HOW TO CONDUCT ARBITRATION IN CIETAC
I. Application for Arbitration
Procedure of Applying for Arbitration
When applying for arbitration, the claimant must submit to Secretariat of the Arbitration Commission or Secretariats of the Sub-commissions an arbitration agreement, an application for arbitration in writing, and the facts and evidence on which his claim is based, and the claimant shall pay an arbitration fee in advance to the Arbitration Commission according to the Arbitration Fee Schedule of the Arbitration Commission.
The Application for Arbitration
The Application for Arbitration and relevant documentary evidence should be submitted in the same copies as the total number of the respondent and arbitrators plus the Secretariat as a separate party. For example, if there is only one respondent, and the case shall be examined and heard by three arbitrators according to the Arbitration Rules, the claimant shall submit five copies of the Application for Arbitration and the relevant documentary evidence, including one copy submitted to the Secretariat of the Arbitration Commission; if there are two respondents, the claimant shall submit six copies of the Application for Arbitration and the relevant documentary evidence.
The following shall be specified in the Application for Arbitration:
(1) the name and address of the claimant and those of the respondent, including the zip code, telephone number, telex number, fax number and cable number or any other means of electronic telecommunications, if any;
(2) the Arbitration agreement relied upon by the claimant;
(3) the facts of the main points of dispute;
(4) the claimant's claim and the facts and evidence on which his claim is based.
The Application for Arbitration shall be signed and/or stamped by the claimant and/or the attorney authorized by the claimant.
Amendment to the Arbitration Claim
After applying for arbitration, the claimant may request to amend his arbitration claim; but the arbitration tribunal may refuse such a request for amendment if it considers that it is too late to raise the request and the amendment may affect the arbitration proceedings.
Commencement of the Arbitration Procedure
After the claimant has completed the formalities required for arbitration, the Secretariat of the Arbitration Commission shall immediately send to the claimant and the respondent a Notice of Arbitration. And the arbitration procedure begins thereupon.
II. Defense and Counterclaim
Receipt of Application for Arbitration and its Attachments
At the same time of sending to the respondent the Notice of Arbitration, the Secretariat(s) of the Arbitration Commission shall enclose one copy each of the claimant's application for arbitration and its attachment as well as the Arbitration Rules, the Panel of Arbitrators and the Arbitration Fee Schedule of the Arbitration Commission.
Time Limit for Filing the Defense
In foreign arbitration, the respondent shall, within 45 days from the date of receipt of the Notice of Arbitration, produce his written defense and relevant documentary evidence to the Secretariat(s) of the Arbitration Commission. In domestic arbitration, the Respondent shall, within 30 days from the date of receipt of the Notice of Arbitration, produce his written defense and relevant documentary evidence to the Secretariat(s) of the Arbitration Commission. The respondent may request to amend his defense. The respondent shall submit his defense within the time limit specified by the arbitration tribunal, and the arbitration tribunal has the power to reject the documents that are submitted too late.
Counterclaim
The respondent may lodge his counterclaim during the arbitration procedure, and the counterclaim must meet the following three requirements:
(1) the counterclaim arises from the same contract relation or legal relation as that of the claims raised by the claimant;
(2) the counterclaim is directed against the claimant;
(3) the disputes involved in the counterclaim shall not be the same as the disputes involved in the arbitration claims.
The counterclaim shall, at the latest within 60 days (foreign-related case) or 45 days (domestic case) from the respondent's receipt of the Notice of Arbitration, be submitted to the Arbitration Commission. The arbitration tribunal may extend that time limit appropriately if it deems that there are justified reasons.
Raising a Counterclaim
When lodging a counterclaim, the respondent shall lodge with the arbitration tribunal his counterclaim in writing, and state in it his specific claim, reasons for his claim and facts and evidence upon which his counterclaim is base and attach to his written statement of counterclaim the relevant documentary evidence. The written statement of counterclaim may be submitted together with his defense or alone. The written statement of counterclaim and the relevant documentary evidence shall be submitted in the same copies as the total number of the parties and arbitrators put together, so that all of the parties, arbitrators and the Secretariat(s) could get one copy each.
