Applicable law to a sales contract/ Incoterms, FOB sale / transfer of risks/ direct choice of a national law pursuant to article 3 of the Hague convention and by a general trend in the theory of conflicts of laws / law of the place of residence of the debtor / relevant trade usages.

'The contract contains no provisions regarding the substantive law. Accordingly that law has to be determined by the Arbitrators in accordance with Article 13.3 of the ICC rules. Under that article, the Arbitrators will "apply the law designated as the proper law by the rule of conflicts which they deem appropriate".

The contract is between a Turkish Seller and a Swiss Buyer for delivery in Belgium. The sale was f.o.b. so that the transfer of risks to the Buyer took place in Turkey. Turkey accordingly appears as being the jurisdiction to which the sale is the more closely related.

The Hague Convention on the law applicable to international sales of goods dated June 15, 1955 (Article 3) regarding sales contracts, refers as governing law to the law of the Seller's current residence, which in the circumstances is Turkey.

Switzerland has adhered to the Hague Convention, not Turkey. However, the general trend in conflicts of law is to apply the domestic law of the current residence of the debtor of the essential undertaking arising under the contract. That debtor in a sales contract is the Seller.

Based on those combined findings, Turkish law appears to be the proper law governing the Contract.

As regards the applicable rules of Turkish law, the Arbitrators have relied on the Parties' respective statements on the subject and on the information obtained by the Arbitrators from an independent consultant. Copies of that information have been disclosed to the Parties.

The Arbitrators, in accordance with the last paragraph of Article 13 of the ICC rules, will also take into account the "relevant trade usages".'