International Commercial Arbitration at Bosnia and Herzegovina
International Commercial Arbitration in Bosnia and Herzegovina – Overview
Bosnia and Herzegovina (BiH) has a legal framework for international commercial arbitration that aligns with international standards, though its complex constitutional structure affects the uniformity of arbitration regulation. Arbitration is governed by state-level and entity-level laws, with an emphasis on party autonomy and enforcement of foreign awards.
1. Legal Framework
The primary law is the Law on Arbitration of Bosnia and Herzegovina (2003), based largely on the UNCITRAL Model Law on International Commercial Arbitration (1985).
Additionally, the Federation of Bosnia and Herzegovina and the Republika Srpska entities have their own arbitration laws, mostly consistent with the state law.
Bosnia and Herzegovina is a party to the New York Convention (1958) on the Recognition and Enforcement of Foreign Arbitral Awards.
Courts generally respect arbitration agreements and awards with limited intervention.
2. Key Features of Arbitration Law
🔹 Scope
Applies to both domestic and international arbitration.
Arbitration agreements must be respected and enforced.
🔹 Arbitration Agreement
Must be in writing, including electronic communications.
Valid arbitration agreements are binding and enforceable.
🔹 Arbitral Tribunal
Parties have autonomy to appoint arbitrators.
Tribunal determines procedure unless parties agree otherwise.
🔹 Court Intervention
Courts intervene only as permitted by law: appointment of arbitrators, granting interim measures, and setting aside or enforcing awards.
Minimal interference to respect arbitration autonomy.
🔹 Recognition and Enforcement
Foreign arbitral awards are enforceable under the New York Convention.
Local courts can refuse enforcement on limited grounds such as public policy or procedural irregularities.
3. Institutional Arbitration
Institutional arbitration is available, notably through:
The Chamber of Commerce of Bosnia and Herzegovina,
Other entity-level arbitration institutions.
Parties may also opt for international arbitration institutions.
4. Advantages of Arbitration in BiH
Arbitration law aligned with international best practices.
Recognition and enforcement of foreign awards facilitated by New York Convention membership.
Parties enjoy broad procedural autonomy.
Supportive judicial attitude with minimal intervention.
5. Summary Table
| Aspect | Description |
|---|---|
| Governing Law | Law on Arbitration of Bosnia and Herzegovina (2003) |
| Arbitration Agreement | Must be in writing, binding |
| Court Support | Limited intervention; appointment, interim relief, enforcement |
| Enforcement | New York Convention signatory; enforcement generally upheld |
| Arbitration Type | Both domestic and international arbitration permitted |
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