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Brief IntroductionSettlement of Disputes

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					                       Brief Introduction:Settlement of Disputes

                  Monday,January 07,2008 Posted: 18:44 BJT(44 GMT)
                     MOFCOM from: web          Article type:Reproduced



                               Settlement of Disputes


In China, there are four ways of settling commercial disputes: consultation, mediation,
arbitration and legal action.

                                      I. Arbitration

Arbitration is commonly adopted way for settling international commercial disputes and
so is it in China. It enjoys the advantages of summary procedures, quick handling less
cost. It can settle disputes independently, fairly and rapidly. Parties concerned enjoy full
rights. It also features flexibility, confidentiality, finalization and easy performance. That
is why it is adopted by more and more parties concerned.
China has always advocated and encouraged settlement of international commercial
disputes by arbitration. As early as in 1956, the Chinese Government set up an arbitration
body whose sole purpose was to settle international commercial disputes. Rapid progress
has been made in arbitration of international commercial disputes over the past 50 years.
Now, China ranks first in terms of the number of cases handled by Chinese arbitration
organizations. The fairness upheld has won universal approval at home and abroad.
Parties concerned in dispute cases have come from more than 40 countries and regions.
In fact, China has become a world center for handling international commercial disputes.

                 I. Foreign-related arbitration organizations in China
There are two foreign-related arbitration organizations in China, which are, the China
International Economic and Trade Arbitration Commission (CIETAC) and the China
Maritime Arbitration Commission (CMAC). The former handles disputes arising from
international economic and trade activities and the latter, disputes arising from maritime
affairs.
CIETAC is headquartered in Beijing. It has two sub-commissions in Shenzhen and
Shanghai and offices in Changsha, Hebei, Dalian, Fuzhou, Chongqing, Jilin, Jiangsu,
Zhejiang, Hubei, Shandong, Xinjiang, Henan, Tianjin and Chengdu.
The CIETAC and its sub-commissions accept cases according to the arbitration rules and
use the unified arbitration rules and list of arbitrators. Its offices are responsible for
offering consulting services, assisting in the arrangement of arbitration court, engaging in
arbitration publicity and promotion of arbitration agreements, collecting information
about arbitration, carrying out investigation and study and handling other matters
commissioned by CIETAC.
China International Economic and Trade Arbitration Commission (CIETAC)
Address: 6th Floor, Gaolan Mansion, 32 Liangmaqiao Road, Chaoyang District, Beijing
Postal code:100016
Tel.:(86-10) 64646688
Fax:(86-10) 64643500,64643520
E-mail:CIETAC@public.bta.net.cn
Website:http://www.cietac.org

CIETAC Shanghai Sub-Commission
Address:7th floor, Building 2, 28 Jingling Road (W), Shanghai
Postal Code:200021
Tel.:(86-021)63877878 63878686
Fax:(86-021)63877070
E-mail:cietac@sh.col.com.cn
Website:http://www.cietac-sh.org

CIETAC South China Sub-Commission
Address:19th Floor, BOC Manion, Caitian Road, Futian District, Shenzhen City
Postal Code:518026
Tel.:(86-0775)83501700
Fax:(86-0775)82468591
E-mail:info@sccietac.org
Website:http://www.sccietac.org

CIETAC Changsha Office
Contact:Fu Nanlin
Address:1st Floor, Foreign Trade Building, 98 Wuyi Road (E), Changsha City
Tel.:0731-2296514
Postal Code:410001

CIETAC Hebei Office
Contact:Li Chao
Address:2nd Floor, Commercial Hall Building No. 334, Heping Road (W), Shijiazhuang
City
Tel.:0311-7832953
Postal Code:050071
E-mail: cietacheb@tom.com

CIETAC Dalian Office
Contact:Ma Xueqing
Address:Room 1007, 10th Floor, Wanda Mansion, 18 Hongda Road, Zhongshan District,
Dalian City
Tel.:0411-82654418
Fax:0411- 82806905
Postal Code:116001
E-mail: yy@ccpitdl.org

CIETAC Fuzhou Office
Contact:Yang Xinjie
Address:21st Floor, Pindong Office Tower, 128 Hualin Road, Fuzhou City, Fujian
Province
Tel.:0591-87818190\0591-87758182
Fax:0591-87842827
Postal Code:350003

CIETAC Chongqing Office
Contact:Zou Hang
Address:19th Floor, International Chamber of Commerce Building, 78 Yanghe Yicun,
Jiangbei District, Chongqing City
Tel.:023-67755808
Fax:023-67731702
Postal Code:400020
Beijing Liaison Office
Address: 4th floor, Hualongjie Mid-Section, Nanheyan, Dongcheng District, Beijing
Contact:Bai Liang
Tel.:010-65250622
Fax:010-65250622
Postal Code:100006
E-mail: bailiang@ccpitbj.org

CIETAC Jilin Office
Contact:Chen Zhengwei
Address:XX, Beijing St., Jinli, Jilin Province
Tel.:0432-2089200
Fax:0432-2082600
Postal Code:132084
E-mail: kenty-cao@163.com

CIETAC Jiangsu Office
Contact:Yu Weining
Address:Building 8, 50 Zhonghua Road, Nanjing, Jiangsu Province
Tel.:025-52254218/52856808
Fax:025-52245267
Postal Code:210000
E-mail: ccoicjcc@jlonline.com
CIETAC Zhejiang Office
Contact: Wu Zhaoping
Address: 18, Jiaochang Road, Hangzhou, Zhejiang Province
Tel.:0571-87706108
Fax:0571-87706198
Postal Code:310006

CIETAC Hubei Office
Contact:Lu Kunxiang
Address:15th Floor, Jinmao Mansion, 8 Jianghan Road (N), Wuhan City, Hubei
Province
Tel.:027-85750913/85796170
Fax:027-85775174
Postal Code:430022

CIETAC Shandong Office
Contact:Gao Jing
Address:158 Jingsi Road, Jinan City, Shandong Province
Tel.:0531-6168389
Fax:0531-6168370
Postal Code:250001
E-mail: sd.law@ccpit.org

CIETAC Xinjiang Office
Contact:Pu Lei
Address:11 Tuanjie Rd. Urumqi, Xinjiang Uygur Autonomous Region
Tel.:0991-2866771
Postal Code:830001