When lodging his counterclaim, the respondent shall pay a deposit in advance as arbitration fee according to the Arbitration Fee Schedule of the Arbitration Commission.
The respondent may request to amend his counterclaim, but the arbitration tribunal may refuse such request for amendment if it considers that it is too late to raise the request and the request may affect the arbitration proceedings.
III. Composition of Tribunal
According to the Arbitration Rules of the Arbitration Commission, there are two types of arbitral tribunal, i.e. sole-arbitrator tribunal composed of one arbitrator and collegiate tribunal with three arbitrators. The parties may agree on the ways to form the tribunal. However, pursuant to the Arbitration Rules, summary procedure shall, unless otherwise agreed by the parties. Automatically apply to any case in dispute where the amount of claim totals not more than RMB 500,000 yuan. Summary procedure may also be applied to any case in dispute where the amount of claim totals more than RMB 500,000 provided that both parties agree in writing. The case to which the summary procedure applies shall be examined and heard by a sole-arbitrator tribunal. Most cases to which the normal procedure applies shall be examined and heard by a collegiate tribunal with three arbitrators unless otherwise agreed by the parties.
1. Sole-Arbitrator Tribunal
Both parties may jointly appoint or jointly entrust the Chairman of the Arbitration Commission to appoint one sole-arbitrator from among the Panel of Arbitrators of the Arbitration Commission to form the tribunal for the case. If both parties have agreed on the appointment of a sole arbitrator to examine and hear their case but failed to agree on the choice of such a sole arbitrator within 20 days (foreign-related case) or 15 days (domestic case)from the date on which the Respondent received the Notice of Arbitration, the Chairman of the Arbitration Commission shall make such appointment.
2.Collegiate Tribunal
Both the Claimant and the Respondent shall appoint or entrust the Chairman of the Arbitration Commission to appoint one arbitrator from among the Panel of Arbitrator respectively within 20 days (foreign-related case) or 15 days (domestic case) after their receipt of the Arbitration Notice.
When there are two or more Claimants and/or Respondents in an arbitration case, the Claimant's side and/or the Respondent's side each shall, through consultation, appoint or entrust the Chairman of the Arbitration Commission to appoint one arbitrator. In case of failure to do so within the said time-limit, the Chairman of the Arbitration Commission shall exercise the right of appointment for the parties.
The third arbitrator shall be appointed jointly by both parties or by the Chairman of the Arbitration Commission with joint authorization from both parties, and the third arbitrator shall act as the presiding arbitrator. In case the parties fail to jointly appoint or entrust the Chairman of the Arbitration Commission to appoint the third arbitrator within 20 days (foreign-related case) or 15 days (domestic case)from the date on which the Respondent receives the Notice of Arbitration, the third arbitrator shall be appointed by the Chairman of the Arbitration Commission.
The presiding arbitrator and the two appointed arbitrators shall jointly form an arbitration tribunal to examine and hear the case.
Withdrawal and Replacement of Arbitrators
Withdrawal of an arbitrator means that an arbitrator, in accordance with the law, applies of his own notion to withdraw from an arbitration case when there exist any circumstances which might affect the impartial awarding of the case, or that an arbitrator withdraws from an arbitration case according to the decision made by the Chairman of the Arbitration Commission at the application of a party.
In accordance with the Arbitration Rules of the Arbitration Commission, any selected or appointed arbitrator having a personal interest in the case shall himself disclose such circumstances to the Arbitration Commission and request a withdrawal from his office. A party may make a request in writing to the Arbitration Commission for the removal of an arbitrator from his office, if the party has justified reasons to suspect the impartiality and independence of the arbitrator. But the facts and reasons on which the request is based and evidence thereof must be given in the request. A challenge against an arbitrator for removal from his office must be put forward in writing no later than the first oral hearing. If the grounds for the challenge come out or are made known after the first oral hearing, the challenge may be raised after the first hearing but before the end of the last hearing. Before any decision is made by the Chairman of the Arbitration Commission, the challenged arbitrator shall continue to perform the duties of an arbitrator.
