Arbitration Rules of China Guangzhou Arbitration Commission
Chapter I General Provisions
Article 1 Purpose and Basis
The CGAC Arbitration Rules (the “Rules”) are formulated in accordance with the Arbitration Law of the People’s Republic of China (the “Arbitration Law”) and other relevant laws and regulations in order to arbitrate civil and commercial disputes and safeguard the legitimate rights and interests of all parties in a fair and timely manner.
Article 2 Name, Organization and Duties
(1) China Guangzhou Arbitration Commission (“CGAC”) is an arbitration institution which has duly gone through necessary registration and filing procedures in Guangzhou of China and is responsible for resolving contractual disputes and other disputes over property rights or interests arising among natural persons, legal persons and other organizations as subjects with equal status.
(2) Where the parties agree either to refer a dispute to any of the specialized arbitration courts (such as Guangzhou Court of International Arbitration, Guangzhou Court of Internet-based Arbitration, Guangzhou Court of Financial Arbitration, Guangzhou Court of Intellectual Property Arbitration and China Guangzhou Arbitration Court of International Shipping, each and all located in China) for arbitration purposes or to designate the institution who uses the former name of CGAC or any of the aforesaid specialized arbitration courts as the arbitration organization, they shall be deemed as having agreed to have the dispute arbitrated by CGAC.
(3) CGAC shall establish its Dongguan Sub-Commission in Dongguan City of Guangdong Province, and establish its Zhongshan Sub-Commission in Zhongshan City of Guangdong Province.
(4) CGAC shall, through collaboration with other entities, establish China Nansha International Arbitration Center in Nansha District, Guangzhou City, Guangdong Province. Nansha International Arbitration Center operates as a non-profit platform of international arbitration.
(5) Where it has been agreed to have a dispute arbitrated by CGAC, CGAC shall accept an application for arbitration (the “Application for Arbitration”) and administer the case. Where it has been agreed to have a dispute arbitrated by a sub-commission of CGAC or to designate the institution who uses the former name of a sub-commission of CGAC as the arbitration institution, the agreed sub-commission of CGAC shall accept the Application for Arbitration and administer the case accordingly, unless otherwise agreed by both parties. In case of any dispute in connection therewith, a decision thereon shall be made by CGAC.
(6) For the convenience of the parties, CGAC may accept an application and relevant documents filed by the parties for arbitration to be conducted by the agreed sub-commission of CGAC, and a sub-commission of CGAC may accept an application and relevant documents filed by the parties for arbitration to be conducted by CGAC. The above Application for Arbitration and documents in relation thereto, being so accepted, shall be remitted to CGAC or the agreed sub-commission thereof in order to administer the case accordingly, except for cases handed over by CGAC to a sub-commission thereof for the convenience of case administration.
Article 3 Scope of Acceptance
(1) Any contractual disputes and other disputes over property rights or interests arising among natural persons, legal persons and other organizations with equal status may, according to applicable laws, be referred to CGAC for arbitration.
(2) The following disputes shall not be accepted by CGAC:
(a) Labor disputes;
(b) Disputes over agricultural contract arising within rural economic collectives;
(c) Disputes over marriage, adoption, guardianship, fosterage or inheritance;
(d) Administrative disputes to be handled by administrative authorities pursuant to applicable laws.
(3) Where, upon hearing, a dispute is determined by the tribunal to fall under any of the descriptions in the above Paragraph (2) of this Article, the Application for Arbitration shall be dismissed pursuant to applicable laws.
Article 4 Application of Rules
(1) The Rules shall uniformly apply to CGAC and its sub-commissions.
(2) Where the parties agree to refer a dispute to CGAC or a sub-commission thereof for arbitration, they shall be deemed as having agreed to have the dispute arbitrated pursuant to the Rules. In case the parties have agreed otherwise on arbitration procedural matters or rules applicable to arbitration, their agreement shall prevail unless such agreement is unenforceable or conflicts with any mandatory stipulations under the laws and regulations applicable at the seat of arbitration. Where the parties agree to apply other arbitration rules, CGAC or its sub-commission shall perform their respective administrative duties.
(3) In relation to any matters not expressly stipulated under the Rules, CGAC, its sub-commission or the Arbitral Tribunal shall have the right to conduct the arbitration proceedings in adherence to the principle of enabling the dispute to be resolved in a fair and timely manner.
Article 5 Duties of Chairperson
(1) The Chairperson of CGAC (the “Chairperson”) shall perform his or her duties stipulated under the Arbitration Law and the Rules.
(2) The Deputy Chairperson or Secretary-General of CGAC may, with the Chairperson’s authorization, perform the duties of the Chairperson on its behalf, except for the appointment of arbitrators and the right of deciding on whether an arbitrator shall be challenged.
Article 6 Panel of Arbitrators
(1) CGAC shall, pursuant to the eligibility requirements stipulated under the Arbitration Law, appoint arbitrators from among those personnel equipped with professional knowledge and experience and establish a panel of arbitrators (the “Panel of Arbitrators”).
(2) Where necessary, CGAC shall establish a panel of specialized arbitrators which aims merely to describe the expertise of these specialized arbitrators without affecting the parties’ appointment of arbitrators.
(3) CGAC’s Panel of Arbitrators shall be applicable to CGAC and its sub-commissions.
(4) Where the parties appoint or agree to nominate a person from outside of the Panel of Arbitrators as an arbitrator, such person may serve as an arbitrator only upon confirmation by the Chairperson of CGAC.
Article 7 Seat of Arbitration
(1) Unless otherwise agreed on by the parties, the seat of arbitration shall be the place where CGAC or its sub-commission is located. CGAC may designate another place as the seat of arbitration based on the specific circumstances of the case.
(2) The arbitral award shall be deemed to have been rendered at the seat of arbitration.
Article 8 Waiver of Right to Object
A party who knows or ought to have known of a failure to comply with any provisions under the Rules or any terms of the arbitration agreement, yet takes part in the arbitration proceedings without raising its written objection to such non-compliance before the arbitral award is made, shall be deemed to have waived its right to object to such non-compliance, and shall not use the above case as a ground for applying for revocation of or not enforcing an arbitral award.
Article 9 Arbitration in Good Faith
All parties taking part in arbitration proceedings shall act in good faith.
Chapter II Arbitration Agreement
Article 10 Definition and Form of Arbitration Agreement
(1) An arbitration agreement shall be an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.
(2) An arbitration agreement shall include an arbitral clause provided for in a contract, and any arbitration agreement in other writing form concluded before or after the dispute arising.
(3) An arbitration agreement shall be in written form. Written form shall include any form which tangibly presents the contents contained therein, including written contract, letter and data message (including telegram, telex, fax, EDI and email).
(4) During the exchange of the Application for Arbitration and the statement of defense (the “Statement of Defense”), an arbitration agreement shall be deemed as having been accepted where one party asserts the existence of such agreement whilst the other party fails to deny it and still participates in the hearing.
Article 11 Independence of Arbitration Agreement
An arbitration agreement exists independently. By no means shall the independence of an arbitration agreement be affected either by the existence, amendment, assignment, rescission, termination, invalidity, ineffectiveness or revocation of the contract or by the existence of that contract to which the arbitration agreement is attached.
Article 12 Recognition of Validity of Arbitration Agreement
(1) In case the name of the arbitration commission, arbitration courts or sub-commission agreed upon under an arbitration agreement is not clear, but it is feasible to determine that the specific arbitration institution is CGAC or its sub-commission, it shall be deemed as the parties having agreed to refer a dispute to CGAC or its sub-commission for arbitration.
(2) Where the parties agree on having a dispute arbitrated pursuant to the Rules without designating an arbitration institution, it shall be deemed as the parties having agreed to refer the dispute to CGAC for arbitration.
(3) Where a party is merged or separated after entering into an arbitration agreement, the arbitration agreement shall be binding upon the successor who assumes its rights and obligations, unless otherwise agreed by the parties concerned.
(4) Where a party deceases after entering into an arbitration agreement, the arbitration agreement shall be binding upon the successor who assumes its rights and obligations in relation to arbitration matters, unless otherwise agreed by the parties concerned.
(5) In case any credits and debts are transferred in part or in whole, the arbitration agreement shall be binding upon the transferee, unless the parties concerned have agreed otherwise or, when taking on the credits and debts, the transferee expressly opposes thereto or has no knowledge of the existence of any separate arbitration agreement.
(6) Where a branch of any legal person enters into an arbitration agreement, the arbitration agreement shall be binding upon both the legal person and its branch.
(7) The arbitration agreement in relation to a principal contract shall be binding upon an ancillary contract entered into by the same parties as to the principal contract, unless otherwise agreed in the ancillary contract.