CIETAC Henan Office
Contact:Wu Yongxin
Address:Building No.2, 115 Wenhua Road, Zhengzhou City, Henan Province
Tel.:0371-3576404
Postal Code:450002

CIETAC Tianjin Office
Contact:Wu Fengling
Address:Room 201, International Trade Building, 85, Qufu Road, Heping District,
Tianjin
Tel.:022-23317860/23022835
Postal Code:300042
CIETAC Chengdu Office
Contact:Dai Shaoquan
Address:14th Floor, Shaocheng Building, Shaocheng Road, Shudu Dadao, Chengdu
City
Tel.:028-86260418
Postal Code:610015

Electronics Information Center
Contact:Mei Min
Address:2nd Floor, Electronics Building, Wanshou Road, Beijing
Tel.:010-68207154
Fax:010-68200638
Postal Code:100846
E-mail: meimin123@263.net

CIETAC Shaanxi Office
Contact:Zhang Yuming
Address:Xin Cheng House, Xi’an, Shaanxi Province
Tel.:029-87280794
Fax:029-87280794
Postal Code:710006

CIETAC Heilongjiang Office
Address:Harbin Institute of Technology, 13, Fayuan Road, Nangang District, Harbin,
Heilongjiang Province
Tel.:0451-86402007
Fax:0451-87280794
Postal Code:150001


China Maritime Arbitration Commission (CMAC) settles by arbitration disputes arising
from maritime affairs, maritime commerce and logistics and other contracting or non-
contracting disputes in order to protect the lawful rights and interests of parties concerned
and promote the development of international and domestic trade and logistics.
CMAC is headquartered in Beijing and has a sub-Commission in Shanghai and offices in
Dalian, Guangzhou, Tianjin and Ningbo. CMAC handles arbitration cases according to
the arbitration rules while its offices offer consulting services, assist in the arrangement
of arbitration court, make publicity of arbitration and promotion of arbitration agreement
as well as collect information about arbitration, carry out investigations and handle other
matters designated or entrusted by CMAC.
China Maritime Arbitration Commission (CMAC)
Address:6th floor, Gaolan Mansion, 32, Liangmaqiao Road, Chaoyang District, Beijing
Postal Code:100016
Tel.:(86-10)64646688
Fax:(86-10)64643500,64643520
E-mail:cmac@cmac.org.cn
Website:http://www.CMAC.org.cn

CMAC Shanghai Sub-Commission
Address:Rooms 1301, 1314, 13th floor, Tangchen Jinrong Mansion, 710 Dongfang
Road, Pudong, Shanghai
Postal Code:200122
Tel.:021-58200329 50810729
Fax:021-50810965

CMAC Dalian Office
Address:R. 1007, 10th floor, Wanda Mansion,Hongda Rd. Zhongshan District, Dalian
City
Postal Code:116001
Tel.:0411-2654418
Fax:0411-2654438

CMAC Guangzhou Office
Address: R. 930, 4th floor, Zhongyang Hotel Office Tower, 33 Airport Rd. Sanyuanli,
Guangzhou
Postal Code:510405
Tel.:020-86578331-1930
Fax:020-86581343

CMAC Tianjin Office
Address:R. 205, International Trade Building, 85, Heping District, Tianjin
Postal Code:300042
Tel.:86-22 23301340/23022385
Fax:86-22 23301340

CMAC NingboOffice
Address:12th Floor, Tianning Building, 138, Zhongshan Rd. (W), Ningbo City
Postal Code:315000
Tel.:86-574 87368209
Fax:86-574 87368100
II. Cases to be accepted
Commercial cases to be accepted
     The Arbitration Commission shall settle disputes of contractual or non-contractual
economic trade in an impartial and fair manner through arbitration.
According to the provisions of Article 3 of the Arbitration Rules of the CIETAC, the
Arbitration Commission shall accept disputes as follows:
a. International or foreign-related disputes;
b.Disputes involving Hong Kong and Macao special administrative regions or Taiwan
Province;
c. Domestic disputes.
According to the provisions of Article 2 of the Financial Disputes Arbitration Rules of
the CIETAC, the Arbitration Commission shall accept disputes arising from financial
business or other disputes concerned, including but not limited to businesses as follows:
a.Loans;
b.Deposit receipts;
c.Security;
d.Letters of credit;
e.Bills;
f.Funds of business and trusteeship;
g.Bonds;
h.Collection and foreign exchange remittance;
i.Factoring;
j.Payment agreement between banks;
k.Securities and futures.

Maritime arbitration cases to be accepted

a.Disputes arising from charter party, contract of multi-model transport, bill of lading,
waybill or any other transport documents in connection with carriage of goods by sea or
waters, or carriage of passengers;
b.Disputes arising from sale, construction, repair, chartering, financing, towage, collision,
salvage or raising of ships or other offshore mobile units, or from sale, construction,
chartering, financing and other relative business of containers;
c.Disputes arising from marine insurance, general average or ship's protection and
indemnity;
d.Disputes arising from supply or security of ship's stores or fuel, ship's agency, seamen's
labor service or port's handling;
e.Disputes arising from exploitation and utilization of marine resources or pollution
damage to marine environment;
f.Disputes arising from freight forwarding, non-vessel operating common carriage,
transport by highway, railway or airway, transport, consolidation and devanning of
containers, express delivery, storing, processing, distributing, warehouse distributing,
logistics information management, or from construction, sale and leasing of tools of
transport, tools of carrying and handling, storage facilities, or from logistics center and
distribution center, logistics project planning and consulting, insurance related to logistics,
tort or others related to logistics;
g.Disputes arising from fishery production or fishing; and
h.Other disputes submitted for arbitration by agreement between parties.

