Since 27 January 2017 the new Regulations on arbitration costs for disputes administered by the MAC have entered into force.
Only the Russian text of the Regulations is officially approved by the Chamber of Commerce and Industry of the Russian Federation.
In case of discrepancies between Russian and English texts the Russian text shall prevail.
See full text of this document:
Appendix No 3
to Chamber of Commerce and Industry of the Russian Federation
Order No 5 dated 11.01.2017
REGULATIONS ON ARBITRATION COSTS
§ 1. Terms
1. Arbitration costs shall mean registration, security and arbitration fees, as well as additional costs and expenses incurred by the parties.
2. Fees – registration, security and arbitration fees.
3. Registration fee – a fee charged at the time a claim is filed with Maritime Arbitration Commission (MAC) to reimburse expenses related to the commencement of a proceeding.
4. Security fee shall mean a fee paid in advance when a request for interim measures of protection is filed with MAC as a form of reimbursement of organizational, technical and administrative costs, as well as costs of the arbitral proceeding conducted and ruling rendered by MAC President or arbitral tribunal.
5. Arbitration fee shall mean a fee paid in advance when a claim is filed with MAC, as a form of reimbursement of:
1) arbitrator’s fee;
2) organizational, material–technical and other costs of the arbitral proceeding;
3) remuneration of the President, the Vice-Presidents, members of the Presidium and the Nomination Committee of MAC and a reporter.
6. Additional costs shall mean particular costs related to the arbitral proceedings (expertise, translation, travel, accommodation and other expenses of arbitrators who are permanently residing outside Moscow, as well as travel, accommodation and other costs of MAC hearings outside Moscow).
7. Expenses incurred by the parties shall mean other expenses of the parties in the defense of their interests in MAC arbitral proceeding.
8. Parties shall mean every claimant and respondent. For reimbursement of arbitration expenses, there may be other parties to the proceedings, such as an additional party or a third party, in cases specified by applicable laws and MAC Rules.
§ 2. Registration Fee
Where the claim relates to merchant shipping, a registration fee is equivalent to $500.
The registration fee is not included in the arbitration fee.
The registration fee is non-refundable.
§ 3. Security Fee
A security fee is equivalent to $1,000 when filing a request for interim measures of protection imposed by MAC President or the arbitral tribunal.
The security fee is not included in the arbitration fee.
§ 4. Arbitration Fee
1. An arbitration fee paid in advance by the claimant shall stand at 3% of the claim amount but not less than $2 000.
2. The arbitration fee is rounded off to whole numbers: sums of less than 50 cents/kopecks are rounded down, and sums larger than 50 cents / kopecks are rounded up to a U.S. dollar / a Russian ruble.
3. If a claim comprises several demands covered by different arbitration agreements, the final arbitration fee shall be the total of arbitration fees charged separately for each respective claim in accordance with the terms of each arbitration agreement involved.
4. In case proceedings are consolidated, the final arbitration fee shall be the total of arbitration fees charged separately for relevant demands before the proceedings are consolidated.
5. In view of the complexity of the proceeding, multiple claims or parties to a proceeding, substantial increase of the proceeding’s duration and arbitration costs, the Presidium may enlarge the arbitration fee at the request of the arbitral tribunal.
6. Fees of arbitrators, President, Vice-Presidents, members of the Presidium and the Nomination Committee of MAC and reporters shall be charged consistent with the Regulations on MAC Remuneration and Fees.
7. An arbitration fee shall be charged in U.S. dollars in case the claim is denominated in a foreign currency. MAC Secretariat may grant a claimant’s request for paying the arbitration fee in a hard currency other than U.S. dollars or in Russian rubles at the exchange rate established by the Russian Central Bank as of the payment date unless that is prohibited by Russian currency regulation laws.
The Russian Central Bank’s rate is applied as of the claim filing date in case the claim amount is converted to U.S. dollars.
§ 5. Reduction in the Arbitration Fee
1. If a case is examined by a sole arbitrator, the arbitration fee shall be reduced by 20%.
2. Where the proceedings are terminated by the order of the Presidium for reasons of obvious impossibility of considering a dispute, the arbitration fee shall be reduced by 75 %.
