Chapter IV. Arbitration
Procedure
Section 1. Application and Acceptance
Article 21. The litigants requesting arbitration shall meet
the following requirements:
(1) there shall be an arbitration agreement;
(2) there shall be a specific appeal request, facts and reasons
for the appeal; and
(3) the case shall be within the jurisdictional power of
the arbitration commission.
Article 22. The litigants shall submit to the arbitration
commission the arbitration agreement and application for arbitration
and copies.
Article 23. The application for arbitration shall carry the
following items:
(1) the names, sex, age, profession, work units and addresses
of the litigants; the names and addresses of the legal person
or other organization concerned; and the names and professions
of the legal representative and other principal persons in
charge.
(2) arbitration requested and the facts and reasons on which
the request is based; and
(3) evidence and its sources; the names and addresses of
witnesses.
Article 24. When the arbitration commission has received
the application, it shall accept it and so notify the litigants
within five days if it deems the application meets the requirements;
with respect to cases that do not meet the requirements, it
shall notify the litigants in writing that the cases may not
be accepted and heard along with an explanation.
Article 25. After accepting the arbitration application,
the arbitration commission shall, within the period prescribed
in the arbitration rules, deliver the arbitration rules and
the names of the arbitration panel to the applicant; and it
shall also deliver a copy of the application as well as the
rules and the panel to the adverse litigant.
After receiving the copy of the arbitration application,
the adverse litigant shall furnish a defence to the arbitration
commission within the period prescribed in the arbitration
rules. After receiving the defence, the arbitration commission
shall, within the period prescribed in the arbitration rules,
deliver a copy of the defence to the applicant. The absence
of a defence on the part of the adverse litigant does not
affect the arbitration process.
Article 26. where an arbitration agreement has already been
reached and one litigant has filed a suit with the people's
court but failed to state the agreement , the people's court
shall reject the case it has accepted when the other litigant
had submitted the arbitration agreement prior to the opening
of the first court session, except when the arbitration agreement
is invalid. Failure of the adverse litigant to express objection
before the first court session is considered to be a waiving
of the agreement and the people's court shall proceed in examining
the case.
Article 27. The applicant may renounce or change the arbitration
request. The adverse litigant may acknowledge or rebut the
arbitration request and has the right to submit a counter-request.
Article 28. Either litigant may request protection of his
property when he believes the arbitration cannot be carried
out or will be carried out with difficulty owing to the other
litigant's conduct or other causes.
When one litigant requests protection of his property, the
arbitration commission shall submit the request to the people's
court in accordance with the relevant regulations in the Law
of Civil Procedure.
When the application is faulty, the applicant shall compensate
the adverse litigant for the losses incurred from the protection
of property.
Article 29. Either litigant or his legal representative may
request a lawyer or an agent to represent him at the arbitration.
When he does so, he shall submit a power of attorney to the
arbitration commission .
Section 2. The Formation of an Arbitration Tribunal
Article 30. An arbitration tribunal may be composed of three
arbitrators or only one. A tribunal which is composed of three
arbitrators shall have a president arbitration officer.
Article 31. Where the litigants agree that an arbitration
tribunal be composed of three arbitrators, each of them shall
elect his own arbitrator, or request the arbitration commission
director to designate an arbitrator for him. The third arbitrator
shall be selected by the litigants, or by the arbitration
commission director at their request. The third arbitrator
shall serve as the presiding arbitration officer.
Article 32. In the event the litigants fail to reach an agreement
on the form of an arbitration tribunal, or fail to select
their arbitrators within the period prescribed in the arbitration
rules, the arbitration commission director shall make the
decision for them.
Article 33. After an arbitration tribunal has been formed,
the arbitration commission shall notify the litigants, in
writing, about the formation or the tribunal.
