Financial Disputes Arbitration Rules of the China International Economic and Trade Arbitration Commision - CIETAC (2003)

These Rules are formulated for the purpose of impartial and prompt resolution of disputes arising from financial transactions between parties.

The China International Economic and Trade Arbitration Commission (also known as the Arbitration Court of China Chamber of International Commerce and hereinafter referred to as the “Arbitration Commission”) offers, by means of arbitration, independent and impartial resolution of disputes arising from, or in connection with, any and all financial transactions between parties.

The term “financial transactions” shall refer to transactions arising between financial institutions inter se, or arising between financial institutions and other natural or legal persons in the currency, capital, foreign exchange, gold and insurance markets that relate to financing in both domestic and foreign currencies, and the assignment and sale of any and all types of financial instruments and documents denominated in both domestic and foreign currencies, including but not limited to:

1. Loans;

2. Deposit certificates;

3. Guarantees;

4. Letters of credit;

5. Negotiable instruments;

6. Fund transactions and fund trusts;

7. Bonds;

8. Collection and remittance of foreign currencies;

9. Factoring; and

10. Reimbursement agreements between banks.

These Rules shall apply to any financial dispute accepted by the Arbitration Commission for arbitration where the parties have agreed upon the application thereof. Failing such agreement, the Arbitration Rules of the Arbitration Commission shall apply.

The Arbitration Commission shall make a ruling on objections with regard to whether the dispute between the parties arises from, or is in connection with, a financial transaction, or whether these Rules should be applied to the dispute between the parties.

Where the parties have agreed upon the arbitration procedure otherwise, the said agreement of the parties shall prevail subject to the consent of the Arbitration Commission.

The Arbitration Commission has the power to rule on the existence and validity of an arbitration agreement and on the jurisdiction over the arbitration case. Where the validity of the arbitration agreement is challenged and one party requests the Arbitration Commission to make a decision thereon, while the other party applies to the People’s Court for a ruling, such a ruling shall be given by the People’s Court.

Any challenge to the arbitration agreement or to the jurisdiction over the arbitration case shall not affect the progress of the arbitration proceedings.

The parties may appoint arbitrators from amongst the Panel of Financial Arbitrators of the Arbitration Commission, or from amongst such Panel of Arbitrators as may be designated by the Arbitration Commission.

Where the appointment of an arbitrator is to be made by the Chairman of the Arbitration Commission, the Chairman may, unless otherwise agreed upon by the parties, appoint such arbitrator from amongst the Panel of Financial Arbitrators of the Arbitration Commission or from other Panel of Arbitrators.

An arbitrator shall be required to sign a Statement of Independence. The appointment of each arbitrator by either party shall be subject to confirmation by the Arbitration Commission. The Arbitration Commission shall not give the reasons for confirming or not confirming any such appointment.

Arbitration proceedings shall commence from the date on which the Notice of Arbitration is issued by the Secretariat of the Arbitration Commission.

A Claimant applying for arbitration shall:

(1) Submit an Application for Arbitration in writing, which shall, inter alia, contain the following information:

a. The name and address of the Claimant and the Respondent, and means of communication with each of the parties, including the zip code, telephone, telex, facsimile, cable numbers, and e-mail address etc;

b. The arbitration agreement relied upon by the Claimant;

c. The facts and main issues of the case; and

d. The claim(s) and the facts and reasons upon which the claim(s) is/are based.

The Application for Arbitration shall be signed by and/or affixed with the seal of the Claimant and/or his authorized agent.

(2) Attach to the Application for Arbitration relevant evidential documents that support the facts upon which the claim(s) is/are based.

(3) Pay an arbitration fee in advance to the Arbitration Commission in accordance with the Arbitration Fee Schedule for Financial Disputes formulated by the Arbitration Commission.

Where the Secretariat of the Arbitration Commission finds that an application satisfies the requirements for arbitration, it shall notify the parties in writing of its acceptance of the Application for Arbitration within 5 days from the date of receipt of the Application for Arbitration. Should the Secretariat of the Arbitration Commission find that the Application for Arbitration does not satisfy the requirements for arbitration, it shall notify the parties in writing of its rejection of the application and the reasons therefor.

Together with the Notice of Arbitration for the acceptance of the Application for Arbitration, the Secretariat of the Arbitration Commission shall furnish to the Claimant these Rules, the Arbitration Rules of the Arbitration Commission, the Panel of Financial Arbitrators and such other Panel of Arbitrators of the Arbitration Commission as may be designated.

Together with the Notice of Arbitration for the acceptance of the Application for Arbitration, the Secretariat of the Arbitration Commission shall furnish to the Respondent a copy of the Claimant’s Application for Arbitration and the documents annexed thereto, these Rules, the Arbitration Rules of the Arbitration Commission, the Panel of Financial Arbitrators and such other Panel of Arbitrators of the Arbitration Commission as may be designated.

The arbitral tribunal shall be composed of a sole or three arbitrators. Where the parties have not agreed upon the number of arbitrators, the Chairman of the Arbitration Commission shall decide whether the arbitral tribunal shall be composed of a sole or three arbitrators.

Unless otherwise agreed upon by the parties, where the arbitral tribunal is composed of a sole arbitrator, the Claimant and the Respondent shall, within 7 working days from the date of receipt of the Notice of Arbitration by the party who last receives it, jointly appoint a sole arbitrator or entrust the Chairman of the Arbitration Commission to effect such appointment.

