ICC revises DOCDEX rules – enhancing scope, transparency, and efficiency
by Kylene Casanova
The International Chamber of Commerce’s Documentary Credit Dispute Resolution Expertise (DOCDEX) has offered international bankers and traders a quick and cost-effective means to settle documentary credit disputes, usually in two to three months.
Decisions have been reached by a panel of three independent and impartial experts, and later scrutinized by an ICC Banking Commission technical advisor. Crucially, decisions are non-binding unless both parties agree otherwise – freeing the independent experts from “due process”, and adding flexibility.
Enhanced DOCDEX rules
The ICC has revised its DOCDEX rules. The enhancements to the DOCDEX rules, which come into effect come into force on 1 May 2015, include:
- widened scope to address any trade finance dispute, including trade loans, syndications, negotiable instruments, risk purchase agreements, conflicts of priority and fraud in letters of credit – all areas that are not otherwise covered by existing ICC banking rules
- enhanced transparency – requiring ICC to publish redacted decisions in every DOCDEX case. (ICC claim that doing so will not only set a precedent for future cases, it will also allow ICC to analyze the panel of experts charged with forming a decision – ensuring they are both impartial and practitioners [rather than individuals operating solely on a theoretical basis])
- significantly enhanced the advanced dispute resolution mechanism by taking filings in electronic form – using standard templates available on the ICC website which will help to streamline case administration and, therefore, further accelerate proceedings.
- reduced time to take decisions: in future ICC expect that they will be reached within 30 days of a claim.
“Under the new DOCDEX Rules, the ICC Centre for ADR will administer fast and inexpensive procedures maintaining the highest standards of competence, impartiality and confidentiality throughout,” said Andrea Carlevaris, Director of ICC Dispute Resolution Services. “The revised Rules have been drafted in close cooperation between the Banking Commission, the Arbitration and ADR Commission and the Centre. I am confident we have been able to create a just and, crucially, convenient way for banking professionals to settle disputes without disruption.”
The ICC DOCDEX Rules and more information on how to use the service can be found at www.iccdocdex.org.
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