Page 32 - Layout 1

From the Brig

By ISSA’s legal expert Bruce Hailey

Iranian Sanctions

T
he recent lifting of some reject anything with Iranian connections. be rejected and the supplier should

sanctions related to Iran has Consequently, even a transaction taking re-state its own terms (preferably
created considerable interest in place on the other side of the world in a including the ISSA Conditions of Sale)

the shipping industry. However, it is still non US dollar currency may be rejected and seek conirmation that any supply
necessary to be cautious. While it is true by the bank out of fear it would lead to a will be on such terms. Attention should

many of the sanctions imposed by the breach of the US sanctions.be paid to invoicing instructions, and
EU and the US have been lifted, there There also remain dificulties for requirements for original documents.

remain in place signiicant US sanctions companies within Iran to make payments Where possible, requests for original
which mean that a large scale return to out of the country, again due to a documents should be rejected and it

trade with Iran is still some way off.reluctance of many banks to deal with should be made clear that payment/
The US primary sanctions continue Iranian banks.credit terms run from the delivery date,

in force and, among other things, It will be a while longer before trade not the date that original documents
with Iran can be safely and smoothly arrive with the purchaser.
prevent US clearing banks from
processing any payments that are linked undertaken. In the meantime, enquiries

to Iranian transactions. This prevents all should be made with your bankers to Competition
US dollar payments with a connection to ensure payments can safely be received Sometimes all you can do is laugh

Iran, even if the transactions themselves from your counter-party.at an excuse offered by an owner as
are not in breach of sanctions.their reason not to pay – if you didn’t

While these primary sanctions do Purchase Ordersyou would cry. Salvus Law is running a
not directly prevent banks outside the Suppliers are urged to carefully competition to ind the most amusing

US from processing transactions in other consider the terms of purchase orders, excuse or apology for delayed payment.
currencies, the reality is that most banks and ensure they contain no provisions Please submit your nominations (bh@

are paralysed by fear that they may that may be prejudicial or contrary to salvuslaw.com) and the best will be
unwittingly breach the US sanctions and the original offer/quotation. If they do, reported in our next column, with a prize

face huge ines. As such, they tend tothe terms of the purchase order shouldfor our favourite. u

30 | The Ship Supplier | Issue 68 2016