III. Model arbitration clauses
When applying for arbitration, the claimant must submit an arbitration agreement, which
may be arbitration clauses incorporated in the contract or any agreement reached for
arbitration before or after the disputes. According to China’s laws, a valid arbitration
agreement must be accompanied by expressed claim of arbitration, a selected arbitration
committee, and agreed items in arbitration (which may be settled through arbitration).
The agreement must be in written form. Parties concerned must have the capacity of
signing the arbitration agreement, which is legal in contents and form.
The China International Economic and Trade Arbitration Commission (China Maritime
Arbitration Commission) recommend the following model arbitration clause:
"Any dispute arising out of or in connection with this contract shall be submitted to the
China International Economic and Trade Arbitration Commission (China Maritime
Arbitration Commission) for arbitration in accordance with the existing rules of the
Commission. The arbitration award shall be final and binding upon the parties."
To the above arbitration clause, parties concerned may add the following items, or make
supplementary agreements in written forms after arbitration clauses/agreements are
reached and before disputes are submitted for arbitration or arbitration procedures begin:
a. Place of Arbitration and/or place of court;
b. Arbitration language to be used;
c. Number of arbitrators required;
d. Nationalities of arbitrators;
e. Law to be applied;
f.Ordinary procedures or simplified procedures to be applied.

IV. Guide to CIETAC arbitration procedures
1.Application procedure
When applying for arbitration, the claimant must submit to Secretariat of the Arbitration
Commission or Secretariats of the Sub-commissions an arbitration agreement and an
application for arbitration in writing, and the facts and evidence on which his claim is
based, and the claimant shall pay an arbitration fee in advance to the Arbitration
Commission according to the Arbitration Fee Schedule of the Arbitration Commission.

(1)The Application for Arbitration
 The following shall be specified in the Application for Arbitration:
a. the name and address of the claimant and those of the respondent, including the zip
code, telephone number, telex number, fax number and cable number or any other means
of electronic telecommunications, if any;
b. the Arbitration agreement relied upon by the claimant;
c. the facts of the main points of dispute;
d.. the claimant's claim; and
e. the facts and grounds on which the claim is based;
f. The Application for Arbitration shall be signed and/or stamped by the claimant and/or
the attorney authorized by the claimant.
The copies of arbitration application and evidence materials should the sum total of the
number of people of the applicant side, arbitration court and secretariat.
After applying for arbitration, the claimant may request to amend his arbitration claim;
but the arbitration tribunal may refuse such a request for amendment if it considers that it
is too late to raise the request and the amendment may affect the arbitration proceedings.
(2) Defense and Counterclaim
At the time of sending the Notice of Arbitration to the respondent, the Secretariat(s) of
the Arbitration Commission shall enclose one copy each of the claimant's application for
arbitration and its attachment as well as the Arbitration Rules, the Panel of Arbitrators
and the Arbitration Fee Schedule of the Arbitration Commission.
In foreign arbitration, the respondent shall, within 45 days from the date of receipt of the
Notice of Arbitration, submit to the Secretariat(s) of the Arbitration Commission his
written defense and relevant documents to be entered into evidence. In domestic
arbitration, the respondent shall, within 20 days from the date of receipt of the Notice of
Arbitration, produce his written defense and relevant documentary evidence to the
Secretariat(s) of the Arbitration Commission. The respondent may request to amend his
defense. The respondent shall submit his defense within the time limit specified by the
arbitration tribunal. The arbitration tribunal may extend that time limit appropriately if it
deems that there are justified reasons. The arbitration tribunal has the power to decide
whether to accept a Statement of Defense submitted after expiration of the
aforementioned time limit.
The respondent may lodge his counterclaim during the arbitration procedure, and the
counterclaim must meet the following three requirements:
a. the counterclaim arises from the same contract relation or legal relation as that of the
claims raised by the claimant;
b. the counterclaim is directed against the claimant;
c. the disputes involved in the counterclaim shall not be the same as the disputes involved
in the arbitration claims.
The counterclaim shall, at the latest within 45 days (in foreign-related cases) or 20 days
(in domestic cases or summary procedure cases) from the respondent's receipt of the
Notice of Arbitration, be submitted to the Arbitration Commission. The arbitration
tribunal may extend that time limit appropriately if it deems that there are justified
reasons.
When lodging a counterclaim, the respondent shall lodge with the arbitration tribunal his
counterclaim in writing, and state in it his specific claim, reasons for his claim and facts
and evidence upon which his counterclaim is base and attach to his written statement of
counterclaim the relevant documentary evidence. The written statement of counterclaim
may be submitted together with his defense or alone. The written statement of
counterclaim and the relevant documentary evidence shall be submitted in the same
copies as the total number of the parties and arbitrators put together, so that all of the
parties, arbitrators and the Secretariat(s) could get one copy each.
 When lodging his counterclaim, the respondent shall pay a deposit in advance as
arbitration fee according to the Arbitration Fee Schedule of the Arbitration Commission.
The respondent may request to amend his counterclaim, but the arbitration tribunal may
refuse such request for amendment if it considers that it is too late to raise the request and
the request may affect the arbitration proceedings.
(3) Composition of Arbitration Tribunal
According to the Arbitration Rules of the Arbitration Commission, there are two types of
arbitral tribunal:
a. Sole-Arbitrator Tribunal
Both parties may jointly appoint or jointly entrust the Chairman of the Arbitration
Commission to appoint one sole-arbitrator from among the Panel of Arbitrators of the
Arbitration Commission to form the tribunal for the case. Both parties have the power to
recommend 1-3 persons as candidates of sole-arbitrator.

If both parties have agreed on the appointment of a sole arbitrator to examine and hear
their case but failed to agree on the choice of such a sole arbitrator within 15 days from
the date on which the respondent received the Notice of Arbitration, the Chairman of the
Arbitration Commission shall make such appointment.

