What is ICC DOCDEX ?

Until recently, international bankers and traders had few options for settling letter of credit disputes. These tended to drag on, leaving bills unpaid and traders dissatisfied.

DOCDEX, standing for Documentary Credit Dispute Resolution Expertise, has changed all that. Now you can get an authoritative and impartial decision, usually in two to three months. The decision can be binding if the parties so agree. DOCDEX has satisfied growing numbers of users that if offers a convenient and rapid solution.

DOCDEX is the cost-effective way to settle documentary credit disputes, including disputes concerning bank-to-bank reimbursements.

The service is administered by the ICC International Centre for Expertise – a unit within the Secretariat of the ICC International Court of Arbitration.

A user-friendly system

To settle a letter of credit dispute using DOCDEX, the parties follow two simple steps:

• Submit a request for a DOCDEX decision, along with the standard fee of US$5000 and all relevant documents, to the ICC International Centre for Expertise.
• If you are the opposing party, respond to the request by submitting your answer with all supporting documents.

If you submit a request and the other party doesn't answer, you will still be granted a prompt DOCDEX decision.

Experts on the case

A panel of three experts decides each DOCDEX case. The ICC International Centre for Expertise hand-picks each expert after careful screening to check qualifications and independence. Experts include bankers, lawyers, consultants and individuals who have dealt with letter of credit issues for years.

The Centre can call upon experts from over 70 countries, who review the evidence and base their decision on the relevant ICC rules: Uniform

Customs and Practice for Documentary Credits (UCP) and Uniform Rules for Bank-to-Bank Reimbursement under Documentary Credits (URR).

Save time and money

DOCDEX decisions are reached much faster than decisions resulting from litigation or other forms of dispute resolution. The average DOCDEX decision is handed down in 2–3 months, while courts may easily take between 6–18 months or longer.

DOCDEX saves you money. You can generally expect to pay a fee of US$5000 for a DOCDEX decision, although the cost may vary depending on the amount in dispute. Even in exceptional cases, the fee would not exceed US$10000. Compare this with the cost of litigation, where the sky's the limit.

Complete analysis

DOCDEX offers a system where experts carefullyexamine all documents before reaching a decision. A technical advisor nominated by ICC's Banking Commission then personally reviews each decision to ensure that it is in line with UCP. You can feel confident that you receive a thorough analysis and well-considered conclusion with DOCDEX.

Reduce discrepancies

Between 60-70% of letters of credit are rejected on first presentation because of discrepancies. DOCDEX decisions are widely distributed, although the identities of the parties are never disclosed. The purpose is to provide information that will enable practitioners to avoid common errors leading to disputes, while at the same time preserving confidentiality.

The key advantage of DOCDEX is that you stay out of court and can settle the case reliably at very low cost.

Keep informed

The full text of the DOCDEX rules is available free of charge from ICC, on the current website. You can also find the full text of DOCDEX decisions on DC-PRO Focus, ICC's online subscription service for documentary credits. Users from over 25 countries have already taken advantage of the service, which offers fraud alerts, legal background, news stories and opinions. More information is also available on the ICC's Commission on Banking Technique and Practice.