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, Effective31stJanuary1997

ARBITRATION RULES
q^
FORM NO. 125 l
' CoPYright
THE GRAIN AND FEED TRADE ASSOCIATION

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INDEX
1. PRELIMINARY
2. PROCEDUREAND TIME LIMITS FOR CLAIMING ARBITRATION
3. APPOINTMENTOFTHETRIBUNAL

4. ARBITRATIONPROCEDURE

5. SAMPLES
6. ARBITRATION PROCEDUREFOR CLAIMS
ARISING OUT OF THE'RYE TERMS" CLAUSE

7. STRING ARBITRATIONS - CONSOLIDATED


ARBITRATIONS AND CONCURRENTHEARINGS

8. ISSUESOFSUBSTANTIVEJURISDICTION,PROVISIONALORDERS
AND AWARDSON DIFFERENT ASPECTS
9. AWARDSOFARBITRATION

10. RIGHTOFAPPEAL
11. BOARDSOFAPPEAL
12. APPEALPROCEDURE
13. WITHDRAWALSOFAPPEALS

14. APPEALS ON STRING CONTRACTS- Quality and/or Condition


15. APPEALAWARDS
16. LEGALREPRESENTATIONANDCOSTS
17. *SINGLETRACK"ARBITRATION

18. TRIBUNAL'S OR BOARD OF APPEAL'S OWN EVIDENCE


19. FEESANDEXPENSES
20. CURRENCYREGULATIONS
2I. NOTICES
22, NON.COMPLIANCE WITH TIME LIMITS AND RULES
23. DEFAUI]TERS

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DEFINITIONS
The following are definitions ofthe referencescontained in the Arbitration Rules,

"Arbitrator" A Qualified Arbitmtor Member of the Grain and FeedTrade Associationpursuantto the
Association'sMembers'RulesandReeulations.

"Association" The GrainandFeedTradeAssociation.

"Tribunal" A sole arbitfatoror a tribunal of threearbitrators.

"The Claimant" A party claiming arbitration.

"Appellant" The pady lodging an appeal.

"The Respondent" Tfe party againstwhom arbihation is claimed, and/orthe othgr party namedin a first tier
awardthe subjectof an appeal.

"Rye Terms"Clause Thosecontractclauseswherebythe obligationsof the partiesaredefinedby referenceto the


conditionof the soodson arrival.

"Notices" A noticein writins"servedin accordance


with Rule21.

"MoniesDue" Any debtpayablepursuantto thecontract,includingliquidateddamages.

References to the masculine include references to the feminine and also to companies, corporations or other
kgal persons.

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ARBITRATION RULES No. 125

Any dispute arising out of a contract which incorporatestheseRules shall be referred to arbitration in accordance
with the following provisions:-

1. PRELIMINARY

1:1 The provisions of the Arbitration Act 1996, and of any statutory amendment, modification or re-
enactmentthereof for the time being in force, shall apply to every arbitration and/or appealunder these
Rules saveinsofar as suchprovisions are expresslymodified by, or are inconsistentwith, theseRules.

lz2 The juridical seat of the arbitration shall be, and is hereby designatedpursuant to section 4 of the
Arbitration Act 1996 as, England.

1:3 Arbitration shall take place at the registeredoffices of The Grain and Feed Trade Association (GAFTA),
London, or (but without prejudice to Rules 1:1 and 1:2 above), elsewhereif agreed by the padies in
writing.

2. PROCEDURE AND TIME LIMITS FOR CLAIMING ARBITRATION


The claimant shall serve on the respondenta notice stating his intention to refer a dispute to arbitration
within the following'time limits. I

2tl Disputes as to Quality and/or Condition

(a) ln respectof disputesarising out of the "Rye Terms" clausenot later than the 10th consecutive
day after the date of completion of final discharge.(SeeRule 6).

(b) In respectof claims arising out of certificatesof analysisin respectof which allowancesare not
fixed by the terms of the contract, not later than the 21st consecutiveday after the date on which
the claimant receivesthe final certificate of analysis.

(c) In respectof all other quality and/or condition disputes,not later than the 21st consecutiveday
after the date of completion of final discharge,or delivery, or the unstuffing of the container(s),as
the casemay be.

2:2 Monies Due


In respectof disputesrelating to monies due not later than the 90th consecutiveday after the disputehas
arisen.

2:3 Other Disputes


In respectof all other disputesrelating to the saleof goods,

(a) arising out of CIF, CIFFO, C & F and similar shipment contract terms, not later than the 90th
consecutiveday after (i) the expiry of the contractperiod of shipment,including extensionif any,
or (ii) the date of completion of final dischargeof the ship at port of destination, whichever
periodshall lastexpire.