Article 13 Objection to Arbitral Jurisdiction
(1) If a party objects to the existence and/or validity of an arbitration agreement or the jurisdiction of a case, it shall raise an objection thereto in writing prior to the first hearing. Where it is agreed to hold no oral hearing, such objection shall be raised in writing within the time limit for filing the Statement of Defense.
(2) If a party fails to raise its objection to the jurisdiction within the time limit prescribed in the Paragraph (1) of this Article, it shall be deemed to have accepted the jurisdiction by CGAC over the arbitration case.
(3) If a party objects to the validity of an arbitration agreement, it may either petition CGAC for a decision thereon or petition a people’s court for a ruling thereon. If a party petitions CGAC for a decision thereon and the other party petitions a people’s court for a ruling thereon, the people’s court shall make a ruling thereon. If CGAC accepts a petition earlier than the people’s court does, and has made a decision thereon, the decision shall take legal effect. The party petitioning a people’s court for a ruling on the validity of an arbitration agreement shall submit to CGAC a duplicate of its Petition for Objection to Validity of Arbitration Agreement together with the Notice of Case Filing issued by the people’s court.
(4) If a party raises its objection to jurisdiction with CGAC and CGAC deems it necessary to hold a hearing in order to make a decision thereon, CGAC may authorize an Arbitral Tribunal to make such decision. The Arbitral Tribunal may make its decision either separately in the course of arbitration proceedings or in the arbitral award.
(5) A decision made on the basis of prima facie evidence by CGAC as to its jurisdiction over a case shall not prevent an Arbitral Tribunal, as duly constituted, from making a new decision on jurisdiction based on any facts or evidence discovered in the course of hearing, which is inconsistent with the original decision.
(6) An Application for Arbitration shall be dismissed if CGAC or its authorized Arbitral Tribunal determines that it has no jurisdiction over an arbitration case. Instead, arbitration proceedings shall proceed if CGAC or its authorized Arbitral Tribunal determines that it has jurisdiction over an arbitration case.
Chapter III Application and Acceptance
Article 14 Application for Arbitration
(1) A party applying for arbitration (the “Claimant”) shall submit the following documents:
(a) An arbitration agreement;
(b) An application for arbitration, which shall contain:
(i) the name, address, postal code, telephone number, facsimile number, email address or any other means of electronic communication of the party as well as, in the case of the party being a legal person or any other type of organization, the name and title of its legal representative or key person-in-charge;
(ii) arbitration claim (the “Claim”） as well as facts and grounds on which the Claim is based;
(c) Evidence and other supporting documents; and
(d) Identification documents of the Claimant and the respondent (the “Respondent”).
(2) Where it is difficult indeed for a party to submit the identification documents of the Respondent, CGAC may issue a Notice to Submit Additional Documents of Identification at the request of the party. The party may, upon presentation of such Notice, request the Respondent’ identification documents from authorities.
(3) The party shall pay in advance arbitration fees in accordance with the measures promulgated by CGAC on the collection of arbitration fees. In case the party does not specify the amount in dispute in its Claim, CGAC shall determine the amount of arbitration fees to be paid in advance. A party failing to pay arbitration fees in advance shall be deemed as having failed to file an Application for Arbitration.
Article 15 Acceptance of Application for Arbitration
(1) Upon receipt of an Application for Arbitration, CGAC shall, if it finds that the requirements for acceptance have been satisfied, accept the Application for Arbitration within five (5) days after the day on which the party pays arbitration fees in advance and shall notify the party thereof. If CGAC finds that the requirements for acceptance have not been satisfied, it shall notify the party in writing of its rejection, stating its reasons.
(2) Where an Application for Arbitration fails to meet those requirements referred to in Paragraph (1) of Article 14 of the Rules, CGAC may require the party to submit additional documents within a specified time limit. Failure of the party to do so shall be deemed as its failure to submit an Application for Arbitration.
(3) Arbitration proceedings shall commence as from the day on which CGAC accepts the Application for Arbitration.
Article 16 Case Manager
The case manager shall assist the Arbitral Tribunal in the administration of arbitration proceedings.
Article 17 Arbitration Notice
(1) Within five (5) days after accepting an Application for Arbitration, CGAC shall send to the Claimant a notice of acceptance (the “Notice of Acceptance”), a copy of the Rules and the Panel of Arbitrators and shall send to the Respondent a notice of arbitration (the “Notice of Arbitration”), a duplicate of the Application for Arbitration, a copy of the Rules and the Panel of Arbitrators.
(2) Where the Claimant petitions in writing for serving above documents on the Respondent at a later time, the serving of such documents shall, with the consent of CGAC, not be subject to the time limit prescribed in Paragraph (1) of this Article.
Article 18 Defense
(1) The Respondent shall submit the following documents to CGAC within fifteen (15) days from the date of receiving the Notice of Arbitration:
(a) A Statement of Defense, which shall contain the following information:
(i) The name, address, postal code, telephone number, facsimile number, email address or any other means of electronic communication of the Respondent as well as, in the case of the Respondent being a legal person or any other type of organization, the name and title of its legal representative or key person-in-charge; and
(ii) Defense opinions and the facts and grounds on which the defense is based;
(b) Evidence or other supporting documents; and
(c) Identification documents of the Respondent.
(2) CGAC shall send to the Claimant a copy of the Statement of Defense within five (5) days after receiving the Statement of Defense.
(3) Failure of the Respondent to file a Statement of Defense shall not prevent the arbitration from proceedings.
Article 19 Counterclaim
(1) The Respondent shall have the right to file a counterclaim (the “Counterclaim”) on the basis of the same arbitration agreement. The parties involved in the counterclaim shall be confined to those parties involved in the Claim.
(2) The Respondent shall file a Counterclaim by submitting a written application for counterclaim (the “Application for Counterclaim”) within fifteen (15) days from the date of receiving the Notice of Arbitration. In the event of any delay in doing so, the Respondent shall submit a separate application for counterclaim to CGAC, unless the Claimant agrees with the Counterclaim or the Arbitral Tribunal deems it necessary to accept the counterclaim.
(3) The provisions of Article 14 and 15 of the Rules shall apply, mutatis mutandis, to the filing and acceptance of a Counterclaim.
(4) The Claim and Counterclaim as to the same dispute shall be heard concurrently.
(5) CGAC shall, within five (5) days upon acceptance of an Application for Counterclaim, send a duplicate thereof to the party against which the Counterclaim is filed. The respondent to the Counterclaim shall submit its Statement of Defense and relevant documents to CGAC pursuant to Paragraph (1) of Article 18 of the Rules. Failure to submit the Statement of Defense shall not affect arbitration proceedings.
(6) Other matters as to any Counterclaim not stipulated in this Article shall be dealt with by reference to those provisions relating to a Claim in the Rules.
Article 20 Amendment to Claim or Counterclaim
(1) A party may request to amend its Claim or Counterclaim within fifteen (15) days after the day on which such Claim or Counterclaim has been accepted. In case it fails to make a request for doing so within the time limit, the decision on whether to accept the amended Claim or Counterclaim shall be made by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(2) The provisions in Article 14, 15 and 18 of the Rules shall apply, mutatis mutandis, to the submission and acceptance of, and response to, such amended Claim or Counterclaim.
Article 21 Submission and Number of Copies of Documents
A party shall submit its Application for Arbitration, Statement of Defense, Application for Counterclaim, evidentiary documents and other written documents each in five copies. Where additional parties are involved, the number of such copies shall be increased accordingly. If the Arbitral Tribunal consists of one person only, the number of such copies shall be reduced by two. Electronic copies of these documents may also be submitted to CGAC.
Article 22 Multiple Contracts in a Single Arbitration
A party may file in a single arbitration its Claim concerning a dispute involving multiple contracts, provided that:
(a) multiple contracts involve the same parties;
(b) multiple contracts involve the same legal relationship;
(c) the dispute arises from the same transaction or a series of inseparable transactions;
(d) the arbitration agreements in such contracts are identical or compatible.
Article 23 Joinder of a Non-party under the Same Arbitration Agreement in Arbitration Proceedings
(1) Where a non-party under the same arbitration agreement petitions for becoming a co-claimant, such petition must obtain the consent of the Claimant. The decision on whether to accept the above petition shall be made either by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(2) Where the Claimant petitions for joinder of a non-party under the same arbitration agreement as a co-respondent, the decision on whether to accept the above petition shall be made by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(3) Where a non-party under the same arbitration agreement petitions for taking part in the hearing as a third party with or without an independent right of claim, the above petition shall be decided by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(4) Where CGAC decides to allow a non-party to take part in arbitration proceedings, the Arbitral Tribunal shall be constituted pursuant to the provisions in Paragraph (2) and (3) of Article 30 of the Rules. If the Arbitral Tribunal decides to allow a non-party to take part in arbitration proceedings, the Arbitral Tribunal shall continue its trial of the case.
