Advances on costs

The ICC advance on costs system is designed to ensure that an arbitration may proceed as soon as the relevant fees and expenses of the arbitrators and the institution are covered.

The advances do not cover legal costs or the fees and expenses of any expert. Payment is staggered as follows:

Advance on administrative expenses (filing fee)

A first advance on administrative expenses of US$ 3,000 is payable by the Claimant with the Request for Arbitration. The amount is non refundable.

Provisional advance

After a review of the "Request", the Secretary General normally requires the Claimant to pay a provisional advance in an amount intended to cover the costs of the arbitration until the "Terms of Reference" have been drawn up. This advance shall normally not exceed the amount obtained by adding together (1) the administrative expenses resulting from the scale, (2) the minimum on the scale of arbitrators' fees, and (3) the expected reimbursable expenses of the Arbitral Tribunal incurred with respect to the drawing of the "Terms of Reference".

These calculations are made on the basis of the Claimant's claim only. Current practice indicates that the provisional advance is usually in the range of 25-35% of the advance as calculated for the entire arbitration.

Advance on costs

As soon as practicable, the Court, taking account of all claims and counter-claims, fixes the advance on costs payable in equal shares by claimant and respondent (the amount of the provisional advance that has already been paid, which includes the initial US$ 3,000, is credited to the claimant's share).

In certain circumstances, the Court may fix separate advances in respect of a principal claim and a counter-claim. The advance fixed by the Court is calculated for the entire arbitration and can be revised at any stage of the procedure.

If the claimant or the respondent pays its share of the advance on costs and the other refuses to pay, the former will be invited to pay on behalf of the latter.