March 15, 2024

The procedure for confirming force majeure.

  1. What is regulated by?
  2. The procedure for confirming force majeure.

What is regulated by?

To begin with, force majeure circumstances (force majeure) are extraordinary, unavoidable and unforeseeable under the given conditions circumstances caused by natural phenomena (earthquakes, landslides, hurricanes, droughts, etc.) or socio-economic circumstances (state of war, blockades, import and export bans in the public interest, etc.), independent of the will and actions of the parties, due to which they cannot fulfill the assumed obligations. In order to avoid disputes as a result of unforeseen circumstances, the parties should stipulate in the relevant section of the contract the procedure to be followed in case of force majeure. In case of occurrence of such circumstances, the parties will be able to resolve the dispute in accordance with the contract. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 231 dated 07.06.2023 approved the Regulation on the procedure for confirmation of force majeure circumstances (force majeure) arising under local economic contracts. This Regulation regulates and confirms the contracts valid only within the Republic of Uzbekistan.

The procedure for confirming force majeure.

The Party to the Contract that was unable to fulfill its obligations due to force majeure circumstances may apply for a certificate. This certificate is an official document of the state sample issued by the Chamber in accordance with the requirements of the Regulation “On the Procedure for Confirmation of Force Majeure Circumstances (Force Majeure) Arising under Local Economic Contracts” and confirming force majeure circumstances. The certificate shall be certified by the electronic digital signature (EDS) of the Chamber Chairman and shall be executed in electronic form with a QR code (matrix barcode). It is worth noting that it is issued for an indefinite period of time, is of a one-off nature and applies only to the contractual relations specified in the application. For this purpose, the Applicant must apply to the Chamber of Commerce and Industry directly or through its official website to obtain a certificate of force majeure. The application shall be signed by the applicant, who may be an individual entrepreneur, the head of a legal entity or a person authorized to act on its behalf. According to Chapter 2 of the same Regulation, the application shall contain:

  • family name, first name, patronymic of an individual entrepreneur, full name of a legal entity (in accordance with the certificate of state registration) submitting the application;
  • details and subject of the contract(s) for which the certificate is issued;
  • the applicant’s obligations under this contract(s), the procedure and terms of their fulfillment;
  • description of force majeure circumstances (place, time of their occurrence, duration, as well as their impact) that prevent proper fulfillment of the applicant’s obligations under the contract(s);
  • the beginning and end (in case of termination) of the force majeure event;
  • list of documents attached to the application;
  • information on the applicant’s details (postal address, telephone number, e-mail address (if any)), name of the servicing commercial bank, etc.).

The statement may also include additional information related to the force majeure event.

The application shall be accompanied by documents such as:

  • contract(s), additional agreement(s) (if any);
  • documents confirming the scope of obligations performed under the contract(s);
  • documents (materials) on the occurrence of force majeure.

The submitted documents are considered within 1 working day. In case of incomplete submission of documents, the applicant is sent a request to provide information and documents that were not provided in full within 10 days.

On the basis of the documents received, the Chamber examines:

  • the existence of obligations under the contract and the terms of their fulfillment;
  • the presence of extraordinary circumstances of insurmountable nature beyond the control of the will and activities of the parties to the contract, as well as documents of authorized bodies (organizations) confirming these circumstances;
  • causal link between the occurring circumstances and full or partial non-fulfillment of obligations under the contract, taking into account the terms of their fulfillment;
  • terms of force majeure circumstances;
  • absence of connection of the parties to the contract with the occurrence of force majeure.

The Chamber shall determine the credibility of the circumstances specified in the application by independently requesting relevant information from the republican executive authorities, economic associations and other organizations. Republican executive authorities, economic associations and other organizations shall, within 5 working days from the date of receipt of the Chamber’s request, provide the requested information in writing free of charge. The decision to confirm or deny the existence of Force Majeure circumstances shall be made within 15 days. In case of refusal to issue a certificate, a motivated response letter shall be sent to the applicant within 3 days.

The grounds for refusal to issue a certificate are:

  • failure to confirm the circumstances indicated in the application on the basis of studies conducted by the Chamber;
  • establishment of false information or misrepresentation of data in the documents attached to the application;
  • failure to fulfill obligations under the contract due to force majeure circumstances that have not started or occurred in the territory of the Republic of Uzbekistan;
  • fulfillment of obligations arising from the contract in the territory of the Republic of Uzbekistan;
  • non-compliance of non-fulfillment of obligations under the contract with the duration of force majeure;
  • in accordance with Article 333 of the Civil Code of the Republic of Uzbekistan violation of obligations on the part of counterparties of the applicant, lack of goods necessary for the fulfillment of obligations on the market, lack of necessary funds from the applicant;
  • confirmation of force majeure on the basis of a court decision;
  • receipt of substantiated information from the republican executive authorities, economic associations and other organizations on the absence of force majeure.

In case the certificate is issued, the applicant is notified within 1 day and the certificate is published on the official website.  It is worth noting once again that this procedure does not apply to force majeure circumstances arising under the terms of foreign trade agreements and international treaties.

An application re-submitted after the decision on refusal to issue a certificate is not subject to consideration, except in case of incomplete submission of information and documents by the applicant or insufficiency of information in the submitted documents to confirm a force majeure circumstance. The Chamber within one working day from the day of receipt of an application for a certificate shall send a request to the applicant to provide information and documents submitted incompletely within five days. In this case, the application shall be considered resubmitted and shall be considered by the Chamber on general grounds. Further, the Applicant shall have the right to appeal to the court in accordance with the established procedure against the decision to refuse to issue a certificate, as well as the actions (inaction) of an official of the Chamber.