Article 24 Joinder of a Non-Party with No Arbitration Agreement in Arbitration Proceedings
(1) If a non-party with no arbitration agreement intends to take part in arbitration proceedings as a co-claimant, co-respondent or third party, it is necessary for the non-party and the two parties to the same case to reach a consensus and also enter into an arbitration agreement. Whether the non-party is allowed to take part in arbitration proceedings shall be decided either by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(2) If CGAC decides to allow a non-party to take part in arbitration proceedings, the Arbitral Tribunal shall be constituted pursuant to the provisions in Paragraph (2) and (3) of Article 30 of the Rules. If the Arbitral Tribunal decides to allow a non-party to take part in arbitration proceedings, the Arbitral Tribunal shall continue its hearing of the case.
Article 25 Claims among Multiple Parties
(1) If there are two or more Claimants or Respondents or there exists a third party, a party may file its Claim against the other parties in accordance with the same arbitration agreement. The decision on whether to accept such Claim shall be made either by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
(2) The provisions in Article 14, 15, 18 and 20 of the Rules shall apply, mutatis mutandis, to the submission and acceptance of, and response and amendment to the said Claim.
Article 26 Preservation
(1) A party may apply for preservation of properties if it appears that an award may be impossible or difficult to enforce due to any act performed by the other party or for some other reason.
(2) A party may apply for preservation of evidence if any evidence is likely to be lost, or difficult to obtain in the future.
(3) If a party applies for preservation of properties or evidence, CGAC shall refer such application to the competent people’s court within 5 days after the day on which it receives such application from the party.
(4) Prior to its Application for Arbitration, a party may file a petition for preservation in case of any emergency wherein a failure to immediately file such petition will either cause its legitimate rights and interests to be damaged in an irreparable manner or cause any evidence to be lost, or difficult to obtain in the future. The applicant shall, within 30 days after the competent people’s court has taken preservation measures, apply for arbitration according to applicable laws.
Article 27 Representation
(1) A party or its legal representative may authorize one (1) to three (3) persons to represent him/her in arbitration proceedings. The number of representatives may, at the request of a party and upon approval by the Arbitral Tribunal, be properly increased.
(2) Where there are more than two representatives, it is necessary to confirm with the Arbitral Tribunal which representative shall act as the keynote speaker.
(3) A party who authorizes a representative to carry out arbitration activities on its behalf shall submit to CGAC a power of attorney, specifying those tasks delegated and the scope of authority granted to the representative, together with identification documents of the representative.
Article 28 Signing of A Letter of Guarantee
(1) Prior to a hearing, a party and its representative shall each sign a Letter of Guarantee and undertake to act in compliance with the principle of good faith. A refusal to sign the Letter of Guarantee shall be put on the record of the Arbitral Tribunal.
(2) In the event a party or its representative makes a false representation or forges any evidence, the Arbitral Tribunal shall be entitled to render such representation or evidence inadmissible, in which case the party or its representative shall be held legally liable therefor.
Chapter IV Arbitral Tribunal
Article 29 Number of Arbitrators
The Arbitral Tribunal shall consist of three (3) arbitrators, unless otherwise stipulated under the Rules.
Article 30 Composition of Arbitral Tribunal
(1) Each party shall select an arbitrator or authorize the Chairperson of CGAC to appoint an arbitrator. The third arbitrator shall serve as the presiding arbitrator who shall be jointly selected by the parties or be appointed by the Chairperson of CGAC according to a joint mandate given by the parties.
(2) If there are two (2) or more Claimants or Respondents, the Claimants or Respondents shall jointly select an arbitrator or jointly authorize the Chairperson of CGAC to appoint an arbitrator. The presiding arbitrator shall be selected either by the two parties jointly or be appointed by the Chairperson of CGAC according to a joint mandate given by the parties.
(3) If there exists a third party, the third party may select an arbitrator jointly with either the Claimant or the Respondent, as the case may be. In case of a failure to jointly select an arbitrator, all members of the Arbitral Tribunal shall then be appointed by the Chairperson of CGAC.
(4) In case a party fails to solely or jointly select its arbitrator or presiding arbitrator within fifteen (15) days after the day on which it receives the Notice of Acceptance or the Notice of Arbitration, the arbitrator or presiding arbitrator shall then be appointed by the Chairperson of CGAC.
Article 31 Notice on Constitution of Arbitral Tribunal
CGAC shall notify the parties and arbitrators in writing of the constitution of the Arbitral Tribunal within five (5) days after the day on which the Arbitral Tribunal is constituted.
Article 32 Disclosure of Information regarding Arbitrators
(1) A selected or appointed arbitrator shall sign a statement of independence and impartiality.
(2) Where an arbitrator becomes aware of any circumstance which is likely to lead a party or its representative to have reasonable doubt about the impartiality and independence of the arbitrator, the arbitrator shall make disclosure thereof to the party in writing or at hearing.
Article 33 Challenge
(1) An arbitrator shall be challenged, and a party may have the right to challenge an arbitrator, if such arbitrator:
(a) is either a party to the case or a close relative of a party or of a party's representative;
(b) has an interest in the case;
(c) has some other relationship with a party to the case or with a party's representative, which could possibly affect the impartiality of the arbitration; or
(d) meets in private with a party or the representative thereof or accepts any gift or entertainment offered by any of them.
(2) “other relationship” in subparagraph (c) under Paragraph (1) of this Article includes the following circumstances wherein the challenged arbitrator:
(a) has previously provided consultations for a party;
(b) is serving or has served as a legal advisor or an advisor in any other respect for the benefit of a party, and such advisory relationship expired less than two years ago;
(c) has served as a representative of a party under any case which was closed less than two years ago;
(d) is working or has worked with a party or its representative at the same entity, and such working relationship expired less than two years ago; or
(e) serves as a representative of a party under one case heard by CGAC and serves as an arbitrator under another case, both cases being heard by CGAC at the same time, whilst he or she is selected or appointed as an arbitrator in the latter case.
(3) A party challenging an arbitrator shall make the challenge in writing to CGAC, stating the reasons for such challenge and providing relevant evidence.
(4) A party challenging an arbitrator on the ground of any matters to be disclosed by the arbitrator under Article 32 shall make the challenge in writing to CGAC within five (5) days after the day on which it becomes aware of any such matter. In case of a failure to make such challenge within the time limit, it is not allowed to challenge the arbitrator on the ground of any matters already disclosed by the arbitrator.
(5) A party shall challenge an arbitrator prior to the first hearing. A challenge may be made before the conclusion of the last hearing if reasons for such challenge become known after the first hearing. Without prejudice to Paragraph (4) of this Article, if it is agreed to hold no oral hearing, the challenge shall be made within five (5) days after reasons for challenge become known.
(6) CGAC shall, within five (5) days after receiving an application for challenge submitted by a party, serve such application on the other party.
(7) Where a party challenges an arbitrator and the other party agrees with such challenge, or the challenged arbitrator voluntarily proposes not to serve as an arbitrator under the case, such arbitrator shall no longer participate in the hearing of the same case. However, in neither case shall it be implied that the grounds on which the challenge is made are justified.
(8) Except for those circumstances in Paragraph (7) of this Article, the challenge of an arbitrator shall be decided by the Chairperson of CGAC. The challenge of the Chairperson of CGAC as an arbitrator shall be decided at a committee meeting of CGAC.
(9) The challenge of a case manager, an interpreter, an appraiser or an inspector shall be governed by the provisions in this Article. The challenge of an interpreter, an appraiser or an inspector shall be decided by the Chairperson of CGAC. The challenge of a case manager shall be decided on by the Secretary-General of CGAC.
Article 34 Replacement of Arbitrator
(1) An arbitrator shall be replaced if:
(a) such arbitrator becomes unable to conduct the arbitration as a result of death or illness;
(b) such arbitrator goes on a business trip or travels out of the country, causing the time limit for hearing the case to be affected;
(c) such arbitrator withdraws from the arbitration on his or her own initiative, or the two parties together request such arbitrator to withdraws from the arbitration;
(d) such arbitrator is challenged; or
(e) CGAC holds either that such arbitrator is incapable at law or in fact of performing his or her duties or that such arbitrator has failed to do so as required under the Rules.
(2) The replacement of an arbitrator shall be decided by the Chairperson of CGAC.
(3) If the replaced arbitrator was selected by a party, the party shall select a substitute arbitrator within five (5) days after receiving the relevant notice. If the replaced arbitrator was appointed by the Chairperson of CGAC, the Chairperson of CGAC shall appoint a substitute arbitrator. CGAC shall send a Notice on Reconstitution of Arbitral Tribunal to the said party within five (5) days after the above substitute arbitrator has been selected or appointed.