(b) arising out of FOB terms, not later than the 90th consecutiveday after (i) the date of the last bill
of lading or (ii) the expiry of the contract period of delivery, including extension if any,
whicheverperiod:hall first expire.

(c) on any other terms, not later than the 90th consecutiveday after the iast day of the contractual
delivery, collection or arrival period, as the casemay be.

2:4 No award by the tribunal shall be questionedor set aside on appealor otherwise on the ground that the
claim was not made within the time limits stipulatedin this Rule if the respondentto the claim did not

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raise the matter in their submissionsso as to enablethe tribunal to considerwhether or not to exercisethe
discretionvestedin it by Rule 22.

3. APPOINTMENT OF THE TRIBUNAL


The dispute shall be heard and deterrninedby a tribunal of three arbitrators(appointedin accordancewith
Rule 3:2) or, if both padies agree,by a sole arbitrator (appointedin accordancewith clause3:1).

The time limits imposedby this Rule for the appointmentof the tribunal shall run from the date of service
pursuantto Rule 2 of a notice referring a disputeto arbitration.

This Rule is without prejudice to Rule 6, which governs the appointment of'ttre tribunal in relation to
disputesarising out of the^RyeTerms clause,and Rule 5.3, which govems lhe appointmentof a tribunal
for examinationof samples.

3:1 Procedure for the Appointment of a Sole Arbitrator

(a) If he requires the appointment of a sole arbitrator the claimant shall, not later than the 9th
consecutiveday after service of the notice referring a claim to arbitration, serve a notice on the
respondentseekinghis agreementto the appointmentof a sole arbitratorby the Association.

(b) Not later than the 9th consecutiveday after service of the notice r;fened to in (a) above, the
respondentshall either; (i) servea notice on the claimant statingthat he agreesto the appointment
of a sole arbitrator by the Association, or (ii) appoint an arbitrator to a tribunal of three arbitrators
and serve on the claimant a notice of the arbitrator so appointed,in which caseRule 3:2(c) shall
apply.

(c) Where lhe parties have agreed to the appointment of a sole arbitrator the Association shall
appoint an arbitrator on receipt of the first statements and evidence submitted in accordance with
Rule 4, or, where interlocutory or interim decisions are required of the tribunal, upon the
applicationof either pady.

1.t Procedure for the Appointment of a Tfibunal of Three Arbitrators

(al The claimant shall not later than the 9th consecutiveday after service of the notice referring a
claim to arbitration appoint an arbitrator and serve a notice on the respondent of the name of the
arbitrator so appointed.

(b) The respondentshall, not later than the gth consecutiveday after serviceof the notice referredto
at (a) above, appoint a secondarbitrator and serve a notice on the claimant of the name of the
arbitrator so appointed.

. (c, If the respondentdoes not agreeto the appointmentof a sole arbitrator and has insteadappointed
an arbitrator and given written notice thereof pursuantto Rule 3:1 (b), the claimant shall not later
than the 9th consecutive day after service of such notice of appointment, appoint a second
arbitrator and servea notice on the respondentof the name of the arbitrator so appointed.

(d) Where two arbitrators have been appointed, the Association shall appoint a third arbitrator on
receipt of the first statementsand evidence submitted in accordancewith Rule 4, or, where
interlocutory or interim decisions are required of a tribunal, upon the application of either party.
The third arbitrator shall be the chairman of the tribunal so formed and his name shall be notified
to the Darliesbv the Association.

3:3 Appointmentsof Arbitrators by the Association


If eitherparty fails to appointan arbitratoror to give noticethereofwithin the abovetime limits, the other
partymay applyto the Associationfor the appointment of an arbitrator.Noticeof suchapplicationmust
be servedon thepartywho hasfailedto appoint.

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Upon such application being made, the Association will appoint an arbitrator on behalf of the parly who
has failed to do so, and give notice of the name of the arbitrator appointedto the parties.

Where the claimant has already sought the respondent'sagreementto the appointmentof a sole arbitrator
pursuant to Rule 3:1 then the Association will appoint a sole arbitrator.Where either patly has already
appointedan arbitratot pursuantto Rule 3:l(b) or Rule 3:2, then the Association will appoint the second
arbiftator of the tribunal.

3:4 Applications to the Associationfor the appointmentof an arbitrator shall be accompaniedby,

(a) prima facie evidencethat the partieshave enteredinto a contract subjectto theseRules,

(b) copies of the notices (i) claiming arbitration and (ii) stating that an application has been made to
the Associationfor the appointmentof an arbitrator,

(c) the appropriatefee ruling at the date of application.