Article 34. An arbitrator shall withdraw from serving in
the tribunal when his case is one of the following, and the
litigants also have the right to present a withdrawal request:
(1) where he is one of the litigants in the arbitration,
or he is a close relative of any one litigant, or a relative
of the attorney;
(2) where he has a vital interest in the arbitration;
(3) where he is related to the litigants, or their attorneys,
in other respects in the case and the relationship may affect
an impartial arbitration; or
(4) where he has had private meetings with the litigants
or with their attorneys, or when he has accepted the invitation
of the litigants or their attorneys, to dine, or accepted
their gifts.
Article 35. Where one litigant submits a withdrawal request,
he shall state the reasons, and the reasons shall be submitted
prior to the opening of the first court session. When a cause
of the withdrawal is not known until the first court session
has been held, the cause may be submitted prior the closure
of the last court session.
Article 36. The arbitration commission director shall decide
whether an arbitrator should withdraw; when the arbitration
commission director serves as an arbitrator, other members
or the arbitration commission shall make the decision collectively.
Article 37. When an arbitrator cannot perform his duties
owing to withdrawal or other causes, a new arbitrator shall
be elected or designated to take his place in accordance with
this law.
After a new arbitrator has been elected or designated as
a result of the withdrawal of another arbitrator, the litigants
may request that the ongoing arbitration process be started
anew, and the arbitration process tribunal shall decide whether
or not to approve the request. The arbitration tribunal may
also decide on its own whether the ongoing arbitration process
should be started anew.
Article 38. Where an arbitrator has situation (4) under Article
34, and the case is serious, or where an arbitrator has situation
(6) under Article 58, he shall be liable for legal responsibilities
according to the law and the arbitration commission shall
remove his name from the panel.
Section 3. Hearing and Ruling
Article 39. the arbitration shall be held as a tribunal.
Where the litigants agree to have an open session, arbitrations
may be held openly, except for cases which involve state secrets.
Article 40. Arbitrations do not proceed openly. Where the
litigants agree to have an open session, arbitrations may
be held openly, except for cases which involve state secrets.
Article 41. The arbitration commission shall notify both
litigants of the date of the tribunal session within the period
prescribed in the arbitration rules. Within the period prescribed
in the arbitration rules, litigants may request a postponement
of the session if any of them has a legitimate reason. The
arbitration tribunal shall decide whether the session should
be postponed.
Article 42. The applicant shall be considered to have withdrawn
his arbitration request if he, after being notified, fails
to attend the tribunal session without a legitimate reason,
or if he leaves the tribunal during the session without the
tribunal's approval.
If the adverse litigant, after being notified, fails to attend
the tribunal session without a legitimate reason; or if he
leaves the tribunal session without the arbitration tribunal's
approval, a ruling can be made by default.
Article 43. Litigants shall provide evidence to support their
respective stands.
The arbitration tribunal may collect on its own account evidence
it deems essential.
Article 44. When the arbitration tribunal maintains that
a certain specialized issue must be appraised, it may also
designate an appraising department to have the appraisal made.
In accordance with the request submitted by the litigants
or the arbitration tribunal, the appraisal department shall
send a appraiser to attend the tribunal session. With the
tribunal's approval, the litigants may question the appraiser.
Article 45. The evidence shall be exhibited at the tribunal
session. Litigants may cross- examine one another.
Article 46. If the evidence is perishable or if the evidence
may be hard to obtain in the future, the litigants may request
that the evidence be preserved. Where the litigants request
preservation of the evidence, the arbitration commission shall
submit the request to the grass-roots people's court of the
location where the evidence is obtained.
Article 47. Either litigant has the right to debate during
the arbitration process. When the debate ends, the presiding
arbitration officer, or an arbitrator acting alone, shall
solicit the litigants' final views.
Article 48. The arbitration tribunal shall record the session
in writing. The litigants, or other arbitration participants,
have the right to request corrections when they think the
records of their statements are incomplete or faulty. If corrections
are denied, their requests shall be stated in the record.
The written records shall be signed, or sealed, by the arbitrators,
the recorders, the litigants and other arbitration participants.
