ICC Arbitration Costs

When choosing the International Chamber of Commerce (ICC) as the administering institution, one of the first questions parties ask is: how much will ICC arbitration cost?

Understanding the ICC’s cost structure is essential for accurate budgeting and informed decision-making. While ICC arbitration is widely respected for its fairness, procedural efficiency, and the enforceability of its awards, it can become expensive if not carefully managed. The ICC, however, offers a transparent and predictable system for calculating and controlling costs, built on decades of institutional experience and detailed guidance in its reports and publications.[1]

This practical note explains how ICC arbitration costs are calculated, who bears them, and how they can be managed or recovered, with a focus on arbitrations conducted under the 2021 ICC Arbitration Rules (“ICC Rules”).

The Structure of ICC Arbitration Costs

The total costs of an ICC arbitration generally include (1) ICC fees, (2) legal fees, (3) expert fees, (4) hearing costs, and (5) other expenses. In most cases, the prevailing party may recover these costs from the losing party, depending on the tribunal’s decision on costs.

The ICC operates a distinctive advance-on-costs system, designed to ensure that proceedings can move forward as soon as sufficient funds are secured. Unlike ad hoc arbitration, ICC costs are transparent and predictable, since both the administrative expenses and arbitrators’ fees are calculated using a published ad valorem scale – that is, based on the total amount in dispute. Parties can estimate these costs in advance using the ICC’s Cost Calculator, which is available on the ICC’s website.

A summary of the main cost categories and the timing of payments is provided in the accompanying table (ICC Arbitration Costs), with further explanations below.

Heads of Costs in ICC Arbitration

1. ICC Fees

Non-Refundable Filing Fee

To begin an ICC arbitration, the claimant must pay a non-refundable filing fee of USD 5,000.[2] If French VAT applies (for instance, if the claimant is a company based in France), the filing fee increases to USD 6,000. This payment must accompany the Request for Arbitration, and proof of payment must be submitted to the ICC Secretariat.

Payments made by third parties are accepted only if accompanied by documents explaining the payer’s legal relationship to the claimant. The filing fee is separate from the advance on costs and is not reimbursed, even if the arbitration does not proceed.

The Advance on Costs System: ICC Administrative Charges and Arbitral Tribunal’s Fees and Expenses

Upon receipt of the Request for Arbitration, the ICC Secretary General fixes a provisional advance to cover the administrative expenses and arbitrators’ fees until the Terms of Reference are finalised.[3]

As soon as practicable, the Court shall determine the advance on costs in an amount expected to cover (1) the arbitrators’ fees and expenses, (2) the ICC’s administrative expenses, and (3) any other costs incurred by the ICC in connection with the arbitration for the claims submitted by the parties.[4] This advance is payable in equal shares by both parties. If one party fails to pay, the other may be invited to advance the entire amount to prevent suspension of the proceedings. Should payment still not be made, the Secretary General, after consulting the tribunal, may suspend the proceedings and give the defaulting party at least 15 days to pay. If payment is not received within that time, the claims are considered withdrawn, although they can later be reintroduced in a new arbitration.[5]

The ICC Court fixes both the administrative expenses and the arbitrators’ fees by reference to the ICC cost scales (in force since 1 January 2017), which also serve as the basis for calculating the advance on costs.[6]  The scales are expressed in US dollars and follow a regressive structure. This means that as the amount in dispute increases, the total costs increase in absolute terms, but they decrease proportionally as a percentage of the claim value. This ensures that large disputes do not result in disproportionately high arbitration costs.[7] Unlike institutions such as the HKIAC or LCIA, which use hourly-rate systems, the ICC employs an ad valorem structure with predictable minimum and maximum ranges for arbitrators’ fees, as codified in Appendix III (Arbitration Costs and Fees) of the ICC Rules.

