Foreign Trade Court of Arbitration is an institutional international commercial arbitration court seated in Belgrade. It resolves all disputes arising out of international business relations.

With its sixty years long tradition (established in 1947), thousands of resolved disputes, and a negligible number of awards set aside by the domestic courts in the judicial review proceedings, Foreign Trade Court of Arbitration is a guarantor for an objective and impartial administration of justice.

Foreign Trade Court of Arbitration is:

·         An institutional (permanent) arbitration court established at the Serbian Chamber of Commerce , the association of the Serbian businesses;

·         An international arbitration;

·         An arbitration of general type because it resolves all kinds of disputes arising out of international business relations;

·         Predominately, it resolves disputes between domestic and foreign persons;

·         An autonomous and private (non-governmental) judicial body established by the will of the parties;

·         Autonomous of the association at which it was established;

·         The arbitrators may be both domestic and foreign nationals;

·         The parties may appoint the arbitrators from the Panel of Arbitrators or from outside the Panel. Only the chairmen of an arbitral tribunal or sole arbitrator must be from the Panel of Arbitrators.

·         Independent in its work.

Competence

Foreign Trade Court of Arbitration, if the parties have agreed upon or accepted its jurisdiction, resolves all kind of disputes arising out of international business relations.

Conciliation Services

Upon the request of the parties, Foreign Trade Court of Arbitration conducts conciliation proceedings in cases that may fall within the scope of its jurisdiction, regardless of whether its jurisdiction has been stipulated in an arbitration agreement. The settlement reached as a result of the conciliation proceedings shall be noted in a record signed by the parties and by the members of the conciliation commission. Upon a joint proposal of the parties, the settlement reached in the conciliation proceedings may be made in the form of an arbitral award.

Arbitral Proceedings

The Rules of Foreign Trade Court of Arbitration, (Official Gazette of the Republic of Serbia No. 52/07 of June 8, 2007), contain modern solutions recommended by international arbitration scholars and practitioners and adapted to the character of Foreign Trade Court of Arbitration. The provisions of the Rules provide for a speedy and efficient conduct of the proceedings, resulting in a high quality award, and this refers to:

·         the powers of the arbitration institution, that is, of the arbitrators, to decide on their own jurisdiction;

·         an odd number of arbitrators; the disputes are resolved by a sole arbitrator or by an arbitral tribunal consisting of three arbitrators, depending on the will of the parties . If the parties cannot agree on this matter, it shall be determined on the basis of the amount that is the subject of the dispute;

·         the right of a party to choose its own arbitrator;

·         precise delimitation of the time periods within which the parties have to appoint their arbitrators, and within which the arbitrators have to appoint the chairman of the arbitral tribunal. If the parties fail to use their right to appoint their own arbitrators, the appointing authority is the President of the Court of Arbitration;

·         the parties are prevented from obstructing the conduct of the arbitration proceedings by dilatory tactics;

·         the duration of the arbitration proceedings is one year from the date of constitution the arbitral tribunal or from the date of appointment of the sole arbitrator.

·         single-instance proceedings: the arbitral award is final and there is no right of appeal against it. It has the force of an enforceable decision passed by a court of law;

·         the Secretariat of the Court of Arbitration confirm the enforceability of the award within the prescribed period of time;

·         the costs of arbitration, paid by the plaintiff at the time of filing the claim, comprise of registration fee, and both administrative expenses and arbitrator’s fees. After the proceedings have been completed, the costs of arbitration are apportioned between the parties, proportionally to their success in the dispute.

The Recommended Arbitration Clause

Organization of Foreign Trade Court of Arbitration

Foreign Trade Court of Arbitration management consists of the Chairman, two Vice-Chairmen, the Board and the Extended Board.

·         The Chairman of the Court of Arbitration appoints an arbitrator if the parties, or the party-appointed arbitrators fail to do so.

·         The Board consists of the Chairman, two Vice-Chairmen and the Secretary of the Court of Arbitration. It makes a prima facie determination on the existence of the arbitration agreement, the challenge of an arbitrator, the ultimate appointment of an arbitrator in case of a party challenge with regard to his impartiality and independence, and examines arbitral awards as regards their form and compliance with the arbitration practice in a particular field.

·         The Extended Board consists of the Chairman, two Vice Chairmen, the Secretary and nine members from among the ranks of arbitrators. It controls the application of the Rules and follows and examines the practice of resolution of disputes.

Arbitration Costs

SCALE OF ARBITRATION COSTS

of the Foreign Trade Court of Arbitration at the Serbian Chamber of Commerce (in force from February, 12, 2008)

At the time of submitting a request for arbitration, a statement of claim, a counterclaim, or a set-off claim, the party shall deposit with the Secretariat of the Court of Arbitration a sum of EUR 200.00 as a registration fee.

Sum in dispute in EUR                    Cost in EUR

From 5.000                                         900 EUR

From 5.000 - 10.000                           900 EUR 15% for the amount over 5.000 EUR

From 10.000 - 20.000                         1.650 EUR 12% for the amount over 10.000 EUR

From 20.000 - 30.000                        2.850 EUR 9% for the amount over 20.000 EUR

From 30.000 - 70.000                       3.750 EUR 6% for the amount over 30.000 EUR

From 70.000 - 100.000                     6.150 EUR 4.5% for the amount over 70.000 EUR

From 100.000 - 500.000                   7.500 EUR 3% for the amount over 100.000 EUR

From 500.000 - 1.000.000              19.500 EUR 1,5%  for the amount over 500.000 EUR

From 1.000.000 - 2.000.000       27.000 EUR 0,81% for the amount over 1.000.000 EUR

Over 2.000.000                           35.100 EUR 0,4% for the amount over  2.000.000 EUR