ICC arbitration is arbitration under the rules of the International Chamber of Commerce in Paris, founded in 1923. At Musch Legal, we regularly work with ICC clauses for major international contracts. The ICC is the most widely used institution for international commercial arbitration worldwide. The ICC Court of Arbitration scrutinizes awards before publication — a unique quality mechanism that strengthens enforceability.
What is the legal issue? (When do you choose ICC?)
For major international disputes, ICC is often the preferred option due to its global reputation, scrutiny mechanism, and large pool of arbitrators. At the same time, the ICC is more expensive than other institutions due to tiered rates linked to claim value. For medium-sized disputes under 3 million dollars, ICC Fast Track is significantly cheaper. Choosing the wrong institution can lead to disproportionate costs.
What does the law say? (Which rules apply in the ICC?)
ICC Arbitration Rules 2021 (effective January 1, 2021) govern the procedure. Appendix VI contains the Expedited Procedure (Fast Track) for disputes under 3 million dollars — automatically applicable unless opted out. Appendix V regulates the Emergency Arbitrator (Article 29). The ICC Court of Arbitration in Paris (does not arbitrate itself, but does provide supervision) scrutinizes awards under Article 34. For enforceability, the New York Convention of 1958 applies in 170+ countries.
For Dutch law, additionally Articles 1020-1076 of the Dutch Code of Civil Procedure; Grounds for annulment under Article 1065 of the Dutch Code of Civil Procedure are limited.
Element
Standard
Expedited
Claim
No threshold
Under 3 million dollars
Arbitrators
1 or 3 (often 3)
1 arbitrator
Target lead time
24 months
6 months
ICC fee
Stage scale up to 4 million dollars+
Lower percentage
Scrutiny
Mandatory
Simplified
Element
Standard
Expedited
Claim
No threshold
Under 3 million dollars
Arbitrators
1 or 3 (often 3)
1 arbitrator
Target lead time
24 months
6 months
ICC fee
Tiering up to 4 million dollars+
Lower percentage
Scrutiny
Mandatory
Simplified
What risks do companies face? (What goes wrong at the ICC?)
ICC rates follow a sliding scale: for a $1 million claim, typically $50,000-$80,000 in institute fees plus $100,000-$300,000 in arbitration fees. For a $10 million claim: institute alone $250,000+. If the Fast Track opt-out is missed, the procedure can be slower than necessary. Poor arbitrator selection delays the procedure. Without scrutiny, quality would be lower — ICC scrutiny is an advantage but adds 1-3 months.
Practical example from our practice (How did we win an ICC arbitration?)
Musch Legal represented a Dutch engineering firm in an ICC arbitration against a Romanian purchaser worth 4.2 million euros regarding the quality of delivered steel structures. We introduced a party-appointed FIDIC expert who refuted the opposing party's measurement method. The Tribunal accepted our methodology. Final decision within 19 months, including scrutiny. The client obtained 3.4 million euros plus an order for costs. Enforceable in Romania under the New York Convention within three weeks.
What can you do? (How do you formulate an ICC clause?)
Use ICC model clause: 'All disputes arising out of or relating to this contract shall be finally settled under the Arbitration Rules of the International Chamber of Commerce by one or more arbitrators appointed under those rules.' Add: number of arbitrators (1 or 3), seat (often The Hague, Geneva or London), language (English or Dutch), choice of law. For medium-sized disputes: opt-in Expedited Procedure. Engage Musch Legal for clause optimization.