b. Three-Arbitrator Tribunal
Within fifteen 15 days from the date of receipt of the Notice of Arbitration, the claimant
and the respondent shall each appoint one arbitrator or entrust the Chairman of the
CIETAC to make such appointment. Where a party fails to appoint or to entrust the
Chairman of the CIETAC to appoint an arbitrator within the specified time period, the
arbitrator shall be appointed by the Chairman of the CIETAC.
Within fifteen 15 days from the date of the respondent’s receipt of the Notice of
Arbitration, the presiding arbitrator shall be jointly appointed by the parties or appointed
by the Chairman of the CIETAC upon joint authorization given by the parties.
The parties may each recommend one to three arbitrators as candidates for the presiding
arbitrator and shall submit the list of recommended candidates to the CIETAC within the
time period specified in paragraph 2. Where there is only one common candidate in the
lists, such candidate shall be the presiding arbitrator jointly appointed by the parties.
Where there is more than one common candidate listed, the Chairman of the CIETAC
shall choose a presiding arbitrator from among the common candidates based on the
specific nature and circumstances of the case, who shall act as the presiding arbitrator
jointly appointed by the parties. Where there is no common candidate in the lists, the
presiding arbitrator shall be appointed by the Chairman of the CIETAC from outside of
the lists of recommended candidates.
Where the parties have failed to jointly appoint the presiding arbitrator according to the
above provisions, the presiding arbitrator shall be appointed by the Chairman of the
CIETAC.
The presiding arbitrator and the two appointed arbitrators shall jointly form an arbitration
tribunal to examine and hear the case.
c. Multi-Party
Where there are two or more claimants and/or two or more respondents in an arbitration
case, the claimant side and/or the respondent side each shall, through consultation, jointly
appoint or jointly entrust the Chairman of the CIETAC to appoint one arbitrator from the
CIETAC Panel of Arbitrators.
Where the claimant side and/or the respondent side fail to jointly appoint or jointly
entrust the Chairman of the CIETAC to appoint one arbitrator within fifteen 15 days from
the date of receipt of the Notice of Arbitration, the arbitrator shall be appointed by the
Chairman of the CIETAC.
The presiding arbitrator or the sole arbitrator shall be appointed in accordance with the
procedure stipulated in the rules for Three-Arbitrator Tribunal. When appointing the
presiding arbitrator or the sole arbitrator, the claimant side and the respondent side each
shall, through consultation, submit a list of their jointly agreed candidates to the
CIETAC.
d. Procedures of withdrawal, replacement, and majority to continue arbitration
If an arbitrator is related in the case or has some other relationship with the case which
could possibly compromise the impartiality of the arbitration, he shall disclose
the information to the Arbitration Commission, and ask for withdrawal from the
arbitration. The parties shall have the right to apply for his withdrawal. In the event
that an arbitrator is prevented de jure or de facto from fulfilling his/her functions, or
he/she fails to fulfill his/her functions in accordance with the requirements of these Rules
or within the time period specified in these Rules, the Chairman of the CIETAC shall
have the power to decide whether the arbitrator shall be replaced. The arbitrator may also
withdraw form his/her office. In the event that, after the conclusion of the last oral
hearing, an arbitrator on a three-member arbitration tribunal is unable to participate in the
deliberation and/or render the award owing to his/her demise or removal from the
CIETAC Panel of Arbitrators, the other two arbitrators may request the Chairman of the
CIETAC to replace the arbitrator pursuant to the Arbitration Rules. After consulting with
the parties and upon the approval of the Chairman of the CIETAC, the other two
arbitrators may continue the arbitration and make decisions, rulings or the award. The
Secretariat of the CIETAC shall notify the parties of the above circumstances.
     Arbitrators shall be independent and impartial, not representing interests of any
party. The Arbitration Commission established Ethical Standards for Arbitrators to
normalize the behavior of arbitrators during hearing of cases. Arbitrators shall hear cases
based on facts and laws in addition to using fair, rational, and independent methods.
Arbitrators shall perform arbitration procedures fairly, and independently and provide
both parties with opportunities to fully state their opinions. Candidate arbitrators shall not
act as the arbitrators of the case if they have discussed cases with one party or offered
consulting opinions ahead of time. Arbitrators shall not accept gifts from any party
involved in the case, and shall not meet in private with any party to discuss cases or
accept materials. Arbitrators shall maintain strict confidentiality and never reveal any
information about arbitration contents or proceedings and his/her own opinion to any one
of the parties or outsiders. Arbitrators should diligently and prudently perform all the
duties.
(4) Hearing of Cases
a. Conduct of Hearing
 Generally, oral hearings are conducted in the course of arbitration. However, the
arbitration tribunal may examine the case and make an award on the basis of documents
only at the request of the parties or with their consent, and with the arbitration tribunal's
confirmation that oral hearings are unnecessary, or in case of Summary Procedure.
b. Date of Hearing
The date of oral hearing shall be fixed by the arbitration tribunal after consultation with
the Secretariat of the Arbitration Commission, and shall be communicated to the parties
20 days (in foreign-related cases) or 15 days (in domestic cases) before the date of the
hearing so that they may have sufficient time to make necessary arrangements. However,
the notice of the date of hearing subsequent to the first hearing is not subject to the 20-
day or 15-day time limit.
A party having justified reasons may communicate his request to the Secretariat of the
Arbitration Commission for a postponement of the date of the hearing 10 days (in
foreign-related cases) or 7 days (in domestic cases) before the date of the hearing. The
arbitration tribunal shall decide whether or not to postpone the hearing.
c. Place of Hearing
Where the parties have agreed on the place of arbitration in writing, the agreement made
by the parties shall prevail. Where the parties have not agreed on the place of arbitration,
the place of arbitration shall be the office of the CIETAC or its Sub-Commission. The
arbitration award shall be deemed as being made at the place of arbitration.
Where the parties have agreed on the place of oral hearings, the case shall be heard at that
agreed place except for circumstances stipulated in Paragraph 3 of Article 69 of these
Rules. Unless the parties agree otherwise, a case accepted by the CIETAC shall be heard
in Beijing, or if the arbitration tribunal considers it necessary, at other places with the
approval of the Secretary-General of the CIETAC. A case accepted by a Sub-
Commission of the CIETAC shall be heard at the place where the Sub-Commission is
located, or if the arbitration tribunal considers it necessary, at other places with the
approval of the Secretary-General of the Sub-Commission.
d. Hearing by Default
The parties shall send their representative(s) or authorized agent(s) to attend the hearing.
If the respondent fails to appear at an oral hearing without showing sufficient cause for
such failure, the arbitration tribunal may proceed with the hearing and make an award by
default. If the claimant fails to appear at an oral hearing without showing sufficient cause
for such failure, the claimant may be deemed to have withdrawn the Request for
Arbitration.
(5) Evidence
There are seven types of evidence: real evidence, written-documentary evidence, parties
statements, witnesses testimony, photographs, video-audio tapes, expert's report, and
investigation-reconnaissance records. All evidences cannot be invoked as the basis for
making decision until they are proved to be true.
The claimant and the respondent shall produce evidence for the facts on which their claim,
defense or counterclaims are based. The arbitration tribunal may undertake investigation
and collect evidence on its own initiatives, if it deems it necessary. If the arbitration
tribunal investigates and collects evidence on its own initiative, it shall timely inform the
parties to be present on the spot if it deems it necessary. Should one party or both parties
fail to appear on the spot, the investigation and collection of evidence shall by no means
be affected.
The arbitration tribunal may consult an expert or appoint an appraiser for the clarification
of special questions relating to the case. And the parties are obliged to submit or produce
to the expert or appraiser any materials, documents, properties or goods related to the
case for check-up, inspection or appraisal. The parties may engage experts to be present
at the hearing to make witness on its own initiative.
The adoption of any evidence, including the evidence submitted by the parities and the
expert's report and the appraiser's report shall be decided by the arbitration tribunal after
examination. And the arbitration tribunal has the right to make decision on the relevance,
importance and effectiveness of evidence.
(6) Protective measures
In order to ensure the smooth process of the arbitration procedures, the fair hearing of
cases and effective performance of the award, parties concerned have the right to apply
for the protection of property and evidence.
When a party applies for measures of protection of property and/or evidence, the party
shall file a written application with the Arbitration Commission, which shall submit the
party's application for a ruling to the intermediate court (for handling foreign cases) or
grassroots people’s court (for handling domestic cases) in the place where the domicile of
the party against whom the property protective measures are sought is located or in the
place where the property of the said party is located. The Arbitration commission is only
responsible for conveying the application of the party concerned and it is up to the
people’s court to decide whether the protective measures are granted.
(7) Award
In the Ordinary Arbitration Procedures, the arbitration tribunal shall render an arbitration
award within 6 months (in foreign-related cases) or 4 months (in domestic cases) from
the date on which the arbitration tribunal is formed. In the Summary procedure, the
arbitration tribunal shall make an award within 3 months from the date on which the
arbitration tribunal is formed. At the request of the arbitration tribunal and with the
approval of the Secretary-General of the Arbitration Commission, the time limit of
rendering an arbitration award may be extended.
The arbitration award shall be decided by the majority of the arbitrators. Where the
arbitration tribunal cannot reach a majority opinion, the award shall be rendered in
accordance with the presiding arbitrator's opinion. The written opinion of other
arbitrators shall be docketed into the file and may be attached to the award, but it shall
not form a part of the award.

