Can We Add Docdex As A Dispute Clause In LC?

[dholat]

dear sirs

my company will be issuing a big volume Letter of credit covering import of food grain. now i wanna add a dispute clause in the LC. just in case. can i add docdex as the dispute clause?

rizvid

[iLC]

your intention is not clear to me. are you saying that if there is a dispute, it will be resolved by docdex panel? if yes, i will advice you to include another clause stating that the parties will be bind by the decision since docdex rules days

Unless otherwise agreed, a DOCDEX Decision shall
not be binding upon the parties.

by the way, do you know that it will be very expensive? i also dont understand why its so necessary to include a dispute clause. better put emphasis on the fair trade.

iLC

[cristiand969]

Dear Dholat
Though question... you have to consult all parties involved (issuing bank and DOCDEX) on the following reasons:
1. Nominated bank/confirming bank (I assume) may not be aware of the DOCDEX rules and it must confirm in writing the adherence to that.
2. DOCDEX PANEL
according to article 2 of DOCDEX RULES
The Initiator shall apply for a DOCDEX Decision by
submission of a request (Request). The Initiator may
be one of the parties to the dispute applying individually,
or more or all parties to the dispute submitting
jointly a single Request.
From the point no. 2 it implies that a dispute has to exist before placing a request to DOCDEX.