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Glossary
 
Distribution Plans
(V-XIII)

  

Glossary

Please note that the OIP is unable to respond to inquiries from companies or their representatives who should direct all inquiries or requests for further information to their Permanent Mission.

Agreement to proceed with export of non-GRL items: Bilateral agreement of the parties to the contract (based on paragraph 9 of the revised procedures) to request the issuance of an Approval Letter for the non-GRL item(s) specified in the application/contract and approved by the Office of the Iraq Programme (OIP), while the remaining item(s), found by UN experts to be included in the GRL, are further processed. The agreement must specify the appropriate reduction of the original contract value.

Amendment: A change to an application/contract submitted to OIP, agreed to by both parties, for the purpose of moving the application forward (previously: in order to have the hold lifted) towards full approval. Under the procedures established by resolution 1409 (2002), an amendment can either delete/substitute the GRL items contained in the application as identified by UN experts.

Application: A notification or request from a mission to ship goods to Iraq. An application refers to a completed application form and Excel attachment, the contract, technical information, and any further information that may be requested by OIP or the Committee.

Application form: The official form for notification or request to ship goods to Iraq. The form must be completed and signed/stamped by the submitting Permanent Mission or UN Agency. An electronic copy of the revised form is available at the OIP Web site. Integral part of the application form is the Excel attachment (spreadsheet) containing the list of goods to be exported to Iraq.

Approval Letter: Also called OC (for Official Communication), the letter grants permission to ship goods to Iraq under an application approved either by OIP (OIP Approved) or by the Security Council's 661 Committee (661 Approved), and authorizes payment from the United Nations Iraq Account to suppliers for the shipped goods. The letter will be issued only when there are sufficient funds in the UN Iraq Account. These funds will be committed to the application once the letter of credit has been opened, and will be paid to the suppliers after the arrival of goods in Iraq is authenticated by the United Nations independent inspection agents. Under resolution 1409 (2002), the OC will identify each item as either OIP Approved, Not Approved, and/or 661 Approved. Only approved items can be shipped to Iraq.

Assessment report: If an application has been found to contain at least one GRL item, the Mission can elect to request an assessment report prior to the circulation of the GRL item(s) to the 661 Committee for review. The report is produced within 30 days by UN experts, at the request of the Mission or U.N. Agency. The report will assess the humanitarian, economic and security implications of the application in Iraq as well as the viability of the whole application and the risk of diversion of its GRL item(s) for military purposes.

Authentication: Confirmation by the United Nations independent inspection agents at one of the authorized entry points that the goods approved for shipment to Iraq, pursuant to resolution 986 (1995), have entered Iraq, and that the delivered goods conform to the terms of the approval letter (OC). Authentication by the UN independent inspection agents is one of the preconditions for payment to the supplier from the UN Iraq Account.

Comm. number: This is a unique reference number assigned to each application upon its registration at CPMD/OIP. The Secretariat, the Government of Iraq, suppliers and Missions and U.N. Agencies always use this number when enquiring about specific applications.

Committee, the: see "661 Committee".

Contract: A legally binding, written bilateral agreement between an entity of the Government of Iraq or a U.N. Agency and a foreign supplier to purchase goods and/or services. The contract stipulates, inter alia, the type, quality, quantity, price and shipping routes of the goods, and is submitted to OIP as an attachment to the application form.

Correction: Any change to the scope of supply, value or other contractual arrangements other than changes described under Amendment or Agreement to proceed with export of non-GRL item(s).

CPMD: The Contracts Processing and Monitoring Division, which is the OIP division responsible for the initial reviewing and subsequent processing of applications.

Distribution Plan (DP): Document prepared by the Government of Iraq for each 180-day phase, describing the intentions of the Government on the procurement and distribution of supplies under the programme. The DP annexes contain the "shopping lists" of goods drawn up for each sector. The DP and its annexes are available on the OIP Web site and contain the sector item codes required for the submission of an application to OIP.

Extension: Request to prolong the validity of an approval letter (for an approved application) beyond the initial one-year validity period granted from the date of issuance of the approval letter.

GRL: The Goods Review List, or GRL, is the core element of the revised procedures adopted by Security Council resolution 1409 (2002) for the implementation of the "oil-for-food" programme. The GRL is a composite of several categories of different types of "dual-use" commodities and products (including the revised "1051" list).

GRL Inactive: An application status, where it has been given GRL Non-compliant status, and the requested information or clarification has not been received after 90 days.

