Iraq

Scrap metal from Iraq is big business as the country's infrastructure is being rebuilt.

However there are reports that some of the scrap is unlawful and includes brand new components for oil rigs, water plants and much is looted property. In December 2003 a steel container contaminated with uranium turned up in a Rotterdam scrap yard. Although much of the scrap is being transported to Jordan by trucks, shipowners should be aware of shipment offers of scrap cargoes from Iraq.

In April 2004, the US and the Iraqi Ministry Of Trade established rules for licensing the export of scrap metal. The penalties for not obtaining a license or complying with its terms are severe and not only the cargo will be confiscated, the vehicle or ship will also be seized.

Some shipowners trade to Iraq carrying cargoes such as construction materials used for the reconstruction of the country and it is sensible the ships would be interested to load any cargoes from Iraq. They should however be cautious to agree to load cargoes of scrap from Iraq.

Cargoes which are not legitimate will make the voyage unlawful and will prejudice the vessel's insurances, in particular the P&I insurance in the event the cargoes and the vessel is seized.