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FOSFA (The Federation of Oils, Seeds and Fats Associations) has updated its Arbitration and Appeal Rules. The new version, effective from 1 April 2025, introduces significant amendments to arbitration procedures, which will directly affect all participants in the agri-trade sector. How do the new rules differ from those in force since 1 April 2024, and why does it matter for your business?
1. FOSFA Jurisdiction: Express Ban on Jurisdictional Appeals
Position in 2024: The previous rules briefly stated that arbitrators had the authority to determine their own jurisdiction, without detailing the procedure or the possibility of challenging such decisions.
Position in 2025: Rule 5 has been significantly revised with respect to jurisdiction. Arbitrators now have two clear options when determining jurisdiction:
- To issue a preliminary ruling on jurisdiction (which cannot be appealed)
- To continue the arbitration and issue a final award addressing both jurisdiction and the merits
The revised rules now expressly state that jurisdictional decisions may not be appealed within the FOSFA system. This was not expressly addressed in the 2024 Rules.
2. Payment of Arbitration Awards: A New Mechanism
Position in 2024: The previous FOSFA Arbitration Rules did not specify which party was obliged to pay the arbitration fees first after the award had been prepared. Payment of arbitration costs was a joint responsibility of the parties. The rules merely stated that all costs had to be paid within 42 days of notification that the award was ready, failing which the right to appeal would be lost.
Position in 2025: A structured payment process for awards has now been introduced:
- The Federation will first invite the Claimant to make payment within 21 days
- If the Claimant fails to pay, the Respondent will have 7 days to do so
- If neither party pays within 28 days, the Federation will act under Rule 11(c), listing the debtor and notifying FOSFA members
The same provisions apply to FOSFA Appeal awards.
3. FOSFA Appeals: New Date for Commencing the Appeal Period
Position in 2024: Under Rule 6(b), once the arbitrators had prepared the award, it was sent to the Federation, which then dated the document. FOSFA would subsequently issue a notification regarding any outstanding arbitration costs. Upon payment, the award was sent to the parties. Under Rule 7(a), the 28-day appeal period began from the date the award was dispatched to the parties.
Position in 2025: Rule 6(b) now provides that FOSFA will only date the award once both parties have paid their arbitration costs in full. Under the revised Rule 7(a), the 28-day appeal period begins from the date of the award, not the date it is dispatched to the parties. These two dates may differ.
Although this may appear to be a technical amendment, it is fully aligned with English law. Under section 70(3) of the Arbitration Act 1996, the time limit for appeal begins from the date of the award, not when the parties receive it.
This was confirmed in Eronat v CPNC International (Chad) Ltd and another [2024] EWHC 2880 (Comm), where the High Court ruled that the appeal deadline was to be calculated from the date of the award (in that case, 11 April), even though the parties received it later (16 April).
4. Hearings at First Instance: Legal Representatives May Participate
Position in 2024: Rule 4(e) prohibited legal representatives from participating in oral hearings at first instance. An exception existed only for FOSFA appeals, in cases of particular importance and at the arbitrators’ discretion. Hearings at first instance were expected to proceed based on written submissions. In appeal proceedings, however, both written and oral submissions were permitted.
Position in 2025: This rule has been significantly expanded and now provides for:
- Clarification that each party may present its case either orally, in writing, or both at first instance
- The possibility for legal representatives to participate in first instance hearings in cases of particular importance, subject to the arbitrators’ discretion
5. Exclusive Jurisdiction of FOSFA
Position in 2024: The rules stated that disputes “shall be referred to arbitration in London”, without expressly stating that this mechanism was exclusive.
Position in 2025: The revised rules now make it clear that “FOSFA is the only body which has the authority to administer an arbitration arising from or out of these Rules”.
Conclusion
The revised FOSFA Arbitration Rules 2025 strengthen the Federation’s control over the procedure, rendering the rules more formalised and aligned with the standards of English arbitration law. The focus of these changes lies in procedural discipline, clarity of deadlines, and the elimination of loopholes such as jurisdictional appeals.
For traders and agribusinesses, this means less room for manoeuvre in the event of a dispute, but greater predictability when the rules are followed in good faith. Under the new regime, it is especially important to track deadlines accurately, be prepared for prompt payment of fees, and plan a dispute strategy in advance.
If you are working under FOSFA contracts and wish to assess risks, challenge an award or protect yourself from procedural missteps — feel free to contact me via email, Telegram or WhatsApp.