3. If the proceedings are terminated owing to the claimant withdrawing the claims before the date of the first meeting in the case, in particular, owing to the parties having settled the dispute amicably, or in other cases of MAC receiving, before the aforesaid date, notification of the parties' refusal to have their dispute settled at MAC, the arbitration fee shall be reduced by 50%.
4. If the arbitral proceedings are terminated at the first meeting in the case without making an award, the arbitration fee shall be reduced by 25%.
5. The Presidium may, taking into account the circumstances of a particular case, order the arbitration fee to be reduced in different instances and in different amounts than is provided in this paragraph.
§ 6. Fees for Counter-claim and Set-off
The same regulations shall apply to the principal claim, a counter-claim or a set-off. A counter-claim and set-off fee shall be charged in the procedure prescribed as of the date of filing the principal claim and paid as prescribed by § 4 herein.
§ 7. Apportionment of Fees between the Parties
1. Unless the parties have agreed otherwise, fees shall be borne by the party against which the award is made.
2. If a claim is granted in part, the fees shall be borne by the respondent in proportion to the amount of the granted claims, and the claimant shall bear the fees in proportion to the amount of the claim that has been dismissed.
§ 8. Reimbursement of Additional Costs
1. MAC President may require the parties or either of them to deposit an advance for the additional costs of the proceedings. The advance for the additional costs may be required by MAC from the party requesting an additional act likely to lead to additional costs to be incurred in the course of the proceedings, if such request is deemed justified.
2. Relevant MAC bodies, authorized officials of MAC or the arbitral tribunal may make performance of acts in the arbitration of a dispute subject to payment by the parties or either of them of an advance for the additional costs within a fixed period of time.
3. If a party appoints an arbitrator residing permanently beyond the place of the hearings, that party shall be required to deposit an advance for the costs of the participation of such arbitrator in the proceedings (travel expenses, accommodation, visa, and other expenses related to taking part in resolving a dispute at MAC). Failing deposit of the required advance within the fixed period of time, the party shall be deemed to have waived its right to appoint an arbitrator, and an arbitrator shall be appointed for the party according to the procedure established in the Rules of arbitration for specific types of disputes.
If such person chairs the arbitral tribunal, the advance for the costs of his participation in the proceedings shall be deposited by both parties in equal amounts. If the respondent fails to deposit his respective advance amount within the specified period of time, the claimant shall be required to deposit such advance amount.
4. In case the parties agree to hold the hearings outside Moscow, any additional expenses, including travel and accommodation expenses of arbitrators, shall be equally borne by the parties.
5. If, in the course of the arbitral proceedings in the case, either of the parties requests the explanations and statements of the parties, or questions, comments, or directions of the arbitral tribunal to be translated, the costs of translation shall be met by that party.
If the arbitral proceedings in the case are conducted in a foreign language, the possible costs of translation shall be charged to both parties in equal amounts.
MAC may compel the relevant party to reimburse such costs in advance.
6. Additional expenses shall be divided between the parties in accordance with § 7 and § 11 of these Regulations.
§ 9. Payment of Arbitration Costs
1. Any and all payments due to MAC shall be made by means of a bank transfer and shall be deemed completed on the day the payment is credited to the account of the Chamber of Commerce and Industry of Russia.
2. The costs of the bank transfer of the aforesaid amounts shall be borne by the party making the respective payment.
§ 10. Expenses of the Parties
1. A party may demand reimbursement without any unjustified delay for reasonable expenses it has incurred or will incur in connection with the proceeding, such as costs of defense of its interests by counsel.
Reimbursement of such expenses cannot be claimed after the hearing is over. The arbitral tribunal may set a deadline for substantiating the amount of such expenses.
2. The expenses shall be divided between the parties in accordance with § 7 and § 11 of these Regulations.
§ 11. Different Apportionment of Arbitration Fees and Expenses
The arbitral tribunal may, taking into account the circumstances of a particular case, order a different apportionment of the fees, additional costs of MAC, and expenses of the parties than that specified in paragraphs 7, 8 and 10 of these Regulations, in particular, it may order one party to reimburse any additional expenses incurred by the other party through inappropriate or bad faith acts of such party, including acts causing unjustified delay in the proceedings.
§ 12. Application of the Regulations on MAC Arbitration Costs
The present Regulations shall enter into force from the date it is deposited with the authorized federal agency of executive authority and shall apply to cases that arose out of statements of claims filed after the Regulations entered into force.