The flag State jurisdiction is exercised on the basis of the nationality of a ship. Thus, the nationality of a ship is of central importance in order to establish the juridical link between a State and a ship flying its flag. Under international law, each State is entitled to determine conditions for the grant of its nationality to ships. In the M/V ‘Saiga’ case, ITLOS ruled:
Determination of the criteria and establishment of the procedures for granting and withdrawing nationality to ships are matters within the exclusive jurisdiction of the flag State. the meaning of The Nationality of a Ship and flag states on the law of the sea and customary international law, flag State jurisdiction, flag states, Grand Prince case, ITLOS, LOSC, Nationality of a Ship, Tomimaru case, UN Convention on Conditions for Registration of Ships