The reflagging process was initially formalized by the U.S. Coast Guard with the printing of Navigation and Vessel Inspection Circular Number 10–81 (NVIC 10–81) issued October 5, 1981. Since that time, U.S. Coast Guard regulations have changed, and an economic downturn coupled with a surplus of cargo vessels worldwide has made purchase of existing vessels an attractive alternative to new construction. This has been especially true for our recent buildup of the Ready Reserve Fleet. These facts, in addition to the short turnaround time inherent in the technical review and inspection of a reflagging, caused the Coast Guard to update its reflagging guidance by issuing change one to NVIC 10–81 (NVIC 10–81, CH-1) on June 5, 1985. In the future, as more international standards are accepted and incorporated into the regulations, updated guidance for reflagging will again be necessary. Whatever form this guidance takes, it must remain flexible.