BTL 717 - DOCDEX Rules

 

The Banking Tutor’s Lessons

BTL 717                                                                          24-10-2024

DOCDEX Rules

 

The International Chamber of Commerce ("ICC") sets out these Amicable Dispute Resolution (ADR) Rules, which permit the parties to agree upon whatever settlement technique they believe to be appropriate to help them settle their dispute. In the absence of an agreement of the parties on a settlement technique, mediation shall be the settlement technique used under the Rules. These ADR Rules are known as DOCDEX Rules.

 

The DOCDEX stand for ―Documentary Instruments Dispute Resolution Expertise which are administered by the ICC International Centre for ADR, a separate administrative body within the ICC.

 

DOCDEX is a dispute resolution procedure specifically designed for the world of trade finance, whereby a panel of three independent and impartial experts render a decision on a dispute arising out of a trade finance instrument, undertaking or agreement.

 

Since 1997 the ICC DOCDEX Rules have provided a trusted dispute resolution system for documentary credits incorporating ICC banking rules. In 2002 the Rules were extended to guarantees and collections also incorporating ICC banking rules.

 

The 2015 revision further extends their scope to a wider range of trade finance instruments such as trade loans, syndications, negotiable instruments, risk purchase agreements, conflicts of priority and fraud in letters of credit.

 

 

DOCDEX process is digitalised to facilitate electronic submissions according to standard templates available online. Speed has always been a hallmark of the DOCDEX process: decisions are reached within thirty days of the experts‘ receiving the file.

 

To ensure transparency, the parties are not informed of the identity of the experts and only liaise with the Centre. This rapid, document-based procedure offers an attractive alternative to costly and protracted litigation.

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Sekhar Pariti

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