Procedures for Warranty and Replacement Goods

In some circumstances, a contract approved by the 661 Sanctions Committee or by the United Nations Secretariat provides for warranty replacement goods to the Iraqi purchaser in the event of breakage or defect in the originally approved items. In such cases, while the provision of warranty/replacement goods was approved in principle, if warranty/replacement goods eventually must be supplied, a new application, listing the precise goods to be shipped and the details of the shipment must again be reviewed and approved. In addition, warranty replacement goods must be presented for authentication at the border entry point into Iraq. These requirements also apply in circumstances where the supplier and the purchaser have agreed to the supply of goods as compensation for goods found not to be in compliance with the terms of quality stipulated in the contract (compensatory goods).

To authorize the shipment of specific warranty/replacement goods to Iraq, the original applicant supplier must submit, through its Permanent Mission to the United Nations, a new application for the warranty replacement goods on the standard application form, using the COMM. number and mission reference number used for the original application to ship goods to Iraq.

In box number 7 of the new application form and in columns 6 and 7 of the spreadsheet attachment (in Excel), "zero" should be entered. Furthermore the designation "F.O.C."(free of charge) must follow the description of each good in column 3 of the Excel form attachment.

Box 16 ("Additional information") of the new application should be clearly marked "warranty/replacement goods." The application should include documentary evidence of the agreement between the supplier and the purchaser to replace the original goods. Warranty goods must be delivered to Iraq within the period of validity of the warranty as specified in the contract. The goods must be clearly described and in addition, for goods other than bulk food items, it is recommended that the supplier include any relevant technical information in order to facilitate the approval process.

An application to send warranty/replacement goods to Iraq will be treated as a correction to the original application and therefore, a corrected approval letter must accompany the shipment of any warranty replacement goods to Iraq.

Where possible, the purchaser and supplier should arrange to re-export or destroy the faulty goods once replacement goods have been delivered and authenticated. The supplier should indicate whether goods will be re-exported or destroyed in box number 16 of the new application form. In such cases the corrected letter of approval will stipulate the procedures for the re-export or destruction of the goods.

Observation or inspection will be mandated, if necessary, to ensure that goods are eligible for replacement.

The arrival of warranty/replacement goods will be authenticated by the United Nations independent inspection agents at the border entry point into Iraq.