikipedia.org/wiki/Passenger_Vessel_Services_Act_of_1886 https://en.wikipedia.org/wiki/Passenger_Vessel_Services_Act_...
gambiting 12y ago
I used to live 30km(18 miles) away from a border with another EU country - I could get in my car and within half an hour be in a completely different country, where gambling, prostitution and drugs(to an extent) were legal(but they are not in mine). Because of the Schoengen zone there are no passport checks, getting across the border to a casino or a brothel was no more difficult than going to a supermarket. No tax paid in my home country either. I see those ships in the same way.

by jzwinck 12y ago

lwhalen 12y ago

I would wager it's because they have much bigger things to worry about than a (comparatively) small population of well-heeled folks who want to go get drunk, gamble, and get laid for a night or two. If it ever becomes a Problem(tm) such that the state feels like they're losing significant sums of revenue, I'd wager there would be a crackdown.

erehweb 12y ago

See the Jones act http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920 which forbids this. Means that cruise ships can't go from one U.S. port to another. http://www.cruiselawnews.com/2011/09/articles/flags-of-convenience-1/why-cant-you-cruise-from-one-us-port-to-another-us-port/ http://www.cruiselawnews.com/2011/09/articles/flags-of-conve...

Dylan16807 12y ago
foreign cruise ships
- erehweb 12y ago
  Yes, non-U.S.-flagged, which is almost all cruise ships.
  - Dylan16807 12y ago
    It may be a majority but that's only for tax reasons. A lot more ships would be locally-flagged if they weren't using it as a loophole.
jmillikin 12y ago
The Jones act is for cargo. The equivalent for passenger ships (including cruise liners) is the Passenger Vessel Services Act[1], and it has a number of exemptions carved out for popular cruise routes. For example, http://cruise.expedia.com/Itinerary5.aspx?item=849031 http://cruise.expedia.com/Itinerary5.aspx?item=849031 is a foreign-built foreign-flagged ship that departs from San Francisco, docks in Los Angeles, and has a final destination of Miami. This is permitted because the itinerary includes a port outside of North America. Plus, the PSVA is implemented as a monetary fine. There are cruise lines that will let passengers violate PSVA for an additional fee. [1] https://en.wikipedia.org/wiki/Passenger_Vessel_Services_Act_of_1886 https://en.wikipedia.org/wiki/Passenger_Vessel_Services_Act_...

gambiting 12y ago

I used to live 30km(18 miles) away from a border with another EU country - I could get in my car and within half an hour be in a completely different country, where gambling, prostitution and drugs(to an extent) were legal(but they are not in mine). Because of the Schoengen zone there are no passport checks, getting across the border to a casino or a brothel was no more difficult than going to a supermarket. No tax paid in my home country either. I see those ships in the same way.