Iran Chamber of Commerce Arbitration (hereinafter ACIC) is a new organization compared to other countries worldwide. This organization brought new methods to settle disputes. In this article, we will discuss the formation of this center, the rules of arbitration proceedings, and the structure of the Iran Chamber of Commerce Arbitration Center. To have a better understanding of this organization, we conclude the article by reviewing a sample award of arbitration issued by ACIC.
The History of the Chamber of Commerce in Iran
Iran Chamber of Commerce Arbitration Center or Arbitration Center of Iran was established on February 2002, in line with the implementation of Clause "H" of Article "5" of the Law on the Establishment of the Chamber of Commerce, Industries and Mines of Iran, which was approved by the Parliament in March 1991 (amended on December 1994). The operation of this organization is based on its statute.
With the formation of the arbitration center, the concept of organizational arbitration entered the legal system of Iran for the first time.
The internal by-laws on how to provide arbitration center services include "Iran Chamber of Commerce Arbitration Center Arbitration Rules and Procedure", "Arbitration Center Organization By-laws," and "Arbitration Fees By-laws," which are prepared and issued in accordance with Article 6 of the Center's Statute Law. The Board has approved it by representatives of the Iranian Chamber of Commerce.
The subject of the Iran Chamber of Commerce Arbitration Center's activity is to resolve domestic and international commercial disputes through organizational arbitration in accordance with the statute law, the regulations on how to provide arbitration center services (domestic and international arbitration regulations), and the arbitration fees regulations of the center.
Pillars of Iran Chamber of Commerce Arbitration Center
The arbitration center is located in the place of the Chamber of Commerce, Industries, Mines, and Agriculture of Iran. It has three pillars: the board of directors, the general secretary, and the arbitrators.
- The board of directors of the arbitration center consists of the chairman and one of the vice-chairman of the Iran Chamber, the chairman or vice-chairman of the Tehran Chamber, the secretary general of the Iran Chamber, and three prominent businessmen and managers of industries and mines, chosen by the delegation of representatives of the Iran Chamber.
- Another pillar of the arbitration center is the secretary general, elected for three years among experienced Iranian lawyers familiar with domestic and international commercial issues. Secretary-general performs their duties based on the provisions of the Constitution of the Arbitration Center of the Iranian Chamber and the internal regulations of the Arbitration Center.
- The arbitrators of the arbitration center are selected among lawyers insightful, well-known, and experienced business people who are sufficiently aware of the domestic and foreign commercial regulations and customs upon the proposal of the general secretary and the approval of the board of directors.
The executive structure of the Arbitration Center of the Iran Chamber of Commerce
1. Secretary General of Iran Chamber Arbitration Center
as explained above, the Secretary General of the Arbitration Center of the Iran Chamber is one of the pillars of the Arbitration Center. The Secretary-General will perform their duties based on the approvals of the Board of Directors, the regulations of the Arbitration Center of the Iran Chamber, and the regulations on how to regulations of the internal organization of the Arbitration Center. Managing all affairs of the arbitration center and supervising the smooth flow of arbitrations that have been referred to the center is the responsibility of the secretary-general.
2. Secretariat of Iran Chamber Arbitration Center
The arbitration center of the Iranian Chamber has a secretariat that handles all coordination and administrative and clerical affairs related to arbitrations. This secretariat works under the supervision of the Secretary-General and will have a sufficient number of experts, consultants, and administrative staff. The secretariat is obliged to provide all necessary administrative and clerical facilities and services for correctly executing the arbitration process in accordance with the law and the internal regulations of the center at the disposal of arbitrators, experts, litigants, lawyers, and their representatives. The secretariat is responsible for receiving, exchanging, and communicating arbitration petitions, defenses, and exchanging bills, as well as all correspondence between arbitrators and litigants, and experts during the arbitration proceedings.
3. Provincial offices of ACIC
According to the statute of the arbitration center of the Iranian Chamber, which the Islamic Council approved in February 2010, the arbitration center is the only arbitration institution established by the legislator's direct will. The center's headquarters is in Tehran. According to Article 2 of the Regulations of the Arbitration Center of the Iranian Chamber, the center can establish an office in the Chamber of Commerce of each of the provincial centers, which will operate directly under the supervision of the Secretariat of the Arbitration Center of the Iranian Chamber.
