The International Arbitration Court at the Belarusian Chamber of Commerce and Industry (IAC at the BelCCI) is an important institution that ensures the resolution of disputes in the sphere of commercial activity in Belarus and with the participation of foreign entities. Created to protect the rights and legitimate interests of participants in economic turnover, it is empowered to consider civil disputes between entities, including when one of them is located abroad. In the context of modern economic development, when business issues are becoming increasingly complex, the effectiveness of arbitration proceedings is important. The court ensures not only high-quality dispute resolution but also contributes to the formation of a favorable investment climate in the country. In this article, we will consider the key aspects of the work of this arbitration court, its role in the justice system, and its importance for entrepreneurs.
History of the IAC at the BelCCI
The IAC at the BelCCI was created in 1994. This court operates permanently and considers disputes between the parties to the contract, when there is an arbitration agreement between them referring the dispute to the competence of the IAC at the BelCCI. An arbitration agreement can be concluded between business entities in Belarus, as well as a Belarusian and a foreign business entity. To conclude an arbitration agreement, we recommend contacting our experienced lawyer.
Who Considers Cases in the IAC at the BelCCI
In the IAC at the BelCCI, cases are considered by arbitrators. The parties can choose arbitrators and their numbers and record their choices in the arbitration agreement. By default, the dispute is considered by three arbitrators.
When the parties do not have an agreement on the candidates for arbitrators, they are appointed by the chairman of the court. You can understand the procedure and deadlines for agreeing on the candidates for arbitrators during a consultation with our lawyer.
Who Can Be Appointed As an Arbitrator
The IAC at the BelCCI has a recommended list of arbitrators. The list includes both Belarusian and foreign lawyers, scientists, and practitioners. There are 73 arbitrators on the list. Arbitrators are not representatives of the parties to the dispute; they must be objective and impartial.
Parties to the dispute who are residents of Belarus may select arbitrators only from this list. When one of the parties to the dispute is a non-resident of Belarus, the arbitrator does not necessarily have to be from this list.
A party that wishes to involve a foreign arbitrator in the consideration of the dispute must make an advance payment for the costs associated with the participation of such an arbitrator in the consideration of the dispute.
Does the IAC at the BelCCI Always Follow Belarusian Law?
In the arbitration agreement, the parties can determine: which law applies to the resolution of the dispute. In principle, the parties can choose the law of any state, the rules of international trade law, and international trade customs. For questions about the applicable law, you can consult our lawyer.
Where does the IAC at the BelCCI Consider Cases?
The parties may agree in the arbitration agreement on the place of consideration of the dispute. If there is no such agreement, the place of consideration of the case is determined by the arbitrators, taking into account the opinion of the parties and the circumstances of the case. By default, cases are heard on the premises of the IAC at the BelCCI in Minsk at 11 Kommunisticheskaya Street, room 320.
In What language is the Arbitration Process Conducted
As in other courts of Belarus, the process is conducted in Belarusian or Russian – one of the state languages. In the arbitration agreement, the parties may specify another language, taking into account the capabilities of the arbitrators. When one of the parties to the dispute does not speak the language in which the arbitration process is conducted, an interpreter can be engaged at the expense of this party.
What is the Confidential Consideration of Cases
The IAC at the BelCCI considers cases confidentially. This means that cases are considered in a closed court session. However, the parties may ask the court to consider the case in public, and the arbitrators may initiate such consideration with the consent of the parties.
All those participating in court sessions that are held in a closed form must not disclose information received on the case.
Confidential consideration of cases by the IAC at the BelCCI distinguishes this court from other courts of Belarus, in which cases are considered in open sessions by default.
In What Order does the IAC at the BelCCI Consider Disputes
The IAC at the BelCCI considers a case within 6 months after the parties have determined the composition of the arbitrators. When the parties to the dispute are residents of Belarus, the period for considering the dispute is up to 3 months.
To begin the arbitration procedure, a statement of claim is filed with the court. You can draft a statement of claim with our experienced lawyer.
The parties determine the procedure for considering the case themselves. The arbitrators are not bound by any procedural formalities and can agree with the proposals of the parties or propose their stages of dispute consideration.
Fee for Consideration of Cases
The IAC at the BelCCI is not a state court, therefore, for consideration of cases by this court, it is not the state fee that is paid, but the arbitration fee. The Chairman of the IAC may, based on a reasonable request from the plaintiff, allow the consideration of the case to begin after paying at least 50% of the arbitration fee (registration fee), while the remaining part must be paid before the first hearing. The IAC at the BelCCI does not refund the arbitration fee paid in the event of a full or partial withdrawal of the plaintiff’s claims or a reduction in the amount of the claims.
