Member Article

The China International Economic and Trade Arbitration Commission ("CIETAC") has recently updated the Arbitration Rules of CIETAC 中国国际经济贸易仲裁委员会仲裁规则 ("Rules"). The revised Rules came into effect on 1 May 2005. Specialist arbitration rules The revised Rules provide for the possibility of using rules, which have been tailor-made for specific industries. To date, only rules governing financial disputes have been published. Specialist panels of arbitrators have also been set up according to the nature of the dispute. Currently, there are seven panels: • international (foreign related) • domestic • financial • construction and property • food • leather • Australian / New Zealand Standard Contracts The revised Rules now permit parties to choose their own rules for the arbitration unless these rules cannot be enforced or are in conflict with the law of the place of arbitration. Determination of jurisdiction CIETAC has the power to determine the question of the arbitral tribunal’s jurisdiction on the basis of evidence submitted to it. The revised Rules provide that CIETAC may review the determination of jurisdiction when conflicting evidence is revealed during the substantive hearings before the arbitral tribunal. CIETAC may also authorise the arbitral tribunal to determine the question of jurisdiction when necessary. Procedural time limits Under the revised Rules, the time limits for the ordinary and summary procedures are amended as follows: Appointment of Arbitrators: - Ordinary Procedures: 15 days from the date of receipt of the arbitration notice from CIETAC - Summary Procedures: 15 days Filing of Defence and Counterclaim (if any): - Ordinary Procedures: 45 days from the date of receipt of the arbitration notice from CIETAC - Summary Procedures: 20 days Filing of Defence to Counterclaim: - Ordinary Procedures: 30 days after receipt of Counterclaim - Summary Procedures: 20 days Notice of the 1st hearing: - Ordinary Procedures: 30 days before the date of the 1st hearing - Summary Procedures: 15 days Award: - Ordinary Procedures: 6 months from the formation of the arbitration tribunal - Summary Procedures: 3 months Choice of arbitrators The parties are free to agree to appoint arbitrators not on CIETAC’s panels of arbitrators but the appointment needs to be confirmed by the Secretariat of CIETAC. The revised Rules provide that if one arbitrator dies or is removed after the final hearing, the remaining two arbitrators may apply to CIETAC for a replacement arbitrator. If both parties and the Chairman of CIETAC agree, the remaining two arbitrators can proceed with the arbitration. Place of arbitration The place of arbitration may be different from the place of the hearing. The revised Rules recognise this distinction. The parties can choose both the place of arbitration and the place of hearing. The award is deemed to be made in the place of arbitration chosen by the parties. Dissenting opinion Any dissenting minority opinion will be annexed to the award in an effort to increase the transparency of the award making process.