(4) Upon selection or appointment of the substitute arbitrator, in case the parties fail to reach a consensus on whether and to what extent the ongoing arbitration proceedings shall be resumed, the newly constituted Arbitral Tribunal shall make a decision thereon. If the Arbitral Tribunal decides to resume the arbitration proceedings in their entirety, the time limits stipulated in Article 70, 83, 90 and 97 of the Rules shall be recalculated from the day on which the Arbitral Tribunal is reconstituted.
Chapter V Evidence
Article 35 Submission of Evidence
(1) A party shall provide evidence in proof of those facts on which it files a Claim or opposes a Claim filed by its counterparty, unless otherwise stipulated by the applicable laws.
(2) A party shall complete its production of evidence within fifteen (15) days after the day on which it receives the Notice of Acceptance or the Notice of Arbitration. In case of any delay in doing so, whether the evidence produced by the party is acceptable shall be decided by the Arbitral Tribunal. In the event it is difficult indeed for a party to submit evidence within the period for submission of evidence, the party may file a written application for an extension prior to the expiration of the said period. The Arbitral Tribunal shall decide whether such extension is to be allowed.
(3) The period for submission of evidence as to the Counterclaim filed by a party shall be governed by the stipulations under Paragraph (2) of this Article.
(4) In case a party fails to submit its evidence within the prescribed time limit or its submitted evidence is insufficient to prove its Claim, the party bearing the burden of proof shall be held liable for adverse consequences resulting therefrom.
(5) The evidentiary documents submitted by a party shall be categorized for compilation, marked with serial and page numbers, and accompanied by a checklist of evidentiary items indicating the titles, contents, submission dates of those evidentiary items contained therein and bearing stamps and signatures.
Article 36 Classification of Evidence
(1) Evidence shall include any statement, documentary evidence, material evidence, audio-video data, electronic data, witness’s testimony, appraisal report and record of inspection, which are presented by a party.
(2) Electronic data shall mean any and all information formed or stored in electronic media by means of email, EDI, record of online chat, blog, micro-blog, text message on mobile phone, electronic signature or domain name.
Article 37 Exchange of Evidence
(1) CGAC implements an exchange mechanism for the arbitration documents and evidence submitted by the parties and also cause the same to be served on the other party.
(2) If there is a relatively large amount of evidence, the Arbitral Tribunal may, if it considers it necessary, cause the presiding arbitrator or the Arbitral Tribunal’s duly authorized case manager to call the two parties together to cross-examine their evidence prior to the hearing.
Article 38 Written Request for Assistance in Investigation
Where it is difficult indeed for a party to conduct an investigation and collect any evidence, subject to a petition lodged by the party, the Arbitral Tribunal may, if it considers it necessary, make a written request for assistance in investigation. The attorney of the said party may conduct an investigation and collect any evidence upon presentation of the above written request for assistance in investigation to relevant entities and individuals.
Article 39 Investigation and Evidence Collection by Arbitral Tribunal
(1) The Arbitral Tribunal may, if it considers it necessary, investigate into facts and collect evidence on its own or authorize a case manager to do so, provided that more than two (2) working personnel must be present and make a written record thereof.
(2) The Arbitral Tribunal may notify the parties to be present when investigating into facts and collecting evidence on its own or authorize a case manager to do so. Any failure of one or two parties to be present shall not affect the investigation into facts or collection of evidence.
(3) The written investigation record and the evidence which are conducted and collected by the Arbitral Tribunal or the case manager authorized by the Arbitral Tribunal shall be delivered to the parties in order for them to express their opinion of cross-examination.
Article 40 Supplementary Evidence
(1) The Arbitral Tribunal may, if it considers it necessary, request a party to submit supplementary evidence within a specified time limit. The party bearing the burden of proof shall provide supplementary evidence within the prescribed time limit.
(2) A party either failing to provide supplementary evidence without any justifiable reason or failing to do so within the prescribed time limit shall bear the consequences resulting from its failure to produce evidence, in which case the Arbitral Tribunal shall ascertain the facts under the case and make an award on the basis of available evidence.
Article 41 Appraisal
(1) A party may petition the Arbitral Tribunal for appraisal of any specific issues as to the ascertainment of facts. Where any such issue is not related to the facts to be found or is of no value for the finding of the facts to be ascertained, the Arbitral Tribunal shall disallow the aforesaid petition. In case the Arbitral Tribunal considers it necessary to conduct appraisal of any specific issues, such appraisal may be conducted without such petition is filed by a party.
(2) The two parties shall, within the time limit prescribed by the Arbitral Tribunal, jointly select a duly qualified appraiser or jointly determine the rules for selection of appraisers. In case the parties fail to reach an agreement thereon, the Arbitral Tribunal shall randomly select an appraiser from the roster of appraisers. Where it is not feasible to select an appraiser randomly, the Arbitral Tribunal shall appoint an appraiser.
(3) Parties shall pay in advance appraisal fees according to such proportion and within such time limit as determined by the Arbitral Tribunal, and the case-closing instrument shall specify which party shall bear appraisal fees and the proportion of appraisal fees to be borne by such party. In case a party fails to pay in advance appraisal fees within the time limit prescribed by the Arbitral Tribunal, no appraisal shall be conducted.
(4) The Arbitral Tribunal shall have the right to request a party to, and the party is also obliged to provide or produce to the appraiser any and all documents, data, properties or other things necessary for appraisal in order for such appraiser to review, inspect or evaluate the same.
(5) The Arbitral Tribunal or the appraiser may, if it considers it necessary, hold an appraisal meeting to organize the parties to discuss any issues in relation to appraisal.
(6) The appraiser shall present a written appraisal report and affix his/her signature or seal thereon. A duplicate of the written appraisal report shall be delivered to the parties, each of whom shall have the right to comment on the written appraisal report.
(7) Where the party objects to the appraisal report or the Arbitral Tribunal considers it necessary for the appraiser to testify at hearing, the appraiser shall appear at hearing for testimony. The Arbitral Tribunal shall organize the parties to raise questions to the appraiser on certain issues relating to the written appraisal report, and the appraiser shall provide explanations in response to the appraisal report.
(8) A petition lodged by a party for conducting a new appraisal without any justifiable reason shall not be allowed by the Arbitral Tribunal.
Article 42 Witness’s Testimony
(1) A party which requests a witness to appear in a hearing to testify shall make such request in written form. The Arbitral Tribunal shall decide whether to accept the said request. The written request shall contain the identity information and contact information of the witness as well as the matters to be testified and further be accompanied by the identification documents of the witness.
(2) A witness appearing in a hearing to testify shall sign a letter of undertaking under which it undertakes to testify faithfully. A witness refusing to sign the letter of undertaking shall not testify.
(3) Where a witness appears in a hearing to testify, the Arbitral Tribunal and the parties may raise questions to the witness in respect of related issues, and the witness shall answer these questions faithfully. In a case that the witness makes false statement, the Arbitral Tribunal shall be entitled to deem the testimony of the witness as inadmissible in evidence, and the witness shall be held legally liable therefor.
Article 43 Expert Witness
(1) Where a party requests an expert witness to appear in a hearing as to an appraisal report or a case is of high specialization, the party shall provide the identity and contact information of the expert witness as well as the issues to be testified , and further be accompanied by those certificates of the expert’s identity and relevant professional knowledge. The Arbitral Tribunal shall decide whether to allow the said request.
(2) The Arbitral Tribunal shall organize the parties to raise questions to expert witnesses appearing in a hearing. The expert witnesses requested by the parties may cross-examine each other as to the appraisal report or professional issues.
(3) An expert witness shall not participate in any hearing unrelated to an appraisal report or expertise issues.
(4) The expenses incurred by an expert witness appearing in a hearing shall be solely borne by the party concerned.
Article 44 Cross-examination
(1) In relation to a case to be heard, the evidence exchanged prior to the hearing shall be produced during the hearing in order for the parties to cross-examine the evidence of each other. The parties shall cross-examine the evidence of each other with an emphasis laid on the authenticity the legitimacy of the same as well as its relevance to the facts to be ascertained, and shall illustrate and debate over the existence and weight of probative force of the evidence.
(2) With an explanation offered by the Arbitral Tribunal at the hearing，the evidence already cross-examined prior to a hearing need not to be produced and cross-examined at the hearing
(3) With respect to the evidence which is produced by a party in a hearing, if the Arbitral Tribunal has decided to accept such evidence, such evidence may be cross-examined with consent of the other party. In case the other party does not agree with the said cross-examination in the hearing, the Arbitral Tribunal may hold a separate hearing to cross-examine the above evidence or the other party may cross-examine the same in writing.
(4) With respect to the evidence which is produced by a party after a hearing, if the Arbitral Tribunal has decided to accept such evidence, it may hold a separate hearing to cross-examine the above evidence or cause the cross-examination of the same in writing with consent of the other party.
(5) The evidence under a case to be heard on the basis of documents only shall be cross-examined by the parties in writing.
