Article 7 Forfeiture of ships and cargo

(1)

In any case where—

(a)

a ship is impounded pursuant to article 4 and, in the case of a ship referred to in article 4(5)(a), the Governor determines that the ship has been operated or used in violation of the United Nations resolutions, or

(b)

a ship’s cargo has been the subject of a direction as to landing, and the Governor determines that the cargo has been carried in violation of the United Nations resolutions,

the Governor may order that the ship or cargo, as the case may be, shall be forfeited to him.

(2)

In a case where the Governor orders that a ship or cargo shall be forfeited to him he shall secure that the ship or cargo is sold for the best price that can reasonably be obtained.

(3)

Failure to comply with the requirement in paragraph (2) of this article shall not, after the sale has taken place, be a ground for impugning the validity of the sale.

(4)

The proceeds of any sale of a ship under this article shall be applied as follows, and in the following order, that is to say—

(a)

in payment of any duty or tax which is chargeable in consequence of the ship having been imported into the Territory;

(b)

in payment of the expenses incurred by the Governor in effecting the forfeiture of the ship and its sale;

(c)

in payment of the charges referred to in article 4(5) and of any impounding expenses due in respect of the ship;

(d)

subject to article 10 of the 1992 Order, in payment (where necessary pro rata) to or among the person or persons whose interests in the ship have been divested by reason of the forfeiture and sale and in respect of whom it does not appear to the Governor that he or they have been party or privy to a violation of the United Nations resolutions;

(e)

to the Consolidated Fund of the Territory.

(5)

The proceeds of any sale of cargo under this article shall be applied as follows, and in the following order, that is to say—

(a)

in payment of any duty or tax which is chargeable in consequence of the cargo having been imported into the Territory;

(b)

in payment of the expenses incurred by the Governor in effecting the forfeiture of the cargo and its sale;

(c)

in payment of cargo storage charges;

(d)

subject to article 10 of the 1992 Order, in payment (where necessary pro rata) to or among the person or persons whose interests in the cargo have been divested by reason of the forfeiture and sale and in respect of whom it does not appear to the Governor that he or they have been party or privy to a violation of the United Nations resolutions;

(e)

to the Consolidated Fund of the Territory.

(6)

For the purposes of this article, forfeiture in the case of a ship shall extend to—

(a)

the equipment of the ship and any stores for use in connection with its operation (being equipment or stores carried in the ship); and

(b)

any ship’s documents carried in the ship;

and any such documents may, if the ship is sold by the Governor, be transferred by him to the purchaser.