Article 49. The litigants may reach a settlement by themselves
after they have requested arbitration. If a settlement agreement
has been reached, the litigants may request that the arbitration
tribunal make a written ruling on the basis of the settlement,
and they may also retract their arbitration request.
Article 50. If any litigant wants to retract the withdrawal
request after a settlement agreement has been reached, they
may request arbitration in accordance with the arbitration
agreement.
Article 51. The arbitration tribunal may carry out mediation
prior to making a ruling. The
arbitration tribunal shall mediate when the litigants agree
to mediation. If the mediation fails, a ruling should be made
promptly.
If an agreement has been reached through mediation, the arbitration
tribunal shall draw up a written mediation, which has the
same legal effect a a ruling letter.
Article 52. The written mediation shall state the arbitration
request and the litigants' agreement. The written mediation,
after it has been signed by the arbitrators and sealed by
the arbitration commission, shall be delivered to the litigants.
The written mediation becomes legally valid after it has
been signed and accepted by the litigants.
If one litigant backs out prior to the signing of the written
mediation, the arbitration tribunal shall make a ruling promptly.
Article 53. The ruling shall be made on the basis of the
views expressed by the majority of arbitrators. The different
views of the minority of arbitrators may be stated in the
record. When the arbitration tribunal fails to come up with
a majority view, a ruling shall be made according to the view
of the presiding arbitration officer.
Article 54. The written arbitration shall state the arbitration
request, facts of the dispute, the reasons for the ruling,
the result of the ruling, the arbitration expenses that have
to be borne and the date of the arbitration. The written arbitration
may omit the facts of dispute and the reasons for the ruling
if the litigants so desire. The written mediation shall be
signed by the arbitrators and sealed by the arbitration commission.
The signatures of the arbitrators who hold different views
are optional.
Article 55. When arbitrating a dispute, the arbitration tribunal
may make a ruling on the part of dispute for which facts have
been ascertained.
Article 56. The arbitration tribunal shall correct any terminological
or calculation error in the written arbitration, or any ruling
decision left out in the written arbitration. The litigants
may request that the arbitration tribunal make corrections
within 30 days after receiving the written ruling.
Article 57. The legal effects of the ruling letter begin
on the day it is written.
Chapter V. Request to Repeal
a Ruling
Article 58. If one litigant produces evidence to prove a
ruling has one of the following, he may request that the intermediate
people's court of the place where the arbitration commission
is located repeal the ruling:
(1) where there is no arbitration agreement;
(2) where the dispute to be arbitrated is not within the
scope of the arbitration agreement, or one which the arbitration
commission has no authority to arbitrate;
(3) where the formation of the arbitration tribunal or the
arbitration process has violated legal procedure;
(4) where the evidence on which the arbitration is based
is counterfeited;
(5) where one litigant has concealed evidence that could
affect an impartial ruling; or
(6) where arbitrators have solicited or accepted bribes,
practised favouritism and bent the law while arbitrating a
case or making a ruling.
The people's court shall repeal the ruling if a collegial
panel formed by the people's court has examined the arbitration
and ascertained that it has one of the situations mentioned
above.
Article 59. When one party requests a repeal of the ruling,
he shall do so within six months after receiving the ruling
letter.
Article 60. The people's court shall decide whether to approve
or reject the request to repeal the ruling within two months
after accepting the request.
Article 61. After accepting the request to repeal the ruling,
if the people's court maintains that the arbitration tribunal
still should arbitrate the dispute, it shall notify the arbitration
tribunal to rearbitrate the dispute within a specified period
and it shall also rule to terminate the repeal procedure.
If the arbitration tribunal refuses to rearbitrate the dispute,
the people's court shall rule that the repeal procedure be
reinstated.
Chapter VI. Execution
Article 62. Litigants shall abide by the ruling. When one
litigant fails to abide by the ruling, the other litigant
may, in accordance with provisions in the Law of Civil Procedure,
request the people's court execute the ruling, and the people's
court that accepts the request shall execute the ruling.