Administrative Expenses

For each amount in dispute, the ICC costs scale sets a fixed administrative fee that covers the ICC’s institutional services throughout the arbitration. The ICC Court may depart from this amount only in exceptional circumstances under Appendix III, Article 2(5). In practice, however, administrative expenses rarely exceed the maximum amount set by the scale, which is currently USD 150,000:

Arbitrator’s Fees

Regarding the scale of arbitrator’s fees, these are also set out in Appendix III to the ICC Rules, as follows:

According to the ICC Secretariat’s Guide to ICC Arbitration, the ICC’s published cost scale based on the amount in dispute offers several key advantages. It ensures that arbitration costs are proportionate to the value of the claims, discourages frivolous or exaggerated claims, and provides incentives for arbitrators to manage cases efficiently, since they are not paid by the hour. Most importantly, it gives parties transparency and predictability from the outset about the likely total cost of their arbitration.[8]

Tribunal Secretary’s Fees

The remuneration and expenses of any tribunal secretary approved by the ICC Court (if any are appointed) are included within the overall costs of the arbitration and paid from the advance on costs. The ICC Note to Parties and Arbitral Tribunals on the Conduct of Arbitration clarifies that direct arrangements between the arbitral tribunal and the parties on the administrative secretary’s fees are strictly prohibited. Their compensation, if any, forms part of the overall fees of the arbitral tribunal, which are fixed and paid through the advance on costs set by the ICC.[9]

Separate Advances on Costs

Under Article 37(3) of the ICC Rules, the ICC Court may, when appropriate, fix separate advances on costs for the principal claim and any counterclaim.[10] This means that each set of claims – such as a claim and a counterclaim – can be financially ring-fenced, ensuring that the fees and expenses of the arbitrators and the ICC administrative costs are fairly apportioned between the parties. The Court may also fix separate advances if multiple parties are involved or if the proceedings have been consolidated under Article 10.

If one party fails to pay its separate advance, the ICC may invite the other party to pay on its behalf to allow the arbitration to proceed. Failure to do so can result in the suspension or withdrawal of the relevant claims under Article 37(6). This system provides flexibility in complex or multi-party cases, ensuring that the arbitration can continue efficiently while maintaining financial fairness between the parties.

Other Considerations: VAT, Currency, and Compliance Considerations

ICC administrative expenses are subject to French VAT, where applicable. Claimants should review the Explanatory Note on VAT Applicable on ICC Administrative Expenses before making payments.

In addition, the 2025 Note to Parties and Arbitral Tribunals on ICC Compliance clarifies that international sanctions regulations may affect payments. If any party to arbitration is subject to UN, EU, or OFAC sanctions, payments must often be made in euros instead of US dollars, and additional compliance checks may delay transactions.

2. Legal Fees

In addition to the institutional costs, parties must also budget for the legal fees incurred for the work of counsel and their teams. These typically represent the largest portion of the overall costs, as an arbitration may require more than 1,000 hours of work by a party’s legal team.

Aceris Law, valuing transparency and predictability, has made available online its own Arbitration Legal Fee Calculator, based on the amount in dispute. Aceris Law offers reasonable, capped legal fees for legal representation in international arbitrations, ensuring that clients benefit from high-quality legal representation with clear and upfront cost expectations. Alternatively, clients can opt for legal fees on a competitive hourly basis.

3. Expert Fees

Expert evidence is often used in international arbitration. Parties appoint experts to provide independent opinions on matters outside the arbitral tribunal’s expertise, such as quantum, delay analysis, or foreign law. These opinions are usually presented through written reports and oral testimony at the final hearing, assisting the tribunal in its decision-making.

When expert evidence is required, each party selects and retains its own expert and covers the related fees and expenses. However, to preserve the expert’s impartiality and independence, the expert’s remuneration must not be linked to the outcome of the arbitration.

4. Hearing Costs

Hearings are an integral part of most arbitrations, and parties must also plan for hearing-related expenses, though this represents only a small portion of the overall arbitration costs.