The Arbitration Law of the People's Republic of China provides that the arbitrator must withdraw from his/her office, and the parties shall have the right to challenge the arbitrator for a withdrawal in one of the following circumstances: (1) the arbitrator is a party in the case or a close relative of a party or of his agent in the case; (2) the arbitrator has a personal interest in the case; (3) the arbitrator has other relationship with a party or his agent in the case which may affect the impartiality of arbitration; (4) the arbitrator has privately met with a party or his agent or accepted an invitation to entertainment or gift from a party or his agent.
The Chairman of the Arbitration Commission shall decide whether an arbitrator is to be withdrawn from his office or not.
If an arbitrator cannot perform his duty owing to withdrawal, demise, removal or other reasons, a substitute arbitrator shall be appointed in accordance with the procedure pursuant to which the original arbitrator was appointed, that is, the replacement of arbitrator. After the appointment or selection of the substitute arbitrator, the arbitration tribunal has discretion to decide whether or not the whole or part of the previous hearing shall be started again.
IV. Hearing of Cases
Method of Hearing
Generally, oral hearings are conducted in the course of arbitration. However, the arbitration tribunal may examine the case and make an award on the basis of documents only at the request of the parties or with their consent, and with the arbitration tribunal's confirmation that oral hearings are unnecessary, or in case of Summary Procedure.
Date of Hearing
The date of oral hearing shall be fixed by the arbitration tribunal after consultation with the Secretariat of the Arbitration Commission, and shall be communicated to the parties 30 days (foreign-related case) or 15 days (domestic case)before the date of the hearing so that they may have sufficient time to make necessary arrangements. However, the notice of the date of hearing subsequent to the first hearing is not subject to the 30-day or 15-day time limit.
A party having justified reasons may communicate his request to the Secretariat of the Arbitration Commission for a postponement of the date of the hearing 12 days (foreign-related case) or 7 days (domestic case) before the date of the hearing. And the arbitration tribunal shall decide whether to postpone the hearing or not. Such 12-day or 7-day time limit is imposed to provide the parties and arbitrators with opportunities to rearrange their times.
Place of Hearing
The arbitration cases shall be heard in the place where they are admitted, i.e. Beijing, Shenzhen or Shanghai. With the approval of the Secretary-General of the Arbitration Commission, the cases can be heard in other places in or outside China
Hearing by Default
The parties shall send their representative(s) or authorized agent(s) to attend the hearing. Should one of the parties fail to appear at the hearing, the arbitration tribunal may proceed with the hearing and make an award by default.
Hearing in Camera
The arbitration tribunal shall not hear cases in open session, If both parties request a hearing to be held in open session, the arbitration tribunal shall decide whether to hold the hearing in open session or not. When a case is heard in camera, the parties, their attorneys, witnesses, arbitrators, experts consulted by the arbitration tribunal and appraisers appointed by the arbitration tribunal and the relevant staff members of the Secretariat of the Arbitration Commission shall not disclose to outsiders the substantive or procedural matters of the case.
A Record in writing and by tape-recording
During the hearing over a foreign-related arbitration case, the arbitration tribunal may make a record in writing and/or by tape-recording. The arbitration tribunal may, when it deems it necessary, make a minute stating the main points of the hearing and ask the parties and/or their attorneys, witnesses and/or other persons involved to sign their names on it and/or affix their seal to it. The record in writing or by tape recording is only for use and reference of the arbitration tribunal. During the hearing over a domestic dispute, the arbitration tribunal shall make a record of the hearing in writing. Any party or participant in the arbitration may apply for correction if any omission or mistakes is found in the record of his own statement. If the arbitration tribunal refuses to correct, such application shall nevertheless be recorded. The written record shall be signed or sealed by the arbitrator(s), the person who takes the notes, the parties, and other participants to the arbitration.
Settlement
If the parties reach a settlement agreement by themselves through conciliation without involvement of the Arbitration Commission, any of them may, based on an arbitration agreement concluded between them providing for arbitration by the Arbitration Commission and their settlement agreement, request the Arbitration Commission to appoint a sole arbitrator to render an arbitration award in accordance with the contents of the settlement agreement.