3:5 An arbitrator appointedunder theseRules shall be a Qualified Arbitrator Member of the Association and
shall not be interestedin the transactionnor directly interestedas a member of a company or firm named
as a party to the arbitration,nor financially retainedby any such company or firm, nor a member of nor
financially retainedby any company or firm financially associatedwith any party to the arbitration.

3:6 An appointmentofdn arbitrator shall be valid and effective for all purposesprovited that he has signified
his acceptanceof the appointmentto the palty appointing him, or to the Association,as the casemay be,
at any time prior to the dischargeof any arbitral function.

3:7 (a) If an arbitrator dies, refuses to act, resigns, or becomes incapable of acting, or if he fails to
proceed with the arbitration, or is found to be ineligible, or his authority is revoked by the
Association pursuantto the Association'sRules and Regulations,the party, or the Association as
the case maybe, who originally appointedthat arbitrator shall forthwith appoint a substituteand
servenotice thereof on the other Da.rtv.

(b) If a party fails, contrary to (a) above,to appoint a substitutearbitrator and to give notice thereof
within 5 consecutive days of leaming of the arbitrator's death, refusal to act, resignation,
incapacity,failure to proceed,finding of ineligibility or revocation of authority, as the casemay
be, the Association shall, upon the application of either pafiy, have the power to appoint a
substitutearbitrator.

3:8 Any party making an application to the Association for the appointmentof an arbitrator may be required
by the Association to pay a deposit of such sum as the Association may require on account of any fees
and expensesthereafterarising. In addition the tribunal may call upon either party to deposit with the
Association such sum or sums as it considersappropriateon accountof fees, costs and expensesprior to
the commencementof the arbitrationhearing.

4. ARBITRATION PROCEDURE

4zl The claimant shall draw up a clear and concisestatementof his case which, together with a copy of the
contractand any supportingdocuments,shall be servedas set out in Rule 4.4.

4:2 The respondentshall, on receipt of the claimant's case and documents,draw up a clear and concise
statementof his defence(and counterclaim,if any) which, togetherwith any supportingdocuments,shall
he servedas setout in Rule 4.4.

423 The claimant may submit further written comments and/or documentsin reply, such to be servedas set
out in Rule 4.4.

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4:4 All statementsand evidence shall be served by sending them to the other party, with copies to the
Association.In the caseof a sole arbitrator 2 sets,or in the caseof a tribunal of three arbitrators,4 setsof
statementsand evidence,shall be delivered to the Association.Failure to send all sets to the Association
will render the palty responsibleliable to the Association for the costs of copying such documentsfor
forwarding to the arbitrators.

4:5 The tribunal may vary or depart frorn the above procedure in order to give each party a reasonable
opportunity of putting his caseand dealing with that of his opponent,and shall adopt proceduressuitable
to the circumstancesof the particular case,avoiding unnecessarydelay or expense,so as to provide a fair
meansfor the resolution of the mattersfalling to be determined.

4t6 The timetable for the procpedings,including any stepsto be taken pursuantto Rule 4 and/or determined
by the tribunal, will be advised to the paties by the Association. It shall be the duty of the tribunal to
ensure the prompt progress of the arbitration, including the making of orders where appropriate.Any
delay in the proceedingsmay be notified to the Association.

4:7 Nothing in this Rule shall prevent the respondent from delivering his statement and documentary
evidencebefore receiving documents/statements
from the claimant.

4:8 Where the tribunal considersthat an oral hearing is necessary,the date,time and place will be anangedby
the Association.
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4:9 Lapse of Claim
If neither party submits any documentary evidence or submissions as set out in this Rule or as ordered by
the tribunal, within 1 year from the date of the notice claiming arbitration,then, subject only to Rule 22,
the claimant's claim shall be deemedto have lapsed on the expiry of the said period of 1 year unless
before that date the claim is renewed:

(a) by a notice servedby either party on the other, such notice to be servedduring the 30 consecutive
days prior to the expiry date, or

(b) by the serviceof documentaryevidenceor submissionsby either party,

in which casethe claim and counterclaimare eachrenewedfor a further year.

The claim may be thus renewed for successiveperiods of 1 year. Wherever a claim is renewed any
counterclairnis also deemedto be renewed.

4:10 If the arbitration is abandoned,suspendedor concluded, by agreementor otherwise, before the final
award is made,the parties shall be jointly and severallyliable to pay to the Associationthe tribunal's and
the Association'scosts,fees and expenses.

f,. SAMPLES

5:1 If either pafty wishes to submit samplesfor examination by the tribunal, those samplesshall be drawn,
sealedand despatchedto the Association in accordancewith the provisions of the Sampling Rules Form
No: 124, and shall be held at the disposalof the tribunal.

