The American P&I Club has issued a guidance entitled Economic Sanctions – Compliance Guidance, providing information on sanctions related matters and general industry-related information published by US, EU and other authorities.
In recent years, sanctions legislation has become increasingly more complex and has had a significant effect upon the shipping industry. Sanctions have had a major impact not only on shipping operations but also through financial institutions and insurance companies serving the shipping industry, including on P&I clubs worldwide.
Generally, both the sanctions laws of the US and EU (or other countries), to one degree or another, prohibit:
- trade and transactions with or involving certain countries or designated persons (i.e., blacklisted individuals and entities);
- the supply, exportation of certain goods, services and technology to certain countries or persons;
- certain imports or imports from certain countries or persons; and/or
- support for certain activity in the country or for the person that is a target of economic sanctions
Sanctions prohibitions may be implicated based on the main elements of information related to maritime transportation and a particular cargo shipment transaction. These elements traditionally include the following:
- The country(ies) involved in the trade of vessels/origin and destination of cargo;
- The nature of or type of cargo being transported;
- The identity and domicile of the cargo shippers and receivers (end-user);
- The identity and domicile of the charterer and/or any subcharterers;
- The identity and domicile of other parties involved in the transportation;
- The load port(s) and/or the discharge port(s), involved, including the identities of terminal operators there;
- The identity and domicile of any banks involved in connection with any relevant bank guaranties, letters of credit for the cargo in question, etc.; and
- The purpose for which the cargo will be used once delivered.
Learn more by clicking at the guide herebelow
Source: The American P&I Club