The two main arbitration institutions in Iran are the Tehran Regional
Arbitration Centre (TRAC) and the Arbitration Centre of the Iran
Tehran Regional Arbitration Centre (TRAC) is an independent international organization under the auspice of the Asian-African Legal Consultative Organization (AALCO). TRAC has been established pursuant to the Agreement signed on 3 May 1997, between the Islamic Republic of Iran and ALLCO. The Agreement came into force in July 2004, after receiving ratification from the Iranian legislative bodies. TRAC effectively commenced its activities a year later, in July 2005, and published its Rules of Arbitration on that date.
Arbitration Center of Iran Chamber (ACIC) was established in 3 February 2002 by virtue of a specific piece of law called “The Law on Auricles of Association of ACIC” as approved by the parliament of Iran. ACIC is organized as an affiliate to the Iran Chamber of Commerce but enjoys independent legal personality. ACIC is the first Iranian independent arbitration institution established for the purpose of settlement of both domestic and international disputes through arbitration or conciliation.
Domestic arbitration is governed by specific provisions of the Civil Procedure Code of Iran (CPC). International arbitration is governed by the Law of International Commercial Arbitration (LICA), which was adopted in 1997 and is based on the UNCITRAL model law. Parties are free to choose the procedure and rules that will govern their arbitration, provided they are consistent with the public policy and good morals of Iran, and subject to certain mandatory provisions of LICA. LICA sets out the circumstances in which the parties or the arbitrators may appeal for assistance from the courts, or in which the courts should supervise the tribunal.