5:2 As soon as possibleafter receipt (and if necessaryprior to the completion of the exchangeof submissions
and documentspusuant to Rule 4 and/or the order of the tribunal), the samplesshall be examinedby the
tribunal. In particular,

(a) in the caseof claims arising out of the "rye terms" clause.the samplesshall be examinednot later
than 21 consecutivedays after the date of completion of final dischargeof the ship at port of
destination,

and

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(b) where the claim invoives cornparisonwith a f.a.q. (fair averagequality) standard,the samples
shall be examined not later than 21 consecutive days after the date of publication by the
Associationthat the standardhas been,or will not be, made.

5:3 Upon the joint applicationof both parties,the Associationmay anange for the examinationof the contract
goods to take place at the port of destination,by a sole arbitrator or (in the caseof a disputearising out of
the "rye terms" clause)three arbitrators,such arbitrator or arbitratorsto be appointedby the Association.
This provision does not over-ride the parties' obligations to take, seal and despatch samples where
required by the Sampling Rules Form No: 124. The tribunal so appointed shall determine all matters in
disputebetweenthe panies.

5:4 A1l samplessent to the Associationfor arbitration,testing and/or other purposesshall becomeand be the
absolutepropefiy of the Association.

6. ARBITRATION PROCEDURE FOR CLAIMS ARISING OUT OF THE


CLAUSE

6:l When the claimant has servedon the respondentnotice of its intention to rcfer the disputeto arbitrationin
accordancewith Rule 2:1(b), he shall senda copy of the notice to the Association,togetherwith sufficient
information to identify the samplesrelating to the claim.
I
6t2 Notwithstanding anything to the contrary in these Rules, upon receipt of the notice as above, the
Associationshall appoint a tribunal of three arbitrators.

6:3 Any documentarysubmissionsor evidenceto be submittedby the parties shall be provided in accordance
with Rule 4.

6:4 An award made putsuant to this Rule shall be final and binding and no appeai shall lie to a board of
appeal.

7. STRING ARBITRATIONS - CONSOLIDATED ARBITRATIONS AND CONCURRENT


HEARINGS

7zl Quality and Condition


If a contract forms pafi of a string of contracts which contain materially identical terms (albeit that the
price may vary under each contract), a single arbitration determining a dispute as to quality and/or
condition may be held betweenthe first seller and the last buyer in the string as though they were parties
who had contracted with each other.

Any award made in such proceedingsshall, subject only to any right of appealpursuant to Rule 10, be
binding on all the parties in the string and may be enforced by an intermediate pafly against his
immediatecontractingparty as though a separateaward had beenmade pursuantto eachcontract.

7:2 Other Cases


In all other cases,if all parties concemedexpresslyagree,the tribunal may conduct arbitral proceedings
concurrently with other arbitral proceedings,and, in particular, concurrent hearings may be held, but
separateawardsshall be madepursuantto eachcontract.

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8. ISSUES OF SUBSTANTIVE JURISDICTION, PRO\TSIONAL ORDERS AND AWARDS ON
DIFFERENT ASPECTS

8:1 Issuesof Substantive Jurisdiction

(a) The tribunal may rule on its own jurisdiction, that is, as to whether there is a valid arbitration
agreement, whether the tribunal is properly constituted and what matters have been submitted to
arbitration in accordancewith the arbitration agreement.

(b) In the event that the tribunal determinesit has no jurisdiction, the Association will notify the
partiesof the tribunal's decision.Such decision shall be final and bindilrg upon the partiessubject
to any right of appealto a board of appealpursuantto Rule 10. The Association will invoice the
claimant for any costs,fees and expensesincurred. In the event that the tribunal determinesthat it
hasjurisdiction, no appealshall lie to a board of appeal.

(c) If the board of appealupholds the tribunal's determinationthat it has no jurisdiction, the board of
appeal shall order accordingly and the Association shall notify the parties and the tribunal and
will invoice the appellantsfor any costs,fees and expensesincurred.

(d) If the board of appealreversesthe tribunal's determinationthat it has no jurisdiction, the board of
appeal shall order accordingly and shall notify the parties, the tribunal and the Association, and
shall order that the disputebe referredto arbitration afresh,whereupcfr:-

(D The dispute shall be deemedto be one arising out of a contractembodying theseRules.

(ii) The tribunal formerly appointed shall thereupon cease to act and shall not be re-
appointedwhen the disputeis referredas aforesaid.

