Home China Laws 2001 PLAN FOR THE REORGANIZATION OF ARBITRATION ORGANS

PLAN FOR THE REORGANIZATION OF ARBITRATION ORGANS

Category  ARBITRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-07-28 Effective Date  1995-07-28  


Plan for the Reorganization of Arbitration Organs


Appendix I  Sample Text of the Articles of the Arbitration Commission
Chapter I  General Provisions
Chapter II  The Arbitration Commission
Chapter III  The Working Body
Chapter IV  Arbitrators
Chapter V  Financing
Chapter VI  Supplementary Provisions
Appendix II  Sample Text of the Interim Rules of Arbitration
Chapter I  General Provisions
Chapter II  Application and Acceptance
Chapter III  Composition of the Arbitration Tribunal
Chapter IV  Hearings and Adjudication
Chapter V  Supplementary Provisions

(Promulgated by the State Council on July 28, 1995)

    1. Concerning the Principles of the Reorganization of Arbitration Organs

    (1) Grasp the spirit of the Arbitration Law of the People’s Republic of
China (hereinafter referred to as the Arbitration Law) comprehensively and
accurately, and carrying out the reorganization of these arbitration organs
strictly according to the Arbitration Law.

    (2) Embody the purpose of serving the people wholeheartedly and ensure
arbitration to solve economic disputes pursuant to the principles of fairness
and promptness.

    (3) On the basis of the factual circumstances, reorganize the arbitration
organs according to necessity and possibility.

    (4) Unify understanding, strengthen the leadership and arouse the positive
factors in all aspects in order to ensure the smooth transition of the
arbitration work.

    2. On the Arbitration Commissions

    (1) Only one unified arbitration commission may be established in any city
where the law provides for establishment of an arbitration commission, and no
special arbitration commission or arbitration tribunal shall be established
according to different specialties.

    (2) The names of newly established arbitration commissions shall be
regulated; all arbitration commissions shall begin with the city name where
the arbitration commission is located (name of location + arbitration
commission), such as Beijing Arbitration Commission, Guangzhou Arbitration
Commission or Shenzhen Arbitration Commission.

    (3) The arbitration commission shall be composed of one chairman, from two
to four vice chairmen and from seven to eleven commission members. Among
those, one or two persons shall be full-time commission personnel and the
others shall be part-time.

    Membership in the arbitration commission shall be held by specialists and
persons with practical experience from colleges, scientific research
institutions or state agencies. The members of the arbitration commission may
or may not be arbitrators.

    The members of the first session of an arbitration commission shall be
appointed by the people’s government of that city upon recommendation by
various departments such as of governmental legal affairs, economics and
trade, construction reformation, justice, the administration for industry and
commerce, science and technology or urban construction, and organizations such
as the trade promotion commission or the association of industry and commerce.

    (4) One secretary general shall be instituted in each arbitration
commission. The post of secretary general may be held concurrently by a
full-time member of the arbitration commission.

    (5) A working body which shall be responsible for handling the acceptance
of arbitration cases, processing arbitration documents, file management and
collection and management of arbitration fees shall be established under the
arbitration commission. The secretary general shall be responsible for the
routine duties of the working body.

    The establishment of the working body and arrangement of personnel shall
comply with the principles of streamlining and high efficiency. During the
initial period of operation of the arbitration commission, it is not necessary
for the working body to have excessive personnel. The number of personnel may
be suitably increased with the increase of the arbitration work load.

    The personnel of the working body shall possess good moral character and
professional skills and shall be appointed on the basis of competitive
selection.

    3. Concerning the Arbitrators

    (1) A full-time arbitrator shall not be established in the arbitration
commission.

    (2) Arbitrators shall be appointed according to law by the
newly-established arbitration commission.

    The arbitration commission shall, mainly from within its province,
autonomous region or municipality directly under the central government,
appoint arbitrators from among those who satisfy the conditions in the
provisions of Article 13 of the Arbitration Law.

    The public servants and personnel of agencies of the public servant
system, if they satisfy the requirements described in Article 13 of the
Arbitration Law and have the approval of their units, may be appointed as
arbitrators, but they shall not allow the arbitration work to interfere with
their regular duties.