Article 63. When the adverse litigant produces evidence proving
that the ruling is one the situations stated in Section 2
of Article 217 of the Law of Civil Procedure, and the evidence
has been ascertained by the collegial panel formed by the
people's court, the ruling shall not be executed.
Article 64. When one litigant requests that the ruling be
executed and the other litigant requests that the ruling be
repealed, the people's court shall rule that the execution
be terminated.
When the people's court judges that a ruling be repealed,
the execution of the ruling shall be terminated. When the
request to repeal the ruling has been rejected, the people's
court shall judge that the ruling be executed again.
Chapter VII. Special Provisions for Arbitrations Involving
Foreign Concerns
Article 65. Provisions in this chapter are applicable in
the arbitration of economic, trade, transport and maritime
disputes which involve foreign concerns. Other relevant provisions
in this law shall be applied where there is no applicable
provision in this chapter.
Article 66. A commission for arbitrations involving foreign
concerns may be set up in the China International Chamber
of Commerce.
This arbitration commission may be composed of one director,
several deputy directors and several members.
The director, deputy directors and members may be hired by
the China International Chamber of Commerce.
Article 67. This arbitration commission may hire its arbitrators
from among foreign nationals who are specialized in laws,
economic affairs and trade, and science and technology.
Article 68. when a litigant requests preservation of evidence
in an arbitration which involves foreign concerns, the commission
for arbitration involving foreign concerns shall refer the
litigant's request to the intermediate people's court in the
place where the evidence is located.
Article 69. The arbitration tribunal which handles arbitrations
involving foreign concerns may record the proceedings of the
tribunal session, or the main points of the session. The record
of the main points shall be signed or sealed by the litigants
and other arbitration participants.
Article 70. When one litigant produces evidence proving the
ruling made by the commission for arbitration involving foreign
concerns falls within one of the situations prescribed in
Section 1 of Article 260 of the Law of Civil Procedure, the
people's court shall repeal and the ruling after the evidence
has been ascertained by the collegial panel organized by the
people's court.
Article 71. When the adverse litigant produces evidence proving
that a foreign affairs arbitration ruling falls within one
of the situations stated in Section 1 of Article 260 of the
Law of Civil Procedure, the people's court shall judge that
the ruling not be executed after it has been examined and
ascertained by a collegial panel organized by the court.
Article 72. If one litigant requests execution of the legally
effective ruling made by the commission for arbitration involving
foreign concerns, and the adverse litigant's property is not
within the PRC, the litigant shall directly request acknowledgement
and enforcement from the foreign court which has the jurisdiction
over the property.
Article 73. The China International Chamber of Commerce may
draw up the regulations for arbitrations involving foreign
concerns on the basis of this law and the Law of Civil Procedure.
Chapter VIII. Supplementary
Articles
Article 74. Where the law has provisions governing the validity
period of an arbitration, the provisions shall be applied.
If the law has no such provisions, the provisions for the
validity period of lawsuits shall be used.
Article 75. Before the China Arbitration Association draws
up the arbitration regulations, the arbitration commission
shall draw up interim arbitration regulations on the basis
of this law and the Law of Civil Procedure.
Article 76. Litigants shall pay arbitration fees according
to regulations.
Measures for collecting arbitration fees shall be reported
to the price control authorities for approval.
Article 77. Separate regulations shall be drawn up for arbitration
of labour disputes and disputes over agricultural contracts
drawn up by collective agricultural economic organizations.
Article 78. When arbitration-related provisions drawn up
before the implementation of this law contravene the provisions
in this law, this law shall prevail.
Article 79. Arbitration institutions established by cities
and other cities divided into districts - where the seats
of people's governments of municipalities under the central
government's direct jurisdiction, provinces and autonomous
regions are located - prior to the implementation of this
law shall be reorganized according to this law; and the operation
of those which are not reorganized shall be terminated one
year from the day this law goes into effect.
The operation of other arbitration institutions which are
established before this law goes into effect and which are
not in line with this law shall be terminated when thislaw
goes into effect.
Article 80. This law goes into effect on September 1, 1995.
The First Part
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