Unless otherwise agreed upon by the parties, where the arbitral tribunal is composed of three arbitrators, the Claimant and the Respondent shall, within 7 working days from the date of receipt of the Notice of Arbitration, respectively appoint an arbitrator or entrust the Chairman of the Arbitration Commission to effect such appointment, and shall, within 7 working days from the date of receipt of the Notice of Arbitration by the party who last receives it, jointly appoint a third arbitrator, or alternatively, shall entrust the Chairman of the Arbitration Commission to effect such appointment. The third arbitrator shall be the presiding arbitrator.

Where there are two or more Claimants and/or Respondents in a case, the Claimants’ side, and/or the Respondents’ side each shall, through consultation, appoint an arbitrator, or alternatively, entrust the Chairman of the Arbitration Commission to effect such appointment.

Unless otherwise agreed upon by the parties, where a party fails to appoint an arbitrator or fails to entrust the Chairman of the Arbitration Commission to effect such appointment in due course, such arbitrator shall be appointed by the Chairman of the Arbitration Commission.

Unless otherwise agreed upon by the parties, the Respondent shall, within 15 working days from the date of receipt of the Notice of Arbitration, submit its written Statement of Defense and the relevant evidential documents to the Secretariat of the Arbitration Commission.

Unless otherwise agreed upon by the parties, the Respondent shall, within the foregoing time limit, file its Counterclaim(s) and relevant supporting documents in writing, if any, with the Secretariat of the Arbitration Commission.

Unless otherwise agreed upon by the parties, the Claimant shall, within 15 working days from the date of receipt of the Counterclaim(s) of the Respondent, file its Answer in writing, if any, with the Secretariat of the Arbitration Commission.

The arbitral tribunal may conduct the arbitration in such manner as it considers appropriate. The arbitral tribunal shall treat the parties with equality and give each party a reasonable opportunity of presenting his case.

During the arbitral proceedings, the arbitral tribunal may issue procedural orders, questionnaires, and hold pre-hearing conferences or preliminary hearings.

Where a time limit for presenting evidence has been agreed upon by the parties or has been set by the arbitral tribunal, the parties shall present their evidence to the arbitral tribunal within such time limit.

Where no such time limit for presenting evidence is agreed upon by the parties or set by the arbitral tribunal, the parties shall file all written statements and relevant evidential documents with the Secretariat of the Arbitration Commission not less than 3 working days prior to the date of the first oral hearing.

Unless otherwise agreed upon by the parties or determined by the arbitral tribunal, the arbitral tribunal may refuse acceptance of any written submission or evidential document submitted by any party after the expiration of the time limit for presenting evidence.

Subject to any contrary agreement by the parties, the arbitral tribunal shall decide whether or not to hold oral hearings. If an oral hearing is to be held, the Secretariat of the Arbitration Commission shall serve a Notice of Oral Hearing on each party at least 10 working days prior to the scheduled hearing date.

With the consent of the Secretary-General of the Arbitration Commission, the time limit specified in Article 12 may be extended.

With the consent of the arbitral tribunal, the time limits respectively specified in Articles 13, 14 and 18 may be extended.

The parties may agree upon the place of arbitration. Failing such agreement, the seat of the Arbitration Commission or its Sub-Commissions shall be deemed to be the place of the arbitration.

Unless otherwise agreed upon by the parties, the arbitral tribunal may hold oral hearings or conduct other activities relating to the financial dispute between the parties, at any place that it considers appropriate.

Subject to mandatory rules of law, the parties to any case involving a foreign-related element may agree upon the law to be applied to the merits of the dispute. Failing such agreement, the arbitral tribunal shall apply the law that it determines to be appropriate. In all cases, the arbitral tribunal shall take into account the terms of the contract, the usages and standard practices of the trade, and abide by the principles of fairness and reasonableness.

Unless otherwise agreed upon by the parties, the arbitral tribunal shall render an arbitral award within 45 working days from the date on which the arbitral tribunal is constituted.

At the request of the arbitral tribunal, the Secretary-General of the Arbitration Commission may extend the above time limit provided that he is satisfied that the extension is both truly necessary and justifiable. Each such extension may not exceed 15 working days.

Before signing an award, the arbitrators shall submit it in draft form to the Arbitration Commission. Without affecting the independence of the arbitrators in rendering the award, the Arbitration Commission may draw the arbitrators’ attention to any matter pertaining to the form of the award.

All documents, notifications or materials pertaining to the arbitration shall be furnished by the Secretariat of the Arbitration Commission to the parties or their arbitration agents in person, or via registered post, express mail, telefax, telex, cable, e-mail or such other means as the Secretariat of the Arbitration Commission considers appropriate.

Unless otherwise agreed upon by the parties or determined by the arbitral tribunal, for the purposes of these Rules, the term “working day” shall mean a working day at the seat of the Arbitration Commission.

In the event of any inconsistency between these Rules and the Arbitration Rules of the Arbitration Commission, these Rules shall prevail.

In respect of any matter not provided for in these Rules, the Arbitration Rules of the Arbitration Commission shall apply.

These Rules shall apply uniformly to the Arbitration Commission and its Sub-Commissions. Where arbitration proceedings are conducted before a Sub-Commission, the functions and duties arising under these Rules to be performed by the Chairman, the Secretariat and the Secretary-General of the Arbitration Commission shall be performed respectively by the Vice-Chairman authorized by the Chairman of the Arbitration Commission, the Secretariat and the Secretary-General of the Sub-Commission.

The power to interpret these Rules is vested in the Arbitration Commission