In the process of arbitration, the parties may reach an amicable settlement agreement by themselves, or they may either request, or after consulted by the tribunal, agree that the arbitration tribunal to conciliate the case. If the conciliation is successful, the parties shall sign a settlement agreement, and unless the parties have agreed otherwise, the arbitration tribunal shall make an award in accordance with the consents of the parties' settlement agreement.
In the course of conciliation, the arbitration tribunal shall terminate conciliation and continue the arbitration procedures when one of the parties requests a termination of conciliation or when the arbitration tribunal believes that further efforts to conciliate will be futile.
Statements not to be Invoked as Evidence
Should conciliation fail, any statement, opinion, view or proposal which has been made, raised, put forward, acknowledged, accepted or rejected by either party or by the arbitration tribunal in the process of conciliation shall not be invoked as grounds for any claim, defense and/or counterclaim in the subsequent arbitration proceedings, judicial proceedings or any other proceedings
V. Evidence
Types of Evidence
There are seven types of evidence: real evidence, written-documentary evidence, parties statements, witnesses testimony, photographs, video-audio tapes, expert's report, and investigation-reconnaissance records. All evidences cannot be invoked as the basis for making decision until they are proved to be true.
Duty of Producing Evidence
The claimant and the respondent shall produce evidence for the facts on which their claim, defense or counterclaims are based. The arbitration tribunal may undertake investigation and collect evidence on its own initiatives, if it deems it necessary. If the arbitration tribunal investigates and collects evidence on its own initiative, it shall timely inform the parties to be present on the spot if it deems it necessary. Should one party or both parties fail to appear on the spot, the investigation and collection of evidence shall by no means be affected.
Experts Consulted by the Arbitration Tribunal
The arbitration tribunal may consult an expert or appoint an appraiser for the clarification of special questions relating to the case. And the parties are obliged to submit or produce to the expert or appraiser any materials, documents, properties or goods related to the case for check-up, inspection or appraisal. The parties may engage experts to be present at the hearing to make witness on its own initiative.
Opportunities for Parties to Comment
The expert's report and the appraiser's report shall be copied to the parties so that the parties may have the opportunity to give their opinions thereon. At the request of any party to the case and with the approval of the arbitration tribunal, the expert and appraiser may be present at the hearing and give explanations of their reports when the arbitration tribunal deems it necessary and appropriate.
Relevance, Importance and Effectiveness of Evidence
The adoption of any evidence, including the evidence submitted by the parities and the expert's report and the appraiser's report shall be decided by the arbitration tribunal after examination. And the arbitration tribunal has the right to make decision on the relevance, importance and effectiveness of evidence.
VI. Award
Time Limit for Making Awards
In the Ordinary Arbitration Procedures, the arbitration tribunal shall render an arbitral award within 9 months (foreign-related case) or 6 months (domestic case)as from the date on which the arbitration tribunal is formed. In the Summary procedure, the arbitration tribunal shall make an award within 30 days from the date of the oral hearing, or within 90 days from the date on which the arbitration tribunal is formed if there is no oral hearing. At the request of the arbitration tribunal and with the approval of the Secretary-General of the Arbitration Commission, the time limit of rendering an arbitral award may be extended.
Types of Awards
The arbitral award is classified as the interlocutory award, partial award and final award.
The arbitration tribunal may, if it deems it necessary or the parties so request and the arbitration tribunal agrees, make an interlocutory award on any issue of the case in the course of arbitration. The interlocutory award is not final.
The arbitration tribunal may also, if it deems it necessary or with the consent of the parties, make a partial award on part of clarified facts and part of the arbitration claims. The partial award is final. The award made by the arbitration tribunal after the completion of examination of the case is a final award.
Contents of the award
The arbitral award shall be decided by the majority of the arbitrators. When the arbitration tribunal cannot attain a majority opinion, the arbitral award shall be decided in accordance with the presiding arbitrator's opinion.