According to the CIETAC rules, the arbitration tribunal shall submit its draft award to the
CIETAC for scrutiny before signing the award. The CIETAC may remind the arbitration
tribunal of issues in the award on condition that the independence of the arbitration
tribunal in rendering the award is not affected. Scrutiny of draft award of the CIETAC
helps to guarantee award quality and enforcement of the award throughout various
nations and regions.
     The date for making the award is the date when the arbitration award takes effect.
The award is final, binding to both sides. No party is allowed to take legal action or
request any other organization for altering arbitration award.

(8) Execution of award

The parties must automatically execute the arbitration award within the time period
specified in the award. Where one party fails to execute the award, the other party may
apply to a competent Chinese court for enforcement of the award pursuant to Chinese
laws, or apply to a competent court for enforcement of the award according to the 1958
United Nations Convention on Recognition and Enforcement of Foreign Arbitration
Awards or other international treaties that China has concluded or to which China has
acceded. On applying to foreign courts to recognize and enforce the award, the Claimant
shall submit enforcement applications, documents affiliated with the arbitration
agreement, original version of the award and related translations. The Convention on
Recognition and Enforcement of Foreign Arbitration Awards took effect in China on
April 22, 1987. According to the Convention, arbitration awards made by the Arbitration
Commission may be enforced in over 140 countries and regions.
                      Time of ratification, joining, or                           Time of ratification, joining, or
Countries/ regions                                        Countries/ regions
                      succession                                                  succession
Algeria               1989.2.7                            Malaysia                1985.11.5
Antigua and Barbuda   1989.2.2                            Mali                    1994.9.8
Argentina             1989.3.14                           Mauritania              1997.1.30
Australia             1975.3.26                           Mauritius               1996.6.19
Austria               1961.5.2                            Mexico                  1971.4.14
Bahrain               1988.4.6                            Monaco                  1982.6.2
Bangladesh            1992.5.6                            Mongolia                1994.10.24
Barbados              1993.3.16                           Morocco                 1959.2.12
White Russia          1960.11.15                          Holland                 1964.4.24
Belgium               1975.8.18                           New Zealand             1983.1.6
Benin                 1974.5.16                           Niger                   1964.10.14
Bolivia               1995.4.28                           Nigeria                 1970.3.17
Bosnia-Hercegovina    1993.9.1                            Norway                  1961.3.14
Botswana              1971.12.20                          Pakistan                1958.12.30
Brunei Darussalam     1996.7.25                           Panama                  1984.10.10
Bulgaria              1961.10.10                          Peru                    1988.7.7
Burkina Faso          1987.5.23                           Philippines             1967.7.6
Cambodia              1960.1.5                            Poland                  1961.10.3
Cameroon              1988.2.19                           Portugal                1994.10.18
Canada                1986.5.12                           ROK                     1973.2.8
The Central African
                      1962.10.15                          Romania                 1961.9.13
Republic
Chile                 1975.9.4                            Russia                  1960.8.24
China                 1987.1.22                           San Marino              1979.5.17
Colombia              1979.9.25                           Saudi Arabia            1994.4.19
Costa Rica            1987.10.26                          Senegal                 1994.10.17
Cote d' Ivoire        1991.2.1                            Singapore               1986.8.21
Croatia               1993.7.1                            Slovak                  1993.5.28
Cuba                  1974.12.30                          Slovenia                1992.7.6
Cyprus                1980.12.29                          South Africa            1976.5.3
The Czech Republic    1993.9.30                           Spain                   1977.5.12
Denmark               1972.12.22                          Sri Lanka               1962.4.9
Djibouti              1983.6.14                           Sweden                  1972.1.28
Dominica              1988.10.28                          Switzerland             1965.6.1
Ecuador               1962.1.3                            Syria                   1959.3.9
Egypt                 1959.3.9                            Thailand                1959.12.21
                                                          Former Yugoslav
Salvador              1958.6. 10                                                1994.3.10
                                                          Republic of Macedonia
Estonia               1993.8.30                           Trinidad and Tobago     1966.2.14
Finland               1962.1.19                           Tunisia                 1967.7.17
France                1959.6.26                           Turkey                  1992.7.2
Georgia               1994.6.2                            Uganda                  1992.2.12
Germany               1961.6.30                           Ukraine                 1960.10.10
Ghana                 1968.4.9                            United Kingdom          1975.9.24
Greece                1962.7.16                           Tanzania                1964.10.13
Guatemala             1983.2.1                            US                      1970.9.30
Guinea                1991.1 .23                          Uruguay                 1983.3.30
Haiti                 1983.12. 5                          Uzbekistan              1996.2.7
Vatican               1975.5.14                           Venezuela               1995.2.8
Hungary               1962.5.5                            Vietnam                 1995.9.12
India                 1960.7.13                           Yugoslavia              1982.2.26
Indonesia             1981.10.7                           Zimbabwe                1994.9.29
                                                          Australia Trust
                                                          Territory
Ireland               1981.5.12                                                   1975.3.26
