Why do cruise ships not registered in the US?

Many people point to U.S. tax avoidance because ships are flagged in foreign countries. While being foreign-flagged doesn't hurt, the tax benefits — especially federal income taxes — seem to be a big reason cruise companies are incorporated in foreign nations instead of the United States.



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The simple answer to this question is because there is a 1830s law on the books that states that foreign-flagged ships are not supposed to transport passengers from one U.S. port to another without stopping in a foreign country.

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Immigration officials will often come onboard cruise ships to check documentation and the process of keeping the passports centrally makes it much easier and faster for the cruise line and passengers.

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CRIME: The Bahamas has a high crime rate . . . the U.S. Embassy has received reports of assaults, including sexual assaults, in diverse areas such as in casinos, outside hotels, or on cruise ships. In several incidents the victim had reportedly been drugged.

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