Fionna Gavin Joint Head of Insurance, Partner
BIMCO Sanctions Clauses for Time and Voyage Charter Parties 2020
The intention behind the new clauses is to replace the Sanctions Clause for Time Charter Parties 2010 and the Designated Entities Clause for Charter Parties 2013, by combining them into the new single time charter clause.
There are of course some changes, the most significant of which is that the new BIMCO sanctions clauses may result in either owners or charterers respectively becoming entitled to terminate due to the involvement of a sanctioned party (which would include those entities that are subject only to limited sectoral sanctions), even if the involvement of that sanctioned party would not render the trade unlawful. Caution must, therefore, be exercised against inserting the new BIMCO sanctions clauses into charters without first considering whether any revisions need to be made to reflect the individual trade.
BIMCO has provided explanatory notes on the clauses but, to the extent that you have any particular queries regarding the operation of these or other sanctions clauses, you are advised to seek appropriate advice.
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