ANGOLA Law and Practice Contributed by: José Miguel Oliveira, António Caxito Marques, Caio de Mello Ferreira and João Saiago Canjeque, VdA
7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction In accordance with Articles 2, 4 and 8 of the Brussels Convention, Angolan courts may order the arrest of a vessel in respect of any maritime claims. However, pursuant to Article 7 (3) and (4), if the parties have agreed on submitting the dispute to a different jurisdiction or to arbitration, the Angolan court may fix the time within which the claimant should commence the main proceedings. If such proceedings are not brought within the time so fixed, the defendant may apply for the release of the vessel or of the bail or other security. Outside the scope of the Brussels Convention, Ango - lan courts will also accept the arrest in respect of claims subject to foreign arbitration or jurisdiction clauses where the vessel is within their territorial juris - diction. 7.5 Domestic Arbitration Institutes Currently, there is no domestic arbitration institution that specialises in maritime claims active in Angola. Hence, in such matters general arbitral bodies will be competent, governed by Law 16/03. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses In the event of a breach of foreign jurisdiction or arbitration clauses, the defendant must invoke such before the court that lacks jurisdiction and request for the claim to be dismissed. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies Companies incorporated in Angola will be subject to the general taxation regime set forth for other com - panies incorporated or with a permanent establish - ment in the country – ie, they will be subject to 25% industrial tax on their profits. This notwithstanding, tax benefits and reliefs may be applicable for invest - ment projects submitted under the Private Investment Law (Law No 10/18 of 26 June 2018) regime. Non-
resident shipping and airline companies are exempt from industrial tax provided that Angolan companies benefit from the same exemption regime in the juris - diction of such companies. 9. Implications of Non-Performance, IMO 2020, Trade Sanctions and International Conflict 9.1 Force Majeure and Frustration If the parties have not included force majeure or hard - ship clauses in their contract(s), it is particularly impor - tant to take into consideration the general Angolan legislation, namely the provisions of the Civil Code regarding abnormal changes in circumstances (Arti - cles 437 and 438) or impossibility of performance of contacts (Articles 790 to 793). Abnormal Changes in Circumstances Article 437 applies whenever the circumstances on which the parties based their decision to enter into an agreement have suffered an abnormal change. As a result, the party that has been adversely affected by that change may terminate the agreement or ask for its modification based on equity, provided the party demonstrates that it could not have predicted the event and its consequences and that there is a causal link between the event and the failure to perform. However, the above-mentioned regime includes very strict requirements in order to be invoked, since it is not enough to demonstrate the difficulty in performing the contract, but rather that the abnormal change is not covered by the risks inherent to the contract, and that requiring the performance of the agreement is contrary to the principles of good faith. Impossibility of Performance If the contract becomes impossible to perform, Arti - cles 790 to 793 are applicable, establishing different consequences based on whether the impossibility is total or partial and definitive or temporary. 9.2 Enforcement of the IMO 2020 Rule Limiting the Sulphur Content of Fuel Oil There is no track record regarding the implementa - tion of the “IMO 2020” rule concerning the limitation
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