BCCI issues Force-Majeure Certificates
The documents are internationally acknowledged
The strike at mines “Mini Maritsa-Iztok” EAD was declared at an end yesterday with a signed agreement between representatives of the workers and the company’s management. The strike and the related circumstances evoke reflections on the sanctions for breach of contract by supplier-companies. With regard to this, the Bulgarian Chamber of Commerce and Industry would like to remind companies that it issues Force-Majeure Certificates for settlement of their relations with Bulgarian and foreign partners.
The Force-Majeure Certificate is a document for relieving of responsibility for failure to perform one’s obligations or delay in the performance of obligations under a contract caused by some unpredictable (force majeure) circumstance.
Unpredictable (force majeure) circumstances are: natural disasters (floods, blizzards, snowstorms, hailstorms, earthquakes, landslides, etc.); blockades (of roads, borders, etc.); fire; industrial accidents; wars; governmental restrictions; strikes, etc.
“Unpredictable force” (force majeure) shall be interpreted as a circumstance (event) of extraordinary nature which has occurred after the conclusion of the contract, could not have been foreseen and is beyond the will and control of the parties.
To ascertain an “unpredictable force”, the following conditions should be present:
- circumstances/events, which have occurred after the completion of the contract;
- these circumstances should be unpredictable or unavoidable;
- of extraordinary character and
- there should be a causal link between them and the inability to fulfill contractual obligations.
The Force-Majeure Certificates is issued upon request of a Bulgarian tradesman, who has enclosed the following documents:
- official document issued by an independent institutions, proving the force majeurce circumstances and the period/length of the event;
- copy of the signed contract with the respective data about terms and way of execution;
- reference on behalf of the tradesman about the size of the non-execution, calculated in %, or in another value, depending on the specifics of the contract;
By issuing Force-Majeure Certificates the Chamber assists the companies effectively and spares them the payment of penalty.
The Force-Majeure Certificates issued by BCCI are internationally acknowledged and are accepted as evidence by international arbitration institutions. Due to the strict adherence to the unified rules for their issuance, as well as the positions of chambers of commerce worldwide and the existing common practice, there is no case when a Force-Majeure Certificate issued by the Chamber has not been taken into account by the court or an arbitration institution.
The Force-Majeure Certificate is issued by BCCI in Bulgarian or foreign language at the request of the client.
In view of the above said, the Chamber recommends to the Bulgarian tradesmen to include a force majeure clause in their foreign trade contracts.
The text of the force majeure clause is available at BCCI’s website:
The lack of a force majeure clause in the contract is not a reason for BCCI to refuse the issuance of such certificate.
The Chamber recommends Bulgarian tradesmen to include a force majeure clause in their foreign trade contracts and its certification shall be referred to the Bulgarian Chamber of Commerce and Industry.