Transban is a company initially incorporated under the laws of Venezuela and later re-domiciled as Barbadian. It had a stake in Centro Bavarian Venezuela, which owned exclusive rights to import BMW and Mini Cooper cars to Venezuela. Venezuela announced its denunciation of the ICSID
Convention on 24 January 2012, triggering a six-month notice period. Transban’s claim was filed just a day before the denunciation took effect. The claim concerned the Venezuela’s restrictive foreign currency exchange rules that required Transban to obtain state approval to get foreign currency to purchase the cars.
First, an ICSID Tribunal upheld its ratio temporis jurisdiction saying that the denunciation does not have an immediate effect and, thus, Transban was entitled to recur to ICSID arbitration within the six-month period after the announcement.
Second, the tribunal still rejected jurisdiction over claims as the company had originally been incorporated in Venezuela. It was therefore precluded from bringing a claim under the applicable Barbados-Venezuela BIT.
Therefore, the Tribunal ordered Transban to pay to Venezuela all costs of arbitration.