                                                          (excluding Papua New
                                                          Guinea)*
                                                          Faroe Islands
Israel                1959.1.5                                                    1976.2.10
                                                          (Denmark)*
Italy                 1969.1.31                           Greenland (Denmark) * 1976.2.10
Japan                 1961.6.20                           France Trust Territory * 1959.6.26
                                                          Netherlands Antilles
Jordan                1979.11.15                                                  1964.4.24
                                                          Islands
V. Other dispute settlement services
1.Domain name disputes settlement service
CIETAC Domain Name Dispute Resolution Center was established in 2000. The Center
devotes itself to providing alternative dispute resolution (ADR) services in the areas of
intellectual property and information technology. The Center has formulated its
procedural rules for domain name dispute resolution, maintains the List of Panelists and
implements a system whereby Panel of Neutrals are responsible for the resolution of
disputes. Possessing the modernized working facilities and the scientific management
system, the Center has established a dedicated web site and can deal with the domain
name dispute resolution proceedings on line.
CIETAC Domain Name Dispute Resolution Center provides domain name dispute
resolution services in the following ways:
a. As a provider appointed by the China Internet Network Information Center (CNNIC),
CIETAC Domain Name Dispute Resolution Center is providing dispute resolution services
with regard to .CN domain names (Chinese-Character Domain Name inclusive).
The .CN Domain Name Disputes are carried out under CNNIC Domain Name Dispute
Resolution Policy (CNDRP) issued by CNNIC on 30 September.
b. The Center is also appointed as the sole provider of dispute resolution services
concerning keywords managed by the China Internet Network Information Center
(CNNIC). The Resolution of Keyword Disputes is subject to CNNIC Keyword Dispute
Resolution Policy issued by CNNIC on 4 August 2001.
c. As the Beijing Office of Asian Domain Name Dispute Resolution Center (ADNDRC)
which is one of the four domain name dispute resolution providers approved by the
Internet Corporation for the Assignment of Names and Numbers (ICANN), CIETAC
Domain Name Dispute Resolution Center is also providing domain name dispute
resolution services in regard to generic top level domain names (gTLDs)such
as .com, .net and .org. Disputes in regard to gTLDs are carried out under the Uniform
Domain Name Policy (UDRP) issued by ICANN on 26 August 1999.
2. Short message website disputes settlement service
CIETAC has official accept cases of disputes over short message websites. The China
Mobile Federation has officially authorized CIETAC as a provider of short message
website disputes settlement service. The CIETAC’s domain name dispute resolution
center has completed the building of the online case handling system and other
preparations and began to accept short message website dispute cases. Claimants may log
in to the website : http://dndrc.cietac.org for information and file their complaints
according to the guide.
                             Foreign-related arbitration fees
(The fee schedule is applicable to cases covered by Article 3 (1) and (2) of the Arbitration
Rule. It takes effect as of May 1, 2005)

                                 Amount of Claim (RMB)
                                  Amount of Fee (RMB)
1,000,000 Yuan or less
3.5% of the Claimed Amount, with 5,000 Yuan at the minimum
1,000,000 Yuan to 5,000,000 Yuan
35,000 Yuan plus 2.5% of the amount above 1,000,000 Yuan
5,000,000 Yuan to 10,000,000 Yuan
135,000 Yuan plus 1.5% of the amount above 5,000,000 Yuan
50,000,000 Yuan or more
610,000 Yuan plus 0.5% of the amount above 50,000,000 Yuan
Upon the acceptance of each case, an additional RMB 10,000 Yuan shall be charged as
Registration Fee which shall cover the expenses for examining the application for
arbitration, initiating the arbitration proceedings, computerizing management, filing
documents, etc.
Where the amount of the claim cannot be ascertained at the time when the Request for
Arbitration is filed, or there exist special circumstances, the amount of arbitration fee
shall be determined by the Secretariat of the CIETAC or its Sub-Commission.
If the arbitration fee is to be paid in a foreign currency, the amount payable in the foreign
currency shall be equivalent to the corresponding RMB value specified in this Fee
Schedule.
Apart from charging arbitration fee according to this Fee Schedule, the CIETAC or its
Sub-Commission may collect other extra, reasonable and actual expenses pursuant to the
provisions of the Arbitration Rules of the CIETAC.
Arbitration fees for domestic cases
(This fee schedule applies to the arbitration cases accepted under Item 3 of Article 3 of
the Arbitration Rules, and becomes effective on May 1, 2005.)
In accordance with the Notice of the Measures for the Charging of Arbitration Fee by the
Arbitration Commissions with the reference number of Guo Ban Fa No. 44/1995 issued
by the General Office of the State Council, the arbitration fee for cases taken by the
China International Economic and Trade Arbitration Commission under Item 3 of Article
3 of the Arbitration Rules are charged in the following way:
Registration Fee
                               Amount of Claim (RMB)
                            Amount of Registration Fee (RMB)
1,000 Yuan or less
Minimum 100 Yuan
1,001 Yuan to 50,000 Yuan
100 Yuan plus 5% of the amount above 1,000 Yuan
50,001 Yuan to 100,000 Yuan
2,550 Yuan plus 4% of the amount above 50,000 Yuan
100,001 Yuan to 200,000 Yuan
4,550 Yuan plus 3% of the amount above 100,000 Yuan
200,001 Yuan to 500,000 Yuan
7,550 Yuan plus 2% of the amount above 200,000 Yuan
500,001 Yuan to 1,000,000 Yuan
13,550 Yuan plus 1% of the amount above 500,000 Yuan
1,000,001 Yuan or more
18,550 Yuan plus 0.5% of the amount above 1,000,000 Yuan
Handling Fee
                              Amount of Claim (RMB)
                            Amount of Handling Fee (RMB)
50,000 Yuan or less
Minimum 1,250 Yuan
50,000 Yuan to 200,000 Yuan
1,250 Yuan plus 2.5% of the amount above 50,000 Yuan
200,000 Yuan to 500,000 Yuan
5,000 Yuan plus 2% of the amount above 200,000 Yuan
500,000 Yuan to 1,000,000 Yuan
11,000 Yuan plus 1.5% of the amount above 500,000 Yuan
1,000,000 Yuan to 3,000,000 Yuan
18,500 Yuan plus 0.5% of the amount above 1,000,000 Yuan
3,000,000 Yuan to 6,000,000 Yuan
28,500 Yuan plus 0.45% of the amount above 3,000,000 Yuan
6,000,000 Yuan to 10,000,000 Yuan
42,000 Yuan plus 0.4% of the amount above 6,000,000 Yuan