Article 45 Assessment of Evidence
(1) Evidence shall be assessed by the Arbitral Tribunal. The Arbitral Tribunal shall examine evidence in a comprehensive and objective manner, and shall assess evidence in an all-sided way according to relevant laws and regulations, by reference to applicable judicial interpretations, in conformity to commercial practices and transaction habits and in pursuance of logic reasoning and the rule of thumb in everyday life.
(2) The Arbitral Tribunal shall decide whether to adopt an appraisal report and the opinion of an expert witness.
Chapter VI Time limits and Service
Article 46 Calculation of Time limits
(1) A time limit is calculated by the hour, the day, the month and the year. The hour and day from which a time limit begins shall not be counted as within the time limit. If the expiration date of a time limit falls on a holiday, then the day immediately following the holiday shall be regarded as the expiration date.
(2) Time for delivery shall not be included in the period of time. Any arbitration document, instrument or notice that has been mailed or dispatched within the time limit shall not be deemed as being delayed.
(3) If a party exceeds a time limit because of any force majeure events or other justifiable reasons, it may request for an extension of that time limit within ten (10) days after the obstacle has been eliminated. Whether such request is allowed shall be decided by CGAC or the Arbitral Tribunal.
Article 47 Service
Arbitration documents may be served directly, by mail, by electronic means or by way of a public notice. Where the parties have agreed otherwise thereon, their agreement as such shall apply.
Article 48 Direct Service
(1) An arbitration document required to be served directly shall be served directly on the person to be served or its arbitration representative or the person designated by such person to receive the arbitration document.
(2) If the person to be served is a natural person, the arbitration document shall be delivered to an adult family member of the natural person as and when the said natural person is not available; if the person to be served is a legal person or any other organization, the arbitration document shall be delivered to the legal representative of the legal person, the person-in-charge of such other organization, or the working personnel in the office, mail room or janitor’s room or the person designated by the person to be served receive the arbitration document. The day on which the above person acknowledges the service shall be taken as the date of service. In the event the person to be served refuses to receive an arbitration document, the person serving the arbitration document may leave the arbitration document at the domicile of the person to be served and shall record, by means of photo-taking or video-shooting, the process of the arbitration document being served, in which case the arbitration document shall be deemed as having been served.
(3) If a party or its representative or the person designated by such party to receive the arbitration document arrives at the premises of CGAC but refuses to sign an acknowledgement of service, the service shall be deemed as having been completed. The party serving the arbitration document shall indicate the reason and date of such refusal, and also sign its name, on the acknowledgment of service.
Article 49 Service by Mail
(1) When applying for arbitration or making a defense, a party shall fill out a written confirmation in order to confirm its accurate address for service with CGAC. Any arbitration document mailed/posted to the above address shall be deemed as having been duly served. A party intending to alter its address for service before the case-closing instrument is served shall notify CGAC in writing of such alteration in due time. Any and all legal consequences resulting from a failure of service caused either by an inaccuracy in the address for service confirmed by a party or by a failure of a party to notify CGAC in due time of a change in its address for service shall be borne by the party who has earlier confirmed the aforesaid address for service.
(2) In case a party fails to confirm its address for service with CGAC, the contractually agreed service address for service shall apply. Any arbitration document mailed to the said address for service shall be deemed as having been duly served.
(3) Where a party fails to confirm its address for service with CGAC and there exists no contractually agreed address for service, arbitration documents shall be mailed to the following address (if any):
(a) The contractually agreed contact address of the party;
(b) Any other address provided by the other party; or
(c) The domicile recorded in the household register, the address stated on the Identity Card or the residential place of a natural person; the domicile or the place of business of a legal person or any other organization which either has been registered duly with the competent administration for industry and commerce or has been duly registered and filed with any other competent authority.
(4) If, despite reasonable efforts of enquiry, CGAC or the other party remains unable to find the place of business, the residential place or the mailing address of the party to be served on, any arbitration document served to the last known place of business, registered address, domicile, residential place or mailing address of the party to be served on, whether by registered mail or by any other means which allows for a record of delivery, shall be deemed as having been duly served.
(5) Where an arbitration document is successfully mailed to the party to be served on for the first time, any subsequent document which is mailed to the same address shall be deemed as having been duly served even if the receipt thereof has not been signing to acknowledge.
(6) Where the party to be served on refuses to sign an acknowledgement on its receipt of an arbitration document or requests to return the same, the date of return of the arbitration document shall be deemed as the date of service thereof.
(7) A party intentionally providing an inaccurate address for service shall bear any and all adverse consequences resulting therefrom.
Article 50 Service by Electronic Means
(1) If the party to be served on agrees to the service by electronic means, it shall confirm its agreement thereto in the written Confirmation of Address for Service and also confirm its accurate address or number for service by electronic means. Where a party agrees expressly in a contract to the service by electronic means and also agrees on its address or number for service by electronic means, arbitration documents may be served by electronic means.
(2) In regard to the service by electronic means, it is allowed to employ a particular system enabling instant receipt as the carrier of service, such as facsimile, e-mail or mobile communication. The date of successful transmission by facsimile, email or text message on mobile phone indicated on the corresponding system of CGAC shall be the date of service. However, if the party to be served on proves that the date of arrival of any arbitration document at its particular system differs from the date of successful transmission indicated on the corresponding system of CGAC, the former date shall prevail.
Article 51 Service by Public Notice
If the whereabouts of a natural person remains unknown or it is impossible to serve an arbitration document by any other means specified in this Chapter, it is allowed to serve the arbitration document by way of public notice, in which case the said arbitration document shall be deemed as having been served sixty (60) days after the day on which the above public notice is given. Service by way of public notice shall not apply to international arbitration cases.
Chapter VII Hearing
Article 52 Form of Hearing
(1) The Arbitral Tribunal shall hear a case in the form of oral hearings.
(2) Where the parties agree not to hold an oral hearing, the case may, upon consent of the Arbitral Tribunal, be heard on the basis of documents only. The Arbitral Tribunal shall make an award on the basis of the Application for Arbitration, the Statement of Defense, relevant evidence and other relevant documents.
(3) Oral hearings and hearings on the basis of documents only may take place online, offline or in both ways.
Article 53 Place of Hearing
(1) A case administered by CGAC or any of its sub-commissions shall be heard at the place where CGAC or its relevant sub-commission is located or, if the Arbitral Tribunal considers it necessary, at any other places with the consent of the Chairperson of CGAC or its relevant sub-commission.
(2) Where the parties agree to hold a hearing at another location outside of the place where CGAC or any of its sub-commission is located, such agreement shall prevail; provided that the parties shall bear any additional expenses resulting therefrom. If the parties fail to pay in advance the aforesaid expenses within the time limit stipulated by CGAC or its relevant sub-commission, the hearing shall be held at the place where CGAC or its relevant sub-commission is located.
Article 54 Confidentiality Obligation
(1) The arbitration shall be conducted in camera. Where the parties agree on a public hearing, the arbitration may proceed in public, except where the case involves any state secrets or any third party’s commercial secrets.
(2) In relation to an arbitration conducted in camera, the parties and their arbitration representatives, witnesses, appraisers, arbitrators, those experts with whom the Arbitral Tribunal consults and relevant personnel of CGAC shall not disclose to third parties any information relating to the case.
Article 55 Measures of Hearing
The Arbitral Tribunal may, according to the particular circumstances, determine the procedural timetable for the hearing and take various kinds of measures, including but not limited to issuing questionnaires, holding pre-hearing conference and preparing the terms of reference.
Article 56 Concurrent Hearings
(1) The Arbitral Tribunal may hold concurrent hearings, provided that:
(a) the cases concerned involve the same or related subject-matter;
(b) the composition of Arbitral Tribunal is same; and
(c) a party requests to hold concurrent hearings for the cases and obtains the consent of other parties concerned to do so, or the Arbitral Tribunal obtains the consent of all parties to do so.
(2) In relation to cases to be heard concurrently, the Arbitral Tribunal may decide on the specific procedures for concurrent hearings according to the particular circumstances of the cases.
Article 57 Notice of Hearing
(1) The Arbitral Tribunal shall notify the parties of the time and place of the first hearing to be held seven (7) days in advance. With the consent of the two parties, the Arbitral Tribunal may hold a hearing ahead of schedule.
(2) A party which has a justifiable reason to request a postponement of a hearing shall make such request five (5) days prior to the hearing. The Arbitral Tribunal shall decide whether to allow the said postponement.
(3) The notice of the time and place of second-time hearing and postponed hearing shall not be subject to the time limit prescribed in Paragraph (1) of this Article.
Article 58 Identity Verification
(1) During a hearing, the presiding arbitrator or the sole arbitrator shall verify whether the parties or their representatives and other participants in arbitration proceedings are present and shall verify their identifies.
