Laws of the People's Republic of China

PROVISIONAL RULES OF PROCEDURE OF THE FOREIGN
TRADE ARBITRATION COMMISSION OF THE CHINA COUNCIL
FOR THE PROMOTION OF INTERNATIONAL TRADE

(Adopted on March 31, 1956 at the Fourth Session
of the China Council for the Promotion of International Trade)

SUBJECT: ARBITRATION & LITIGATION

ISSUING-DEPT: CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONL TRADE

ISSUE-DATE: 03/31/1956

IMPLEMENT-DATE: 03/31/1956

LENGTH: 1991 words

TEXT:

1. The present Rules are made in accordance with Article 12 of the Decision of the Government Administration Council of the Central People's Government adopted at its 215th Session on May 6, 1954 concerning the establishment of a Foreign Trade Arbitration Commission within the China Council for the Promotion of International Trade.

2. The Foreign Trade Arbitration Commission (hereinafter referred to as the Arbitration Commission) exercises jurisdiction for the arbitration of disputes arising from contracts and transactions in foreign trade, particularly disputes between foreign firms, companies or other economic organizations on the one hand and Chinese firms, companies or other economic organizations on the other. It may also exercise jurisdiction for the arbitration of similar cases arising between foreign firms, companies or economic organizations as well as between Chinese firms, companies or other economic organizations.

Such disputes include all disputes arising from contracts for purchase or sale of merchandise in foreign countries or contracts for commissioning an agency to purchase or sell merchandise in foreign countries, disputes arising from transportation, insurance, safe-keeping or delivery of the merchandise in question and disputes arising from other matters of business in foreign trade.

3. The Arbitration Commission exercises jurisdiction for the arbitration of a dispute referred to in the preceding Section upon the written application of one of the disputing parties and in accordance with the written agreement between the parties which stipulates for the submission of the dispute to the Arbitration Commission for settlement.

The agreement referred to above means the arbitration clause stipulated in the original trade contract or trade agreement, or any other form of agreement to submit to arbitration (such as special agreement, exchange of correspondence or any specific stipulation contained in other relevant documents).

4. The following items must be specified in the application for arbitration:

(1) The name and address of the plaintiff and those of the defendant;

(2) The claim of the plaintiff and the facts and evidence upon which the claim is based;

(3) The name of an arbitrator chosen by the plaintiff from among the members of the Arbitration Commission or a statement authorizing the Chairman of the Arbitration Commission to appoint the arbitrator on behalf of the plaintiff.

5. Original documents (contracts, arbitration agreements, correspondence between the parties, et cetera) relevant to the application, or certified duplicates or copies thereof, must accompany the application for arbitration.

6. When submitting an application for arbitration, the plaintiff shall pay a sum equivalent to 0.5 per cent of the amount of the claim as a deposit for the fee required to cover the costs of arbitration.

Such deposits shall be paid to the Arbitration Commission.

7. The application for arbitration and its appended documents submitted to the Arbitration Commission shall be accompanied by as many duplicates as the number of defendants.

8. Upon receipt of the application, the Arbitration Commission shall notify the defendant to that effect without delay and forward to him a duplicate of the application and all the appended documents.

9. Within fifteen days from the date of receipt of the notice the defendant shall either choose an arbitrator from among the members of the Arbitration Commission and notify the Arbitration Commission of his choice or authorize the Chairman of the Arbitration Commission to appoint the arbitrator on his behalf.

In case a different period of time is agreed upon between the parties, such agreement shall prevail.

The Arbitration Commission may also, upon the request of the defendant, alter the period of fifteen days.

10. Should the defendant fail to choose an arbitrator within the time specified in the preceeding Section, the Chairman of the Arbitration Commission shall, upon the request of the plaintiff, appoint the arbitrator for the defendant.

11. The Arbitration Commission shall notify the arbitrators, whether chosen by the parties or appointed by the Chairman, to select a presiding arbitrator from among the members of the Arbitration Commission within fifteen days from the date of receipt of the notice.

In case no agreement is reached between the chosen or appointed arbitrators regarding the selection of the presiding arbitrator within the time limit stated in the preceding paragraph, the Chairman of the Arbitration Commission shall select the presiding arbitrator on their behalf.

12. The disputing parties may jointly choose or authorize the Chairman of the Arbitration Commission to appoint for them a sole arbitrator from among the members of the Arbitration Commission to arbitrate the case singly.

In case the parties separately delegate the choice of arbitrators to the Chairman of the Arbitration Commission, the Chairman may, after obtaining the consent of the parties, appoint a sole arbitrator from among the members of the Arbitration Commission to arbitrate the case singly.

13. If an arbitrator is unable to perform his duties, the Arbitration Commission shall notify the party concerned to that effect and request him to choose a new arbitrator from among the members of the Arbitration Commission within fifteen days from the date of receipt of the notice.

Should the said party fail to choose a new arbitrator within that time, the Chairman of the Arbitration Commission shall then appoint a new arbitrator on his behalf.

