KAZAKHSTANI INTERNATIONAL ARBITRAGE
RULES OF ADMINISTERING ARBITRATIONS
UNDER UNCITRAL ARBITRATION RULES

INTRODUCTION

UNCITRAL Arbitration Rules were adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1976 after the extensive discussions with the arbitrage organizations and experts in arbitrage. The same year the United Nations General Assembly by its Resolution 31/98 recommended applying these Rules to settle the disputes arising in the context of the international commercial relations. This recommendation was introduced based on belief that development of ad hoc arbitration rules acceptable for countries with different legal, social and economic systems would be an important contribution to development of harmonic international economic relations.

In accordance with said Rules Kazakhstani International Arbitrage provides those parties that want to settle the dispute under UNCITRAL Arbitration Rules with services of the appointing authority and other administrative services of technical and secretarial nature.

For the parties to be able to engage Kazakhstani International Arbitrage as the appointing authority or the authority that provides the administrative services they are recommended to include the following clause in the contract:

«Any dispute, controversy, or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules, in effect on the date of this contract.»

The clause should be followed by the agreement concerning the services requested, for instance:

«The appointing authority shall be Kazakhstani International Arbitrage»

or

«Kazakhstani International Arbitrage shall act as the appointing authority and provide administrative services in accordance with its administrative procedures for cases resolved under UNCITRAL Arbitration Rules.»

The following note may be added as suggested in the UNCITRAL Model Arbitration Clause:

«Parties may wish to consider adding:

1. The number of arbitrators shall be … (one or three);
2. The place of arbitration shall … (town or country);
3. The language(s) to be used in the arbitral proceedings shall be…»

RULES OF ADMINISTERING ARBITRATIONS
UNDER UNCITRAL ARBITRATION RULES

Section 1. SERVICES AS THE APPOINTING AUTHORITY

Article 1. Appointment of Sole or Presiding Arbitrator

1. When requested to appoint a sole or presiding arbitrator in accordance with the UNCITRAL Arbitration Rules the Kazakhstan International Arbitrage (hereinafter referred to as the KIA) will follow the list procedure set forth in paragraph 3, Article 6 of the UNCITRAL Arbitration Rules, unless the parties or the KIA consider this procedure unacceptable for this dispute.
2. In accordance with the list procedure the KIA shall prepare a list containing at least three names of the candidate arbitrators. The KIA Secretarial shall communicate the list to the parties. Within 15 days after receipt of this list each party may return the list to the Secretariat after having deleted the name or names to which the party objects and numbered the remaining names on the list in order of its preference. After expiration of the above 15-day period the KIA shall appoint a sole or presiding arbitrator from among the names approved in the lists returned to it and in accordance with the order of preference indicated by the parties. If for no reason the appointment cannot be made according to this procedure, the KIA shall exercise its discretion in appointing a sole arbitrator.
3. In selecting the arbitrators the KIA shall carefully consider the nature of the case as described in the notice of arbitration in order to include in the list persons that are not only experienced international arbitrators but make a speciality of technical and commercial aspects of the case.
4. In making an appointment the KIA shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and shall take into account as well the advisability of appointing an arbitrator of nationality other that the nationalities of the parties.

Article 2. Appointment of the «Second» Arbitrator in Three-Arbitrator Cases

1. Under Article 7 of the UNCITRAL Arbitration Rules, when three arbitrators are to be appointed, each party is to appoint one arbitrator.
2. If upon receipt of an arbitrator appointment notice by one of the parties the other party fails to notify the first party about the appointed arbitrator the first party may request the KIA to appoint a second arbitrator.
3. In accordance with the UNCITRAL Arbitration Rules, the KIA will appoint a second arbitrator at its discretion and will not use the list procedure. The second arbitrator shall be impartial and independent of either party.

Article 3. Challenge to Arbitrators

Under Article 10 of the UNCITRAL Arbitration Rules, all arbitrators including those appointed by the parties are required to be impartial and independent.

Article 10 provides that any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts regarding the arbitrator's impartiality or independence.

Article 12 of the UNCITRAL Arbitration Rules requires that all contested challenges be decided by the appointing authority. The KIA Chairman shall make decision when deciding challenges at the request of any party.

Article 4. Appointment of a Substitute Arbitrator

The UNCITRAL Arbitration Rules provide that a substitute arbitrator will be appointed if an arbitrator dies or resigns during an arbitration proceeding or if a challenge against the arbitrator is sustained (Article 12, paragraph 2, and Article 13). In such cases, the KIA will appoint a substitute arbitrator in accordance with Articles 1 and 2 of these Rules.

Article 5. Consultation on Fees of Arbitrators and Arbitration Expenses

The UNCITRAL Arbitration Rules provide that the fees of arbitrators shall be reasonable in amount, taking into consideration the amount in dispute, the complexity of the subject matter, the time spent by the arbitrators, and other relevant circumstances of the case (paragraph 1 of Article 39 of the UNCITRAL Arbitration Rules). The Rules provide that parties may request the appointing authority to provide to the arbitrators and the parties a statement setting forth the basis for establishing fees that is customarily followed in the international cases in which the appointing authority appoints the arbitrators (paragraph 3, Article 39 of the UNCITRAL Arbitration Rules).

The KIA has developed Regulation on Arbitration Fees and Expenses, and when requested by any party the KIA will prepare a statement on the arbitrator compensation and arbitration expenses and fees based on said Regulation and KIA experience in administration of the arbitration proceedings.

The panel of arbitrators shall determine the amount of advance payment or additional advance payments only after consultations with the KIA that may give any comments concerning the amount of such advance payments that it may think appropriate.

In addition to consultations about the amounts of advance payments in accordance with Article 41 of the UNCITRAL Arbitration Rules, the KIA at the request of one of the parties or the panel of arbitrators may provide such services as keeping the amounts of advances and reporting of their expenses to the panel of arbitrators.

Section 2. ADMINISTRATIVE SERVICES

Article 6. Provision of Administrative Services

Upon request of the parties or panel of arbitrators the KIA may provide the following administrative services:

1. Arrangement of the hearing room and room for sessions of the panel of arbitrators.
2. Secretarial and clerical support
3. Communication of the written messages of the parties or arbitrators
4. Stenographic transcripts of hearings.
5. Arrangement of services of interpreters at hearings.
6. Upon request of the parties the KIA may consider provision of other appropriate services

Section 3. KIA FEES FOR SERVICES AS THE APPOINTING AUTHORITY AND ADMINISTRATIVE SERVICES

Article 7. KIA Fees for Services as the Appointing Authority and Administrative Services

1. Each notice of arbitration delivered to the KIA Secretariat shall be accompanied by payment of non-refundable amount the size of which is determined by these Rules.
2. The KIA may determine an administrative fee for services provided in accordance with Article 6 of these Rules pro rated to the services provided. This fee shall be paid by the party that communicates the case for the arbitrage proceedings, or jointly by the parties.

Article 8. Amount of KIA Fees

The KIA will charge a fixed amount of USD 700 for its services as the appointing authority in accordance with the UNCITRAL Arbitration Rules.

If the fee has not been paid when the notice of arbitration is submitted KIA, the KIA will specify the period within which the party has to pay this amount. If the fee is not paid during the time specified by KIA, the notice of arbitration will be denied.

Charge for the KIA administrative services and other costs that may be incurred with relation to provision of services will be calculated separately, based on the base rate.