ARBITRATION FREQUENTLY ASKED QUESTIONS
Can a non-registered firm use the ICA arbitration service?
Yes. You may have to pay an application fee to the ICA. However, this fee will be reduced if you apply for membership at the same time. For quality (manual or instrument based) arbitration there is no application fee. If, on the day before the date of the contract giving rise to the dispute, either party has its name circulated on the ICA List of Unfulfilled Awards in accordance with Bylaw 302.3, applications will not be accepted. Click here to view current fees.
How do you start an arbitration?
You will need to complete a technical arbitration request form or a quality arbitration request form and send it to the ICA. You will also need to send us a copy of the contract(s) that the dispute concerns, together with the contact details of the other party. You need to appoint your arbitrator and inform the other party of your intention to go to arbitration.
Does the Claimant always have to pay the arbitration cost?
We require the Claimant to pay the first deposit of £3,000 which is for the costs, fees and expenses of the Arbitration, as they are the ones bringing the arbitration. The Respondent will also be asked for a deposit of £3,000.
Is it possible to conduct ICA arbitration in countries other than the UK?
Yes. ICA arbitrations may take place in other countries, provided that the ICA arbitrators are able to meet to discuss the case and they keep in contact with the ICA, who administer the process. A large number of ICA arbitrations take place by telephone conference call, as well as physical meetings. The applicable law remains as English Law. The Award needs to be stamped by the ICA to be effective, and so the final Award must be returned to us.
Is ICA arbitration very expensive?
No. Compared with court proceedings and other commodity trade associations, ICA arbitration is not expensive.
Why do ICA Bylaws and Rules not cover all incidents and occasions of trading?
The ICA Bylaws and Rules are the default position for parties in the event that they have not agreed specific terms for trading. Much will also depend upon what the parties have agreed should apply in their contracts. The parties can add whatever they consider relevant to their contract as long as they both agree.
What is the main difference between Chinatex, CCA and ICA Bylaws and Rules?
There are many differences between the three sets of Bylaws and Rules. The main ones are considered to be arbitration, value differences, late shipment and opening of the letter of credit, and invoicing back.
Does a contract need to be signed to be valid?
No. According to English Law, a contract does not have to be signed if there is evidence that it was agreed, and represents the terms that the parties have agreed are binding on them. Establishing a contract requires evidence of a clear offer and an unconditional acceptance. A signed contract is obviously the best way to demonstrate this. Consideration will be required in order to ensure that the contract is binding on the parties. This normally requires some evidence that both sides are getting some form of benefit from the deal (this is a very simplified summary).
Evidence of agreement can be found in a number of ways such as: subsequent correspondence confirming that the terms are agreed; conduct of the parties which indicates that both consider themselves bound by its terms; or in the case of standard or repeat terms used for more than one transaction (a course of dealings) which evidences the parties' agreement that the same terms apply.
The important aspect is that there is evidence of an arbitration agreement within the written contract by which the parties have agreed to be bound. This is normally by way of an arbitration clause which will specify ICA Rules and Arbitration.
Can parties change or amend ICA Rules in a contract?
Yes. Parties can change or amend terms of their contracts and the ICA Rules, provided that they are both in agreement to the amendments made. However, Bylaws cannot be changed.
If the claim for the first contract is not paid by the seller overseas, can the buyer cancel the next contract?
This will depend on the terms of your contract.
How do I obtain the ICA Rulebook and value differences?
Click here to download an electronic version of the ICA Rulebook. Click here to download the value differences circular. You can also purchase hard copies of the Rulebook and subscribe to the circular by contacting us.
Can the parties use controllers' assessment for quality settlement using ICA Bylaws and Rules?
Yes. The parties can use whatever quality testing or inspecting reports they agree to resolve quality disputes through ICA arbitration. Therefore if both parties agree, controllers' assessment can be used for ICA arbitration.
How do I enforce an ICA Award?
ICA Awards are recognised in the English Courts as having the same status as a Court Order. The Awards should therefore be recognised by the courts of those countries that have ratified the New York Convention. You will need to seek advice from your own advisers on the process for enforcing an ICA Award, depending on the country in which you are trying to enforce your Award.