Federation of Oils, Seeds and Fats Associations Ltd (FOSFA) is an international professional association and arbitration institute aimed at development of the international oil, seed and fat trade sector, improvement and standardization of contractual terms, methods of fixing weight and quality of goods, analysis, certification, market player interest defense and promotion of staff knowledge and competence. FOSFA has nearly 1107 members from 89 countries.
FOSFA arbitration is based on ad hoc principle (i.e. for a certain case). FOSFA disputes are considered by qualified arbitrators – worldwide recognized leading experts in international trade and trade law.
FOSFA arbitration is recognized as the most specialized and functional institute of dispute settlement in oil, seed and fat trade sector.
FOSFA arbitration terms
FOSFA standard arbitration terms are incorporated into the FOSFA Rules of Arbitration and Appeal which provide terms of applying to the Arbitration, procedure of dispute settlement and making an award, grounds and procedure of appeal. All the typical FOSFA contract proformas contain arbitration clause which incorporates the FOSFA Rules of Arbitration and Appeal.
FOSFA Rules of Arbitration and Appeal are reviewed and updated regularly in accordance with participants’ demands and the current market trends. The current valid wording is dated the 1st of January 2012.
FOSFA provides also alternative Small Claims Single Tier Rules of Arbitration under which the case shall be considered by the sole arbitrator and the first instance award shall be final and not appealed against.
Disputes to be settled by FOSFA
FOSFA arbitration settles any disputes arising from breach of obligations by the parties under agreements on oil, seed or fat supply which incorporates the above FOSFA Rules of Arbitration and Appeal. In particular, arbitration tribunal settles the disputes regarding breach of obligations upon supply terms and procedure, late payment, incompliance of quantity and quality of the supplied goods with terms set forth in the agreements, disputes concerning procedure of demurrage calculation and recovery and other cases when one of the parties is default.
FOSFA advantages against other arbitration institutions
- FOSFA Rules of Arbitration stipulate differentiated limitation periods depending on the subject of dispute.
- The parties are entitled to agree on case consideration by the sole arbitrator.
- FOSFA principal arbitration procedure does not provide mandatory oral hearing and most cases are subject to consideration on the grounds of written documents and evidence submitted by the parties.
- In the framework of proceedings, the parties may be represented not by the English but by the local lawyer whom they trust and whose services are much cheaper.
- FOSFA arbitration consists of two instances. Within appeal procedure, the case shall be reconsidered in full and the Board of Appeal shall be bound neither by the first instance tribunal award nor by evidence and information submitted at the first instance. Under appeal procedure, any party may submit new arguments, evidence and testimony.
- Hearings shall be private; all the case materials, award and the procedure itself shall be deemed as confidential information.
- FOSFA arbitration awards shall be final and enforced by the parties voluntarily. Under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, FOSFA arbitration awards shall be recognized and enforced at the foreign jurisdictions.
- If any party ignores or refuses to enforce the arbitration award voluntarily, the other party is entitled to file a request to FOSFA on including the data about such party into Black List in the bulletin board system and/or on distributing such data by means of circular for FOSFA members.