(2) In case one party disputes the identity of a person appearing in a hearing on behalf of the other party, the other party shall produce the relevant identity document(s) of the aforesaid person during the hearing.
Article 59 Default
(1) If, upon being duly notified in writing, the Claimant either fails to appear at a hearing without any justifiable reason or withdraws from an ongoing hearing without the approval of the Arbitral Tribunal, the Claimant shall be deemed as having withdrawn its Application for Arbitration. Where the Respondent has filed a Counterclaim, the Claimant’s default shall not affect the hearing of the Counterclaim by the Arbitral Tribunal.
(2) If, upon being duly notified in writing, the Respondent either fails to appear at a hearing without any justifiable reason or withdraws from an ongoing hearing without the approval of the Arbitral Tribunal, the Arbitral Tribunal may proceed with the arbitration. Where the Respondent has filed a Counterclaim, such Counterclaim shall be deemed to have been withdrawn.
Article 60 Investigation During Hearing
An investigation during a hearing may include the following acts:
(1) One party states its Claim or Counterclaim, facts and reasons, and the other party makes its defense;
(2) The parties produce evidence and cross-examine each other’s evidence, and the Arbitral Tribunal verifies such evidence;
(3) The Arbitral Tribunal raise questions to the parties for the purpose of investigation;
(4) The parties may raise questions to each other under the direction of the Arbitral Tribunal; and
(5) Other respects which the Arbitral Tribunal considers it necessary to investigate.
Article 61 Argument and Closing Statement
The parties shall have the right to argue during a hearing. After the end of argument, the Arbitral Tribunal shall listen to the closing statements of the parties.
Article 62 Written Record of Hearing
(1) The Arbitral Tribunal shall make a written record of the hearing.
(2) A party or any other participant in the arbitration may request the rectification of any omission or error in the written record of their oral statement. The request shall be put on record if the Arbitral Tribunal does not allow the rectification.
(3) A written record shall be affixed with the respective signatures or seals of the arbitrators, the person making the record, the parties and other participants in arbitration proceedings.
(4) If a party or any other participant in arbitration proceedings refuses to affix his or her signature on a written record, such refusal shall be put on record with the respective signatures of the arbitrators and the person making the record affixed on it.
Article 63 Withdrawal of Application for Arbitration or Counterclaim
(1) A party may withdraw its Application for Arbitration or Counterclaim (if any). The withdrawal by the Claimant of its Application for Arbitration shall not affect the hearing and determination by the Arbitral Tribunal of the Counterclaim. The withdrawal by the Respondent of its Counterclaim shall not affect the hearing and determination by the Arbitral Tribunal of the Claim.
(2) If a party withdraws its Application for Arbitration or Counterclaim, the decision thereon shall be made by the Arbitral Tribunal or, if no Arbitral Tribunal has been constituted, by CGAC.
Article 64 Mediation
(1) The Arbitral Tribunal may, at the request of a party(ies) or with the consent of the parties concerned, conduct a mediation of the case in an appropriate manner, and the parties may also settle their dispute by themselves.
(2) Where a party proposes to terminate the mediation during the course of mediation, the Arbitral Tribunal shall terminate the mediation and resume the arbitration proceedings.
(3) Where the parties have reached a settlement agreement through mediation, the parties may withdraw their Application for Arbitration or Counterclaim, or may request the Arbitral Tribunal either to issue a paper of mediation (the “Paper of Mediation”) or to render an award in accordance with the terms of the settlement agreement. The Paper of Mediation and the written award shall be of equal legal effect.
(4) The Paper of Mediation shall state the Claim and the outcome of negotiations between the parties. It shall be signed by the arbitrators, sealed by the Arbitral Tribunal, and served on all the parties. The Paper of Mediation shall take legal effect after all the parties have acknowledged receipt of it.
(5) The provisions in Paragraph (1), (3) and (4) of Article 75 of the Rules shall apply mutatis mutandis in respect of any mistake in any words, symbols, charts or graphs and calculations contained in the Paper of Mediation as well as a printout or similar error thereof.
(6) In case mediation efforts come of no avail, none of the parties shall invoke any statement, opinion, viewpoint or suggestion made or expressed by any other party or the Arbitral Tribunal during the mediation as the basis of its petition, defense or Counterclaim in subsequent arbitration proceedings or other proceedings.
Article 65 Expert Advisory Committee
(1) In accordance with its Articles of Association, CGAC shall establish an expert advisory committee (the “Expert Advisory Committee”).
(2) With respect to those cases which are significant or complex or are likely to have a material influence on the society and other cases in regard to which the Arbitral Tribunal deems it necessary to seek advice, the Arbitral Tribunal or CGAC may submit them to the Expert Advisory Committee for consultation. The Arbitral Tribunal shall have due regard to the opinion expressed by the Expert Advisory Committee and shall, insofar as the Arbitral Tribunal intends not to accept the said opinion, explain to CGAC in writing the reasons for not accepting such opinion.
Article 66 Suspension and Resumption of Arbitration
(1) Arbitration shall be suspended under any of the following circumstances:
(a) A party objects to the validity of the arbitration agreement;
(b) A party dies and it is necessary to wait for its successor to participate in arbitration proceedings;
(c) A party loses its capacity of disposition and has not confirmed its legal representative yet;
(d) The legal person or any other organization operating as a party is terminated and has not confirmed the transferee of its rights and obligations yet;
(e) A party becomes unable to participate in arbitration proceedings for reason of any force majeure;
(f) The case must be heard on the basis of the outcome of another case whose hearing has not been closed yet; or
(g) Any other circumstances in which arbitration shall be suspended.
(2) Arbitration shall be resumed as soon as the reason of suspension of arbitration is eliminated.
(3) The parties shall be notified of a decision on the suspension or resumption of arbitration.
(4) Where a cause of suspension of arbitration arises before the Arbitral Tribunal is constituted, CGAC shall make a decision thereon. Where a cause of discontinuance of arbitration arises after the Arbitral Tribunal is constituted, the Arbitral Tribunal shall make a decision thereon.
Article 67 Termination of Arbitration
(1) Arbitration shall be terminated under any of the following circumstances:
(a) The Claimant dies or is terminated and has no inheritor or its inheritor has waived the arbitral rights;
(b) The Respondent dies or is terminated and has no estate or property, and there is no person liable to bear any obligations thereof;
(c) The competent people’s court adjudicates either that the arbitration agreement is null and void or that CGAC has no jurisdiction; or
(d) Any other circumstances in which the arbitration shall be terminated.
(2) Where a cause of termination arises before the Arbitral Tribunal is constituted, CGAC shall make a decision thereon. Where a cause of termination arises after the Arbitral Tribunal is constituted, the Arbitral Tribunal shall make a decision thereon.
(3) The decision on termination of arbitration shall be made in writing and notified to the parties thereof.
Article 68 Continuance of Arbitration Proceedings with Majority of Arbitrators
If, after the conclusion of the last hearing, an arbitrator on a three-member tribunal is unable to complete the arbitration proceedings as a result of his/her death or for other reason, the Chairperson of the CGAC may replace the said arbitrator in accordance with Article 34 of the Rules. Alternatively, with the consent of all the parties and the approval of the Chairperson of CGAC, the two remaining arbitrators may continue with arbitration proceedings and make a decision or award or conduct mediation.
Chapter I Decisions and Awards
Article 1 Decisions Made by Arbitral Tribunal
(1) The Arbitral Tribunal shall, during the arbitral proceedings, decide upon procedural matters concerned.
(2) Any decision of an Arbitral Tribunal comprising three (3) arbitrators shall be made by a majority of the arbitrators. If the Arbitral Tribunal fails to reach a majority decision, the decision shall be made in accordance with the opinion of the presiding arbitrator.
(3) The presiding arbitrator may, with the consent of the two parties or the authorization by other arbitrators of the Arbitral Tribunal, decide upon procedural matters.
(4) A decision shall take legal effect as from the day on which it is made.
Article 2 Time Limit for Making an Award
(1) The Arbitral Tribunal shall make an award within four (4) months after the day on which it is constituted.
(2) Under any special circumstance in which it is necessary to extend the above time limit, the Chairperson of CGAC may approve an extension of an appropriate time limit, provided that the presiding arbitrator shall file a written application for such extension ten (10) days prior to the expiration of the time limit.
(3) The appraisal period, the suspension period, the public notice period as well as the time limit during which the two parties apply jointly for an out-of-court settlement shall be excluded from the time limit.
Article 3 Making of an Award
(1) Where an Arbitral Tribunal consists of three arbitrators, the three arbitrators shall consult with one another on the award under the arbitration case and make a written record of such consultation. The award shall be made by a majority of the arbitrators. If the Arbitral Tribunal fails to reach a majority decision, the award shall be made in accordance with the opinion of the presiding arbitrator. The dissenting opinion of an arbitrator shall be recorded in writing.
