ICC

ICC Revised Rules for Documentary Credit Dispute Resolution by Expertise (DOCDEX)

Ozgur Eker (CDCS) Docdex, ICC, News , , ,
ICC Revised Rules for Documentary Credit Dispute Resolution by Expertise (DOCDEX)

ICC Adopts New Set of Rules for DOCDEX

The International Chamber of Commerce (ICC) Banking Commission unanimously adopted revised rules for Documentary Credit Dispute Resolution by Expertise (DOCDEX) as of 06.November.2014.

Why Docdex Rules Have Been Revised?

When the original rules began to show their limits, whether in terms of managing the expert appointment process, dealing with unwarranted delays or struggling to find an answer to unexpected procedural challenges, it was decided in 2012 to start a comprehensive revision of the rules, in both their scope and administration.

What are the Main Amendment Points of the new Docdex Rules:

  • Enlarged scope: Building on the untapped expertise in the commission, the new DOCDEX rules enjoy an enlarged scope that make them available to any trade finance-related dispute whether or not a set of ICC Banking Commission rules applies. This enlargement, however, comes with strict conditions that ensure a peaceful transition. They include the requirement that both the claimant and the respondent consent to have their case submitted to DOCDEX where the claim relates to a trade finance instrument that is not governed by a set of ICC Banking Commission rules.
  • More transparency: The process for the appointment of experts was profoundly revised. Prospective experts are now required to state from the inception their availability, independence and impartiality to serve as appointed experts. A number of ethical safeguards are added to the process to ensure that a person having served as a DOCDEX expert is barred from any further involvement in the dispute under any other capacity.
  • More straightforward processing: One of the key attractiveness of DOCDEX is the rapidity of the decision rendering process: 30 days from the experts’ reception of the file. The new rules offer a new approach to the various submissions and communications by imposing the principle of electronic submissions according to standard templates available online. This change is expected to curb administrative delays and ultimately result in faster and better processed proceedings.

About Docdex:

First issued in 1997, and revised in 2002, the DOCDEX rules have grown to become a trusted dispute resolution system for documentary credits, demand guarantees and collections that are governed by ICC Banking Commission rules.

Jointly created by the ICC Banking Commission and the ICC Commission on Arbitration and ADR, DOCDEX is currently administered by the ICC International Centre for ADR.

Since its inception, 140 decisions have been rendered by DOCDEX panels, helping avert costly and protracted litigation.

ICC Banking Commission 2015 Events

Ozgur Eker (CDCS) Banking Commission, ICC, News , ,
ICC Banking Commission 2015 Events

In addition to its bi-annual summit gathering +300 international delegates every six months, the ICC Banking Commission organizes regular seminars and conferences around the world, in partnerships with ICC National Committees and other sponsors.

The ICC Banking Commission meetings are the only events of their kind gathering over 600+ banking executives and government officials from more than 65 countries to rethink the future of trade finance.

ICC Banking Commission 2015 Events

  • ICC Banking Commission Annual Meeting 20 – 23 April, 2015 Singapore
  • Supply Chain Finance Conference – 4th Edition TBC (Fall), 2015 Paris, France
  • ICC Banking Commission Technical Meeting TBC (Fall), 2015 Paris, France

ICC Banking Commission Annual Meeting 20 – 23 April, 2015 Singapore

The Annual ICC Banking Commission Meeting will take place at Raffles City Convention Center in Singapore between 20-23.April 2015.

ICC Banking Commission Annual Meeting 20 – 23 April, 2015 Singapore

The Banking Commission of the International Chamber of Commerce (ICC), in collaboration with the Association of Banks in Singapore (ABS), is pleased to invite you to the ICC Banking Commission – Annual Meeting to be held at the Raffles Convention Center in Singapore on 20-23 April 2015.

ICC Banking Commission Technical Meeting TBC November 16 – 18, 2015 Paris, France

ICC Banking Commission Technical Meeting TBC November 16 - 18, 2015 Paris, France

About the ICC Banking Commission

With +550 members in 85 countries, the ICC Banking Commission has rightly gained a reputation as the most authoritative voice in the field of trade finance.

Active in shaping policy and regulatory issues, the ICC Banking Commission is also known for producing universally accepted rules and guidelines for international banking practice, notably letters of credit, demand guarantees and bank-to- bank reimbursement.

ICC rules on documentary credits, UCP 600, are the most successful privately drafted rules for trade ever developed and are estimated to be the basis of trade transactions involving more than one trillion dollars a year.

DOCDEX

Ozgur Eker (CDCS) Docdex, Featured
docdex

DOCDEX – ICC’s Documentary Credit Dispute Resolution Expertise

Docdex is one of the options available to solve letter of credit disputes. Its full name is “ICC’s Documentary Credit Dispute Resolution Expertise”.

What Does DOCDEX Mean?

Docdex decisions are private, expert-based and non-binding which means that Docdex decisions do not have any legal effects on to the disputing parties unless they have agreed in written that they will be solving any potential problems occurred under the documentary collections, letters of credit or demand guarantees by the means of Docdex decisions.

Sample Docdex Clause for a letter of credit transaction: This clause should be inserted in to the credit under field 47-A Additional Conditions in order to make the Docdex decision binding for all parties.

All disputes arising out of or in connection with this letter of credit shall be finally settled under the DOCDEX Decision in accordance with the ICC DOCDEX Rules, ICC Publication No. 811 by one or more experts appointed in accordance with the said Rules by the ICC International Centre for Expertise.

