In the wake of the publication of revised Arbitration Rules by the International Chamber of Commerce (ICC) Court of Arbitration, the China International Economic and Trade Arbitration Commission (CIETAC) has issued its own revised Arbitration Rules, effective as of 1st May, 2012. The revision follows the trend to choose arbitration rather than the domestic court in order to quickly and ef- fectively settle disputes.
Consolidation of Arbitrations
Due to growing cross-border trade, arbitrations referring to multiple parties or contracts are more and more fre- quent. Article 17 of the new rules responds to this issue by ruling that at the request of a party and with the agreement of all other parties, or where CIETAC believes it neces- sary and all parties have agreed, CIETAC may consolidate two or more ongoing arbitrations into one single arbitra- tion. A rule very similar to this has also been added to new rules developed by the ICC. This clause will allow parties or an arbitral tribunal to bring different contractual par- ties into one arbitration, the procedural structure of which aims to make the process more effective than before.
Interim Measures
Article 21 of the new rules states that at the request of a party, the arbitral tribunal may order any interim measure it deems necessary or proper in accordance with the ap- plicable law. While this is deemed as a brand new clause in the new rules, it is better to consider interim measures as returned rules, rather than entirely new ones. Meanwhile, measures such as requiring parties of a joint- venture to postpone the distribution of profits until dis- putes are settled, or prompt measures on controversial products which are unable to be preserved long-term, will in actual fact play the role of interim measures, enacted and enforced in daily arbitration.
This new revision clearly demonstrates CIETAC’s strong position in international arbitration, thereby appealing to those who require urgent action in joint venture or intel- lectual property disputes.
More Practical Rules
The revised Arbitration Rules also improve on the speci- ficity of some previous rules. For example, Articles 14, 15 and 43 grant power to the Secretary General of CIETAC to make decisions on specific issues before the arbitral tri- bunal is made. In addition, Article 8 states that if a party or its representative(s) has not provided an address or the parties have not agreed on an address, the arbitration doc- uments shall be sent to such party’s address as provided by the other party or its representative(s). The previous relevant rules are ambiguous on such points.
Through specification of these application conditions, CIETAC displays clear information to the disputed parties, the arbitral tribunal and the commission, leading to an ar- bitration process that is both more efficient and economic.
This article is intended solely for informational purposes and does not constitute legal advice. Although the information in this article was obtained from reliable official sources, no guarantee is made with regard to its accuracy and completeness. For more information please visit dandreapartners.com or WeChat: dandreapartners.