The arbitral award shall contain the following:
(1) the claims;
(2) the facts of the dispute( the facts of the dispute may be omitted in the award if the parties have agreed not to state them in the arbitral award);
(3) the reasons on which the arbitral award is based ( the reasons on which the arbitral award is based may be omitted in the award if the arbitral award is made in accordance with the contents of the settlement agreement reached between the parties and the parties have agreed not to state them in the arbitral award;)
(4) the result of the arbitral award;
(5) the allocation of the arbitration costs;
(6) the date on which and the place at which the arbitral award is made;
(7) signatures of arbitrators (the arbitrator who has dissenting opinion may sign or not sign his name on the arbitral award);
(8) the Arbitration Commission's stamp.
Effect of the Award
The date on which the arbitral award is made is the date on which the arbitral award comes into effect.
The arbitral award is final and binding upon both parties. Neither party may bring a suit before a lawcourt or make a request to any other organization for revising the arbitral award.
Amendment and Supplement to the Award
Either party may request in writing that a correction be made to the writing, typing calculating and similar errors contained in the arbitral award within 30 days from the date of receipt of the arbitral award. If there is an error in the arbitral award, the arbitration tribunal may make a correction in writing within 30 days from the date of receipt of the written request for correction. And the arbitration tribunal may by itself make a correction in writing within 30 days from the date on which the arbitral award is issued.
Either party may make a request in writing to the arbitration tribunal for an additional award on matters omitted in the arbitral award within 30 days from the date on which the arbitral award is received. The request shall be submitted in writing. The arbitration tribunal may by itself make an additional award within 30 days from the date on which the arbitral award is issued.
The correction in writing and the additional award forms a part of the arbitral award which was previously issued.
VII. Setting Aside an Award
The Competent Court
The party may, if it deems that there are matters not in conformity with the statutory procedure after receipt of the arbitral award, apply for setting aside the arbitral award to the Intermediate People's Court in the place where the Arbitration Commission is located.
Circumstances for Setting Aside an Award
When applying for setting aside an arbitral award, the party must present evidence which proves that the arbitral award involves one of the following circumstances:
1. The parties have neither included an arbitration clause in their contract nor subsequently concluded a written arbitration agreement;
2. The party against whom the enforcement is sought was not notified to appoint an arbitrator or to take part in the arbitration proceedings or the party against whom the enforcement is sought was unable to state his opinions due to reasons for which he is not responsible;
3. The formation of the arbitration tribunal or the arbitration procedure was not in conformity with the Arbitration Rules;
4. The matters decided in the arbitral award exceed the scope of the arbitration agreement or are beyond the authority of the arbitration institution.
The Court, which after examination and verification, is convinced that there exists one of the above circumstances, or considers that the award in violation of public interest, shall rule to set aside the award.
Time Limit
The parties shall apply for setting aside an award within 6 months from the date of receipt of the arbitral award.
IIX. Enforcement of an Award
The parties must automatically execute the arbitral award within the time limit specified in the arbitral award. In case one party fails to execute the arbitral award, the other party may apply to the competent court for enforcement. If the resident or the properties of the losing party is located within the territory of China, the other party may apply to the Intermediate People's Court in the place where the residence of the losing party or the property of the losing party is located for enforcement of the award; if the residence of the losing party or the property of the losing party is located outside China, and the country in which the residence or the property of the losing party is located has already acceded to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards ( Abbr.: " the 1958 New York Convention " ), the other party may apply to the competent court in that country for enforcement in accordance with the Convention. Whenever one party applies for enforcement to the competent foreign court, he shall submit written application for enforcement together with the arbitration agreement and the original copy of arbitral award and the corresponding translation copy.
The 1958 New York Convention became effective in China on April 22, 1987. The arbitral award made by the Arbitration Commission can be enforced by the competent court of more than 130 countries and regions in accordance with the Convention.
IX. Arbitration Costs
When applying for arbitration, the parties shall pay certain fees in advance, which include:
(1) The arbitration fee
The arbitration fee shall be paid in advance by the claimant when applying for arbitration, or by the respondent when lodging his counterclaim. The collection of the arbitration fee shall be based on the Arbitration Fee Schedule of the Arbitration Commission. The arbitration tribunal has the power to decide in the arbitral award which party should bear the arbitration fee and how much each party should bear.
