Maritime Arbitration Commission at the Chamber of Commerce and Industry of the Russian Federation

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RULES OF THE MARITIME ARBITRATION COMMISSION AT THE CHAMBER OF COMMERCE AND INDUSTRY OF THE RUSSIAN FEDERATION

RULES
OF THE MARITIME ARBITRATION COMMISSION
AT THE CHAMBER OF COMMERCE AND INDUSTRY
OF THE RUSSIAN FEDERATION

The Maritime Arbitration Commission (MAC) is an independent, permanently functioning arbitral institution (third-party tribunal) that settles disputes falling within its jurisdiction pursuant to the Law of the Russian Federation on International Commercial Arbitration enacted on July 7, 1993, and the Statute of the MAC annexed thereto.
By agreeing to refer their disputes to the MAC, the parties undertake to be bound by these Rules, which lay down the procedures for arbitration of cases in the Commission.

I. JURISDICTION AND ORGANIZATION OF THE MAC

1. Jurisdiction

1. The MAC shall settle disputes arising from contractual and other civil-law relations deriving from merchant shipping, irrespective of whether the parties to these relations include both Russian and foreign entities, or whether the parties are only Russian entities or only foreign entities. In particular, the MAC shall settle disputes arising from relations:
   
   1. concerning the affreightment of vessels, the carriage of goods by sea, as well as the carriage of goods in mixed navigation (river-sea);
   2. concerning marine towage of vessels and other floating objects;
   3. concerning marine insurance and reinsurance;
   4. connected with the sale of seagoing vessels and other floating objects, their repairs and maritime liens;
   5. concerning piloting, ice-breaker navigation, and agency and other services for seagoing vessels, and for inland vessels insofar as the operations are connected with the navigation of such vessels on sea routes;
   6. connected with the use of vessels for scientific research, extraction of minerals, hydrotechnical or other work;
   7. concerning the salvaging of seagoing vessels or the salvaging of an inland vessel by a seagoing vessel, as well as the salvaging in marine waters of an inland vessel by another inland vessel;
   8. connected with the raising of vessels or other property sunken at marine waters;
   9. connected with a collision between seagoing vessel, or between a seagoing vessel and an inland vessel, or between inland vessels in marine waters, as well as connected with the infliction by a vessel of damage to port structures, navigational aids or other objects;
   10. connected with the infliction of damage to fishing nets or other fishing gear, as well as with other infliction of injury in conducting the maritime fishery trade
   
   The MAC shall also settle disputes arising in connection with navigation of seagoing vessels and inland vessels on international rivers in the instances specified in the present Article, as well as disputes connected with international shipping by inland vessels.
2. The MAC shall entertain disputes where the parties have agreed to refer  them to it for consideration.
   The Commission shall also entertain disputes which the parties are bound to refer to it by virtue of international treaties to which the Russian Federation is a party.
3. The question of whether a particular case is within the jurisdiction of the MAC shall be decided by the arbitral tribunal considering the case.

A ruling on this question may be made either as a preliminary determination or in the award on the merits.

2. Organization

1. Disputes referred to the MAC shall be settled by arbitrators (third-party judges) chosen or appointed in each case in accordance with these Rules from among persons possessing the necessary knowledge in arbitrating the disputes falling within the jurisdiction of the Commission.
   The arbitrators are not representatives of the parties. They shall be independent and impartial in fulfilling their duties. Each person assuming the duties of an arbitrator in a particular case shall be required to disclose to the Commission without undue delay any circumstances that may give rise to reasonable doubts as to his impartiality or independence.

2. The Chamber of Commerce and Industry of the Russian Federation (CCI RF) shall approve for a five-year term, upon representation of the MAC Presidium, a list of MAC members (“List of Arbitrators”), which shall contain the full name of each arbitrator, his place of employment, occupation and specialization, academic degree, and knowledge of foreign languages. The List of Arbitrators will be made available to any interested persons. It may be appended during said five-year period and shall remain in effect until a new list is approved.
   Persons not on the List of Arbitrators may also serve as arbitrators, except as specified otherwise in these Rules.