GRL item: An item identified by UNMOVIC/IAEA experts as included in the Goods Review List (GRL). All GRL items must be referred to the 661 Committee for a decision as to whether they can be exported to Iraq, or not.

GRL Lapsed: An application status, where it has been given GRL Inactive status and 90 days have elapsed without the provision of the required information or clarifications.

GRL Non-Compliant: An application status, where it has been sent to UNMOVIC and IAEA for review, but more information is required to complete the review. The supplier has 90 days to provide the required new information.

GRL Notice: A communication sent to the Mission or U.N. Agency to inform of the results of UNMOVIC/IAEA review, if it has identified one or more GRL item(s) within the application. It is also an application status, while the response to the GRL Notice is still pending. The supplier should respond to the GRL Notice within 10 working days.

Inactive: An application status, where it has been under the status of Non-Compliant for over 90 days and the requested information or clarifications have not been received. OIP advises the Mission or U.N. Agency of this change in status.

Iraq Account: The United Nations escrow account established pursuant to paragraph 7 of Security Council resolution 986 (1991) with a bank(s) identified by the United Nations Secretariat, following consultations with Iraq where all proceeds from the sale of Iraqi oil are deposited in seven different sub-accounts. Payment for the goods shipped to Iraq under the approved applications involving the Government of Iraq entities are made from the ESB (59 per cent) account. The ESC (13 per cent) account covers applications from UN agencies and programmes in the three northern governorates of Iraq.

Lapsed: An application status, when, after a total of 180 days (divided into two periods of 90 days each), no appropriate action has been taken by the supplier on a request for additional information or clarifications. Such an application will be returned to the supplier.

Letter of credit (LC): The banking instrument by which suppliers are guaranteed payment for their delivered goods or services. LCs are agreed between the entities of the Government of Iraq and their suppliers, but must meet certain standards monitored by the United Nations Treasury.

Line Item: The relevant data for each single commodity intended for shipment to Iraq and listed as a separate entry on the application form. The line item data include the full technical description of the commodity, the unit of measurement, its quantity in numbers, its value, the total value and the currency code.

Mission: A permanent or observer mission of a State to the United Nations, in New York City.

Non-Compliant: An application status, where it is deemed by OIP to be incomplete, erroneous, or non-compliant with the established procedures.

NON-GRL item: an item identified by UNMOVIC/ IAEA as not included the Goods Review List. These items are automatically considered OIP Approved.

Null and Void: An application status, where it has been declared invalid at the written request of either of the parties to the related application, if both parties do not reconfirm the application in writing within seven days.

OC: Abbreviated or informal name for the approval letter to ship goods to Iraq. See Approval Letter.

"Oil-for-food": An informal name for the humanitarian programme established pursuant to Security Council resolution 986 (1995), by which revenues from the sale of Iraqi oil pay, inter alia, for the humanitarian supplies and oil spare parts shipped to Iraq after approval by the 661 Committee or OIP.

OIP: The United Nations Office of the Iraq Programme, which is responsible for the implementation of the "oil-for-food" programme.

OIP Approved: Both an application status and the status of an item within an application, once the UNMOVIC/IAEA review has determined that they are not on the GRL. Each line item is marked OIP Approved if UNMOVIC/IAEA confirm it is not included in the GRL.

OIP Review: Comprises the review by OIP experts after registration. It is also an application status during this period.

Pending Amendment: An application status, where the supplier has indicated an intention to delete/substitute the GRL item(s), in response to a GRL Notice. If the amendment to remove all GRL items is received within 30 days, the status is changed to OIP Approved. If no amendment is received, the GRL item(s) is circulated to the 661 Committee for consideration.

Pending Assessment: An application status. In this case, the supplier has requested an assessment by the UN prior to circulation of the GRL item(s) in the application to the 661 Committee, in response to a GRL Notice. It may take up to 30 days for the UN to prepare the assessment. The only possible outcome is circulation to 661 Committee, as soon as the assessment is prepared.

Pending Response: Status of GRL item(s) within 90 days when additional questions/clarifications are requested by the 661 Committee but not provided yet, or when confirmation of end-use verification is required.

Petition: Final appeal by the supplier, to be submitted 30 days after a 661 Denied status is given to GRL item(s). It should contain additional information/clarifications not submitted previously.

Phase: Each period for the duration of which the mandate of the "oil-for-food" programme remains in force by the relevant Security Council resolutions.