(iii) The provisions of Rule 3 shall apply, the time limits for appointmentrunning from the
date of the board of appeal'sorder.

(iv) The board of appealmay in its absolutediscretion extend the time limits in theseRules,
and no objection that time has expired shall be taken if the requirementsof Rules were
previously complied with.

8:2 Provisional Orders


Where the tribunal decides at any time to order on a provisional basis any relief which it would have
power to grant in a final award, no appealshall lie to a board of appealuntil the tribunal has issueda final
award deternining the issuesbetweenthe parties.

8:3 Awards on Different Aspects


Where the tribunal decidesduring the courseof an arbitration to make an award dealing finally with one
or more aspectsof the dispute,but which leavesto be decidedby it other aspect(s)of the dispute,it may
make an award which shall be final and binding as to the aspect(s)with which it deals, subjecr io any
right of appealpursuantto Rule 10.

9. AWARDS OF ARBITRATION

9:l All awards shall be in writing and shall be signed by the sole arbitrator or, in the caseof an award made
by a three-mantribunal, by all three arbitrators.The tribunal shall have the power to assessand award the
costs of and connectedwith the reference,including the Association'sfees and/or expenses(which shall
be those for the time being in force as prescribed by the Council) and also the fees and,/orexpenses
incurred by the tribunal. The tribunal will assessand award costsat the conclusionof the arbitration.

9:2 The tribunal shall, on the application of either party. made before the arbitration award is made,have the
power to extend the time for appealingin any casein which it considersitjust or necessaryso to do. Any
such extensionmust be statedin the award.

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of the signed
9:3 The tribunal shall submit the award to the Association.The Association shall upon receipt
upon payment of
award give notice to the parties named in the award, that the awald is at their disposal
received by the
the feei and expensesiniuned by the tribunal and the Association. If payment is not
more of the
Association wit-nin ta days froin such notice, the Association may call upon any one or
pafiies to take up the award and in such case the party or parties so called upon shall pay the fees and
'"^p"nr", shall date and issue the
as directed.Upon receipt of the fees and/or expenses,the Association
these Rules be
awa.d to rhe pafiies, which date shall for the purpose of the Arbitration Act 1996 and
deemedto be the date on which the award was made.

and binding
9:4 Subject to any right of appealpursuantto Rule 10 awards of arbitration shall be conclusive
on tie partieswith ..rp"Jboth. to th" mattersin disputeand as to costs'

not qualified to act


9:5 No award shall be questionedor invalidated on the ground that an arbitrator was
unlesssuch objection was made at the outsetof the arbitration'

10. RIGHTOFAPPEAL

an award to a board
10:1 Saveas provided in Rules 6:4, 8:1(b), 8:2, 17 and22, either party may appealagainst
of appealprovided that the following conditions are complied with:-

made
\a) Not later than 12 noon on the 30th consecutiveday after the date on which the award was
the appellant shall:-

' (i) ensurethat a written notice of appealis receivedby the Association'

(ii) servea notice of his intention to appealon the other party and ensurereceipt of a copy by
the Association,

(iii) and (subjectto rhe provisions of Rute 20) make paymentto the Association of the appeal
f-eestatei on the award of arbitration on account of the costs, fees and expensesof the
aPPeal.

(b) The fees and expensesof the arbitration award incurred by the tribunal and/or the Association,
shall be paid to the Associationbefore the appealis heard'

(c)Theappellantsshallpaysuchfurthersumorsumsonaccountoffees,costsandexpensesaSmay
(as defined in (a) and
be called for by the Association at any time after the lodging of the appeal
(b) above)andpriortothepublicationoftheawardbytheboardofappeal.Thefeeschargedby
theboardofappealshallbeinaccordancewiththescaleoffeeslaiddownbytheCouncilfrom
time to time.

power to consolidate
l0t2 If appealsare lodged by both parties to the award the Association shall have the
such appealsfor hearingby the sameboard of appeal'

by Rule 20 has
10:3 If neither the appealfee required under Rule 10:1 nor evidencefrom a bank as required
of appeal, such
been received by the Assotiation within 35 consecutivedays of receipt of the notice
prior to the expiry
notice shall be deemedto have been withdrawn and the right of appealwaived unless'
to the board of appeal for an extension'in
of that period of 35 consecutivedays,the appellanthas applied
and/or submissions
which case the board of appeal may, in its absolute discretion on hearing evidence
from eachparty.grantan extension.