14. If a presiding arbitrator is unable to perform his duties, the Arbitration Commission shall notify the arbitrators for the parties to that effect and request them to select a new presiding arbitrator from among the members of the Arbitration Commission within fifteen days from the date of receipt of the notice.

Should the arbitrators fail to agree on the selection of the new presiding arbitrator within that time, the Chairman of the Arbitration Commission shall then select a new president arbitrator on their behalf.

15. Upon the request of one of the parties, the Chairman of the Arbitration Commission may, for the purpose of safeguarding the interests of the disputing parties, prescribe provisional measures concerning the materials, property rights and/or other matters appertaining to the parties.

16. The date for the hearing of the case shall be set by the Chairman of the Arbitration Commission in consultation with the presiding arbitrator or the sole arbitrator as the case may be.

17. The Arbitration Commission may require the parties to give their explanations in writing before the date of hearing.

18. A disputing party may confer with the Arbitration Commission on matters relating to the proceedings either in person or by attorney.

Such attorneys may be citizens of the People's Republic of China or foreign citizens.

19. Hearings shall be held at the seat of the Arbitration Commission. Where necessary, hearings may, upon the approval of the Chairman of the Arbitration Commission, be held at other places within the Chinese territory.

20. Proceedings for the arbitration of a case are conducted by an Arbitration Tribunal formed by one presiding arbitrator and two arbitrators sitting in a body. A sole arbitrator forms a Tribunal by himself and conducts the proceedings singly.

21. The Arbitration Tribunal shall hear cases in open sessions, but it may, upon the request of both or either of the parties, decide to hold the hearings in closed sessions.

22. At every session of the Arbitration Tribunal, records shall be taken, and these records shall be signed by the presiding arbitrator or the sole arbitrator as the case may be.

The Arbitration Tribunal may require the parties or their attorneys witnesses or other persons to sign their names on the records for purpose of evidence.

23. The Arbitration Commission shall notify the parties of the date of hearing to be held by the Arbitration Tribunal.

24. The defendant may file a counter-claim against a claim over which the Arbitration Commission has assumed jurisdiction.

The provisions in Sections 2-7 of the present Rules apply likewise to counter-claims.

25. The parties shall produce evidence in support of the facts upon which their claims or pleadings are based.

26. The examination and appraisal of evidence shall be performed by the Arbitration Tribunal at its discretion.

An Arbitration Tribunal sitting in a body may decide to entrust one of its members with the work of the examination of evidence.

27. The Arbitration Tribunal may consult experts for the clarification of any questions concernig technical or special matters or business practices.

Such experts may be designated from among citizens of the People's Republic of China or foreign citizens.

28. Should one of the disputing parties or his attorney fail to appear at the hearing held by the Arbitration Tribunal, the Tribunal may, upon the request of the party present, proceed with the hearing or render the award.

29. The award of an Arbitration Tribunal sitting in a body is decided by majority vote and the minority opinion may be made in writing and docketed into the file.

30. The principal part of the award shall be read to the parties at the closing session of the hearings.

The full award together with the reasons for the decision shall be made in writing within fifteen days from the date of the reading of the principal part. It shall be signed by the presiding arbitrator and the arbitrators or by the sole arbitrator as the case may be.

31. The award given by the Arbitration Commission is final and neither party shall bring an appeal for revision before a court of law or any other organization.

32. The award of the Arbitration Commission shall be executed by the parties themselves within the time fixed by the award. In case an award is not executed after the expiration of the fixed time, one of the parties may petition the People's Court of the People's Republic of China to enforce it in accordance with law.

33. To compensate for the costs of arbitration, the Arbitration Commission may collect from the parties a fee the amount of which shall be determined by the Arbitration Tribunal in the award but shall not in any case exceed one per cent of the amount of the claim.

The Arbitration Tribunal may, having regard to the circumstances of the case, determine in the award whether such a fee should be borne entirely by the losing party or proportionally by both parties.

34. The Arbitration Tribunal may determine in the award the amount to be paid by the losing party to the winning party in compensation for the costs incurred in the action which amount shall not in any case exceed five per cent of the sum awarded to the winning party.

35. In the event a case over which the Arbitration Tribunal has alredy assumed jurisdiction is settled by conciliation between the parties, it shall be dismissed without delay. Prior to the forming of the Arbitration Tribunal the decision for dismissal shall be made by the Chairman of the Arbitration Commission and after the forming of the Arbitration Tribunal by the Arbitration Tribunal itself.

36. The Chinese language is the official language of the Arbitration Commission.

If at the hearing, any one of the parties, their attorneys or witnesses, or any other person is unfamiliar with the Chinese language, the Arbitration Tribunal may designate an interpreter for him or direct the party concerned to furnish one himself.

37. All notices of the Arbitration Commission to the parties shall be delivered by messengers, registered mail or telegraph.

38. The present Rules shall come into force from the date of its adoption by the China Council for the Promotion of International Trade.