Designated Entities Clause for Charter Parties 

The use of so-called OFAC Clauses in maritime contracts – particularly those involving a US entity – is increasing and such clauses often place a considerable burden of compliance on non-US owners. The intention with this project is to draft a standard wording that appropriately addresses the application of OFAC and similar legislation in other countries to owners and charterers – mainly to raise awareness of OFAC between the parties to a charter party. BIMCO is working with the International Group of P&I Clubs to produce this clause and OFAC has been consulted as part of the process. It is expected that work on this clause will be completed in spring 2013.