11. BOARDSOFAPPEAL

of the
11:1 Boards of appeal shall be elected and constitutedin accordancewith the Rules and Regulations
its members to be chairman'
Association and eachboard of appealshall, when so elected,appoint one of
will comprise of
Where the first tier arbitration awird was made by a sole arbitrator the board of appeal

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three Members. Where the first tier award was made by a tribunal of three arbitrators, then the board of
appeal shall comprise of five members. The Association will notify the parties of the names of the
membersof the Board of Appeal.

llz2 If a member of the Board of Appeal dies, refusesto act, resigns,or becomesincapableof acting, or if he
fails to proceedwith the appeal,or is found to be ineligible, or his authority is revoked by the Association
pursuantto the Association'sRules and Regulations,the next member of the Committee of Appeal duly
appointedfor this purposeshall thereuponbecomea member of the board of aDpealin his place.

12, APPEAL PROCEDURE

l2:l The pafties shall serve their statementsof case and documentary evidence in accordancewith the
following provisions or any other timetable which the board of appealmay order.

(a) The appeilant shall draw up a concisestatementof his casewhich, together with any supporting
documents,shall be served as set out in Rule 12:2 within 28 consecutivedays of lodging iti
appeal(as defined in Rule 10:1(a)- (c)).

(b) The respondentshall draw up a concisestatementofhis casewhich, togetherwith any supporting


documents,shall be served as set out in Rule 12:2 within 28 consecutivedays of service of the
appellant'sdocumentspursuantto (a) above.
t
(c) The appellantmay serve further submissionsor documentsin response,such to be servedas set
out in Rule 12:.2within 14 consecutivedays of serviceof the respondent'sdocumentspursuantto
' (b) above.

l2:2 Statements of case and documentary evidence (which may include new evidence not before the
arbitrators)shall be servedby sending them to the other party with copies to the Association.Where the
appeal is against the award of a sole arbitrator 3 copies, or where the appeal is against the award of a
tribunal of three arbitrators 5 copies, shall be sent to the Association. Failure to send all copies to the
Association will render the party responsible liable to the Association for the costs of copying such
documentsfor forwarding to the board of appeal.

l2t3 The Association will set down the appeal for hearing having due regard to the above timetable, or any
other time table which the board of appealmay decide.

l2:4 An appealinvolves a new hearingof the disputeand the board of appealmay confirm, vary, amendor set-
asidethe award of the tribunal. In particular (but not by way of restriction),the board of appealrnay;

(a) vary an award by increasingor reducing,if the board shall seefit, the liability of either party,

(b) correct any errors in the award or otherwisealter or amendit.

(c) award the payment of interest,

(d) award the payment of costs,fees and expensesof and incidental to the hearins of the arbitration
and the appeal;such costs,fees and expenseswill normally follow the event.

l2:5 An award shall be confirmed unless the board of appeal decide by a majority to vary, amend or set it
aside.

l2t6 The award of the board of appeal, whether confirming, varying, amending or setting aside the original
award of arbitration,shall be signedby the chairmanof the board of appeal,and, when so signed,shall be
deemedto be the award of the board of appeal,and shall be final, conclusiveand binding. Rule 9:3 shall
apply to awards of the board of appeal.

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1r2t7 (a) If the appeliant, on receiving notice of the date fixed for the hearing of the appeal, requestsa
postponemeruof more than 14 days, or at the first or any subsequenthearing of the appeal
iequists an adjoumment, then in such event the board of appeal may in its absolute discretion
direct that as a condition of granting an adjournment all or any part of the money required by the
terms of the award of arbitration to be paid by either party to the other shall be depositedin such
bank and in such currency (either in the United Kingdom or abroad) as the board of appeal may
direct. Such money shall be held by such bank in an accountin the name of the Association, or
on such terms as the board of appeal may direct. The board of appeal shail, where such money
has been deposited,direct in its award how and to which of the pafties the amount so held shall
be Paidout.

(b) If the appellantfails to make such payment as aforesaidin accordancewith the directions of the
board of appeal, and within such time as the board of appeal stipulates,then (subject to the
provisions of Rule 20) the appealshall be deemedro be withdrawn'

(c) If in the opinion of the board of appealthe appellanthas been guilty of undue delay in proceeding
with his appealthe board of appealshall give due warning to the appellantthat he should proceed
with due despatch.If the appellant continues,thereafter,to delay the progressof the appeal,the
board of appeal may (after giving both parties a reasonableopportunity to make submissions)
order that the appeal is deemedto have been withdrawn, in which event the money on deposit
(with interest if any, less any lax deductible) shall immediately become due and payable to the
party and/or,parties entitled thereto under the terms of the award of arbitration.