    The arbitration commission shall establish a list of arbitrators according
to different specialties.

    (3) In accordance with the arbitration rules, the arbitrators shall be
paid by the arbitration commission for handling arbitration cases. Unless they
deal with arbitration cases, the arbitrators shall not receive any payment or
other fees.

    4. Concerning the Size, Funds and Site of Arbitration Commissions  

     During the initial period of the establishment of the arbitration
commission, the local people’s government of that city shall, according to the
relevant provisions on institutional organizations, arrange the establishment
of the staff, funds and sites for the arbitration commission. The arbitration
commission shall gradually establish a system of independent revenue and
expenditure.

    5. Concerning the Merger of Newly Established Arbitration Commissions and
Existing Arbitration Organs

    (1) As to the appointment of arbitrators or employment of personnel for
the working body, those in existing arbitration organs who satisfy the
requirements shall be considered first.

    (2) If parties concerned have formed an arbitration agreement before the
termination of an existing arbitration organ and make a supplementary
agreement to decide on a new arbitration commission after the termination of
the said existing arbitration organ, they may apply to the newly chosen
arbitration commission for arbitration according to the Arbitration Law; if
the parties fail to reach a supplementary agreement, the original arbitration
agreement shall be invalid.
Appendix I  Sample Text of the Articles of the Arbitration Commission
Chapter I  General Provisions

    Article 1  These Articles are formulated according to the Arbitration Law
of the People’s Republic of China (hereinafter referred to as the Arbitration
Law) for the purpose of regulating the activities of this Arbitration
Commission, ensuring the fair and timely arbitration of the economic disputes
and protecting the lawful rights and interests of all parties involved.

    Article 2  Contractual disputes and other disputes involving property
rights and interests occurring between equal citizens, corporations or other
organizations may apply to this Arbitration Commission for arbitration.

    This Arbitration Commission will not accept applications for arbitration
of labor disputes or internal agricultural contract disputes of agricultural
collective economic organizations.

    Article 3  This Arbitration Commission (hereinafter referred to as the
Arbitration Commission) is located in the city of….
Chapter II  The Arbitration Commission

    Article 4  The Arbitration Commission shall be composed of one chairman,
from two to four vice chairmen and from seven to eleven members. Among those,
one or two persons shall be the commission’s full-time personnel and the
others shall be part-time.

    One secretary general shall be instituted in the Arbitration Commission.
The post of secretary general may be held concurrently by a full-time member
of the Arbitration Commission.

    A list of the members of the Arbitration Commission shall be submitted to
the Chinese Arbitration Association for filing.

    Article 5  The term of each session of the Arbitration Commission shall be
three years. Upon the expiration of the term, one third of members shall be
replaced.

    The replacement of the members of next session of the Arbitration
Commission shall be completed two months before the expiration of the term of
the current Arbitration Commission; if it is not completed owing to special
circumstances, it shall be completed within three months from the expiration
of the term of the current Arbitration Commission.

    The duties of the preceding session of the Arbitration Commission shall be
ended with the formation of the new session.

    Article 6  The members of the new session of the Arbitration Commission
shall, upon the nominations of the chairman’s meeting of the preceding session
and in consultation with the relevant departments of the people’s government
of the city and the commerce chambers, be appointed by the people’s government
of the city.

    Article 7  Meetings of the Arbitration Commission shall be presided over
by the chairman or a vice chairman who has been authorized by the chairman. A
meeting may be held when not less than two thirds of the members are present.
A decision to revise the Articles of the Arbitration Commission or to adjourn
the Arbitration Commission shall be passed by not less than two thirds of all
the members; other decisions shall be passed by not less than two thirds of
the present members.

    Article 8  Meetings of the Arbitration Commission are mainly responsible
for the following:

    (1) to consider important items such as the working policy or working plan
of the Arbitration Commission, and to make relevant decisions;

    (2) to deliberate over and pass the annual working report and financial
report raised by the secretary general of the Arbitration Commission;

    (3) to decide upon eligible candidates for the secretary general of the
Arbitration Commission and the persons to be in charge of specialist
consultation organs;

    (4) to consider and pass the plan for the establishment of the working
body of the Arbitration Commission;

    (5) to decide upon the appointment, dismissal or removal of arbitrators;

    (6) to decide upon the withdrawal of the chairman if he acts as an
arbitrator;

    (7) to revise the Articles of the Arbitration Commission;

    (8) to make a decision concerning adjourning the Arbitration Commission;
and

    (9) other duties described in the Arbitration Law, arbitration rules and
these Articles.

