Vessels sailing under the Wales Country Flag are required to have on board this flag as part of flag state requirements that derive from maritime regulations in the International Code of Signals and the International Safety Management (ISM) Code. These codes are published by the International Maritime Organization (IMO) as an ongoing effort to reinforce maritime safety procedures and communications to the international maritime community. Fleet management companies and ship owners are responsible to ensure that each vessel in their respective fleets have the appropriate flag signage onboard to be in compliance. This flag is used to identify the flag state a vessel is sailing under and to communicate with other vessels under the provisions of the International Code of Signals.

The Wales Country Flag is represented as a red dragon emblazoned over a green and white background. The background is green on the bottom and white on top. The red dragon reaches back into antiquity in welsh lore, being considered by some as the oldest flag emblem in use. It may represent ancient warriors. The green and white backgrounds were medieval additions likely depicting rolling hills of grass and white sky. This design of the Wales Country Flag was officially recognized in 1959.