The factors that play a role in determining the hearing costs include:

• Whether the hearing is hosted virtually or in person.

• If it is in person, what venue will be reserved, and during what period of the year.

• The length of the hearing.

• The number of people attending (tribunal, party representatives, legal teams, experts, witnesses, etc.).

• The cost of a court reporter (which may include travel and accommodation).

• The cost of lunch and coffee breaks for the participants.

• Whether translation services will be required.

• The travel and hotel costs for the party, its legal team, and the arbitral tribunal.

• Other costs, such as printing fees or fees for electronic data-hosting services.

Further, if an arbitration case is bifurcated, the parties may have to fund two hearings – one on the preliminary issues and, if the arbitration proceeds, one final hearing on the merits of the dispute.

Typically, hearing costs are split equally between the parties, but they can then be recovered in the award.

5. Other Costs to Consider

Parties should also anticipate additional incidental costs that may arise during the arbitration process. For instance, the document production phase can be resource-intensive, particularly when large volumes of documents must be reviewed and disclosed.

Tribunals may also request that submissions be filed both electronically and in hard copy or on external drives, requiring payment for printing, duplication, and courier services. Likewise, when evidence or witness testimony is in a different language, parties should budget for translation and interpretation costs.

In short, even well-managed arbitrations may involve unforeseen ancillary expenses, and parties should plan accordingly to avoid surprises.

Allocation of Costs in ICC Arbitration

Under Article 38 of the ICC Rules, the arbitral tribunal has full discretion to allocate costs between the parties. It may decide which party bears the costs of arbitration or apportion them in such proportions as it deems fair. The tribunal may issue interim decisions on costs during the proceedings or include them in the final award.[11]

Although the ICC Rules do not establish a presumption that the successful party should recover its costs, in practice, most tribunals follow the “costs follow the event” principle.[12] The 2015 ICC Commission Report on Decisions on Costs in International Arbitration found that most ICC tribunals begin with this approach but adjust it to reflect relative success, reasonableness of costs, and party conduct.[13]

Tribunals may penalise parties that act in bad faith, cause procedural delay, or advance unmeritorious claims by ordering them to bear all or part of the arbitration costs.

What Costs Are Recoverable?

According to Article 38(1) of the ICC Rules and ICC practice, recoverable costs include four categories:

1. 1. Arbitrators’ fees and expenses (fixed by the ICC Court).
   2. ICC administrative expenses.
   3. Experts’ fees and expenses (for tribunal-appointed experts).
   4. Reasonable legal and other costs incurred by the parties.

For a detailed discussion of each category, including how tribunals assess reasonableness and allocate costs between the parties, see Aceris Law’s note on What Are the Recoverable Costs in ICC Arbitration?

Legal Costs

Recoverable legal costs include external counsel fees, paralegal support, and reasonable travel expenses. Tribunals assess whether such costs were reasonable and proportionate to the dispute’s value and complexity.

Expert and Witness Costs

Recoverable costs also include:

• Fees of tribunal-appointed experts and party-appointed experts.
• Travel and accommodation of witnesses and counsel.
• Expenses for court reporters, translators, and hearing rooms.

In-House Counsel

Tribunals are divided on whether in-house counsel costs qualify as recoverable (see What Are the Recoverable Costs in ICC Arbitration?). Some accept them if well-documented; others reject them as part of normal business overhead.

How Tribunals Decide on Cost Allocation

In practice, ICC tribunals consider several key factors when deciding who pays what:

• Agreement of the parties in their contract or arbitration clause.
• Relative success or failure of the parties’ claims.
• Proportionality and reasonableness of legal costs.
• Conduct of the parties, including cooperation and procedural efficiency.
• Evidence of costs, supported by invoices and/or cost statements.[14]

The ICC Commission encourages tribunals to use cost allocation as a case management tool, rewarding efficient conduct and discouraging delay or procedural abuse.