    Article 9  The chairman’s meeting shall be composed of the chairman, vice
chairmen and the secretary general, and shall be responsible for handling
important routine duties of the Arbitration Commission during the periods when
the Arbitration Commission is not in session.

    Article 10  The Arbitration Commission may establish specialist
consultation organs where necessary which shall provide consultative advice on
difficult problems for the Arbitration Commission and the arbitrators.

    Specialist consultative organs shall institute one person in charge to be
held by a vice chairman of the Arbitration Commission.

    Article 11  If the Arbitration Commission session makes a decision to
dissolve the Commission, and it is agreed to by the people’s government of the
city, the Arbitration Commission shall be terminated.
Chapter III  The Working Body

    Article 12  A working body shall be established under the Arbitration
Commission. Under the secretary general of the Arbitration Commission, the
working body shall be responsible for dealing with the routine duties of the
Arbitration Commission.    

    The working body shall be mainly responsible for the following:

    (1) to directly deal with procedural affairs, such as the acceptance of
arbitration cases, processing of arbitration documents and file management;

    (2) to collect and manage arbitration fees; and

    (3) to deal with other matters designated by the Arbitration Commission.

    Article 13  Decisions to employ personnel of the working body shall be
made by the chairman’s meeting of the Arbitration Commission.
Chapter IV  Arbitrators

    Article 14  A list of the arbitrators shall be proposed by the chairman’s
meeting of the Arbitration Commission. Upon deliberation and passage by the
Arbitration Commission meeting, the arbitrators shall be appointed by the
Arbitration Commission and a letter of appointment shall be issued.

    The tenure of appointment of the arbitrators shall be three years, and may
be extended upon expiration.

    Article 15  The Arbitration Commission shall draw up a list of arbitrators
according to different specialties.

    The list of the arbitrators shall be submitted to the Chinese Arbitration
Association for filing.

    Article 16  The arbitrators shall strictly abide by the arbitration rules
and shall ensure that all parties involved enjoy their rights as described in
the arbitration rules.

    Article 17  The arbitrators shall treat both parties equally, and shall
not represent or take sides with any party.

    Article 18  After accepting a case, the arbitrator shall make a serious
and thorough reading and examination of all the evidence and materials
submitted by the parties in preparation for hearing the case.

    Article 19  When holding hearings, the arbitrator shall hear fully the
statements by the two parties and earnestly discern the facts.

    Article 20  If the arbitrator is approved to meet with the party or his
agent by the arbitration tribunal or the Arbitration Commission, the meeting
shall be held at the office of the Arbitration Commission; without the
approval of the arbitration tribunal or the Arbitration Commission, the
arbitrator shall not meet with either party or their agents independently,
accept evidence or materials from either party or their agents or discuss
circumstances concerning the arbitration case with either party or their
agents independently.

    Article 21  The arbitrators shall promptly meet after the termination of
the case hearings, and shall issue the award according to provisions.

    Article 22  The arbitrators shall maintain the secrecy of the arbitration
process and shall not reveal such things as the case proceedings, status of
the arbitration tribunal’s decision or any trade secrets.

    Article 23  The Arbitration Commission shall dismiss any of arbitrator
under any of the following circumstances:

    (1) concealing circumstances which should be withdrawn and which thereby
affect the case hearings adversely;

    (2) failing to attend the hearings without rational reasons; and

    (3) other circumstances unbecoming with continued duty as an arbitrator.

    Article 24  Any arbitrator who meets with either party or their agents
without approval, accepts dinner invitations or gifts from either party or
their agents, or, during arbitration, demands or accepts a bribe, commits
malpractice while in search of personal gain or twists the law in making an
award shall bear legal responsibility according to the law and shall be
removed by the Arbitration Commission.
Chapter V  Financing

    Article 25  The Arbitration Commission shall adopt an independent
accounting financial system.

