The most relevant exception towards sovereign immunity is the exception towards commercial activity that has been provided within 28 U.S.C. § 1605(a) (2). FSIA has been identified as the primary source to bring a case in favour of the domestic company against the foreign sovereign or the related instrumentalities and the related agencies. The act contributes in the establishment of particular procedures that are followed while filing a case against the foreign sovereign and the property being attached for the purposes of recovering the international debt. As per this particular act, foreign states are capable of having immunity against the litigation, even though there are a number of exceptions related to it.
The immunity of foreign sovereign is an international law that is customary towards the fact that one foreign state has the immunity from the jurisdiction related to the courts within the other foreign state (Vollmer, 2001). Until recent times, there have been some exceptions towards this particular rule for the immunity of foreign sovereign. However, as there have been performance of commercial activities from the governments amongst themselves on regular basis and more often, complete immunity of foreign sovereign provided the state governments an unfair benefit within the dealings related to commercial activities. There have been a number of exceptions by the FSIA for the provision of remedies for judiciary that include the ability for enforcing the arbitration agreements, for the private parties that deal with the states for the performance of commercial activities.