3. Persons who are on the List of Arbitrators shall elect from among themselves the MAC President and two Vice-Presidents for a five-year term.
   The MAC President shall represent the Commission in its relations within the country and abroad. Organizing the work of the Commission, the President shall perform the functions set forth in the present Rules. The functions of the Vice- Presidents shall be defined by the President.

4. The clerical work connected with the activities of the MAC shall be organized by the Secretariat, headed by the Executive Secretary, to be appointed by the CCI RF upon representation of the MAC Presidium from among persons having a degree in law and fluent in the English language. In matters relating to consideration of cases by the MAC, the Executive Secretary shall be guided by the MAC President’s directions.

5. The MAC President, the Vice-Presidents, three other persons elected by the MAC members, and a person appointed by the President of the CCI RF shall constitute the MAC Presidium, chaired by the Commission’s President.
   The MAC Presidium shall deal with matters within its competence in accordance with these Rules; study arbitration practices; and review opportunities for dissemination of information about the MAC and its international relations, as well as other aspects of the MAC's activities. The Executive Secretary of the MAC shall attend the MAC Presidium’s meetings in a non-voting capacity to keep minutes of the proceedings. The MAC Presidium shall adopt resolutions by a majority vote, subject to at least three members thereof, including the President of the Presidium, taking part in the meeting and voting. The MAC Presidium may delegate some of its functions to the MAC President.

6. The MAC Presidium shall approve a list of the Commission’s reporters, to remain in effect for a period of five years, from which the MAC President shall appoint a reporter in each case accepted for arbitration. The reporter in a case shall
   keep a record of arbitration hearings, draft notices to parties, participate in closed-door sessions of the arbitral tribunal, and perform other tasks of a technical nature given by the tribunal.

7. The MAC seat and the place of arbitration meetings shall be the city of Moscow.
   The arbitral tribunal considering a particular case may, if necessary, hold a meeting at another place. If the parties to a dispute have agreed on such another place, they shall cover the additional costs of holding the meeting outside Moscow.

II. EXAMINATION AND RESOLUTION OF CASES IN THE MAC

3. General Provisions

1. The parties may conduct their cases in the MAC themselves directly or through duly authorized representatives appointed by the parties in their own discretion, including from foreign citizens or organizations.
2. All statements relating to the arbitration proceedings and all accompanying documents submitted to the Commission by each of the parties shall be filed with copies for the other party or with a confirmation evidencing their having been transmitted to the other party directly, and with copies for each of the arbitrators.
   The above-mentioned documents, except written evidence (subparagraph 2 of paragraph 15) shall be presented in the language of the contract concluded by the parties, or in the language in which they corresponded with each other, or in the Russian language.
3. The Executive Secretary of the MAC shall see that all the documents in a case are forwarded to the parties. They shall be sent to the addresses indicated by the parties; the parties shall immediately notify the MAC of any changes in the addresses given previously.
   Statements of claim, statements of defense, notices, and arbitral awards, rulings and decisions shall be sent by registered letter with return receipt requested, or otherwise, provided that a record is made of the attempt to deliver the mail.
   Other documents may be forwarded by registered or ordinary letter, and notices and notifications may also be sent by telegraph, telex, fax, and e-mail.
   Any of the documents mentioned above may also be delivered personally to a party against receipt.
4. In cases subject to consideration by the MAC the Commission President may, at the request of a party, establish the amount and form of security for the claim, and, in particular, he may make a ruling to attach the other party’s vessel or cargo in a Russian port.
   At the request of any of the parties, the Commission President may revise the ruling made by him to secure the claim (including by changing the form or amount of security or the conditions of interim measures of protection).
5. The Commission shall take measures to ensure, to the furthest extent possible, that proceedings in a case are completed within six months from the date of constitution of the arbitral tribunal.
6. Questions concerning the procedure by which the Commission examines cases which are not regulated by the present Rules or agreement between the parties shall be decided, subject to the provisions of Russian legislation on international commercial arbitration, by the arbitral tribunal itself in conformity with the principle of equal treatment of the parties and giving each of them at all stages of proceedings the full opportunity to present its case.

4. Initiation of Proceedings

1. Arbitration proceedings shall be instituted by filing a statement of claim with the MAC.

2. The date of filling the statement of claim shall be the date it is handed over to the Commission, and if the statement of claim is sent by post, the date of the postmark of the place of dispatch.

