{"id":10480,"date":"2012-06-29T02:53:50","date_gmt":"2012-06-29T02:53:50","guid":{"rendered":"http:\/\/192.168.1.14\/index.php\/2012\/06\/29\/consequences-to-owners-of-breach-of-a-sanction-could-be-extreme\/"},"modified":"2025-09-01T01:21:45","modified_gmt":"2025-08-31T17:21:45","slug":"consequences-to-owners-of-breach-of-a-sanction-could-be-extreme","status":"publish","type":"post","link":"https:\/\/andrewliu.com.hk\/zh\/consequences-to-owners-of-breach-of-a-sanction-could-be-extreme\/","title":{"rendered":"Consequences to owners of breach of a sanction could be extreme"},"content":{"rendered":"<p><span style=\"text-align: justify;\">&nbsp;<\/span><img decoding=\"async\" class=\"size-full wp-image-9071\" src=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2010\/06\/pdf.png\" alt=\"pdf\" width=\"16\" height=\"16\" style=\"padding: 0px; outline: 0px; text-align: justify;\" \/><span style=\"text-align: justify;\">&nbsp;<\/span><a href=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2012\/06\/B250_ALCO20120047-Consequences-to-owners-of-breach-of-a-sanction-could-be-extreme.pdf\" style=\"padding: 0px; border: 0px; outline: 0px; text-align: justify;\">ENG<\/a>&nbsp; &nbsp;<img decoding=\"async\" class=\"size-full wp-image-9071\" src=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2010\/06\/pdf.png\" alt=\"pdf\" width=\"16\" height=\"16\" style=\"padding: 0px; outline: 0px; text-align: justify;\" \/><span style=\"text-align: justify;\">&nbsp;<\/span><a href=\"https:\/\/andrewliu.com.hk\/wp-content\/uploads\/2012\/06\/B250_ALCO20120047-Consequences-to-owners-of-breach-of-a-sanction-could-be-extreme-chi.pdf\" style=\"padding: 0px; border: 0px; outline: 0px; text-align: justify;\">\u4e2d\u6587<\/a><span style=\"text-align: justify;\">&nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">We receive numerous enquiries on sanctions imposed on Iran and Syria. The consequences arising from a breach of sanctions remain uncertain and can be extreme.<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Some of the possible consequences are :<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<ul style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">The vessels belonging to the owner or management could be blacklisted from entering countries.<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">The bank accounts of the owners or managers could be frozen and monies seized.<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">Vessels could be detained indefinitely pending investigations into possible alleged breaches of sanctions.<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">The beneficiary shareholders or owners could be placed on the alert list and banned from entering countries.<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">Vessels could be confiscated by Governments and auctioned.<\/li>\n<\/ul>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">An example of the draconian measures arising from breach of sanctions, is the case of the MV &#8216;Greek Fighter&#8217; which was detained in 2001 by the coast guard of UAE. The vessel was subsequently confiscated and sold at public auction in 2003 as the vessel had contravened the UN sanctions on trade with Iraq.<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">The owners claimed the loss of their vessel from the charterers on the grounds of breach of the following charterparty provisions :<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<ul style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">Lawful cargo warranty<\/li>\n<\/ul>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">The lawful cargo warranty was held in favour of the owners. The warranty was absolute so it made no difference whether or not the owners knew the cargo was contraband.