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NOTICE TO SUPPLIERS AND PERMANENT MISSIONS

19 MAY 2003

FURTHER INFORMATION FOR SUPPLIERS OF GOODS UNDER THE OIL FOR FOOD PROGRAMME

            Further to the advisories to suppliers and permanent missions dated 28 March, 3 April, 17 April and 2 May 2003, the Office of the Iraq Programme, in close cooperation with the United Nations agencies and programmes, continued reviewing possible priority contracts and has undertaken additional steps concerning goods which were in transit as at 17 March 2003. With the adoption of resolution 1476 (2003), the deadline for shipping of goods selected as priorities was extended from 12 May 2003 to 3 June 2003, allowing for more contracts to be considered as priorities

We regret to inform that the Office of Iraq Programme and the United Nations agencies and programmes currently remain focused only on priority contracts and contracts with goods in transit. We acknowledge continuous  receipt of a large amount of information and requests on other contracts.  However, any action on such cases must await extension of our current mandate  beyond 3 June 2003, or any other decision by the UN Security Council concerning other contracts. It is fully understood that suppliers are eager to receive further instruction and guidance on these contracts as well, but the Office of Iraq Programme is not in a position to provide such guidance until the Security Council takes appropriate decisions. The Council is currently considering these issues and the suppliers are urged to be patient.            

Please refer to the appropriate category of contacts below for additional information and guidance.  

SUPPLIERS SHOULD NOT MAKE ANY ARRANGEMENTS TO SHIP GOODS UNLESS THEY HAVE REACHED AGREEMENT WITH AND RECEIVED SPECIFIC INSTRUCTIONS FROM THE RELEVANT UN AGENCY OR THE OFFICE OF THE IRAQ PROGRAMME 

1.            CATEGORY OF PRIORITY CONTRACTS.  The Office of Iraq Programme and the relevant UN agencies and programmes have prepared a revised list of priority contracts (update of 19 May 2003) containing 372 contracts. The list is based on contacts with some suppliers and information provided by others, as well as based on re-assessment of emergency needs. The list also contains contracts with goods in transit that have been selected as priority goods by the UN agencies. The suppliers with contracts in this list have been contacted by the relevant agencies and it was confirmed that the goods (or, at least, part of the goods) could be shipped by 3 June 2003. The UN agencies are now working with the suppliers to make necessary amendments  for the delivery of goods to alternative delivery locations outside Iraq.  The UN agencies are still considering a number of additional contracts for inclusion in the priority list.  Not all contracts containing priority items will be taken by the agencies as only limited quantities may be needed during the emergency phase. Please note that the list will be updated periodically if any new contracts are added to the list.

2.            GOODS CURRENTLY IN TRANSIT.      Based on the advice by the suppliers, the Office of the Iraq Programme has created a list of contracts in transit to Iraq as at 19 May 2003 that have not been selected as priorities by the UN agencies and programmes (as in paragraph 1 above). The suppliers with contracts in this list have been contacted by the Office of Iraq Programme to confirm the transit status of the goods. In some cases, the suppliers could not provide documentation confirming the transit status, and such contracts were either removed from the list or would be removed from the list if they fail to provide the requested supporting documentation that is still pending. The suppliers that eventually remain in the list may be eligible for compensation for storing cost of transit goods outside Iraq in accordance with procedures adopted under paragraph 4(g) of resolution 1472 (2003). The contacts with suppliers who qualified under the procedures are in progress.            

3.            OTHER GOODS.     The Office of Iraq Programme and the UN agencies and programmes are now focusing on priority contracts and contracts with goods in transit in order to meet emergency needs of the Iraqi people within the limited period mandated under resolution 1476 (2003). Further action on any other contract not included in the aforementioned categories is subject to decisions of the Security Council.   

A.            Contracts already approved but not selected as priority. Further actions on already approved contracts, funded or unfounded, and NOT selected as priorities, remain subject to decisions by the Security Council. The discussions on the subject are ongoing and the suppliers will be informed via this web site as soon as appropriate decisions are made.

B.            Contracts under processing. The Executive Director of the Office of Iraq Programme decided, as a temporary measure, to take a pause in processing of applications received and registered by the Office of Iraq Programme but not yet approved. The measure was taken in view of the lack of sufficient revenues to fund even  the already approved applications. During the pause, the Office of Iraq Programme will continue to receive new applications through permanent missions as before. These will be registered and issued with Comm. number but will not be processed any further. Similarly, all applications in various stages of processing (OIP Review, UNMOVIC/IAE Review, GRL Notice, GRL Processing, 661 Denied, etc. ) will remain in that status irrespective of the deadlines mandated under Goods Review List (GRL) procedures. Finally, OIP will continue to receive communications form permanent missions on applications under processing but will only register them without taking any further action during the pause period. 

C.            Extensions of Letters of Credit. The Office of Iraq Programme and the UN Treasury  have received a number of requests for extension of the existing letters of credit. Please be advised that requests to renew or extend letters of credit issued in connection with contracts under the Oil-for-Food Programme, which are not included on the priority list established pursuant to UN Security Council resolution 1472 (2003) paragraph 4-B, extended until 3 June 2003 pursuant to UN Security Council

resolution 1476 (2003), are being held in abeyance, and no action is being taken with respect to such requests at the present stage. 

The Office of the Iraq Programme regrets that it is not in a position to accept any direct queries from suppliers at this stage. All queries related to implementation of resolution 1472 (2003) should be directed through the relevant permanent mission. The suppliers and permanent missions are also advised to periodically check the Office of the Iraq Programme web-site www.un.org/Depts/oip for further updates.

 

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