3. The statement of claim shall contain:

   1. the names and addresses of the parties;
   2. the claimant’s demands, including the amount of the claim;
   3. the claimant’s signature;
   4. substantiation of the jurisdiction of the Commission to consider the given dispute;
   5. description of circumstances serving as the basis of the claim and reference to evidence corroborating these circumstances;
   6. the name and surname of the arbitrator chosen by the claimant, or the request that an arbitrator be appointed by the Commission President; the claimant can also choose a reserve arbitrator;
   7. a list of the documents that are attached to the statement of claim. Where a representative files a statement of claim a power of attorney or other document evidencing the powers of the representative shall be attached to it.
4. When filing a statement of claim the claimant shall pay the arbitration fee in advance in accordance with the Schedule of Arbitration Fees and Costs, which is an integral part of these Rules.
   The document certifying payment of the fee in advance shall be filed with the Commission together with the statement of claim.
5. On finding that the statement of claim has been filed without the requirements of subparagraphs 3 and 4 of this paragraph being complied with, the MAC Executive Secretary shall invite the claimant to rectify the defects so found.
   If the defects regarding the requirements specified in clauses (a) to (c) of subparagraph 3 and subparagraph 4 are rectified within one month from the date of receipt of the Executive Secretary’s invitation, then the statement of claim shall be held to have been filed on the date it was originally presented to the Commission. Otherwise, the statement of claim shall be held not to have been filed.
   Pending rectification of other defects, the case shall stay without progress.
6. Where, despite the invitation to rectify defects in the statement of claim, the claimant insists on the case being examined, the Commission shall either make an award or rule to terminate the proceedings.

5. Notification of Respondent

1. Upon receipt of the statement of claim, the MAC Executive Secretary shall notify the respondent thereof and shall send it a copy of the statement of claim and of the documents attached thereto (if they were not transmitted earlier to the respondent by the claimant itself), as well as the List of the Arbitrators.

2. At the same time the Executive Secretary of the Commission shall invite the respondent to file, within 30 days after receiving the above-mentioned notification, its statement of defense, supported by relevant evidence. At the respondent’s request the above-mentioned period may be extended by the Commission President.

6. Election and Appointment of Arbitrators

1. Within the period indicated in subparagraph 2 of paragraph 5, the respondent shall advise the MAC of the name and surname of the arbitrator chosen by it; it can also choose a reserve arbitrator. If the respondent fails to choose an arbitrator within the time specified therefor, or at the respondent's request which can be made within the same period, the President of the Commission shall appoint an arbitrator on behalf of the respondent from among the persons on the List of Arbitrators.
2. Where there are two or more claimants or respondents, the claimants or the respondents, as the case may be, shall, in agreement between themselves, within 30 days upon receiving the Commission’s notification, choose one arbitrator; they also may choose one reserve arbitrator.
3. If in examining the case the two arbitrators fail to reach agreement as to how the dispute must be settled, they shall within 10 days choose a third arbitrator as chairman of the arbitral tribunal. The two arbitrators may choose the third arbitrator from among those on the List of Arbitrators or, with the consent of the parties, any other persons.
4. By agreement of the parties settlement of the dispute may be entrusted to a sole arbitrator chosen by them jointly. The parties may also choose a reserve sole arbitrator.
   The functions of the arbitral tribunal of two or three arbitrators, provided for by the present Rules, shall also apply to a single arbitrator.
5. Failing agreement:
   
   • between several claimants or several respondents on the choice of arbitrator (subparagraph 2); or
   • between two arbitrators on the choice of the chairman of the arbitral tribunal (subparagraph 3); or
   • between the parties on the choice of a sole arbitrator (subparagraph 4), such arbitrator, chairman of the tribunal or sole arbitrator, respectively, shall be appointed by the President of the Commission from among the persons on the List of Arbitrators.
   The President of the Commission shall also make such appointments, if so requested by two or more claimants or respondents, or the two arbitrators, or both parties, as the case may be.