<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<ul style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">Charterers&#8217; indemnity provision<\/li>\n<\/ul>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">The charterparty included a clause which provided that no voyage shall be undertaken nor any cargoes loaded that would expose the vessel to capture, seizure by any governments. There was also the usual implied indemnity against the consequences of owners complying with the charterer&#8217;s orders. In order for the charterer&#8217;s orders to be the subject of an indemnity, the proximate cause of the loss must be identified. It is necessary to consider the distribution of risk between the parties under the time charterparty. If the risk was one that the owners had agreed to bear, they could not now claim an indemnity from the charterers. In other words it is important for the owners to carry out due diligence to check whether the trade and loading of cargo to Iraq may have amounted to a breach of sanctions, otherwise the owners&#8217; lack of action may be considered an intervening act and the illegal voyage tantamount to a risk which the owners had agreed to bear.<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<ul style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">Safe port warranty<\/li>\n<\/ul>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">This ground of claim was not held in favour of the owners. Had the cargo been legitimate, the charterers would not have been in breach of the safe port warranty and as there was no evidence that other vessels had been detained and confiscated in similar circumstances, the port could not have been unsafe.<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">Conclusions :<\/p>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<ol style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding: 0px; border: 0px; outline: 0px;\">The loss and financial consequences to the owner arising from an alleged breach of sanctions could be extreme such as confiscation of the vessel.<\/li>\n<li style=\"padding: 0px; border: 0px; outline: 0px;\">In order for the owner to seek recourse of his loss such as the vessel from the charterer under the indemnity clause in the charterparty, it is important the owner shows that he did not intend to assume the risk of illegal trading the vessel and exercised due diligence to check the voyage was lawful. This exercise is in an event necessary in order for the owners to first obtain confirmation the vessel&#8217;s insurances cover would not be prejudiced when trading to a country subject to sanctions.<\/li>\n<li style=\"padding: 0px; border: 0px; outline: 0px;\">In view the owner&#8217;s vessel may be confiscated, it is important for the owner to ensure the charterer has the financial resources to meet such a claim, when the charterer orders the vessel to countries subject to sanctions.<\/li>\n<\/ol>\n<p><span style=\"text-align: justify;\"><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">See attached file : ALCO20120047 Consequences to owners of breach of a sanction could be extreme.pdf<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">&nbsp;<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\"><span style=\"font-size: 14pt; color: #022469;\"><strong>\u8fdd\u53cd\u5236\u88c1\u53ef\u5bfc\u81f4\u4e25\u91cd\u540e\u679c<\/strong><\/span><\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u5f88\u591a\u5ba2\u6237\u5411\u6211\u4eec\u54a8\u8be2\u4f0a\u6717\u548c\u53d9\u5229\u4e9a\u5236\u88c1\u7684\u76f8\u5173\u95ee\u9898\u3002\u73b0\u5728\u6240\u77e5\u7684\u60c5\u51b5\u662f\uff1a\u8fdd\u53cd\u5236\u88c1\u6240\u5bfc\u81f4\u7684\u540e\u679c\u4ecd\u5177\u6709\u4e0d\u786e\u5b9a\u6027,\u5e76\u4e14\u53ef\u4ee5\u6781\u4e3a\u4e25\u91cd\u3002<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u8239\u4e1c\u6216\u7ba1\u7406\u516c\u53f8\u8fdd\u53cd\u5236\u88c1\u53ef\u80fd\u5bfc\u81f4\u7684\u540e\u679c\u5305\u62ec\uff1a<\/p>\n<ul style=\"border: 0px; outline: 0px; list-style: none; text-align: justify;\">\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">\u8239\u4e1c\u6216\u7ba1\u7406\u516c\u53f8\u65d7\u4e0b\u7684\u6240\u6709\u8239\u8236\u53ef\u80fd\u4f1a\u4e0a\u9ed1\u540d\u5355\uff0c\u88ab\u7981\u6b62\u8fdb\u5165\u67d0\u4e9b\u56fd\u5bb6<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">\u8239\u4e1c\u6216\u7ba1\u7406\u4eba\u7684\u94f6\u884c\u8d26\u6237\u53ef\u80fd\u4f1a\u88ab\u51bb\u7ed3\uff0c\u8d44\u91d1\u88ab\u6263\u7559<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">\u8239\u8236\u53ef\u80fd\u968f\u65f6\u88ab\u6263\u7559\uff0c\u4ee5\u914d\u5408\u5176\u53ef\u80fd\u6d89\u53ca\u8fdd\u53cd\u5236\u88c1\u7684\u8c03\u67e5<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">\u8239\u4e1c\u6216\u80a1\u4e1c\u53ef\u80fd\u4f1a\u88ab\u5217\u5165\u8b66\u544a\u540d\u5355,\u8fdb\u800c\u88ab\u7981\u6b62\u8fdb\u5165\u67d0\u4e9b\u56fd\u5bb6<\/li>\n<li style=\"padding-top: 0px; padding-right: 0px; padding-bottom: 0px; border: 0px; outline: 0px;\">\u8239\u8236\u53ef\u80fd\u88ab\u6709\u5173\u653f\u5e9c\u6ca1\u6536\u5e76\u62cd\u5356<\/li>\n<\/ul>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u76f8\u5173\u7684\u6848\u4f8b\u662f,&#8217;Greek Fighter&#8217;\u8f6e\u8fdd\u53cd\u5236\u88c1\u800c\u88ab\u6ca1\u6536\u30022001\u5e74&#8217;Greek Fighter&#8217;\u53f7\u7531\u4e8e\u6d89\u5acc\u8fdd\u53cd\u6b27\u76df\u5173\u4e8e\u4e0d\u5f97\u4e0e\u4f0a\u62c9\u514b\u8fdb\u884c\u8d38\u6613\u7684\u5236\u88c1\u800c\u88ab\u963f\u62c9\u4f2f\u8054\u5408\u914b\u957f\u56fd\uff08UAE\uff09\u6d77\u5cb8\u8b66\u536b\u961f\u6263\u62bc\u3002\u4e4b\u540e\u88ab\u6ca1\u6536\uff0c\u5e76\u4e8e2003\u5e74\u88ab\u516c\u5f00\u62cd\u5356\u3002<\/p>\n<p style=\"border: 0px; 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outline: 0px;\">\u5982\u679c\u79df\u5bb6\u6307\u4ee4\u8239\u8236\u524d\u5f80\u88ab\u5236\u88c1\u7684\u56fd\u5bb6\uff0c\u8003\u8651\u5230\u8239\u8236\u53ef\u80fd\u88ab\u6ca1\u6536\uff0c\u8239\u4e1c\u9700\u8981\u786e\u4fdd\u79df\u5bb6\u6709\u8db3\u591f\u7684\u7ecf\u6d4e\u80fd\u529b\u6ee1\u8db3\u8239\u4e1c\u76f8\u5173\u7684\u7d22\u8d54\u3002<\/li>\n<\/ol>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u4ee5\u4e0a\u7531 ANDREW LIU &amp; CO.,LTD \u7f16\u8bd1\uff0c\u5e94\u4ee5\u82f1\u6587\u4e3a\u51c6\uff01<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\">\u8be6\u7ec6\u4fe1\u606f\u8bf7\u53c2\u9605\u9644\u4ef6\u3002<\/p>\n<p style=\"border: 0px; outline: 0px; font-size: 12px; text-align: justify;\"><span style=\"font-size: 14pt; color: #022469;\"><strong><br \/><\/strong><\/span><\/p>\n<p><span style=\"text-align: justify;\"><br \/><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>&nbsp;&nbsp;ENG&nbsp; &nbsp;&nbsp;CHN&nbsp;&nbsp; We receive numerous enquiries on sanctions imposed on Iran and Syria. The consequences arising from a breach of sanctions remain uncertain and can be extreme. Some of the possible consequences are : The vessels belonging to the owner or management could be blacklisted from entering countries. The bank accounts of the owners or [&hellip;]<\/p>","protected":false},"author":3,"featured_media":9071,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[125],"class_list":["post-10480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-circulars","tag-english"],"_links":{"self":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/comments?post=10480"}],"version-history":[{"count":1,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10480\/revisions"}],"predecessor-version":[{"id":20354,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/posts\/10480\/revisions\/20354"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/media\/9071"}],"wp:attachment":[{"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/media?parent=10480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/categories?post=10480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/andrewliu.com.hk\/zh\/wp-json\/wp\/v2\/tags?post=10480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}