The Iraqi Federal Court of Cassation has recognised that government restrictions and institutional closures associated with the COVID 19 pandemic may constitute temporary force majeure where they prevent customs clearance or the removal of imported goods from an Iraqi port.
Background
Commercial goods arrived at an Iraqi port during the pandemic. The importer began the clearance process, but government restrictions and institutional closures prevented completion. The authorities later treated the cargo as abandoned and commenced auction procedures.
Court’s Findings
The Court found that the delay resulted from circumstances outside the importer’s control. The official suspension of government operations prevented completion of the clearance procedures.
It concluded that treating the goods as abandoned and selling them by auction was contrary to law and overturned the judgment that had rejected the importer’s claim.
Limits of the Decision
The judgment does not classify every pandemic-related delay as force majeure. The affected party must prove a direct causal connection between the exceptional measure and the inability to perform, together with reasonable efforts to mitigate the delay.
Conclusion
The decision confirms that Iraqi courts may protect businesses from liability where government restrictions make performance impossible. Contemporary records of closures, notices, clearance applications and mitigation steps remain essential.