4. Education and Research Unit
In order to develop arbitration and to promote the status and professional culture of arbitration, the Arbitration Center of the Iran Chamber organizes seminars and training workshops and publishes pamphlets, magazines, and specialized and practical books every year. It also cooperates with domestic and foreign universities, educational institutions, domestic and foreign arbitration associations, and institutions to implement educational programs.
Rules of arbitration proceedings
The laws and regulations according to which arbitration cases
are handled are the arbitration rules and regulations of the
Arbitration Center of the Chamber of Commerce of
Iran. The laws related to arbitration in Iran include the
seventh chapter of the Code of Civil Procedure,
the Law of International Commercial Arbitration,
and the Law of Accession of the Government of the Islamic Republic
of Iran to the New York Convention on the recognition and execution
of foreign arbitration awards.
Apart from the center's constitution and the arbitration center's regulations, the Iranian Chamber of Commerce also has provisions regarding mediation.
Inter-organizational cooperation of ACIC
To promote the position of arbitration among economic actors and also to expand cooperation and scientific partnerships in the field of arbitration, the Arbitration Center of the Chamber of Iran with chambers of commerce across the country, joint chambers of commerce, trade organizations, and associations, trade unions, companies and institutions, and commercial units, industrial and production, mining and service, domestic and foreign investors and banks cooperates and interacts in various methods, especially through the conclusion of other agreements.
The joint chambers of commerce
Austria, Switzerland, Spain, China, United Arab Emirates, Greece, Russia, Switzerland, and the Istanbul Chamber of Commerce are among the countries that have signed cooperation agreements with Iran. The provisions and obligations of these memorandums are the same for all countries. Different joint chambers of commerce cooperate with Iran in six primary areas. These chambers are interested in resolving domestic and foreign commercial and trade disputes through arbitration and mediation of the Iranian Chamber of Commerce, Industries, Mines, and Agriculture Arbitration Center. Common provisions of these agreements cover the following matters:
- The joint chambers of commerce shall inform their members regarding the contents of the memorandum of the Also, recommend the inclusion of the arbitration and mediation clause of the Iran Chamber of Commerce arbitration center in the contracts.
- The ACIC of Commerce processes arbitration and mediation fees in lawsuits and disputes between the members of the Chamber of Commerce with each other or cases with third parties based on the arbitration chamber fees table.
- The ACIC, upon the request of the Joint Chamber of Commerce, conducts arbitration and mediation training courses for the members introduced by the Joint Chambers of Commerce.
- The ACIC agrees in all their memorandums with the joint chambers of commerce to appoint an arbitrator or expert from the nominated members of the joint chambers, as the case may be.
- The joint chambers of commerce propagate and introduce the announcements and services of the ACIC in their publications and website.
- in necessary cases and at the request of the ACIC, in the arbitration proceedings, the Joint Chambers of Commerce shall take action to declare their opinion or present the documents they have in their possession.
Sample award of the arbitration center of the Iranian Chamber of Commerce
Award number: 242/16/89/D/36
Date of issuing the award: 5/3/2011
Demand: Refund of demurrage fee
According to letter No. 29/623 of the management of Iran's International Transport and Carnet Affairs, addressed to the Secretary General of the Arbitration Center of the Iran Chamber, the case of the dispute between Lease Company and Dehar Company is sent to the Arbitration Center of the Iran Chamber for arbitration. According to the order of the Secretary General of the Arbitration Center and according to the rules and regulations of the Arbitration Center of the Iranian Chamber, bills are exchanged, and the correspondence of the parties to the dispute is received and attached to the file.
The applicant's claim summarizes that he entrusted the shipment of vegetable seeds to a German forwarder. The forwarder, as mentioned above, has assigned the transportation of goods to Turkish trucks. However, the trucks above were stopped for eight days due to the lack of necessary documents to enter the country, and the contents of the file indicate a discount of five days for the 806UD/683L38 truck and three days for the PL205/934K38 truck.
The respondent company, as a forward agent, for this suspension
period, claims 250 euros per day from the applicant company, which
was paid to the respondent in a total of 2,874,000 Rials, according
to the receipt in the file.
However, the petitioner company has paid as per the receipt below; it did not consider the payment of this amount as a reason to confirm the calculations of Dahr. It reserved its right to protest and has filed a lawsuit demanding an additional refund.