                              Amount of Claim (RMB)
                           Amount of Handling Fee (RMB)
10,000,000 Yuan to 20,000,000 Yuan
58,000 Yuan plus 0.3% of the amount above 10,000,000 Yuan
20,000,000 Yuan to 40,000,000 Yuan
88,000 Yuan plus 0.2% of the amount above 20,000,000 Yuan
40,000,000 Yuan or more
128,000 Yuan plus 0.15% of the amount above 40,000,000 Yuan

The Amount of Claim referred to in this schedule shall be based on the sum of money
claimed by the Claimant. If the amount claimed is different from the actual amount in
dispute, the actual amount in dispute shall be the basis for calculation.
Where the amount of claim is not ascertained at the time when application for arbitration
is handed in, or there exists special circumstances, the amount of arbitration fee deposit
shall be determined by the secretariat of the CIETAC or its Sub-Commission in
consideration of the specific rights and interests involved in the disputes.
Apart from charging arbitration fee according to this Arbitration Fee Schedule, the
CIETAC or its Sub-commission may collect other extra, reasonable and actual expenses
pursuant to the relevant provisions of the Arbitration Rules.
Financial Arbitration Fee Schedule
                                 Amount of Claim (RMB)
                                  Amount of Fee (RMB)
1,000,000 Yuan or less
1.5% of the Claimed Amount, minimum 5,000 Yuan
1,000,000 Yuan to 5,000,000 Yuan
10,000 Yuan plus 0.8% of the amount above 1,000,000 Yuan
5,000,000 Yuan to 50,000,000 Yuan
42,000 Yuan plus 0.6% of the amount above 5,000,000 Yuan
50,000,000 Yuan or more
312,000 Yuan plus 0.5% of the amount above 50,000,000 Yuan
Upon the acceptance of each case, an additional RMB 10,000 Yuan shall be charged as
Registration Fee which shall cover the expenses for examining the application for
arbitration, initiating the arbitration proceedings, computerizing management, filing the
documents, etc.
Where the amount of the claim cannot be ascertained at the time when the Request for
Arbitration is filed, or there exist special circumstances, the amount of arbitration fee
shall be determined by the Secretariat of the CIETAC or its Sub-Commission.
If the arbitration fee is to be paid in a foreign currency, the amount payable in the foreign
currency shall be equivalent to the corresponding RMB value specified in this Fee
Schedule.
Apart from charging arbitration fee according to this Fee Schedule, the CIETAC or its
Sub-Commission may collect other extra, reasonable and actual expenses pursuant to the
provisions of the Arbitration Rules of the CIETAC.

                      Section II: Mediation (Conciliation)

As an important means of resolving disputes arising from international commercial and
maritime transaction, with advantage of time and expense-saving, confidentiality,
flexibility, conciliation is now attached more and more importance to the parties, and is
playing a greater role in settlement of international commercial disputes.
The Conciliation Center of China Council for the Promotion of International Trade/
China Chamber of International Commerce (CCPIT/CCOIC) and conciliation centers of
sub-councils are the permanent conciliation institutions in China, which independently
and impartially resolve disputes arising from international commercial and maritime
transactions by means of conciliation.
The CCPIT/CCOIC Conciliation Center, located in Beijing, was established by the
CCPIT in 1987. The CCPIT has set up altogether 42 conciliation centers within its sub-
councils successively. So far, the conciliation centers of CCPIT system have covered the
main areas in China, and the CCPIT conciliation network has been basically established.
All the centers apply the uniform conciliation rules, and are under the leadership of
CCPIT/CCOIC Conciliation Center in vocational work.
The conciliation centers take cognizance of cases in accordance with a conciliation
agreement, or in the absence of such an agreement, upon application from one party with
the consent of the other party. The Centers all maintain a Panel of Conciliator, from
which the parties to a certain case could make the nomination. The conciliators are
selected and appointed by CCPIT from among the impartial personages with special
knowledge and/or practical experience in international economy, trade, finance,
investment, technology transfer, project contracting, transportation, insurance and other
of international commerce, maritime issues and/or law.
In the conciliation proceedings, the conciliators shall observe the principle of parties’
autonomy, conduct conciliation on the basis of ascertaining the facts, distinguish right
from wrong and determining the liabilities, while respecting the terms of the contract,
abiding by the law, referring to the international practice, and adhering to the principle of
fairness and reasonableness so as to help bring about mutual understanding and mutual
concession between the parties and an amicable settlement of their disputes.
Through years of its continuous efforts, the caseload of the conciliation network of
CCPIT goes up year by year, as well as the success rate of conciliation. The success rate
of conciliation reaches over 80%. The cases involve parties from more than 30 countries
and regions in addition to China. The impartiality and promptness of conciliation and
regions in addition to China. The impartiality and promptness of conciliation are highly
praised by the parties both at home and abroad.
In order to promote communication and co-operation with the international society,
CCPIT/CCOIC Conciliation Center signed a co-operation agreement with Beijing-
Hamburg Conciliation Center established in Hamburg, Germany. At the same time,
Beijing-Hamburg Conciliation rules formulated for the two sides to apply in conciliation
of the disputes involving parties of the two countries. The American Arbitration
Association (AAA) established New York Conciliation Center, and signed a co-operation
agreement with CCPIT/CCOIC Conciliation Center. In January 1995, CCPIT/CCOIC
Conciliation Center acceded to the International Federation of Commercial Arbitration
Institutes (IFCAI); in November 1997, CCPIT/CCOIC Conciliation Center signed a
conciliation co-operation agreement with London court of International Arbitration
(LCIA). In 2004, The CCPIT/CCOIC Conciliation Center and The US Public Resources
Center set up The Sino-US Joint Commercial Conciliation Center.
    Section III: Civil Procedure of Cases Involving Foreign Element