Pre-Registration Review: The review undertaken by OIP prior to registration (assignment of a "Comm. number") of an application, which may last up to 10 working days. At the end of the pre-registration review, a Comm. number is assigned, or the application is returned to the Mission (or UN Agency), informing them of the reasons why OIP was unable to proceed with registration.

Reconsideration procedure: Method by which a request by a Mission (or UN Agency) for a reconsideration of the UNMOVIC/IAEA GRL/687 determination is processed. If the initial review is confirmed, the GRL item(s) is circulated to the 661 Committee, whose members may approve the GRL item(s). In the case of resolution 687 item(s), the application is returned to the supplier (see 687 Returned).

Returned Hold: Application on hold before the adoption of resolution 1409 (2002). According to paragraph 18 of the revised procedures, these old' holds will be separated into two groups. The applications on hold which contain one or more items on the "1051 list" (as identified by the UN Secretariat and "Legacy" 1051) will be returned to the submitting Missions and U.N. Agencies, who may resubmit them under the revised procedures.

Sector Item Code: A unique reference number assigned to each single line item listed in the relevant sectoral annexes of a DP (see Distribution Plan).

Sectoral Allocation: Amount of funds planned for the purchase of commodities for each of the sectors of the Distribution Plan. These allocations establish the ceiling of funds for the financing of the LCs issued for approved applications under each of the sectors.

687 Item: Refers to the list contained in paragraph 24 of resolution 687 (1991). Such items are prohibited for supply or sale to Iraq. The supplier may either request a re-consideration of UNMOVIC/IAEA determination (see Reconsideration Procedure) or remove/replace the 687 item(s) from the application through an amendment.

687 Returned: An application status where an application containing resolution 687 item(s) has been returned to the supplier.

661 Application: Also referred to as a "traditional 661" application, is for export of goods to Iraq, payment for which is made under other arrangements outside the UN Iraq Account. Also includes gifts, donations, samples for trade fairs, etc. Revised procedures under resolution 1409 (2002) do not apply to 661 applications.

661 Approved: The status of an individual GRL item, or a number of GRL items, that have been approved by the 661 Committee.

661 Denied: Refers to the refusal of the 661 Committee to approve a GRL item. The supplier may petition for a reconsideration of the decision by providing additional information within 30 days of the denial.

661 Pending (5): Status of the GRL item(s) during the period of five days that the relevant Committee member reviews the petition of a supplier following a denial.

661 Pending (10): Status of the GRL item(s) sent to the 661 Committee for a period of 10 working days, while Committee members decide on whether the item(s) may be approved for export to Iraq or not.

661 Pending (20): Status of the GRL item(s) during 20 working days maximum when additional information is reviewed by the requesting 661 Committee member.

661 Rejected: Final status of the GRL item(s) after failure to submit a petition within 30 days of 661 Denial, or after the petition failed to result in approval by the 661 Committee of GRL item(s) previously denied.

661 Review: The 10-day review by the 661 Committee of all items included in the Goods Review List, as identified by UNMOVIC and IAEA. The Committee may approve or deny approval of the GRL item(s), or it may also request additional information.

661 Committee: The Committee established by Security Council resolution 661 (1990) concerning the situation between Iraq and Kuwait; also called the Sanctions Committee or the 661 Sanctions Committee. This Committee is a subsidiary organ of the United Nations Security Council, and is composed of representatives of the same 15 States that are members of the Security Council at the time. The Committee has been mandated by the Security Council to monitor the implementation of sanctions imposed on Iraq, and any humanitarian exceptions to these sanctions. The Committee reports on its work to the Council.

Supplier Inactive: Status of GRL item(s) during the 90 days after Pending Response status without provision of requested information/clarifications or confirmation of conditions set by the 661 Committee.

Supplier Lapsed: Final status of GRL item(s) after a 90-day period of Supplier Inactive status expires without provision of requested information or after 30 days of 661 Denied status without submission of a petition.

The "1051 list": The list of items that was previously notified to the Committee under the export/import control mechanism established pursuant to the provisions of resolution 1051 (1996). The revised "1051" list is now part of the Goods Review List (GRL), adopted by resolution 1409 (2002).

UNMOVIC/IAEA Review: Security Council resolution 1409 (2002) assigns the responsibility for review of the contracts, to determine the presence of GRL or 687 item(s) to the United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) and/or the International Atomic Energy Agency (IAEA). According to the revised procedures adopted by resolution 1409 (2002), UNMOVIC and IAEA have 10 working days to complete that review. UNMOVIC and IAEA may ask additional questions in order to complete the assessment (see GRL Non-Compliant).