The applicant has left the actual determination of the right to stop and the amount that should be returned to him to the discretion of the arbitrator entitled to refund the amount paid between 20 and 25 million Rials.
On the other hand, Dehr Company, in the position of defense, states that the role of this company in the transportation process was first as a receiving agent of the German forwarder. Secondly, the payments made daily 250Euro off of s is the amount requested by the drivers of the Turkish company, which was paid. Still, in practice, the payment was made in the form of clearing in the account between the Dehr company and the German forwarder, whose account statement is on file.
Dehr company also claims to be unaware of the right to stop trucks in Turkey.
Considering that the parties to the lawsuit have declared separately that they accept the jurisdiction of the arbitration center in dealing with the proposed case, and by accepting the arbitration as the chosen arbitrator of the center and attending the hearing, they have expressed the nature of their statements. Therefore, the jurisdiction of the arbitration center in handling The claim is certain and definite.
First, the rejection of the respondent company regarding the lack of attention to the lawsuit due to the fact that he has assumed the role of the German forwarder (receiving agent) has no legal basis. Because according to the documents in the file, including the letter of credit opened for the goods, the term of the contract between the applicant and the Dutch seller was FCA, and according to the regulations governing Incoterms, in the term of FCA, the choice of the carrier is with the buyer.
The documents presented by the applicant regarding the declaration of the description of the goods to Dehar Company indicate that the carrier was chosen by the applicant company. In the familiar concept of international transportation, cargo compartment booking has been made by Liz company. Dehar company, as a forwarder, while accepting the shipment, has delegated the operation to its business partner in Europe; therefore, in the present case, there is no discussion of the transportation agency, and this defense of the respondent company is rejected, and the legal relationship between the respondent and the applicant has been established.
Secondly, regarding the determination of the exact amount of the proper withholding amount and its basis, regardless of the fact that the respondent has not been able to provide an independent receipt for the payment of these funds and he has only referred to the order of the German forwarder and the submission of an invoice, but he has accepted the receipt of the negotiated funds.
In any case, considering that the determination of damages in each case is based on the proportion of the act of damage and the amount of damage caused, Considering that the orders of the foreign company to the Iranian company cannot be contrary to the custom and the existing procedure regarding the phenomenon of the right of suspension, and the Iranian company is obliged to comply with the necessary instructions in this regard.
Since the applicant company has always protested the amount of damages determined for the right to stop Turkish trucks and even considered the payment of funds as the only way out of the dispute between itself and the transport company that held the warehouse bill as a pledge and for He has paid the funds to compensate for further losses caused by the delay in the clearance of the goods and has retained the right to protest.
Considering that the respondent was obliged to comply with the national instructions for paying the right to stop damages so that the appropriateness of the payments and the common custom were observed, except that at the time of the dispute (May 2009), a specific instruction that includes the right to stop foreign trucks There has been no activity in the international arena.
However, in the opinion of the referee of the case, instruction number 2530/3/170 of the National Association of International Transport Companies, which was issued with the authority of Resolution 165 of the Supreme Transport Council of the country, is in accordance with the reality in terms of determining the actual damage and payment of excess stoppage fee to foreign carriers has no customary and legal basis.
Therefore, based on Article 220 of the Civil Law and the instruction mentioned above as customary practice and considering the principle of balance in damages, and finally with regard to paragraph 4 of the instruction mentioned above and considering the absence of a contract between the stopped trucks in Iran and the owner commodity and according to the first part of Clause A of the mentioned instructions and considering the allowed time of two working days (as free time), respectively, the right to stop the truck number 205PL/934FK38 for three days of quitting, including the days of exemption, a total amount of two million four hundred thousand Risal (eight hundred thousand rials per day) and the right to stop truck 806UD/683LV38 for three days, including the exemption days, calculates and determines a total of two million four hundred thousand rials (eight hundred thousand rials per day).
As a result, based on Article 265 and Article 301 of the Civil Code, as well as the commercial practice in international transportation, it is condemned to return the additional funds received from the applicant, which is an example of unjust possession with the arguments contained in this judgment. Therefore, the respondent must repay the amount of twenty-three million nine hundred and forty thousand Rials to the applicant.
The arbitration fees are according to the bylaws of the Arbitration Center of the Iran Chamber, and the parties are responsible for paying them fairly. The issued decision is final and binding after notification.
Arbitrator of the case
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.