    Article 26  The financial resources of the Arbitration Commission include:

    (1) assistance from the government;

    (2) the arbitration fees handed in by parties involved;

    (3) other legal income.

    Article 27  When the Arbitration Commission terminates, its property shall
be liquidated. After liquidation, the remaining property shall belong to the
state.
Chapter VI  Supplementary Provisions

    Article 28  These Articles shall be explained by the Arbitration
Commission.

    Article 29  These Articles shall be effective as of the date of approval
by the people’s government of this city.
Appendix II  Sample Text of the Interim Rules of Arbitration
Chapter I  General Provisions

    Article 1  These Interim Rules are formulated according to the relevant
provisions of the Arbitration Law of the People’s Republic of China
(hereinafter referred to as the Arbitration Law) and the Civil Procedure Law
of the People’s Republic of China (hereinafter referred to as the Civil
Procedure Law), for the purpose of ensuring the fair and timely arbitration of
economic disputes and protecting the lawful rights and interests of the
parties involved.

    Article 2  Contractual disputes and other property rights and interests
disputes occurring between equal citizens, legal persons and other
organizations may apply to this Arbitration Commission for arbitration.

    This Arbitration Commission does not accept arbitration applications
concerning labor disputes or internal agricultural contract disputes of
agricultural collective economic organization.

    Article 3  A decision by the parties involved to adopt arbitration as the
means of settling a dispute must be agreed to by both parties voluntarily. If
there is no agreement to hold arbitration and one party applies for
arbitration, that party shall be refused by the Arbitration Commission.

    Article 4  An agreement to hold arbitration shall include an arbitration
clause in a contract and any other written agreements to apply for arbitration
reached before or after the dispute.

    An agreement to hold arbitration shall contain the following:

    (1) expression of intent to apply for arbitration;

    (2) the items to be discussed in arbitration;

    (3) expression of intent to select this Arbitration Commission.

    Article 5  The agreement to hold arbitration shall be independent, and the
alteration, dissolution, termination or invalidity of the contract does not
affect the force of the agreement.

    The arbitration tribunal shall be enpost_titled to have the authority to affirm
the effectiveness of the agreement.

    Article 6  Any party who disagrees with the effectiveness of the
arbitration agreement may apply to this Arbitration Commission for a decision
or may file a petition with the people’s court for adjudication. Where one
party applies to this Arbitration Commission to make a decision and another
party applies to the people’s court for adjudication, the people’s court shall
make an adjudication.

    Any party who disagrees with the effectiveness of the arbitration
agreement shall raise the objection before the first hearings of the
arbitration tribunal; if the parties agree not to hold hearings, any
objections shall be raised before the submission of the first plea.
Chapter II  Application and Acceptance

    Article 7  Any party who applies for arbitration shall satisfy the
following requirements:

    (1) possession of an agreement to hold arbitration;

    (2) possession of an accurate arbitration application and the facts and
reasons;

    (3) the application is within the scope of this Arbitration Commission.

    Article 8  When applying for arbitration, the applicant shall submit the
arbitration agreement, application for arbitration and copies of these
documents.

    Article 9  The following items shall be clearly stated in the application
letter for arbitration:

    (1) the name, sex, age, profession, employer and address of the applicant
and the defendant; the name and address of the corporation or other
organization, and the name and position of the legal representative or the
chief person in charge;

    (2) the arbitration petition and the related facts and reasons;

    (3) any evidence and sources of evidence, and the name and address of any
witnesses.

    Article 10  Within five days from receiving the application for
arbitration, this Arbitration Commission shall, considering the application
satisfies the acceptance requirements, accept it and notify the parties; the
Arbitration Commission may also accept the application at once and notify the
parties; if the application does not satisfy the acceptance requirements, this
Arbitration Commission shall notify the parties of the refusal in written form
and give the reasons.

    After receiving the application letter for arbitration, this Arbitration
Commission may demand that the applying party provide supplementary materials
or make corrections within a specified period if the application for
arbitration does not satisfy the provisions of Article 9 of these Interim
Rules; if no additions or corrections are made when due, it shall be deemed
that the application has not been received.