questioned
l2|8 No award of a board of appealor decisionby a board of appealon any issueor aspect,shall be
or invalidatedon the ground that any of its membersis not qualified to act unlessobjection is made within
a reasonableperiod of the notification of the membersof the board of appeal'

13. WITHDRAWALSOFAPPEALS

13:1 The appellantshall have the right, at any time before the board of appealmakesan award.to withdraw his
upp"ui'by giving notice of such withdrawai to the Association, and in such case the Association shall
is
torttrwittr notify all partiesto the arbitration that the appealhas been withdrawn. If notice of withdrawal
on which the appeal was lodged in
received by the Association within 10 consecutivedays of the date
by the
accordancewith Rule 10:1, half of the fees shall be returned.If notice of withdrawal is received
fees
Associationnot later than 48 hours before the time fixed for the hearing of the appeala quarterof the
retumed following receipt of notice of withdrawal at any
shall be returned. No part of the fees shall be
later date.

to a
:I3:2 In the event of withdrawal the respondentshall continue to have the right of appealagainstthe award
provisions of Rule 10, save that the time limit iaid down in Rule
board of appealin accordancewith the
to
10:1 shall be 12 noon on the 30th consecutiveday after the date of service of the Association'snotice
that party of the aforesaidwithdrawal.

14. APPEALS ON STRING CONTRACTS - Quality and/or Condition

14..1 Where a..string" award is made pursuant to Rule 7:1, then, unless it i.s an award determining a dispute
,'Rye Terms" clause, each party in the sning shall be entitled to appeal against that
arising out of ihe
provisions of
award to a board of appeal,provided that eachof the following provisions,in addition to the
Rule 10. are comPliedwith:-

(a) If the appellant is an intermediate party he shall state in his notice of appeal whether he is
appealingas a buYeror as seller.

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(b) If the appellantis the first seller or the last buyer he shall, within the time limits set out in Rule
10:1(a)(ii), serve written notice of his intention to appeal on the party in immediate contractual
relationshipwith him.

(c, If the appellant is an intermediateparty and is appealingas buyer or seller he shall, within the
time limits set out in Rule 10:1(a)(ii), serve notice of his intention to appeal on both the
respondentto the appealand also his own immediate seller or buyer.

(d) The recipient of a notice servedpursuantto the above provisions may, if it wishes to commence
appeal proceedingsagainst its own immediate contracting party, pass on a like notice upon the
next party in the string. Such notice shall be passedon with due despa{ch,in which casethe time
limit in Rule 10 shall be deemedto have been comolied with.

14:2 All appealsto which this Rule applies and to all awards made pursuant to this Rule shall be binding on
every appellant and respondent.Non-compliance with any provisions of Rule l4:l(d) shall in no way
limit or affect the jurisdiction of the board of appeal.

15. APPEAL AWARDS


The Association may call upon either of the disputing parties to take up the award of the board of appeal
and in such casethe party so called upon shall take up the award and pay the fees, costs and expensesof
the board of appeal and/or the Association. upon receipt of the fees, posts and expensesby the
Association, the Association shall then date and issue the award to the partles, which date shall, for the
purposesofthe Arbitration Act 1996,be deemedto be the date upon which the award is made.

16. LEGAL REPRESENTATION AND COSTS

16:1 The parties may expressly agree that they may engage legal representatives(ie, solicitors, and/or a
banister or other legally qualified advocate) to reprcsenfthem in the arbitration and/or in any appeal
proceedingsand to appearon their behalf at any oral hearings.

16:2 Where there is no such agreement between the padies they are neverthelessfree to engage legal
representativesto representthern in the written proceedingsbut not to appear on their behalf at oral
hearings. The costs of engaging legal representativesin such circumstancesshall not be recoverable
unless the tribunal considersthat such costs were reasonablyincurred. This provision shall not apply to
single track arbitrationspursuantto Rule 17.

17. ..SINGLE TRACK'' ARBITRATION


Where both parties agreein writing, they may dispensewith the two tier arbitration system provided by
these Rules in favour of a single tier arbitration, in which case (a) a tribunal of three arbitrators will be
appointedin accordancewith Rule 3:2, (b) no appeal shall lie to a board of appeal,and either party may
appealdirectly to the Coult ifleave is grantedpursuantto Section 69 ofthe Arbirration Act 1996.

18. TRIBUNAL'S OR BOARD OF APPEAL'S OWN EVIDENCE


If at any time prior to the close of the proceedingsthe tribunal or the board of appealdeem it appropriate,
they may take stepsto ascertainthe facts and the law on their own initiative, provided that they give both
partiesreasonableopportunity to comment on and/or provide evioenoern response.

