The ICC's DOCDEX rules, which provide for quick dispute settlement for cases involving ICC rules on documentary credits (UCP), have now been expanded to cover disputes under ICC rules on demand guarantees (URDG) and collections (URC) as well. The change in the rules, approved by the ICC Executive Board on 8 March, came into effect on 15 March 2002.

DOCDEX was first introduced in 1997 as a low-cost alternative to settling documentary credit disputes before they evolve into expensive court battles. During the last 4 and half years, ICC dispute resolution panels have rendered decisions on more than 20 disputes.

In the DOCDEX process, the parties (or one of them) present their arguments on the dispute, plus all documents relating to it, to the ICC Centre for Expertise. The Centre then appoints panels of three experts to decide the issues in the case. The process normally takes 30-60 days, rather than the years that can be involved in court proceedings.

Though DOCDEX decisions are not necessarily binding on the parties, they can be if the parties choose to make them so. If they do not, the decisions can still serve as evidence in future court action.

Changes in the fee structure of DOCDEX were also approved in the new rules. The basic fee remains the same - US$5000. However, in the old rules ICC had the discretion (though not the obligation) to raise that fee to a maximum of US$10,000 if the documentary credit in dispute had a value of over $100,000. In the new rules, the threshold for raising the fee is increased to US$500,000, a change likely to make DOCDEX more attractive to potential users.

The ICC Banking Commission decided to expand DOCDEX to include other rules because it had received requests to hear cases concerning collections and guarantees, but the old rules prohibited it from doing so. "The process has proved itself over the years," said Ron Katz, ICC policy manager for banking. "Now it's time to apply it to other kinds of transactions," he added.

To view the new Docdex click on the Rules menu.