(2) The actual costs
The actual costs include costs for making investigations and collecting evidence, costs for engaging expert to make appraisal, and expenses necessary for the arbitrators from places other than Beijing or foreign arbitrators to attend the hearing. The arbitration tribunal shall decide which party shall pay the deposit for making investigation and collecting evidence, and those for engaging expert to make appraisal; and the actual expenses for the arbitrator outside Beijing or foreign arbitrator to attend the hearing shall be paid in advance by the party who appoints the arbitrator. The arbitration tribunal shall decide in the arbitral award which party should bear those actual fees and expenses , and how much each party should bear.
The arbitration tribunal has the power to decide in the arbitral award that the losing party shall pay the winning party as compensation a proportion of the expenses reasonably incurred by the winning party in dealing with the case. The amount of such compensation shall not in any case exceed 10% of the total amount awarded to the winning party.
September, 2004 CIETAC,CMAC
Welcome to CIETAC
(China Int’l Economic & Trade Arbitration Commission) and CMAC
(China Maritime Arbitration Commission). If you (your company) are
going to claim against a business partner or have your business
disputes resolved by the means of arbitration, please be aware of the
following
NECESSARY FORMALITIES ON APPLYING FOR ARBITRATION.
I. There generally must be an arbitration clause in your contract or a separate arbitration agreement with the business partner if you (your company) apply for arbitration here.
II. Meanwhile, the following documents are to be submitted:
A. Written Application For Arbitration (including documentary evidences)
If the total claim amount is less than 500,000 Chinese RMB (about 6,0241USD), Summary Procedure shall apply, and three sets of Written Application For Arbitration are needed.
If the total claim amount is over 500,000 Chinese RMB (about 6,0241USD), or no clearly defined monetary amount is involved in the claims, ordinary procedure other than Summary Procedure shall apply, and five sets of Written Application For Arbitration are needed.
If more than one Respondent is listed, one more set of Written Application For Arbitration is needed for every one more Respondent added.
B. Original Power of Attorney is to be submitted if any agent is asked to act on your behalf.
C. If interim measure of protection of property or evidence is necessary, please submit two originals of Written Application for Interim Protection of Property/Evidence and one more set of Written Application For Arbitration, and inform CIETAC/CMAC in writing which specific court of law the Written Application for Interim Protection of Property/Evidence should be forwarded to and its address, post code and telephone number, etc..
D. An original of the certificate of the legal representative of the corporation, xeroxed copies of the business license, etc., are to be submitted.
III. Pay an arbitration fee deposit to the Arbitration Commission according to the Arbitration Fee Schedule of the CIETAC/CMAC Arbitration Rules. In principle, the arbitration fee shall be borne by the losing party.
IV. Please also be aware:
The texts of Written Application For Arbitration must bear the signatures and/stamps. As for documentary evidences, when applying for arbitration, usually the xeroxed copies are needed other than the originals, which should be brought to the oral hearing for examination and cross-examination.
V. For further information, please call us at 64646688, fax us at 64643500 or 64643520, email us at cietac@public.bta.net.cn, visit our website www.cietac.org or visit us in person at office hours.
○c May, 2004 CIETAC,CMAC
Power of Attorney (Model)
China Int’l Economic & Trade Arbitration Commission:
(China Maritime Arbitration Commission:)
The Principal, with the full name of
, hereby authorizes the following agents:
, to act for and on behalf of us on the case about the disputes relating to
contract (transaction) between the Principal
and
.
The scope of authorization here does include but is not limited to:
filing application for arbitration (statement of defense and counter claims),
choosing arbitrators,
accepting, amending and giving up arbitral claims,
making presentations and argumentations at oral hearings,
reaching settlement agreements with the opposing party, and
taking relevant legal documents and notices served.
Information on the Principal:
Full name:
Domicile (address officially registered):
Post address:
Zip code:
Telephone number:
Fax number:
Information on the agents:
Full name:
Domicile (address officially registered):
Post address:
Zip code:
Telephone number:
Fax number:
Information on the agents:
Full name:
Domicile (address officially registered):
Post address:
Zip code:
Telephone number:
Fax number:
This power of attorney is hereby issued.
