Flagging out

07.07.2013 12:55

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Flagging out

1) Concept whereby UK road haulage firms set up base in another EU member state from which to operate their vehicles to avoid the UK’s exceptionally high rates of VED and duty on diesel fuel.

In shipping, it is the practice of registering under a ‘flag of convenience’ (eg Panama or Liberia) largely to escape the high standards of safety, hygiene, etc imposed by the home country. See FOC.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.96 (288 p.)


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