(2) Where an Arbitral Tribunal consists of one arbitrator, the award shall be made by the sole arbitrator.
(3) An award shall state the Claim, the facts of the dispute, the reasons on which the award is based, the result of the award, the allocation of arbitration fees, the date of the award, and the legal consequences resulting from any delay in the performance of the award. The facts of the dispute and the reasons on which the award is based may be omitted in the award if the parties have agreed so.
(4) An award shall be signed by arbitrators either in person or electronically and also affixed with the official or electronic seal. An arbitrator who has a dissenting opinion of the award may elect not to sign the award. An arbitrator who elects not to sign the award shall issue a dissenting opinion in writing, which shall be archived by CGAC and may be attached to the award. A dissenting opinion shall not form part of the award.
Article 4 Preliminary Award and Consolidated Award
(1) Upon request by the party concerned, the Arbitral Tribunal may, if it considers it necessary, first make preliminary award on certain Claim lodged by the Claimant. The preliminary award shall form part of the final award and also be of legal effect.
(2) In relation to those cases to be heard concurrently, the Arbitral Tribunal may make a consolidated award if such cases involve the same parties and the Arbitral Tribunal holds that a consolidated award plays a better role in resolving the dispute.
Article 5 Validity and Performance of an Award
(1) An award shall take legal effect as from the day on which it is made.
(2) After an award is made, the parties shall perform the award pursuant to the time limit for performance specified therein. Where no time limit for performance is specified in the award, the award shall be performed forthwith. In case any party fails to perform the award, the other party may petition the competent people’s court for enforcing the same award in accordance with applicable laws.
Article 6 Allocation of Costs
(1) The Arbitral Tribunal shall determine in the award the arbitration fees payable ultimately by the parties to CGAC and other actual expenses to be borne by the parties.
(2) Unless otherwise agreed by the parties, the cost of arbitration shall in principle be borne by the losing party. If either party is only partially successful, the Arbitral Tribunal shall determine the proportion of each party’s share of the costs on the basis of the extent of the liability of such party. If the parties reach a settlement either independently or as a result of mediation by the Arbitral Tribunal, they may agree upon the proportion of arbitration fees payable by each party.
(3) The Arbitral Tribunal may, at the request of a party, decide in the award that the losing party shall indemnify the winning party for those reasonable expenses (including but not limited to attorney’s service fees, preservation expenses and notarization charges) incurred by the latter in pursuing the case.
(4) Where the winning party requests the losing party to bear the attorney’s service fees incurred by the former in pursuing the case, the Arbitral Tribunal shall make a decision thereon by taking into consideration the outcome of the case, its complexity, the actual workload of the attorney, the amount in dispute, and any other relevant factors. If the two parties have agreed on a specific amount of the attorney’s fee and have their case to be represented by an attorney, such agreement shall be applicable; provided that the amount of the attorney’s fee to be borne by the losing party shall not exceed 15% of the amount payable to the winning party. Where the two parties have no such agreement, the Arbitral Tribunal shall make sure the maximum amount of the attorney’s fee incurred by the winning party and to be borne by the losing party shall not exceed 15% of the amount payable to the winning party.
Article 7 Correction of the Award and Supplementary Award
(1) The Arbitral Tribunal shall correct any errors in any words, symbols, charts or graphs and calculations contained in the award as well as a printout or similar error of the award, and shall correct any omission of matters that have been raised by a party in its Claim and decided upon by the Arbitral Tribunal but omitted in the main body of the award.
(2) Where the Arbitral Tribunal has omitted to decide on a matter submitted by a party for arbitration, the Arbitral Tribunal shall make a supplementary award thereon. The Arbitral Tribunal may, if it considers it necessary, hold a hearing to decide on the matter accordingly.
(3) Within thirty (30) days after its receipt of an award, a party may petition the Arbitral Tribunal for rectifying the award or making a supplementary award.
(4) Any correction or supplementary award made by the Arbitral Tribunal shall form part of the original award.
Article 8 Application for Setting Aside an Award
Where a party applies for setting aside an award, such party may, within six (6) months upon its receipt of the award, submit the application to the competent people’s court.
Article 9 Re-arbitration
(1) Where a party applies for setting aside an award, if the competent people’s court deems it feasible to conduct a re-arbitration and the Arbitral Tribunal agrees to do so, the Arbitral Tribunal shall conduct a re-arbitration accordingly. A new Arbitral Tribunal may be constituted to conduct the arbitration insofar as the two parties request to do so or the Chairperson of CGAC considers it necessary.
(2) If a party applies for providing any supplementary evidence in the course of re-arbitration proceedings, the Arbitral Tribunal shall decide whether to allow the party to do so. The Arbitral Tribunal may, if it considers it necessary, request the party to provide supplementary evidence within a specific time limit.
Chapter II Expedited Procedure
Article 10 Application of Expedited Procedure
(1) Expedited procedure (the “Expedited Procedure”) shall apply to any case where the disputed amount does not exceed RMB 500,000, unless otherwise agreed by the parties.
(2) Expedited Procedure may apply to any case where the amount in dispute exceeds RMB 500,000 insofar as the two parties agree in writing to do so.
(3) Where no monetary claim is specified or the amount in dispute is not clear, CGAC shall decide whether or not to apply the Expedited Procedure after a full consideration of such factors as the complexity of the case and the interests involved.
Article 11 Composition of the Arbitral Tribunal
(1) A case to which Expedited Procedure applies shall be heard by a sole arbitrator.
(2) The parties shall, within ten (10) days of receipt of the Notice of Acceptance or the Notice of Arbitration, jointly select or jointly authorize the Chairperson of CGAC to appoint a sole arbitrator. In case of a failure to do so within such period of time, the sole arbitrator shall be appointed by the Chairperson of CGAC.
Article 12 Defense and Counterclaim
The Respondent shall, within ten (10) days of receipt of the Notice of Arbitration, submit to CGAC a Statement of Defense, evidence and relevant supporting documents. A Counterclaim, if any, shall also be submitted in writing within the above time limit.
Article 13 Notice of Hearing
(1) Where an oral hearing is to be held, the Arbitral Tribunal shall notify the parties of the date and place of the hearing at least three (3) days in advance. The Arbitral Tribunal may hold the oral hearing ahead of schedule with the consent of the parties.
(2) If the Arbitral Tribunal hears a case by way of oral hearing, only one oral hearing shall be held. Where necessary, however, the Arbitral Tribunal may hold further hearings. The notice on the time and place of the subsequent hearing shall not be subject to the time limit prescribed in Paragraph (1) of this Article.
Article 14 Conversion of Expedited Procedure into Ordinary Procedure
(1) During the Expedited Procedure, the Expedited Procedure may, upon the joint request of the parties or upon the request of one party with the approval of the other parties, be converted into the Ordinary Procedure.
(2) The Expedited Procedure shall remain unchanged where the amount in dispute exceeds RMB 500,000 due to any amendment to the Claim, the filing of or any amendment to the Counterclaim. The Expedited Procedure shall be converted into the Ordinary Procedure if the two parties so request. If one party requests to convert the Expedited Procedure into the Ordinary Procedure, the Chairperson of CGAC shall decide whether to approve.
Article 15 Time Limit for Making the Award
The Arbitral Tribunal shall make an award within two (2) months after the day on which it is constituted. Under any special circumstance in which it is necessary to extend the above time limit, the Chairperson of CGAC may approve an extension of an appropriate time limit; provided that the sole arbitrator shall file a written application for such extension ten (10) days prior to the expiration of the time limit.
Article 16 Application of Other Provisions of the Rules
Other provisions of the Rules shall apply to those matters not stipulated in this Chapter.
Chapter III Special Provisions on Financial Arbitration
Article 17 Scope of Application
(1) Unless otherwise agreed by the parties, the provisions under this Chapter shall apply to financial dispute cases. If there are no such provisions in this Chapter, other provisions of the Rules shall apply instead.
(2) Financial Dispute shall mean those disputes arising out of or relating to any financial transactions or financial service activities among financial institutions or between financial institutions on the one side and other legal persons, natural persons or other organizations on the other side.
(3) Any dispute between the parties as to whether the case is a Financial Dispute shall be referred to CGAC for a decision.
(4) The provisions in Chapter IX of the Rules shall apply to a Financial Dispute case which fits the description in Article 78 of the Rules.
(5) In relation to a case of international finance, the Arbitral Tribunal may, based on the circumstances under the case, decide to apply the provisions in Chapter XI relating to time limit.
Article 18 Defense and Counterclaim
Article 19 The Respondent shall, within ten (10) days of receipt of the Notice of Arbitration, provide a Statement of Defense and relevant documents to CGAC. A Counterclaim, if any, shall also be submitted in writing within the above time limit. Composition of the Arbitral Tribunal
(1) Within ten (10) days of receipt of the Notice of Acceptance or the Notice of Arbitration, the parties shall, pursuant to the provisions in Article 30 of the Rules, respectively select or jointly authorize the Chairperson of CGAC to appoint an arbitrator and jointly select or jointly authorize the Chairperson of CGAC to appoint a presiding arbitrator.
