The Tokyo MOU is to change the method of calculation of performance of flag State (flag) and
Recognized Organization (RO), which are produced in the Annual Report and used to identify ship
risk profile based on New Inspection Regime (NIR), as follows.

1. New calculation method of flag and RO performance
   Performance of flag or RO is to be determined by comparing the detention rate of each flag or RO
   with the regional average detention rate as shown below:

• Flag or RO whose detention rate is smaller than the regional average detention rate is
  ‘high’;
• Flag or RO whose detention rate is greater than or equal to the regional detention rate and
  less than twice of the regional average detention rate is ‘medium’; or
• Flag or RO whose detention rate is greater than or equal to twice of the regional average
  detention rate is ‘low’.
  

Period of using data for calculating the detention rate of flag or RO and the region is the latest threecalendar-year, except for, in relation to detention rate of RO and that of the region used for calculation of the RO performance, the first year when using the data from 1 January to 31 December 2027 and the second year when using the data from 1 January 2027 to 31 December 2028.
Only one detention is counted for each flag or RO irrespective the number of detainable deficiencies related to the flag or RO for an inspection.

For smaller fleet flag or RO which number of inspections during the period of using data is less than number of critical inspections that is ‘100/the regional average detention rate‘, its performance is as follows:

• Flag or RO who has no detention during the period is ‘high’;
• Flag or RO who has one detention during the period is ‘medium’; or
• Flag or RO who had more than one detention during the period is ‘low’.

2. Related RO
   ‘Related RO’ is to be used for calculation of RO performance instead of ‘responsible RO’.
   When a detainable deficiency is related to a statutory certificate and the latest issuing or endorsing
   of the certificate was carried out by an RO, the RO is identified as the related RO. In this regard, a
   statutory certificate related to a detainable deficiency is identified by using the ‘Background table’.
   Note: ’Background table’ is published on the Website of the Tokyo MOU. (Background Table for RO
   Relation – Tokyo MOU)
   Data on ‘responsible RO’ is continued to be collected for internal use of the Tokyo MOU.
3. Timeline of changing the method
   There are two milestones of the changing the method of calculation of flag and Ro performance as
   follows.
   Collection of data for new method
   Collection of data on RO relation starts on 1 January 2027. For initial inspections carried out on or
   after 1 January 2027, when a detainable deficiency is issued, PSCO selects a statutory certificate
   related to the detainable deficiency. In this regard, ‘Background table’ is used to select the related
   statutory certificate. Collection of data of flag remains the same as before.

Apply new flag and RO performance for selection of ships for inspection (NIR) Using data collected, flag and RO performance is calculated and published on Annual Report of the Toyo MOU on approximately 1 May each year, and apply them for calculation of ship risk profile based on NIR on or after 1 July of the year.
For the first case, that is implementing the new calculation method for flag and RO performance of the year 2027, procedure is taken as follows:

• Calculation of the flag and RO performance of the year 2027 using the data from 1 January 2025 to 31 December 2027 for flag and 1 January to 31 December 2027 for RO;
• Publication of the flag and RO performance on the Annual Report of the Tokyo MOU on approximately 1 May 2028; and
• Application of them for selection of ships based on NIR on 1 July 2028 or after.