7. Challenge of Arbitrators

1. Each party may challenge any arbitrator, the chairman of the arbitral tribunal, or sole arbitrator only if circumstances exist that give rise to justifiable doubts as to his impartiality or independence, in particular, if it may be assumed that he personally, directly or indirectly, is interested in the outcome of the proceedings, or if he lacks the qualifications stipulated by agreement between the parties. An arbitrator, the chairman of the arbitral tribunal or sole arbitrator may withdraw from his office.
2. A party challenging an arbitrator shall submit a written notice of challenge stating the reasons therefor to the MAC not later than 15 days after having become aware of the composition of the arbitral tribunal or of circumstances referred to in subparagraph 1. Unless a party makes a challenge within the period referred to above, it shall be deemed to have waived its right to challenge.
3. If the parties fail to agree on the release from its office, an arbitrator, the chairman of arbitral tribunal or the sole arbitrator against whom a challenge has been made, or if he does not withdraw himself, the matter of such challenge shall be decided by the Commission Presidium.

8. Termination of an Arbitrator’s Powers

1. If an arbitrator, the chairman of the arbitral tribunal or the sole arbitrator is legally or actually incapable of fulfilling his duties, or fails for any other reason to fulfill such duties without undue delay, his powers may be terminated if the parties agree on releasing him from office or if he withdraws himself. In all other cases any party may request the MAC make a decision on termination of an arbitrator’s powers; such request shall be considered by the Commission Presidium.
2. Under the circumstances referred to in subparagraph 1 the matter of releasing of an arbitrator, the chairman of the arbitral tribunal or the sole arbitrator from office may be examined by the Commission Presidium at its own initiative, subject to the parties being given advance notice of such examination.
3. The Commission Presidium shall not be required to state the reasons for its decision regarding challenges to or termination of the powers of arbitrators.

9. Replacement of an Arbitrator

If in the cases provided for in paragraphs 7 and 8 the powers of an arbitrator, the chairman of the arbitral tribunal or the sole arbitrator are terminated as a result of his voluntary withdrawal, by agreement between the parties or by decision of the MAC Presidium, such arbitrator shall be replaced pursuant to the procedure that was applicable to his election or appointment. However with regard to an arbitrator together with whom a party appointed a reserve arbitrator, the latter shall replace the released arbitrator.

10. Preparations for the Meeting of the Arbitral Tribunal

1. The arbitral tribunal shall check the condition of preparedness of the case for examination and, if necessary, shall take further measures to prepare the case, particularly by requesting written explanations, other additional documents and evidence from the parties.
2. The date of the first meeting for examination of the case shall be fixed by the MAC President in agreement with the members of the tribunal.
3. The parties shall be invited to the meeting of the tribunal by notifications indicating the time and place thereof and forwarded to them so as to enable each party to have at least 30 days at its disposal to prepare for the examination of the case and to appear at the meeting. Subject to the parties' consent this period may be shortened.

11. Meeting of the Arbitral Tribunal

1. An oral hearing shall be held in camera. Persons not participating in the arbitral proceedings may be allowed to appear at the hearing with the consent of the parties.
2. Failure to appear by a party who was duly notified of the time and place of the meeting shall not prevent the meeting from being held, unless before its completion such party has requested an adjournment for valid reasons.
3. Each party may ask for the hearing of the case to be conducted in its absence.
4. The hearing of the case shall be conducted in the Russian language. Subject to the parties' consent the hearing may be conducted in another language. If a party is not fluent in the language in which the hearing is to be conducted, the MAC, at the party’s request and expense, shall provide it with the services of an interpreter.

12. Interim Measures of Protection

1. At the request of a party the arbitral tribunal may order any party to take such interim measures of protection in respect of the subject matter of the dispute as it considers necessary. The arbitral tribunal may require any party to provide appropriate security in connection with such measures.
2. The arbitral tribunal may take such interim measures of protection in the form of an interim award.

13. Examination of the Case on the Basis of Written Materials

The parties can agree that the dispute be settled on the basis of written materials only, without holding a hearing. However, if the materials presented prove insufficient, the arbitral tribunal is authorized to schedule a hearing, which may include oral testimony by witnesses.

14. Counterclaim and Set-off

1. Before completion of examination of the claim submitted by the claimant, the respondent may submit a counterclaim or make a set-off.
2. A counterclaim or set-off shall meet the same requirements as the principal claim.

