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1. In respect of international shipping, Member States shall apply in full the mandatory flag State-related provisions laid down in the Conventions in accordance with the conditions laid down, and in respect of the ships referred to, therein.

2. Member States shall take all necessary measures to ensure compliance with international rules, regulations and standards under the Conventions by ships entitled to fly their flag, including the following:

(a) ensuring that a surveyor employed by a recognised organisation may perform the same tasks as flag State surveyors when authorised to do so by the competent authority of the Member State; and (b) carrying out flag State inspections to verify that the actual condition of the ship is in conformity with the certificates that it carries. The flag State inspections referred to in point (b) of the first subparagraph may be carried out using a risk-based approach, which shall include the following criteria:

(i) records of deficiencies and non-conformities from statutory surveys, audits and verifications performed by the flag State;

(ii) relevant accident investigation reports;

(iii) detentions or prohibition of operation notices issued by a port State control authority;

(iv) exceeding a port State control deficiency ratio established by each Member State;

(v) records of deficiencies from flag State inspections carried out in accordance with national legislation as deemed appropriate by each Member State;

(vi) other relevant information considered to be necessary by the Member State. Member States using a risk-based approach shall ensure that ships in respect of which no sufficient data is available for the calculation of the risk rating are inspected at least once every 5 years.

Member States not using a risk-based approach shall carry out flag State inspections using their own procedures, instructions and relevant information in compliance with the III Code. They shall ensure that every ship is inspected at least once every 5 years.

3. Member States shall ensure that any deficiencies requiring corrective measures, including safety, social and environmental concerns, confirmed or revealed by a flag State inspection carried out in accordance with paragraph 2, point (b) are rectified within an appropriate timeframe, to be determined by the flag State.

4. On completion of a flag State inspection, the flag State inspector shall draw up a report setting out its outcomes.