Forfeiture of ships and cargo
7.—(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(7)(a), the relevant authority determines that the said ship has been operated 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 relevant authority determines that the cargo has been carried in violation of the United Nations resolutions,
the relevant authority may order that the ship or cargo, as the case may be, shall be forfeited to—
(i)in the case of the Bailiwick of Guernsey, that authority, or
(ii)in the case of the Bailiwick of Jersey, the States of Jersey.
(2) In a case where the relevant authority orders that a ship or cargo shall be so forfeited it 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 (whether of customs or excise) which is chargeable in consequence of the ship having been imported into the Bailiwick of Guernsey or the Bailiwick of Jersey;
(b)in payment of the expenses incurred by the relevant authority 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 relevant authority that he or they have been party or privy to a violation of the United Nations resolutions;
(e)to the States of Guernsey or the annual income of the States of Jersey, as the case may require.
(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 (whether of customs or excise) which is chargeable in consequence of the cargo having been imported into the Bailiwick of Guernsey or the Bailiwick of Jersey;
(b)in payment of the expenses incurred by the relevant authority 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 relevant authority that he or they have been party or privy to a violation of the United Nations resolutions;
(e)to the States of Guernsey or the annual income of the States of Jersey, as the case may require.
(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 relevant authority, be transferred by it to the purchaser.
(7) A harbour authority in the Bailiwick of Guernsey shall not commence or continue the detention or proposed sale of any ship in pursuance of any statutory provision of local application affecting the harbour in a case where the relevant authority has made an order of forfeiture under this article in relation to that ship, unless and until that order is set aside under article 10(5)(a).
(8) In this article and in articles 8, 9, 10 and 17 and Schedule 3 to this Order the expression “relevant authority” means—
(a)in the application of this Order to the Bailiwick of Guernsey, the Board; and
(b)in the application of this Order to the Bailiwick of Jersey, the Attorney General.