Advanced Trade Finance & Special Customs Procedures
Force Majeure
Also known as: Act of God Clause
Force majeure is a contract provision that excuses a party from performing, or delays its obligations, when extraordinary events beyond its reasonable control — natural disasters, war, strikes, pandemics, or government actions — make performance impossible or impracticable. In international trade, force-majeure clauses allocate the risk of such disruptions to supply, shipping, and delivery, defining which events qualify, what notice is required, and what relief follows. Because global supply chains are vulnerable to shocks that can halt production or transport, carefully drafted force-majeure terms are an important safeguard, though they must be invoked in good faith and according to their exact wording.
A contract clause, not a general excuse. Whether an event suspends obligations depends on the words agreed, and the pandemic years demonstrated that boilerplate clauses often do not cover what everyone assumed. Read the clause before you need it.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.