Laws of the People's Republic of China

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

(Adopted on January 8, 1959, at the Seventh
Session of the China Council for the Promotion
of International Trade)

 

 

SUBJECT: ARBITRATION & LITIGATION

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

ISSUE-DATE: 01/08/1959

IMPLEMENT-DATE: 01/08/1959

LENGTH: 2087 words

TEXT:

1. The present Rules are made in accordance with Article 12 of the Decision of the State Council of the People's Republic of China adopted on November 21, 1958, concerning the establishment of a Maritime Arbitration Commission within the China Council for the Promotion of International Trade.

2. The Maritime Arbitration Commission takes cognizance of.

a. Disputes regarding remuneration for salvage services rendered by sea-going vessels to each other or by a sea-going vessel to a river craft and vice versa;

b. Disputes arising from collisions between sea-going vessels or between sea-going vessels and river crafts or from damages caused by sea-going vessels to harbour structures or installations;

c. Disputes arising from chartering sea-going vessels, agency services rendered to sea-going vessels, carriage by sea in virtue of contracts of affreightment, bills of lading or other shipping documents, as well as disputes arising from marine insurance.

3. The Maritime Arbitration Commission takes cognizance of a dispute referred to in the preceding Section upon the written application of one of the disputing parties and in accordance with such written agreement as concluded between the parties either prior or subsequent to the arising of the dispute, which stipulates for the submission of the dispute to the Maritime Arbitration Commission for settlement.

The agreement referred to in the preceding paragraph means the arbitration clause stipulated in the original contract from which the dispute has arisen, or any other form of agreement in respect of submission to arbitration (such as special agreement, correspondence exchanged or any specific stipulation contained in other relevant documents).

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

a. The name and address of the plaintiff and those of the defendant;

b. The claim of the plaintiff and facts and evidence upon which the claim is based;

c. The name of an arbitrator chosen by the plaintiff from among the members of the Maritime Arbitration Commission or a statement authorizing the Chairman of the Maritime Arbitration Commission to appoint the arbitrator for the plaintiff.

5.0 Original relevant documents (contracts, arbitration agreements, correspondence between the parties, et cetera), 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 one per cent of the amount of the claim as a deposit for the arbitration fee.

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

8. Upon receipt of the application, the Maritime Arbitration Commission shall notify the defendant to that effect without delay and forward to him a duplicate of the application and of 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 Maritime Arbitration Commission and notify the Maritime Arbitration Commission of his choice or authorize the Chairman of the Maritime Arbitration Commission to appoint the arbitrator for him.

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

The Maritime 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 preceding Section, the Chairman of the Maritime Arbitration Commission shall, upon the request of the plaintiff, appoint the arbitrator for the defendant.

11. The Maritime 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 Maritime 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 Maritime Arbitration Commission shall then select a presiding arbitrator for them.

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

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

13. If an arbitrator is unable to perform his duties, the Maritime Arbitration Commission shall notify the party concerned to that effect without delay and request him to choose a new arbitrator from among the members of the Maritime 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 Maritime Arbitration Commission shall then appoint a new arbitrator for him.

14. If a presiding arbitrator is unable to perform his duties, the Maritime Arbitration Commission shall notify the arbitrators for the parties to that effect without delay and request them to select a new presiding arbitrator from among the members of the Maritime 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 Maritime Arbitration Commission shall then select a new presiding arbitrator for them.

15. In cases within the cognizance of the Maritime Arbitration Commission, the Chairman of the Maritime Arbitration Commission may, upon the request of one of the parties, make decisions in respect of measures of security and determine the amount and form of the security for the claim. If the amount and form of the required security have already been agreed upon between the parties, such amount and form shall prevail.

16. Upon the request of one of the parties, the People's Court of the People's Republic of China shall enforce the decision of the Chairman of the Maritime Arbitration Commission in respect of measures of security in accordance with law.

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

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

19. The Maritime Arbitration Commission may endeavour to settle by conciliation any dispute of which it has taken cognizance.

20. The disputing parties may appoint attorneys to protect their interests and to confer with the Maritime Arbitration Commission on matters relating to the proceedings of arbitration.

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

21. Hearings shall be held at the seat of the Maritime Arbitration Commission.0 Where necessary, hearings may, upon the approval of the Chairman of the Maritime Arbitration Commission, be held at other places within the Chinese territory.

22. 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.

23. The Maritime Arbitration Commission shall hear cases in open sessions, but it may, upon the request of both or either of the parties, hold the hearings in close sessions.

24. 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 on the records.

25. The Maritime Arbitration Commission shall notify the parties in advance of the date of hearing to be held by the Arbitration Tribunal.

26. The defendant may file a counter-claim against the plaintiff in cases of which the Maritime Arbitration Commission has taken cognizance.

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

27. The disputing parties shall produce evidence in support of the facts upon which their claims or pleadings are based.0 Where necessary, the Arbitration Tribunal itself may make investigations or collect evidence.

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

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

29. The Arbitration Tribunal may consult experts for the clarification of any questions concerning 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.

30. 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.

31. The award of an Arbitration Tribunal sitting in a body is decided by majority vote and the minority opinion may be recorded in the file.

32. The conclusion of the award shall be read to the parties at the closing session of the hearings.

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

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

34. The award of the Maritime 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.

35. The Maritime Arbitration Commission may collect an arbitration fee the amount of which shall be determined by the Arbitration Tribunal in the award but shall in no case exceed two 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.

In cases having been dismissed in accordance with Section 37, the Maritime Arbitration Commission may also collect a fee at its discretion.

36. The Arbitration Tribunal may determine in the award the amount to be paid by the losing party to the successful party in compensation for the cost incurred in the action which amount shall in no case exceed five per cent of the sum awarded to the successful party.

37. If a case already taken cognizance of by the Maritime Arbitration Commission 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 Maritime Arbitration Commission and after the forming of the Arbitration Tribunal by the Arbitration Tribunal itself.

38. The Chinese language is the official language of the Maritime 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.

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

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