Force majeure circumstances and Insurance. Principles of Insurance. Claims and sanctions. Arbitration, страница 3

If the buyers fail to fulfill their obligation of paying on time, the seller can send three reminders. This is a usual claims procedure.

Very often the parties agree upon an amicable settlement of the claim in question. If, an amicable settlement is not arrived at, the dispute is settled either, by arbitration. Contracts usually stipulate that in case of arbitration each party should appoint its arbitrator and they have to appoint an umpire. All the three constitute an arbitration tribunal whose award is final and binding upon both parties.

Disputes between Russian organizations and foreign firms are very often settled by the Foreign Trade Arbitration Commission at the Russian Chamber of Commerce. This Commission consists of fifteen members appointed by the Presidium of the Russian Chamber of Commerce., each party chooses its Arbitrator from among the members of the Commission. These two Arbitrators appoint an Umpire - another member of the same Commission. The two Arbitrators and the Umpire constitute the arbitration tribunal.Disputes connected with marine transportation and insurance are decided by the Maritime Arbitration Commission at the Russian Chamber of Commerce.

The rules of procedure at Russian Chamber of Commerce are as follows.

1) The Foreign Trade Arbitration Commission shall accept for arbitration disputebetween foreign firms and Russian trading organizations. 2)  The Points of Claim shall contain the following information: the names of the claimant and the respondent; their addresses; the claim with the facts on which the claim is based and approval information;  the name of the member of the Foreign Trade Arbitration Commission. 3) The Points of Claim shall be enclosed the originals or certified copies of the documents (the contract, correspondence between the parties, etc.).4)  with the Points of Claim to the Foreign Trade Arbitration Commission, the claimant shall make payment in advance to cover the expenses of the arbitration proceedings to the amount of 1 per cent of the sum in dispute.6) as soon as the Foreign Trade Arbitration Commission received the Points of Claim, it shall immediately  inform the respondent that Points of Claim have been filed, and send him copies of the Points of Claim and of other documents. Within fifteen days after receipt of such notice, the respondent shall inform the Foreign Trade Arbitration Commission which of the members of the Commission he chooses as his Arbitrator. 8) The Arbitrators who have been chosen shall be informed immediately by the Foreign Trade Arbitration Commission and invited to choose an Umpire from the members of the Commission.14) The day for the hearing of the case shall be fixed by the President of the Foreign Trade Arbitration Commission by agreement with the Umpire or with the sole Arbitrator.