Brovigtank v. Transcredit and Oil Tradeanstalt (The Gunda Brovig) - Court of Appeal Lord Denning M.R., Eveleigh and Watkins L.JJ.) - 11 February 1982

Charterers responsible for payment of Iraqi freight tax

The Court of Appeal has dismissed the charterers’ appeal against the decision of Robert Goff J. [1982] 1 Lloyd’s Rep. 43 to the effect that charterers under an Exxonvoy form were liable to reimburse the owners for freight tax payable at Iraqi ports. Under Iraqi law shipowners had to pay tax on the total of freight earned for all their vessels calling at Iraqi ports, but the actual rate would vary according to the cumulative freight earnings during the fiscal year. The issue centred on clause 12 of the charterparty, which read: