The arbitral proceedings of China International

Economic and Trade Arbitration Commission

The Claimant shall submit an Application for Arbitration in writing with attachments of relevant documentary evidence. The Claimant shall appoint an arbitrator from among the Panel of Arbitrators of the Arbitration Commission or authorize the Chairman of the Arbitration Commission to make such appointment. The Claimant shall pay an arbitration fee in advance to the Arbitration Commission.

Upon receipt of the Application for Arbitration and its attachments, if the secretariat of the Arbitration Commission, after examination, finds that the Claimant has completed formalities required by arbitration, the secretariat shall promptly send to the Respondent a Notice of Arbitration, together with one copy of the Claimant's Application for Arbitration and its attachments, the Arbitration Rules, the Panel of Arbitrators and the Arbitration Fee Schedule of the Arbitration Commission. The Respondent shall, within 45 days from the date of receipt of the Notice of Arbitration, submit his written defense and relevant documentary evidence to the secretariat of the Arbitration Commission. The Respondent shall, at the latest within 60 days from the date of receipt of the Notice of Arbitration, file with the secretariat of the Arbitration Commission his counterclaim in writing, state in his written Statement of Counterclaim his specific claim and facts and reasons upon which his claim is based. The Claimant shall also attach to his written Statement of Counterclaim any relevant documentary evidence and pay an arbitration fee in advance to the Arbitration Commission.

(2) The composition of the Arbitration Tribunal

Each of the parties shall appoint one arbitrator from among the Panel of Arbitrators of the Arbitration Commission or entrust the Chairman of the Arbitration Commission to make such appointment. A third arbitrator shall be jointly appointed by the parties or appointed by the Chairman of the Arbitration Commission upon the parties' joint authorization. In case the two parties fail to jointly appoint a third arbitrator or fail to jointly entrust the Chairman of the Arbitration Commission to appoint a third arbitrator within 20 days from the date on which the Respondent receives the Notice of Arbitration, the third arbitrator will be appointed by the Chairman of the Arbitration Commission. The third arbitrator will act as the presiding arbitrator.

The presiding arbitrator and the two appointed arbitrators will jointly form an arbitration tribunal to jointly hear the case.

The Claimant and the Respondent may jointly appoint or jointly authorize the Chairman of the Arbitration Commission to appoint a sole arbitrator to form an arbitration tribunal to hear the case alone. If both parties have agreed to have a sole arbitrator to hear their case but failed to agree on the person selected for such purpose within 20 days from the date on which the Respondent receives the Notice of Arbitration, the Chairman of the Arbitration Commission will make the appointment.

(3) Hearing

The arbitration tribunal will hold oral hearings. At the request of the parties or with their consent, the arbitration tribunal may, if it also considers oral hearings unnecessary, hear and decide a case on the basis of documents only.

The date of the first oral hearing shall be decided by the arbitration tribunal in consultation with the secretariat of the Arbitration Commission. The secretariat shall notify the two parties of the decision 30 days before the date of the hearing. Any party having justified reasons may request a postponement of the hearing, but a written request must be submitted to the secretariat of the Arbitration Commission 12 days before the date of the hearing. The arbitration tribunal will then decide whether to postpone the hearing or not.

The arbitration tribunal shall not hear cases in open sessions. However, if both parties request that an open session hearing be held, the arbitration tribunal shall decide whether to do so or not.

(4) Arbitral award

The arbitration tribunal shall render an arbitral award within 9 months from the date on which the arbitration tribunal is formed. The Secretary-General of the Arbitration Commission may extend this time limit at the request of the arbitration tribunal if the Secretary-General of the Arbitration Commission considers that it is necessary and the reasons for extension are truly justified.

Where a case is heard by an arbitration tribunal composed of three arbitrators, the arbitral award shall be decided by the majority of the arbitrators and the minority opinion may be recorded and placed on file. When the arbitration tribunal cannot reach a majority opinion, the arbitral award shall be decided in accordance with the residing arbitrator's opinion.

The arbitration tribunal shall state in the arbitral award the claims, the facts of the dispute, the reasons on which the arbitral award is based, the result of the arbitral award, the allocation of the arbitration costs, the date on which and the place at which the arbitral award is made.

(5) The enforcement of arbitral awards

The arbitral award is final and binding upon both disputing parties. Neither party may bring a suit before a law court or make a request to any other organization for evising the arbitral award.

The parties must automatically execute the arbitral award within the time limit ecified in the arbitral award. If no time limit is specified in the arbitral award, the parties shall carry out the arbitral award immediately.

In case one party fails to execute the arbitral award, the other party may apply to the Chinese court for enforcement of the arbitral award pursuant to Chinese law or apply to the competent foreign court for enforcement of the arbitral award according to the 1958 Convention on Recognition and Enforcement of Foreign Arbitral Awards or other international treaties that China has concluded or acceded to.