15. Evidence

1. Each party must prove the circumstances upon which it relies in support of its claim or defense. The arbitral tribunal can require parties to present additional evidence. It also may, at a party’s request or at its own initiative, order expert analysis and solicit evidence from persons not participating in the case.
2. A party can present written evidence in the original or in the form of copies certified by it. The arbitral tribunal can require translation of such evidence into another language where it is necessary in the interests of examination of the case.
3. If expertise is to be conducted, an expert shall be appointed by the arbitral tribunal. Each party can challenge an appointed expert on the grounds set out in subparagraph 1 of paragraph 7. The question of challenge shall be decided by the tribunal.
4. Evidence shall be verified as directed by the arbitral tribunal.  By ruling of the tribunal one of its members may be entrusted to conduct such verification. The parties shall be invited to appear for such verification, but failure by any of them to appear shall not prevent verification from being conducted.
5. The arbitrators shall determine the admissibility, relevance, materiality, and weight of any piece of evidence according to their inner convictions.

16. Third Persons

At a party’s request third persons may be joined in the arbitration proceedings, provided the other party and the third persons themselves consent thereto. Third persons may familiarize themselves with all materials of the case, present evidence, submit notices of challenge, give oral and written explanations, and participate in the meeting of the arbitral tribunal.

17. Adjournment of Hearings

At the parties’ request and, where necessary, at the request of any party or at the initiative of the arbitral tribunal, examination of the case may be adjourned for a definite period. Adjournment of a hearing shall be directed by a ruling.

18. Record of the Arbitral Tribunal’s Meeting

1. A record of the hearing of a case shall be drawn up, which shall contain the particulars of the representatives of the parties and a short description of the course of the meeting, including the parties’ demands and an account of their other important statements. The record shall be signed by the members of the tribunal.
2. Each party shall be entitled to acquaint itself with the contents of the record and to receive, at its request, a copy thereof. At a party’s request the tribunal can rule to amend or append the record with account for what actually took place at the hearing.

III. MAKING OF AN ARBITRAL AWARD AND TERMINATION OF THE PROCEEDINGS

19. Final Arbitral Award

The arbitral proceedings shall be terminated with the making of a final award, i.e. the award made by the arbitral tribunal on the merits of the dispute submitted for arbitration to the MAC.

20. Rules of Law Applicable to the Substance of the Dispute

1. Disputes submitted to the MAC shall be settled in accordance with the applicable rules of substantive law. The arbitral tribunal in cases where the parties have agreed on the law applicable to the substance of the dispute shall be guided by the rules thereof, and in cases where there is no such an agreement, by the rules of law determined by the conflict of laws rules it considers applicable.
2. In all cases the arbitral tribunal shall decide in accordance with the terms of the contract made between the parties and shall take into account the usages of merchant shipping and other trade usages applicable to their relations.

21. Making an Award

1. The award shall be rendered by the arbitral tribunal in a closed-door session after completion of the hearing.
2. The award in a case examined by two arbitrators shall be adopted unanimously.
3. The award in a case examined by three arbitrators shall be adopted unanimously or by a majority vote. If an award cannot be made by a majority vote, it shall be made by the chairman of the arbitral tribunal. Any member of the arbitral tribunal disagreeing with the award made may express in writing his dissenting opinion, which shall be attached to the award.

22. Announcement of the Operative Part of the Award and Time-Limits for Sending It to the Parties

1. At the same meeting at which the hearing of the case is completed the arbitral tribunal shall announce to the parties the operative part of the award adopted by it at the closed-door session.
   At the same time the arbitral tribunal shall announce that a full award with the reasons on which it is based will be sent to the parties within the time-limits specified in subparagraph 4 of this paragraph.
2. By way of exception to subparagraph 1 of this paragraph, the arbitral tribunal may decide that a full award with the reasons on which it is based be sent to the parties without announcing its operative part at the meeting.
3. The arbitral tribunal may hold additional hearings, if so required in the interests of fair settlement of the dispute and if the operative part of the award has not been announced to the parties.
4. A full award with the reasons on which it is based shall be drawn up and sent to the parties within 30 days after the meeting at which the hearing of the case was completed. If necessary, this period may be extended by the MAC President.

