Political Governments have few restrictions on the cruise line industry but still have an impact on travel restrictions, taxation, entertainment and franchising laws. All governments that cruise lines travel to have different regulations when it comes to tourism and customs. While ships are in open waters there is no sales tax due to the loop hole in the US tax code. Within jurisdiction of the coast of any country the cruise ship must comply with all entertainment and alcohol regulations of the host country. U.S. based companies still have to follow the regulations by the Federal Trade Commission.