19, FEES AND EXPENSES


Each party engagingin an arbitration or an appealpursuant to theseRules, whether or not a Member of
the Association, is deemedthereby to agreeto abide by theseRules and to agreewith the Associatronto
be liable to the Association (ointly and severallywith the other partiesto the arbitration or appeal)for all

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fees and expensesincurred in connectionwith the arbitration or appealor any remissions,which said fees
and expensis shall, upon notification by the Associationbe and becomea debt due to the Association.

20. CURRENCY REGULATIONS


paid by him as
If an appeilant is precluded by currency regulations from paying any money due to be
requirJ under Rule 10, and notifies the Association in writing (a) in the case of inability to pay the
appealfee when giving norice of appeal,and (b) in the caseof inability to pay any furlher sum directedto
be paid under Ruies 10 and/or 12, within 9 consecutivedays of the money being demanded,accompanied
in every caseby evidencefrom a bank that he has alreadymade applicationfor the transfer of the required
the said
sum, hi shall be entitled to an extension of up to 35 consecutive days from th' date when
paymentbecamedue in which to pay such sum.

21. NOTICES

2l:l Service on parties


All notices to be servedon the parties pursuantto theseRules shall be sewed by letter, te1ex,telegram or
by other method of rapid writtin communication. For the purposesof time limits, the date of despatch
shall, unlessotherwisestated,be deemedto be the date of service'

Rules.
Service on the brokers or agentsnamed in the contract shall be deemedproper seJviceunder these
So far as concemssuch notices,this Rule over-ridesany other provisions of the cdntract.

2l.2 Service on Thibunals and Appeal Boards


to be
Unless the tribunal or board of appeal otherwise directs, al1 notices, proceedingsand documents
pursuant to these Rules shall be servedby letter,
servedon arbitratorsand membersof a board of appeal
at the
telex, telegram or other method of rapid written communicationon the Secretaryof the Association
Association'sOffices. For the purposesof any time limits receipt of such notices by the Association shall
be deemedto be the date of service.

2l:3 Computation of Time


Where theseRules require service not later than a specified number of consecutivedays after a specified
date or occurrence,thit specifieddate or occulrenceshall not count as one of the consecutivedays

)1 NON-COMPLIANCE WITH TIME LIMITS AND RULES


the
If any time limit or provisions imposed by these Rules are not complied with then, subject only to
conferred by this Rule, the claimant's claims and/or
discretion of the tritunal or board of appeal
that:
appellant'sappealas the casemay be, shall be deemedto be waived and absolutelybarred,except

(a) such matters shall be raised as a defenceto the arbitration claim, whereuponthe tribunal may in
its absolutediscretion admit a claim upon such terms as it may think fit, or it may determinethat
the claim is waived and barred and refuse to admit it. There shall be no appeal to the hoard of
appealagainstthe decision of the tribunal to exerciseits discrction to admit a claim. If a tribunal
diiid", not to admit the claim, then the claimant shall have the right to appealpursuantto Rule
10, and the board of appeal shall have the power in its absolute discretion to overhrrn that
decisionand to admit the claimi

(b) upon appealif any of the provisions of Rules 10 to 21 have have not been complied with, then the
boarcl appeal may in its absolutediscretion extend the time for compliance (notwithstanding
that the timi may already have expired) or dispensewith the necessityfor compliance and may
proceed-i to hear and determine the appeal as if each and all of those Rules had been complied
with. Any decision madepursuantto this Rule shall be final, conclusiveand binding.

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23. DEFAUI]TERS

23zl In the event of any party to an arbitration or an appealheld under these Rules neglecting or refusing to
carry out or abide by a final award of the tribunal or board of appealmade under theseRules, the Council
of the Association may post on the Association'sNotice Board and,/orcirculate amongstMembers in any
way thought fit notification to that effect. The parties to any such arbitration or appealshall be deemedto
have consentedto the Council taking such action as aforesaid.

23:.2 In the event that parties do not pay the costs, fees or expensesof the arbitration or appeal when called
upon to do so by the Association in accordance with these Rules, the Council may post on the
Association'sNotice Board and./orcirculate amongstMembers in any way thotght fit notification to that
effect. The parties to any.such arbitration or appeal shall be deemed to have consentedto the Council
taking such action as aforesaid.

Effective:31stJanuary1997

Printed in Englandand issuedby

GAFTA
(THE GRAIN AND FEEDTRADEASSOCIATION)
GAFTA HOUSE,6 CHAPEL PLACE, RIVINGTON ST,LONDON EC2A 3DQ. UK

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