(1) Every Nepalese ship registered in the Nepal Shipping Office shall have the right and duty to use the flag of commercial ships of Nepal.
(2) Such a flag shall be hoisted on the flag staff or after mast on the rear part (stern) of the ship.
(3) According to this Act, Nepali ships which have the duty to use the flag of commercial ships of Nepal shall not use any flag other than the flag provided as a symbol of nationality.