Authentication: An Essential Procedure
The following recommendations apply to goods shipped to Iraq under the oil-for-food programme, also known as resolution 986 (1995) applications, which are eligible for payment from the United Nations Iraq account.
Suppliers of goods to Iraq should be aware that only goods that have been listed on the appropriate spreadsheet (Excel) attached to the application and approved by United Nations Security Council's 661 Sanctions Committee or the United Nations Secretariat may be shipped.
Such approved goods will be documented either on or as an attachment to the approval letter.
Shipments of unapproved items to Iraq in connection with contract applications will not be considered as eligible for authentication.
Any instances involving the shipment of unapproved goods will be reported to the Sanctions Committee for their consideration.
All pertinent documentation and correspondence should always refer to the "Comm number" assigned to the application.
Suppliers should be aware that they are responsible for ensuring that their transportation companies are fully aware that all shipments of goods pursuant to Security Council resolution 986 (1995) are physically reported to the United Nations inspection agents at the only approved entry points at the borders of Iraq.
These are: Trebil (Jordan), Al Waleed (Syria), Zakho (Turkey) and Umm Qasr (Persian Gulf); a fifth entry point, Ar'ar (Saudi Arabia), has now been opened.
Suppliers of goods to Iraq are eligible to receive payment from the Iraq account based on a number of conditions, one of them being the authentication of the arrival of such goods in Iraq confirmed by the United Nations independent inspection agents at the borders.
In cases where resolution 986 (1995) goods enter Iraq via crossings other than the approved entry points, the rules set out by the relevant Security Council resolutions stipulate that goods not reported in the proscribed manner are not eligible to be authenticated and, consequently, the supplier is lacking one of the conditions that contribute towards payment.
Suppliers of goods should be aware that the approved goods may only be shipped through the approved entry points into Iraq, as requested in their application and as documented on the approval letter.
Goods arriving at a point of entry other than the one approved will not be authenticated, resulting in potential delays of payment to the supplier.
Suppliers are advised that no shipments of goods to Iraq under the oil-for-food programme should be made without first ensuring that the supplier is the beneficiary of a valid Letter of Credit - L/C.
Suppliers should first check with their own assigned bank to ensure that an L/C has been issued in their favour prior to shipping any goods.
Approved goods that are shipped without the supplier first obtaining a valid L/C will be authenticated as having arrived in Iraq.
However, the supplier will not be eligible to receive any payments from the Iraq account until an L/C is issued.
In order for the supplied goods to be authenticated as having arrived, the supplier is responsible for ensuring that all shipments of the goods are completed within the validity period of the letter of approval.
Goods should arrive at the appropriate border points while the letter of approval is still valid.
Should the supplier become aware that the shipment of the goods cannot be completed within the validity period, the supplier is responsible for requesting an extension to the validity of the Letter of Approval through their Permanent Mission to the UN in New York prior to shipping any goods.
Moreover, suppliers should be aware that goods which are shipped after the expiry of the period of validity as stated in the Letter of Approval, will not be authenticated for the purposes of contributing towards payment to the supplier, thus resulting in delays at the borders to the shippers.
Suppliers are encouraged to consider using the suggested packing list format as posted on the OIP web site.
The use of this form is voluntary on the part of the supplier.
However, its proper completion may facilitate the authentication of the goods, resulting in timely payment to the supplier.
Suppliers of goods to Iraq should ensure that shipments are accompanied by the appropriate required documentation, which must be presented to the UN independent inspection agents at the border.
In addition to the normally required documentation for the Iraqi Customs Service, the required UN documentation includes a copy of the valid Approval Letter, and at least three copies of the packing list, invoice, bill of lading, CMRs and manifests.
All pertinent documentation and correspondence should always refer to the "Comm number" as listed on the Letter of Approval.