AMERICAN ARBITRATION ASSOCIATION—U.S.S.R. CHAMBER OF COMMERCE AND INDUSTRY:OPTIONAL ARBITRATION CLAUSE FOR USE IN U.S.—U.S.S.R. TRADESource: International Legal Materials, Vol. 16, No. 2 (MARCH 1977), pp. 444-447Published by: American Society of International LawStable URL: http://www.jstor.org/stable/20691724 .

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444

AMERICAN ARBITRATION ASSOCIATION-U.S.S.R. CHAMBER OF COMMERCE AND INDUSTRY: OPTIONAL ARBITRATION CLAUSE FOR USE IN U.S.-U.S.S.R. TRADE*

OPTIONAL ARBITRATION CLAUSE

FOR USE IN USA-USSR TRADEV

"The clause set forth below is viewed by the American Arbitration Association and the USSR Chamber of Commerce as being an acceptable arbitration clause for inclusion in contracts between legal or natural persons of the USA and foreign trade organizations of the USSR.

The text of the clause may either be reproduced in full in the contract, or may be incorporated therein by reference using the Abbreviated Form which also appears below.

Parties of both countries are free to utilize this clause or such other form of arbitration clause which they mutually prefer and agree best suits their partic ular needs."

_/ The Optional Arbitration Clause became effective on

January 12, 1977, upon an exchange in New York City of

letters between the American Arbitration Association and

the USSR Chamber of Commerce and Industry. At the same

time the joint panel referred to in the clause was mu

tually established and the Stockholm Chamber of Commerce agreed to act as the authority for appointing arbitrators, in accordance with the clause, and to perform administra tive functions in connection with arbitration proceedings arising under the clause.

*[Reproduced from the text provided to International Legal Materials by the American Arbitration Association.

[The Optional Arbitration Clause represents the result of four

years of tripartite negotiations between the American Arbitration

Association, the U.S.S.R. Chamber of Commerce and Industry, and

the Stockholm Chamber of Commerce. It also represents the first

major use of the UNCITRAL Arbitration Rules reproduced at 15 I.L.M. 701 (1976).]

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445

"OPTTONAL ARBITPTION CLAUSE FOR USE IN CONTRACTS IN USA-USSR

TRADE 1977" (Prepared by American Arbitration Association

and USSR Chamber of Commerce and Industry)

1. Any dispute, controversy or claim arising out of or re

lating to this contract, or the breach, termination or

invalidity thereof, shall be settled by arbitration. The

award of the arbitrators shall be final and binding upon

the parties.

2. The arbitration shall be in accordance with the UNCITRAL

Arbitration Rules as in effect on the date of this con

tract, except that in the event of any conflict between

those Rules and arbitration provisions of this contract,

the provisions of this contract shall govern.

3. The Stockholm Chamber of Commerce shall be the appointing

authority, except for the specific provisions contained in

paragraphs number 5.1 and 5.2.

4. The number of arbitrators shall be three.

5. Each party shall appoint one arbitrator. If within fifteen

days after receipt of the claimant's notification of the ap

pointment of an arbitrator the respondent has not, by tele

gram or telex, notified the claimant of the name of the

arbitrator he appoints, the second arbitrator shall be ap

pointed in accordance with the following procedures:

5.1 If the respondent is a foreign trade organization

of the USSR, the second arbitrator shall be ap

pointed by the USSR Chamber of Commerce and In

dus try.

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446

5.2 If the respondent is a legal or natural person of

the USA, the second arbitrator shall be appointed

by the American Arbitration Association.

5.3 If within fifteen days after receipt of the request

from the claimant, the USSR Chamber of Commerce and

Industry or the American Arbitration Association,

as the case may be, has not, by telegram or telex,

notified the claimant of the name of the second

arbitrator, the second arbitrator shall be appointed

by the Stockholm Chamber of Commerce.

6. The two arbitrators thus appointed shall choose the third

arbitrator who will act as the presiding arbitrator of the

tribunal. If within thirty days after the appointment of

the second arbitrator, the two arbitrators have not agreed

upon the choice of the presiding arbitrator, then at the

request of either party the presiding arbitrator shall

be appointed by the Stockholm Chamber of Commerce in accor

dance with the following procedure:

6.1 The Stockholm Chamber of Commerce. shall submit to

both parties an identical list consisting of the

names of all of the persons listed on the then

existinj joint panel of presiding a.rbitrators es

tablished by the USSR Chamber of Commerce and In

dustry and the American Arbitration Association.

6.2 Within fifteen days after receipt of this list, each party may return the- list to the Stockholm

Chamber of Commerce after having deleted the names

to which he objects, but not more than one-half

of the names on the list, and having numberetd the

remaining names on the list in the order of his

preference.

6.3 After the expiration of the above period of time,

the Stockholm Chamber of Commerce shall appoint

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447

the presiding arbitrator from among the names not

deleted on the lists returned to it and in accor dance with the order of preference indicated by the

parties.

6.4 Should no joint panel then be available, or if all

persons remaining on the lists after deletion of

names by the parties are unwilling or unable to

act as presiding arbitrator, the Stockholm Chamber

of Commerce shall appoint as presiding arbitrator

a person not on the joint panel who shall be of a

nationality other than USSR or USA.

7. The arbitration, including the making of the award, shall

take place in Stockholm, Sweden.

8. The parties will use their best efforts to agree on a single

language for the arbitration proceedings, in order to save

time and reduce costs. However, if the parties do not agree

on a single language:

8.1 Each party shall present its statement of claim or

statement of defense, and any further written

statements in both.English and Russian.

8.2 Any other documents and .exhibits shall be trans

lated only if the arbitrators so determine.

8.3 There shall be interpretation into both Russian

and English at all oral hearings.

8.4 The award, and the reasons supporting it, shall

be written in both Russian and English.

ABBRVIAED ORMOF THE CLAUSE

Any dispute, controversy or claim arising out of or relating to this contract, or the breach, termination or invalidity

thereof; shall be settled by arbitration in accordance with the "Optional Arbitration Clause for use in contracts in

USA-USSR Trade-1977" (Prepared by American Arbitration

Association and USSR Chamber' of Commerce and Industry) .

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