Arbitration Center of Iran Chamber (ACIC) was established in 3 February 2002 by virtue of a specific piece of law called "The Law on Auricles of Association of ACIC" as approved by the parliament of Iran. ACIC is organized as an affiliate to the Iran Chamber of Commerce but enjoys independent legal personality. ACIC is the first Iranian independent arbitration institution established for the purpose of settlement of both domestic and international disputes through arbitration or conciliation.
According to article 4 of the said Law the organization of ACIC consists of: (i) a seven member board of directors, (ii) the secretary general who shall be appointed by the board among Iranian eminent lawyers, and (iii) the arbitrators.
Article 8 of the Law provides that the arbitrators shall be among lawyers, businessmen and other knowledgeable, reputable and experienced individuals with sufficient knowledge of the domestic and foreign commercial rules and usage. The parties may elect and appoint their arbitrator among Iranian or foreign qualified individuals.
The arbitration proceedings in international arbitration referred to ACIC are governed by "The Law on International Commercial Arbitration" (LICA) enacted in 1997 and on the basis of UNCITRAL Model Law, and in cases of domestic arbitration the "Civil Procedure Code" (CPC) approved in 2001 shall apply. However, the parties may agree on procedural rules of arbitration to the extent consistent with the mandatory rules of the said laws.
Submission of the disputes to ACIC may be through either ways:
- separate arbitration agreement ;
- arbitration clause in the underlying contract, and
- actual submission by the claimant and acceptance by the respondent.
Under current rules there is no right to appeal on arbitration award. However, under certain conditions stipulated by law the arbitral award can be set aside by the court. The ground for setting aside a domestic award is not always the same as those in international awards.
Arbitration costs consist of administrative expenses of ACIC and the arbitrator's fee. An advance on the costs is determined by the secretary general of ACIC and must be paid by the parties during the initials stage of the arbitral proceedings. The costs are calculated in accordance with schedules appended to ACIC regulations on costs and are subject to the amount claimed.
The arbitral tribunal can award all or a portion of the costs on both or each party.
The location of ACIC is in the city of Tehran, currently at the premise of Iran Chamber of Commerce Industries and Mines:
ACIC model clause
“Dispute Settlement: All disputes and claims arising from or relating to the present contract including its conclusion, validity, termination or breach, and its interpretation or application shall be submitted to the Arbitration Center of the Iran Chamber (ACIC) for binding and final arbitration by one or three arbitrators in accordance with the Law of Statute of the Arbitration Center of the Iran Chamber and Arbitration Rules of ACIC. In addition to the applicable laws and regulations, the arbitrator(s) shall take into account the relevant trade usages. The present arbitration clause shall be treated as an agreement independent of this contract and shall in any case be binding.”