23. Form and Contents of Award

1. The award shall be set forth in writing, be signed by the members of the arbitral tribunal, and bear the MAC seal.
2. Where an arbitrator is unable to sign the award, the MAC President shall certify this circumstance by affixing his own signature and with statement of the reason for the absence of the arbitrator's signature.
3. The award shall specify place of arbitration, the date or dates of the hearing, date of its making, the composition of the tribunal, the names of the parties, the circumstances of the case and the reasons for the decision arrived at, the tribunal’s conclusion to grant or to dismiss the claim in full or in part, the amounts of arbitration fees and costs, and the apportionment thereof between the parties.
4. The date of the award shall be the date of the last signature affixed thereto by an arbitrator of the arbitral tribunal.

24. Amicable Settlement

At any stage of examination of the case in the MAC prior to announcement of the operative part of the award the parties can agree to settle the case amicably. In that case the arbitral tribunal may, at the parties’ request, make an award in accordance with the amicable settlement reached by them. An award made on agreed terms shall be subject to the relevant provisions of paragraph 23.

25. Correction and Interpretation of Award; Additional Award

1. Within 30 days of receipt of an award a party may, with notice to the other party, request the arbitral tribunal to correct any error in computation, any clerical or typographical errors, or any errors of similar nature.
   If the arbitral tribunal finds the request to be justified, it shall make the correction within 30 days of receipt of the request.
   The arbitral tribunal may correct such errors on its own initiative within 30 days of the date the award is sent to the parties.
2. Within 30 days of receipt of an award a party may, with notice to the other party, request the arbitral tribunal to give an interpretation of a specific point or part of the award.
   If the arbitral tribunal finds the request to be justified, it shall provide the interpretation of the respective provision of the award within 30 days of receipt of the request.
3. Within 30 days of receipt of an award a party may, with notice to the other party, request the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.
   If the arbitral tribunal finds the request to be justified, it shall make the additional award within 60 days of receipt of the request.
4. The MAC President may, if necessary, extend the periods referred to in the second section of subparagraph 1, the second section of subparagraph 2, and the second section of subparagraph 3 of this paragraph.
5. Any rulings on correction or interpretation of an award, and any additional award, shall be an integral part of the award.
6. The parties shall not be obliged to cover any costs of correction, interpretation or supplementation of an award..

26. Termination of Proceedings Without Making an Award

1. The proceedings shall be terminated without an award being made where:
   
   1. the claimant withdraws its statement of claim, unless the respondent raises objections to termination of the proceedings and the arbitral tribunal recognizes a legitimate interest of the respondent in obtaining final settlement of the dispute; or
   2. the parties agree on termination of the proceedings; or
   3. the parties have reached an amicable settlement and no award is made in accordance with their agreement as per paragraph 24; or
   4. there ceases to be any necessity or there are no longer prerequisites for the case to be examined and resolved on the merits, particularly where owing to inaction on the part of the claimant the case does not progress for more than six months.
2. The proceedings shall be terminated by a ruling of the arbitral tribunal, or, if the tribunal has not yet been constituted, by a decision of the MAC President. The decision shall specify, in particular, the amounts of fees and costs in the case.

IV. MISCELLANEOUS

27. Execution of Award

1. MAC awards shall be complied with by the parties voluntarily within the time period fixed in the award. If no period is fixed in the award, it shall be subject to immediate execution.
2. An award not complied with by a party voluntarily shall be enforced according to law and international treaties to which the Russian Federation is a party.

28. Confidentiality

The arbitrators, the reporter and staff of the MAC secretariat shall refrain from disclosing information about any dispute referred to the Commission, of which they become aware and which may impair the legitimate interests of the parties.

29. Publication of MAC Awards

Unless a party has requested otherwise, MAC awards may be published without naming the parties or the arbitrators, or disclosing any specific information about the proceedings.

30. Exclusion of Liability

The arbitrators, reporters, the MAC and the CCI RF, and the employees thereof shall not be liable to anyone for any action or omission to act in connection with an arbitration, unless such action or omission to act is proved to be premeditated

31. Application of the MAC Rules

Unless the parties have agreed otherwise, the MAC Rules in effect at the time of commencement of the arbitral proceedings shall apply to the arbitration of the dispute at the MAC.