The UN has issued a notice confirming its position on goods in transit approved under its oil-for-food programme for Iraq. The notice relates to export sales scheduled to be paid for by letters of credit (L/Cs) opened with the New York branch of BNP Paribas and arranged prior to the latest Iraqi conflict.

There has been some confusion over the future of these transactions (DCWorld 30 April 2003), and some suppliers have found it necessary to renegotiate terms on L/Cs attached to sales made under the oil-for-food programme.

Extension

A UN document published 26 August 2003 entitled Notice to Suppliers and Permanent Missions draws attention to a table of goods in transit as at 18 August 2003. This document details all confirmed transit cases registered by the UN's Office of the Iraq Programme (OIP) as of 25 July 2003.

The document points out that the UN has extended its deadline for goods eligible for consideration as in transit from 17 March 2003 to 28 March 2003. Suppliers that had shipped goods to Iraq on or before 28 March 2003 and that are not included on the table of goods in transit should notify OIP by contacting the email address cpmd-desk@un.org.

No appeals

But while there may be opportunities for supplies to be considered goods in transit if they have not yet been presented for consideration by the OIP, the UN office is making it quite clear that it does not want to be lobbied by suppliers of goods it has already deemed ineligible for consideration.

"Suppliers that have been in communication with OIP and advised that they are not eligible for consideration as a transit case should not make further contact with OIP," the document states.

Prioritisation

The UN says it is continuing the process of prioritisation whereby it, in conjunction with the Coalition Provisional Authority (CPA), reviews all approved and funded contracts to determine their relative utility and to select appropriate priorities.

The prioritisation process has come under some criticism from those who believe the CPA - the US and British occupying forces currently administrating Iraq - should not be allowed to interfere with UN decision-making.

Evolving list

The UN says it has now reviewed and prioritised a total of 2,575 contracts made under the oil-for-food programme but notes that it has not completed this process.

The document states the list is not final and will be periodically updated as additional contracts are reviewed and added to the list.

L/C amendments

Once contracts are included in the list of confirmed priorities, the relevant UN agencies and programmes will contact suppliers to negotiate necessary amendments and determine delivery schedules.

If necessary, arrangements will be made for issuance or extension of L/Cs. There is no need for individual suppliers to request issuance of L/Cs or their extension, as this will be done automatically when amendments are processed according to the document.

Contacts with suppliers and subsequent amendment negotiations by the UN will be carried out on a "first-come-first-served" basis, depending on the order in which the contracts have been prioritised.

Further details

Suppliers and permanent missions requiring the latest information on goods in transit should consult the OIP's web site at www.un.org/Depts/oip/index.html where the full text of the 26 August 2003 Notice to Suppliers and Permanent Missions can also be found.

The OIP says it is not in a position to respond to individual queries from suppliers on the prioritisation of contracts.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.