The following text is taken from a circular letter by Mr Stephen Bond, Secretary General of the International Chamber of Commerce Court of Arbitration to parties, counsel, and arbitrators involved in ICC arbitration proceedings. It describes the content and the rationale for long-awaited changes in the ICC's financial practices, and is reproduced here because of its practical importance to every party participating in ICC arbitration . The General Editor EFFECTIVE as of 1 July 1986, important changes have been instituted with respect to the ICC's Rules and practice relating to the assessment of costs and the manner of payment by parties. They will be to the advantage of almost every party to an ICC arbitration. In brief, these changes, which become effective as of 1 July 1986, are as follows: 1. Defendants are no longer asked to pay US $500 when a request for arbitration is filed against them. Rather the claimant alone is responsible for the payment required before a request for arbitration may be entertained, which payment is now in the amount of US $2,000. The US $2,000, which should accompany each request for arbitration, is not recoverable by the claimant but is fully credited to the claimant's share of the advance on costs. 2. The formerly open-ended scale for administrative charges is now capped at US $50,500, which amount will not be exceeded whatever the amount in contention. 3. Parties are no longer requested to pay the totality of the advance on costs at the commencement of the arbitration. Rather, the payment of the advance on costs is now staggered with the first 50 per cent (25 per cent from each party) due prior to the seizing of the arbitral tribunal with the case and the second 50 per cent (again 25 per cent from each party) due prior to …