Disputes arising from Sino-foreign economic, trade, transport and maritime activities
may be brought to a people’s court in a civil action for settlement if the parties concerned
have had no arbitration clauses in their contract or have not consequently reached a
written arbitration agreement.

I. Characteristics of Civil Proceedings in Regard to Cases Involving Foreign
Element
There is much in common between civil proceedings in regard to cases involving foreign
element and domestic civil proceedings. However, as the subject, subject matter and the
object of an action in civil proceedings in regard to cases involving foreign element
involve foreign parties or interests, civil proceedings in regard to cases involving foreign
element feature the following special characteristics:
1. Civil proceedings in regard to cases involving foreign element may have a bearing on
state sovereignty. While handling civil cases involving foreign element, the people’s
court shall not only safeguard China’s state sovereignty but also respect the state
sovereignty of other countries.
2. It takes relatively longer time to complete a certain act of procedure in civil
proceedings in regard to cases involving foreign element. It takes rather long time for a
people’s court to serve litigation documents on a party concerned who has no domicile
within the territory of China, or for a party concerned to answer his defense or appeal.
3. The people’s court may need judicial assistance in completing a certain act of
procedure in civil proceedings in regard to cases involving foreign element. Jurisdiction
is of geographic features. The people’s court may enforce a litigation act within the
territory of China, but judicial assistance and co-operation of foreign courts are required
if an action has to be enforced abroad.
II. General Principles in Civil Procedure of Cases Involving Foreign Element
Thexfollowing are general principles in civil procedure of cases involving foreign
element in accordance with the Civil Procedure Law of the People’s Republic of China:
1. Where a civil action involving foreign element is brought within the territory of China,
the law of civil procedure of China shall apply.
2. The provisions of international treaties concluded or acceded to by China shall apply,
except those on which China has made reservations.
3. Civil actions brought against a foreign national, a foreign organization or an
international organization that enjoys diplomatic privileges and immunities shall be dealt
with in accordance with the relevant law of China and the provisions of the international
treaties concluded or acceded to by China.
4. The people’s court shall conduct trials of civil cases involving foreign element in the
spoken and written language commonly used in China. Translation may be provided at
the request of the parties concerned, and the expenses shall be borne by them.
5. When foreign nationals, stateless persons or foreign enterprises and organizations need
lawyers as agents to bring an action or enter appearance on their behalf in the people’s
court, they must appoint Chinese lawyers.
6. Any power of attorney mailed or forwarded by other means from outside the territory
of China by a foreign national, stateless person, or a foreign enterprise and organization
that has no domicile in China for the appointment of a lawyer or any other person of
China as an agent must be notarized by a notarial office in the country of domicile and
authenticated by the Chinese embassy or consulate accredited to that country or, for the
purpose of verification, must go through the formalities stipulated in the relevant bilateral
treaties between China and that country before it becomes effective.
III. Jurisdiction in Civil Procedure of Cases Involving Foreign Element
Jurisdiction in civil procedure of cases involving foreign element refers to the scope of
functions and powers entrusted to a people’s court in handling cases involving foreign
element at the first trial, which sets forth the internal division of labor among the people’s
courts at various levels in handling civil cases involving foreign element at the first trial.
1. In the case of an action concerning a contract dispute or other disputes over property
rights and interests, brought against a defendant who has no domicile within the territory
of China, if the contract is signed or performed within the territory of China, or if the
object of the action is located within the territory of China, or if the defendant has
distrainable property within the territory of China, or if the defendant has its
representative office within the territory of China, the people’s court of the place where
the contract is signed or performed, or where the object of the action is, or where the
defendant’s distrainable property is located, or where the torts are done, or where the
defendant’s representative office is located, shall have jurisdiction.
2. Parties to a dispute over a contract concluded with foreign element or over property
rights and interests involving foreign element may, through written agreement, choose
the court of the place which has practical connections with the dispute to exercise
jurisdiction. If a people’s court of China is chosen to exercise jurisdiction, the provisions
of the Civil Procedure Law of the People’s Republic of China on jurisdiction by forum
level and on exclusive jurisdiction shall not be violated.
3. If in a civil action in respect of a case involving foreign element, the defendant raises
no objection to the jurisdiction of a people’s court and responds to the action by making
his defense, he shall be deemed to have accepted that this people’s court has jurisdiction
over the case.
4. Actions brought on disputes arising from the performance of contracts for Chinese-
foreign equity joint ventures, or Chinese-foreign contractual joint ventures, or Chinese-
foreign co-operative exploration and development of the natural resources in China shall
fall under the jurisdiction of the people’s courts of China.

As for other matters concerning civil procedure in respect of cases involving foreign
element, refer to the Civil Procedure Law of the People’s Republic of China is
recommended.

For more information about Settlement of Disputes


, please go to:
http://english.ccpit.org/Contents/Channel_416/2007/0105/21875/content_21875.htm

				
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