    Article 11  After receiving the application letter for arbitration, this
Arbitration Commission shall deliver these Interim Rules and the list of
arbitrators to the applicant within 15 days, and deliver a copy of the
application for arbitration, these Interim Rules and the list of arbitrators
to the defendant.

    After receiving the copy of the application for arbitration, the defendant
shall submit a plea to the Arbitration Commission within 15 days. After
receiving the plea, the Arbitration Commission shall deliver a copy of the
plea to the applicant within 15 days. If the defendant fails to submit a plea,
it shall not affect the process of the arbitration procedure.

    Article 12  The applicant may abandon or change the arbitration
application. The defendant may acknowledge or refute the arbitration
application, and shall be enpost_titled to file a counter-petition.

    This Arbitration Commission shall, within 15 days from receiving the
application for counter-petition raised by the defendant, deliver a copy of
the application letter for counter-petition to the applicant.

    The applicant shall submit a written plea to this Arbitration Commission
within 15 days from receiving the application letter for counter-petition; if
no written plea is raised, it shall not affect the process of the arbitration
procedure.

    Article 13  One party may, if it is possible that the award cannot be
executed or be will executed only with great difficulties because of the
actions of another party or for other reasons, apply for property preservation.

    If any party applies for property preservation, this Arbitration
Commission shall submit the application of the applicant to the people’s court
in accordance with the relevant provisions of the Civil Procedure Law.

    If the application proves to be faulty, the applicant shall reimburse the
defendant any losses caused by the property preservation.

    Article 14  A party or agent may authorize a lawyer or other agent with
carrying out the arbitration activities. The authorized lawyer or other agent
shall submit a letter of authorization to this Arbitration Commission before
engaging in arbitration activities.
Chapter III  Composition of the Arbitration Tribunal

    Article 15  The arbitration tribunal may be composed of three arbitrators
or one arbitrator. If it is composed of three, a chief arbitrator shall be
selected.

    Article 16  If the parties agree that the arbitration tribunal shall be
composed of three arbitrators, they shall each choose an arbitrator or
authorize the chairman of this Arbitration Commission to appoint one
arbitrator each, the third arbitrator to be chosen jointly by both parties or
appointed by the chairman with the joint authorization of both parties. The
third arbitrator shall be the chief arbitrator.

    If the parties agree that the arbitration tribunal is to be composed of
one arbitrator, he shall be chosen jointly by both parties or appointed by the
chairman with the joint authorization of both parties.

    Article 17  If the parties fail to agree on the composition of the
arbitration tribunal or fail to select the arbitrators within 15 days from
receiving the notification of acceptance of arbitration, the arbitrators shall
be appointed by the chairman of this Arbitration Commission.

    Article 18  After the establishment of the arbitration tribunal, this
Arbitration Commission shall, within five days after the establishment of the
arbitration tribunal, notify the parties in written form of the composition of
the arbitration tribunal, or may also notify the parties in written form of
the composition of the arbitration tribunal on the date of establishment.

    Article 19  Any arbitrator who falls into any of the following categories
shall withdraw from the case; any party has the right to propose a withdrawal
application:

    (1) those who are parties to the case or relatives of any party or their
agents;

    (2) those who have a vested interest in the case;

    (3) those who have other relations with either party or their agents which
may possibly affect a fair award;

    (4) those who meet with either party or their agents on their own or
accept gifts or dinner invitations from either party or their agents.

    Article 20  Any party who proposes a withdrawal application, shall state
the reasons and make an application before the first hearings. If the reasons
for the withdrawal are not known until after the first hearings, an
application may be raised before the termination of the final hearings.

    Article 21  Whether the arbitrator is withdrawn or not shall be decided by
the chairman of this Arbitration Commission; when the chairman is acting as an
arbitrator, withdrawal shall be decided by a meeting of this Arbitration
Commission.

    Article 22  If any arbitrator is unable to perform his or her duties
because of withdrawal or other reasons, a new arbitrator shall be chosen or
appointed according to the provisions of the Arbitration Law and these Interim
Rules.

    After a new arbitrator has been chosen or appointed due to withdrawal of
the original arbitrator, either party may apply to begin the arbitration
procedure anew, whether or not permission shall be granted shall be decided by
the arbitration tribunal; the arbitration tribunal may itself decide whether
or not to