Customs regulations

Infringements of the regulations are excluded under the Institute of War and Strikes Clauses (4.1.5) and other versions. In Sunsport Shipping Ltd and Others v. Atkins and Others (2003) the term ‘customs regulations’ was held wide enough to include provisions having the force of law in the country concerned as to: (a) import or export duties or licences and (b) import or export of controlled drugs and other prohibited goods, substances or materials. The words cover any law in the realm of customs and so include smuggling of prohibited goods as well as smuggling of goods subject to duty. The law extends beyond duties on imports to include criminal law. The insured’s ship, upon which cocaine was discovered, was detained long enough (in excess of six months) for it to be deemed a constructive total loss within the policy. The Court of Appeal held that the exclusion applied and the insured’s claim therefore failed.

Customs Union

An agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other’s goods and establish a common tariff for the imports of all other countries.