Scope of the Docdex Decisions:

DOCDEX decisions can be issued for the disputes which have been originated in connection with any of the following situations:

How to Apply for a Docdex Decision:

In order to settle a letter of credit dispute by using DOCDEX, the parties should follow two simple steps:

  • Initiator: Submit a request for a DOCDEX decision, along with the standard fee of US$5000 and all relevant documents, to the ICC International Centre for Expertise.
  • Respondent: If you are the opposing party, respond to the request by submitting your answer with all supporting documents.

Note: All the parties are given the opportunity to participate in the DOCDEX proceedings. However, the DOCDEX panel issues an opinion regardless of whether or not the Respondent agrees to participate.

How Much Time is Required to Reach a Docdex Decision?

Experts appointed by the Dispute Resolution Expertise Center will be reaching a Docdex decision within 2-3 months.

It would be worth mentioning that Docdex is a very fast alternative to a traditional court decision which could last around 6-18 months.

The Experts have to issue an opinion to the Dispute Resolution Expertise Centre within 30 days following receipt of all the relevant documents.

The Experts’ decision is examined by the Technical Adviser of the ICC Banking Commission, who ascertains that their decision is in line with the applicable ICC Rules and their interpretation by the Banking Commission.

How Much Does a Docdex Decision Cost?

Applying for a Docdex decision should normally cost to the initiator USD 5.000,00 – 10.000,00.

As of 1 May 2015, the following filing fees apply:

  • Where the amount in dispute does not exceed USD 1.000.000,00 the Standard Fee is USD 5.000,00
  • For all amounts in dispute exceeding USD 1.000.000,00 the Standard Fee is USD 10.000,00.

This is the standard fee of the Docdex decision procedure.

The Standard Fee includes the Centre’s administrative expenses and the Appointed Experts’ fees.

An Additional Fee may be fixed by the Centre—at its discretion—taking into account the facts and documents underlying the dispute (“Additional Fee”).

The Additional Fee does not exceed 50% of the Standard Fee.

What Sort of Documents Required for Applying a Docdex Decision?

Initiator must apply to the ICC International Centre for Expertise for a Docdex decision along with all the documents indicated below:

  • full name and address of the Initiator, clearly stating such Initiator’s function(s) in connection with the documentary credit, the collection, or the demand guarantee; and
  • full name and address of any other party to the dispute (Respondent), clearly stating such Respondent’s function(s) in connection with the documentary credit, the collection, or the demand guarantee, where the Request is not submitted jointly by all parties to the dispute; and
  • a statement of the Initiator formally requesting a DOCDEX Decision in accordance with the ICC DOCDEX, ICC Publication No. 811; and
  • a summary of the dispute and of the Initiator’s claims, clearly identifying all issues related to the documentary credit, the collection, or the demand guarantee and the applicable ICC Rules to be determined; and
  • copies of the documentary credit in dispute, the collection instruction, or the demand guarantee in dispute, all amendments thereto, and all documents deemed necessary to establish the relevant circumstances; and
  • a statement by the Initiator that a copy of such Request, including all documents annexed thereto, has been sent to each Respondent named in the Request.

Important Note: The Request must be submitted in four copies.

Important Note 2: The Request must be accompanied by the payment of the Standard Fee amounting to USD 5.000,00 – 10.000,00. What’s more, even in exceptional cases, the International Centre for ADR (“Centre”) will only charge an additional fee of US$2,500 or US$5,000.

You can find full details of the Docdex application from this link.

The ICC Banking Commission Has Determined Key Working Areas

Ozgur Eker (CDCS) Banking Commission, ICC ,
The ICC Banking Commission has determined key working areas

Although not known by many exporters and importers, the ICC Banking Comission plays a key role in international trade finance.

Most of the international trade finance rules have been written by the ICC’s Banking Commission.

Letter of credit rules, documentary collection rules, standby letter of credit rules,bank guarantee rules and bank payment obligation rules have all been drafted by the ICC’s Banking Comission.

The ICC Banking Commission has identified five work areas that are key to its success.

Area 1 – Traditional Trade Services

This service line includes the traditional rule-making activities of the Banking Commission, in particular:

  • Uniform Customs and Practice for Documentary Credits (UCP)
  • Uniform Rules for Demand Guarantees (URDG)
  • Collections, International Standard Banking Practice (ISBP)
  • Standbys
  • Opinions and Documentary Dispute Resolution Expertise Rules (DOCDEX)

Area 2 – Open Account and Supply Chain Financing

This service line includes projects related to global supply chain financing, in particular the Bank Payment Obligation (BPO) project, and the drafting of guidelines in the fields of open account, factoring and forfaiting.

Area 3 – Global Regulation

This service line handles the relationship with, or projects linked to, the work of international organizations apt to making overarching recommendations to regional or national organizations.

Area 4 – Legal and Compliance

This service line will act as general forum to member banks’ legal and compliance departments.

It has been established for the discussion of topics of interest to the membership, who can recommend action at the Commission or ICC level where needed.

The service line deals with implementation through regional or national laws relating to banking and financial transactions, and acts as legal advisor on any legal and compliance aspect relevant to the work of any of the other four topic areas or any topic selected by the Commission.

Area 5 – Risk and Asset Management

This service line includes credit insurance, assignments and standardization of credit documents, Export Credit Agency (ECAs)/Multilateral Development Banks (MDBs).