Managing and Reducing ICC Arbitration Costs

According to the ICC’s report Techniques for Controlling Time and Costs in Arbitration (2018), efficiency in ICC proceedings depends on proactive case management by tribunals and cooperation from the parties. The report highlights several key strategies reflected in Appendix IV of the ICC Rules:

• Early case management conference: The tribunal should hold an initial meeting soon after the constitution to agree on a procedural timetable and discuss how to streamline the case.
• Tailored procedures: The process should be adapted to the complexity, value, and urgency of the dispute rather than following a one-size-fits-all approach.
• Efficient evidence management: Limit document production to what is strictly necessary and coordinate witness and expert evidence to avoid duplication.
• Use of technology: Employ electronic communication, online filings, and virtual hearings where appropriate to reduce delays and travel expenses.
• Firm scheduling: Set clear deadlines for submissions, hearings, and the issuance of the final award.
• Encouraging settlement: Explore mediation or procedural tools that might lead to early resolution.
• Cost consequences for inefficiency: Under Article 38 of the ICC Rules, tribunals may allocate costs to reflect how efficiently each party has conducted the proceedings.[15]

These techniques aim to ensure that ICC arbitrations are conducted proportionately to the value and complexity of the dispute, balancing procedural fairness with cost-effectiveness.

Conclusion

The ICC’s cost system is transparent, predictable, and carefully regulated. Although party costs generally form the largest share of total expenditure, ICC administrative and arbitrators’ fees are proportionate to the dispute’s value and complexity.

For businesses and investors, ICC arbitration remains a trusted and balanced mechanism, offering not only enforceable outcomes but also cost transparency and institutional oversight.

Parties must keep in mind that even after obtaining an ICC award, parties might also have to budget for potential enforcement proceedings if the losing party fails to comply.

Aceris Law has represented clients in dozens of successful ICC arbitrations across industries and regions. Our lawyers offer cost-efficient, transparent, and highly effective representation in disputes under the ICC Rules and other major institutional frameworks. For more information or a detailed cost estimate for your ICC arbitration, please contact Aceris Law.

[1]               For an overview of the procedural steps in ICC arbitration, see Aceris Law’s Behind the Curtain: A Step-by-Step Guide to ICC Arbitration, 26 April 2025.

[2]               For more information, see Aceris Law’s How to Commence an ICC Arbitration, 14 May 2023.

[3]               ICC Rules, Article 37(1)(a).

[4]               ICC Rules, Article 37(2).

[5]               ICC Rules, Article 37(6).

[6]               Appendix III, Article 3(2) of the ICC Rules provides that “[t]o calculate the ICC administrative expenses and the arbitrator’s fees, the amounts calculated for each successive tranche of the amount in dispute must be added together, except that where the amount in dispute is over US$ 500 million, a flat amount of US$ 150,000 shall constitute the entirety of the ICC administrative expenses.”

[7]               J. Fry et al., The Secretariat’s Guide to ICC Arbitration (2012), para. 3-1321.

[8]               Id. para. 3-1323.

[9]               Note to Parties and Arbitral Tribunals on the Conduct of the Arbitration under the ICC Rules of Arbitration, 1 January 2021, paras. 228-230.

[10]             ICC Rules, Article 37(3).

[11]             ICC Rules, Articles 38(3) and 38(4).

[12]             For an overview of cost allocation principles, see Aceris Law, Who Pays the Costs of International Arbitration?, 19 September 2022.

[13]             Commission on Arbitration and ADR, ICC Commission Report, Decisions on Costs in International Arbitration, 2015(2), pp. 20-21.

[14]             Commission on Arbitration and ADR, ICC Commission Report, Decisions on Costs in International Arbitration, 2015(2), Section V.

[15]             For practical guidance on managing arbitral proceedings efficiently, see Aceris Law, Effective Case Management in International Arbitration, 5 October 2025.