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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, better known as the 'New York Convention', is widely regarded as one of the most successful international treaties ever concluded and it provides the legal foundation for the great success of international arbitration today.
The International Chamber of Commerce (ICC) has always been closely associated with the New York Convention, notably as initiator and leader of the movement that led to its adoption in 1958. It was therefore fitting that the ICC Commission on Arbitration should establish a Task Force on National Rules of Procedure for Recognition and Enforcement of Foreign Awards pursuant to the New York Convention. The result of the Task Force's work was the first edition of this Guide, which was published on the occasion of the New York Convention's 50th anniversary in 2008.
The Guide was designed as a practical resource for international arbitration practitioners and users, to be consulted as a first step when considering recognition and enforcement of foreign awards in one or more countries. The first edition described the state of relevant procedural law in 66 States and territories in which the New York Convention was applicable. Four years on, the Task Force is proud to publish this second edition, which has been extended to cover a total of 79 such States and territories.
The Guide addresses aspects of procedure relevant to the recognition and enforcement of foreign awards under the New York Convention. It also records, where applicable, any more favourable legal basis for recognition and enforcement of foreign awards that may exist in a country, aside from other conventions and treaties, which are not affected by the New York Convention (see Article VII(1) of the Convention, which is reproduced in Appendix A).
Consistent with the mandate of the Task Force, the Guide focuses on national rules of procedure for recognition and enforcement of foreign awards under Articles III and IV of the New York Convention. It does not address the grounds for refusing recognition and enforcement under Article V of the New York Convention or any other aspect of the New York Convention.
Article III of the New York Convention provides:
Each Contracting State shall recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition and enforcement of domestic arbitral awards.
The first sentence of Article III provides that each Contracting State shall recognize and enforce foreign awards in accordance with its own national rules of procedure. However, Article III also contains two limitations on the application of national rules of procedure. First, Article III requires Contracting States to recognize and enforce foreign awards under the conditions set forth in the New York Convention. Second, Article III stipulates that Contracting States shall not impose substantially more onerous conditions or higher fees or charges on the recognition or enforcement of foreign awards than are imposed on the recognition and enforcement of domestic awards. Notwithstanding these limitations, the New York Convention still leaves broad scope for the application of each Contracting State's own national rules of procedure to the recognition and enforcement of foreign awards.
Not surprisingly, there are considerable differences between the national rules of procedure applicable in the New York Convention's current 148 Contracting States. As a consequence, the procedural conditions for recognition and enforcement of foreign awards are not uniform under the New York Convention, but may vary significantly from one Contracting State to another. These differences can have a major practical impact on a party's ability to obtain recognition and enforcement in a given Contracting State.
Prior to the publication of the first edition of the Guide, there had been no systematic compilation of information specifically devoted to these national rules of procedure. It was thus no surprise that the Guide was met with great enthusiasm and recognized as a valuable addition to the body of legal resources available to international arbitration practitioners and users. With this second, updated and expanded edition of the Guide, the Task Force seeks to ensure that this valuable resource continues to be relevant and useful for the international arbitration community.
The Task Force prepared both the first and second editions of the Guide in close collaboration with the ICC International Secretariat and ICC National Committees around the world. These National Committees appointed distinguished arbitration experts to represent their countries on the Task Force and serve as Country Rapporteurs. The Task Force then drafted a Country Questionnaire, which the Country Rapporteurs answered in consultation with any other Task Force members from their respective countries. Lastly, the Task Force's Editorial Committee and the ICC staff editor reviewed and refined the Country Answers in consultation with the Country Rapporteurs.
Like the first edition, this second edition of the Guide includes, in addition to the Country Answers, an Overview and several Appendices.
The Country Answers form the main body of the Guide and will be of primary interest to arbitration practitioners and users. They appear in alphabetical order and follow a uniform structure covering the following main subjects:
(A) The Contracting State and the New York Convention;
(B) National sources of law;
(C) Limitation periods (time limits);
(D) National courts and court proceedings;
(E) Evidence required;
(F) Stay of enforcement;
(G) Confidentiality; and
(H) Other issues.
The Overview highlights certain points of practical interest arising out of the individual Country Answers. It is not intended to be a comprehensive summary of the Country Answers. Of particular note, it addresses the limitation periods (time limits), if any, applicable to recognition and enforcement of foreign awards in the countries covered by the Guide. It also identifies certain countries covered by the Guide where it may be possible to obtain recognition and enforcement of a foreign award notwithstanding its having been set aside at the place of arbitration. This type of practical information may be critically important for parties considering the enforcement of foreign awards in different countries.
The Co-Chairs of the Task Force wish to express their sincere thanks to all those who have contributed to the work of the Task Force. In particular, the Co-Chairs are grateful to the Country Rapporteurs who drafted the Country Answers, the members of the Editorial Committee who devoted considerable time and effort to the preparation and review of the Guide and ICC staff, particularly Virginia Hamilton, for invaluable input and logistical support. Lastly, the Co-Chairs wish to thank the Chair of the ICC Commission on Arbitration, Peter Wolrich, who developed the concept for this Task Force and provided advice and support throughout. A complete list of the members of the Task Force and the members of the Editorial Committee can be found at the end of this publication.