Arbitration Fee Rates
The minimum arbitration fee rate is 50 basic units. This is 2,000 Belarusian rubles (approximately 567 euros). Compared to the state fee, this can be quite advantageous. The arbitration fee rates of the IAC at the BelCCI are among the lowest compared to the rates of other international arbitration courts.
When resolving disputes under foreign trade agreements, the initial amount of the arbitration fee is 700 euros for claims whose value does not exceed 5,000 euros.
In cases where the claim does not have a set price, the amount of the fee is determined by the Chairman of the IAC, in which case the fee is not less than 700 euros. The arbitration fee scale is progressive:
- For claims between 5,001 and 10,000 euros, the arbitration fee is determined by the formula: 700 euros plus 5.5% of the amount exceeding 5,000 euros.
- For claims between 10,001 and 25,000 euros, the arbitration fee is 975 euros plus 5.5% of the amount exceeding 10,000 euros.
- For claims between 25,001 and 50,000 euros, the arbitration fee is 1,800 euros plus 5% of the amount exceeding 25,000 euros.
- A separate arbitration fee table is provided for internal disputes. For example, for a claim of up to 1,000 basic units, the arbitration fee is 50 basic units.
If the case is heard by a single arbitrator, the arbitration fee is reduced by 30%. The arbitration fee is also supplemented by value-added tax calculated by Belarusian legislation.
You can correctly calculate the arbitration fee during a consultation with our lawyer.
The arbitration fee is offset by the registration fee, which is paid by the party when filing a statement of claim.
Features of the Execution of Decisions of the IAC at the BelCCI
Decisions of the IAC at the BelCCI are not in themselves enforcement documents: they are not enforced by bailiffs. To enforce such decisions, apply to the Economic Court of Belarus at the location of the debtor with an application for the issuance of an enforcement document for the enforcement of the decision. The application must meet certain requirements. You can draw up an application for the enforcement of the decision during a consultation with our lawyer. The Economic Court considers such an application for no longer than one month.
Decisions of the IAC at the BelCCI, which are adopted on disputes involving foreign persons, are recognized and enforced in more than 140 countries.
Why is the IAC at the BelCCI Important for Business?
The opportunity to consider disputes at the IAC at the BelCCI is especially relevant for companies that operate internationally. The advantages of considering disputes at the IAC at the BelCCI for business can be highlighted in several areas:
1. Independence and Neutrality
The IAC at the BelCCI provides businesses with an independent platform for resolving conflicts. This is especially important for international companies that may doubt the impartiality of courts in another country. In arbitration, companies can choose arbitrators who specialize in the required areas, which helps increase the parties’ trust in the process.
2. Speed of Case Consideration
Arbitration proceedings are usually faster than traditional court proceedings due to the flexibility of the procedure and the absence of multiple appeals. This allows companies to quickly resolve disputes and return to their core business without wasting a lot of time and resources on lengthy court proceedings.
3. Confidentiality
Hearings at the IAC at the BelCCI are confidential, which helps protect the reputation and business information of companies. This is especially important in a competitive environment when information leaks can cause serious damage to business.
4. Recognition of Decisions Abroad
The IAC at the BelCCI operates by international standards, and its decisions can be recognized and enforced in other countries that have signed the New York Convention. This allows companies to seek enforcement of arbitration awards in more than 140 countries, which significantly increases their legal protection.
5. Arbitrators’ Specialization and Competence
Arbitrators at the IAC at the BelCCI are experienced experts in the field of international law and commercial relations, which allows them to effectively understand complex business issues, including international supplies, investments, and intellectual property.
6. Flexibility in Determining Procedures
Businesses can choose the language, location, and even applicable legal norms for the arbitration process, which allows companies to adapt the process to their needs and minimize costs.
7. Financial Benefits
In some cases, the arbitration fee rates in the IAC at the BelCCI are lower than the state fee rates for considering cases in the economic court or other arbitration courts.
Thus, the IAC at the BelCCI is an important tool for Belarusian and foreign companies operating in the international market. It ensures reliable and predictable dispute resolution, increasing business confidence in legal protection and reducing legal risks in cross-border activities.
To consider the advantages of this dispute resolution body, draw up documents, and represent your interests in the IAC at the BelCCI, contact our experienced lawyers.
Contact us
If you have any questions or disputes regarding the resolution of disputes in the sphere of commercial activity in Belarus, we will be happy to help! Our long-term experience in divident payment will help you resolve any disputes in this area.
- +37529142-27-19 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