Signature and/ Seal of the Principal
(Date)
September, 2004CIETAC,CMAC
Written Application For Arbitration (Model)
Claimant: Global (NY) International Co., Ltd., a company incorporated and existing under the laws of New York State (see P.P.1-3, the attached document of official registration at a New York authority)
Domicile (address officially registered): 2345, Fifth Avenue, New York, NY 10017, USA
Tel: (212) 1234567 Fax: (212) 1234568 Email: legalny@global.com
Person in charge: Simon Smith, Chairman of Board of Directors
Arbitral Agent: San, Zhang (see P. 4, the attached Power of Attorney) whose contact address is:
Post Code:
Tel: , Fax: Email:
Respondent: ZHAOQIAN Sunli, a citizen of People’s Republic of China (see P.5, the attached Xeroxed copy of the ID Card of Citizen of the People’s Republic of China)
ID Card No.:
Domicile: Post Code:
Tel: , Fax: Email:
The Arbitration Agreement the Present Application Relies Upon: The arbitration clause—Article 15.1 of the Contract on the sales of leather clothes No. GIT05/90 signed by and between the Claimant Global (NY) International Co., Ltd. and the
Respondent (see P. 6 of the attachment) reads: “…………”.
Arbitral Claims:
1 The Respondent shall pay the Claimant USD165,751 as the price of the contractual commodity.
2 The Respondent shall pay the Claimant USD4,131 as the liquidated damages suffered by the Claimant.
3 The Respondent shall pay the Claimant USD3,000 to compensate the legal cost of the Claimant.
4 The Respondent shall compensate the Claimant for its traveling expenses for the present case.
5 The Respondent shall bear the arbitration fee of the present case.
The Facts and Reasons the Arbitral Claims Rely Upon:
On Sept. 9, 1990, the Claimant and the Respondent signed in Hong Kong a contract on the sales of leather clothes No. GIT05/90 (see P. 6 of the attachment), agreeing that the Claimant should sell a number of leather clothes to the Respondent. The contractual price was agreed to be USD165,751, which should be paid 180 days after the acceptance of the documents (D/A180 days).
After signing the Contract, the Claimant have the leather clothes manufactured, using the leather and the auxiliary material the Respondent examined and designated, according to the styles of clothes designated by the Respondent. The Respondent examined the goods, the leather clothes, and signed a Certificate of Conformity with the Contract (see P. 7 of the attachment). The Hebei Commodity Import and Export Inspection Bureau issued a Certificate (see P.P. 8-9 of attachment). The Goods were later timely delivered within the contractual time of delivery. After the arrival of the goods, the Respondent accepted the relevant documents inclusive of the draft and then took the goods. Within the time limit prescribed by the Contract, the Respondent did not raise nay objections regarding the quality of the goods, nor has the Respondent produced the inspection report that should be produced to accompany the objections on the quality of the goods.
The Claimant urged many times, via fax, email and etc., the Respondent make the payment for the contractual goods. The Respondent refused to honor its contractual obligations of payment and has constituted fundamental breach of contract. The Claimant sent faxes to the Respondent (see P. P. 10-15, the attachment) and called the Respondent (see P. P. 16-17, testimony of witnesses in the attachment) in order to settle the case. But the Respondent lacked no good will.
The Application is hereby respectfully submitted to China International Economic and Trade Arbitration Commission.
Attachment:
1 P.P.1-3 of the attachment, document of official registration at a New York authority
2 P. 4 of the attachment, Power of Attorney
3 P. 5 of the attachment, the ID Card of Citizen of the People’s Republic of China
4 P. 6 of the attachment, the Contract on the sales of leather clothes No. GIT05/90
5 P. 7 of the attachment, the Certificate of Conformity with the Contract, signed by the Respondent
6 P.P. 8-9 of attachment, the Certificate by The Hebei Commodity Import and Export Inspection Bureau
7 P. P. 10-15 of the attachment, the faxes to the Respondent
8 P. P. 16-17 of the attachment, testimony of witnesses
Signature and/ Seal of the Claimant or its Arbitral Agent
(Date)
FEE SCHEDULE ON INTERNATIONAL CASES
FEE SCHEDULE ON DOMESTIC CASES