(2) In case the parties fail to select or jointly authorize the Chairperson of CGAC to appoint an arbitrator and jointly select or jointly authorize the Chairperson of CGAC to appoint a presiding arbitrator pursuant to the provisions in Paragraph (1) of this Article, the said arbitrators or the presiding arbitrator shall be appointed by the Chairperson of CGAC.
Article 20 Notice of Hearing
(1) The Arbitral Tribunal shall notify the parties of the time and place of the first hearing at least five (5) days in advance. With the consent of the two parties, the Arbitral Tribunal may hold a hearing ahead of schedule.
(2) The notice of the time and place of subsequent hearing and postponed hearing shall not be subject to the time limit prescribed in Paragraph (1) of this Article.
Article 21 Preservation
If a party applies for preservation of properties or evidence, CGAC shall refer such application to the competent people’s court within three (3) days of receipt of such application from the party.
Article 22 Award
(1) In light of financial transaction habits, industrial specifications and trading practices, the Arbitral Tribunal shall make an award in a fair and reasonable manner on the basis of the facts and pursuant to laws.
(2) The Arbitral Tribunal shall make an award within three (3) months after the day on which it is constituted. Under any special circumstance in which it is necessary to extend the above time limit, the Chairperson of CGAC may approve an extension of an appropriate time limit; provided that the presiding arbitrator shall file a written application for such extension ten (10) days prior to the expiration of the time limit and each extension shall not exceed twenty (20) days
Article 23 Provisions on Refund
Where the case is closed as a result of mediation or the Application for Arbitration is withdrawn by a party after a hearing, 50% of the arbitration fees shall be refunded.
Chapter IV Special Provisions on International Arbitration
Article 24 Scope of Application
(1) Unless otherwise agreed by the parties, the provisions in this Chapter shall apply to international arbitration cases. If there are no such provisions in this Chapter, other provisions of the Rules shall apply instead.
(2) The case involving the Hong Kong Special Administrative Region, the Macao Special Administrative Region and/or the Taiwan Region shall be dealt with by reference to the provisions in this Chapter.
(3) Any dispute between the parties as to whether the case involves any international or foreign element shall be referred to CGAC for a decision.
(4) The provisions in Chapter IX of the Rules shall apply to the international arbitration case which fits the descriptions in Article 78 of the Rules.
Article 25 Notice of Arbitration
Within ten (10) days after accepting an Application for Arbitration, CGAC shall send to the Claimant a Notice of Acceptance, a copy of the Rules and the Panel of Arbitrators and shall send to the Respondent a Notice of Arbitration, a duplicate of the Application for Arbitration, a copy of the Rules and the Panel of Arbitrators.
Article 26 Composition of the Arbitral Tribunal
(1) Within twenty (20) days of receipt of the Notice of Acceptance or the Notice of Arbitration, the parties shall, pursuant to the provisions in Article 30 of the Rules, respectively select or jointly authorize the Chairperson of CGAC to appoint an arbitrator and jointly select or jointly authorize the Chairperson of CGAC to appoint a presiding arbitrator
(2) In case the parties fail to select or jointly authorize the Chairperson of CGAC to appoint an arbitrator and jointly select or jointly authorize the Chairperson of CGAC to appoint a presiding arbitrator pursuant to the provisions in Paragraph (1) of this Article, the said arbitrators or the presiding arbitrator shall be appointed by the Chairperson of CGAC.
Article 27 Defense and Counterclaim
The Respondent shall, within forty-five (45) days of receipt of the Notice of Arbitration, submit to CGAC a Statement of Defense, evidence and relevant supporting documents. A Counterclaim, if any, shall also be submitted in writing within the above time limit.
Article 28 Notice of Hearing
(1) The Arbitral Tribunal shall notify the parties of the time and place of the first hearing at least thirty (30) days in advance. With the consent of the two parties, the Arbitral Tribunal may hold a hearing ahead of schedule.
(2) A party which has a justifiable reason to request a postponement of a hearing shall make such request fifteen (15) days prior to the hearing. The Arbitral Tribunal shall decide whether to approve the said postponement.
(3) The notice of the time and place of subsequent hearing and postponed hearing shall not be subject to the time limit prescribed in Paragraph (1) of this Article.
Article 29 Time Limit for Making the Award
The Arbitral Tribunal shall make an award within six (6) months after the day on which it is constituted. Under any special circumstance in which it is necessary to extend the above time limit, the Chairperson of CGAC may approve an extension of an appropriate time limit; provided that the presiding arbitrator shall file a written application for such extension ten (10) days prior to the expiration of the time limit.
Article 30 Applicable Law
(1) The Arbitral Tribunal shall make an award on the dispute pursuant to the applicable laws agreed by the parties, which shall not include the rules of conflict of laws of such country.
(2) In the absence of an agreed choice of law or in case such agreement conflicts with the mandatory rules of law of the seat of arbitration, the Arbitral Tribunal shall have the right to determine the applicable law.
Article 31 Friendly Arbitration
Subject to an explicit authorization by the parties, the Arbitral Tribunal may make an award on the dispute in adherence to the principles of fairness and reasonableness.
Article 32 Performing of Award
(1) In case any party fails to perform an arbitral award, the other party may petition the competent people’s court in the People’s Republic of China for enforcement pursuant to the laws of the People’s Republic of China. Where the party against which an arbitral award is enforced or its properties is not located within the territory of the People’s Republic of China, the other party may petition the jurisdictional foreign court for recognizing and enforcing the arbitral award pursuant to the Convention on Recognition and Enforcement of Foreign Arbitral Awards of the United Nations or any other international or inter-regional treaties which the People’s Republic of China either has concluded or is a party to.
(2) Where the party against which an arbitral award is enforced or its properties is located within the territory of the Hong Kong Special Administrative Region, the Macao Special Administrative Region or the Taiwan Region, the parties may petition the jurisdictional local court for recognizing and enforcing the arbitral award in accordance with relevant arrangements and provisions.
Chapter V Supplementary Provisions
Article 33 Language of Arbitration
(1) CGAC shall adopt the Chinese language as its official language.
(2) In a case of international arbitration, the parties may agree on the language to be adopted. Where the parties make no such agreement or are unable to reach an agreement thereon, CGAC or the Arbitral Tribunal may decide to adopt the Chinese language or any other language according to the particular circumstances of the case.
(3) If translation services are required by the parties or their representatives or witnesses during the course of a hearing, translators may be provided either by CGAC or by the parties themselves. The parties shall bear the costs of translation.
(4) In relation to various instruments and documentary evidence submitted by the parties, CGAC or the Arbitral Tribunal may, if it considers it necessary, request the parties to provide corresponding translation in Chinese or in any other language.
Article 34 Arbitration Fees
Arbitration fees shall be imposed and refunded in accordance with the provisions of CGAC relating to the imposition of arbitration fees.
Article 35 Formulation and Application of Special Rules and Bridging Rules
(1) Where necessary, CGAC may formulate special rules (the “Special Rules”) which shall constitute a component part of the Rules. CGAC recognizes and accepts the China Internet Arbitration Alliance Rules for Bridging Ad Hoc Arbitration and Institutional Arbitration (the “Bridging Rules”). Special Rules and Bridging Rules shall each constitute a component part of the Rules.
(2) In case of any discrepancy between the Special Rules and Bridging Rules on the one side and the Rules on the other, the provisions under the Special Rules and Bridging Rules shall prevail. For those matters not stipulated under the Special Rules and Bridging Rules, the Rules shall apply.
(3) Special Rules shall apply to a dispute between the parties which falls under the scope of application of Special Rules, unless otherwise agreed by the parties.
(4) The provisions under the General Rules of Arbitration formulated by Nansha International Arbitration Center shall apply to a case which is accepted and managed by China Nansha International Arbitration Center.
(5) The provisions under the China Internet Arbitration Alliance Rules for Bridging Ad Hoc Arbitration and Institutional Arbitration shall apply to those Ad Hoc Arbitration cases handed over to CGAC.
(6) CGAC shall make a decision on any disputes arising between the parties as to the application of Special Rules or Bridging Rules.
Article 36 Interpretation of the Rules
(1) The headings of the Rules are given merely for the purpose of guidance and shall not be used to interpret any of the provisions contained herein.
(2) The Rules shall be interpreted by CGAC.
Article 37 Implementation of the Rules
The Rules shall be implemented as from November 16, 2017. A case accepted by CGAC prior to the implementation of the Rules shall be administered by the then arbitration rules at the time of such acceptance. The Rules may, however, apply to such case with the consent of the parties.
