China International Economic and Trade Arbitration Commission

China International Economic and Trade Arbitration Commission
Financial Disputes Arbitration Rules

(Adopted on 4 April 2003 by the China Council for the Promotion of International Trade/China Chamber of International Commerce, Effective as from 8 May 2003)

ChapterⅠGeneral Provisions

Article 1 These Rules are formulated for the purpose of impartial and prompt resolution of disputes arising from financial transactions between parties.

Article 2 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 financia1
institutions inter se, or arising between financial institutions and other natural or legal
persons in the curreflcy 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. Negotiab1e instruments;
6. Fund transactions and fund trusts;
7. Bonds;
8. Collection and remittance of foreign
currencies;
9. Factoring; and
l 0. Reimbursement agreements between banks.

Article 3 These Ru1es 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.

Article 4 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.

Article 5 The Arbitration Commission has the power to ru1e 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 sha11 not affect the progress of the arbitration proceedings.

Article 6 The parties may appoint arbitrators from amongst the Pane1 of Financia1
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.

Article 7 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 con-firming any such appointment.

Chapter II Arbitration Proceedings

Article 8 Arbitration proceedings shall commence from the date on which the Notice of Arbitration is issued by the Secretariat of the Arbitration Commission.

Article 9 A Claimant applying for arbitration shall:
1. Submit an App1ication for Arbitration in writing, Which shalI, inter alia, contain the
fol1owing 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, facsimi1e, 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;
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 Schedu1e for Financial Disputes formulated by the Arbitration Commission.

Article 10 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.

Article 11 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.

Article 12 The arbitral tribunal shal1 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 sha1l, 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, joint1y 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 shaIl, 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.

Article l3 Unless otherwise agreed upon by the parties, the Respondent shall, within l5 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 re1evant supporting documents in writing, if any with the Secretariat of the Arbitration Commission.

Article 14 Unless otherwise agreed upon by the parties, the Claimant shall, within l5
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.

Article l5 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.

Article l6 During the arbitral proceedings, the arbitral tribunal may issue procedural
orders, questionnaires, and hold pre-hearing conferences or preliminary hearings.

Article l7 Where a time limit for presenting evidence has been agreed upon by the parties or has been set by the arbitra1 tribunal, the parties shall present their evidence to the arbitral tribuna1 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 evidentia1 document submitted by any party after the expiration of the time limit for presenting evidence.

Article l8 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 l0 working days prior to the
scheduled hearing date.

Article l9 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 l3,l4 and l8 may be extended.

Article 20 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.

Chapter III Award

Article 2l Subject to mandatory rules of law, the parties to any case involving a
foreign-related element may agree upon the 1aw 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.

Article 22 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 tru1y necessary and justifiable. Each such extension may not exceed 15 working days.

Article 23 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.

Chapter IV Miscellaneous

Article 24 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, tealeaf, telex, cable,
e-mail or such other means as the Secretariat of the Arbitration Commission considers appropriate.

Article 25 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.

Article 26 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.

Article 27 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 Chair man of the Arbitration Commission, the Secretariat and the Secretary-General of the Sub-Commission.

Article 28 The power to interpret these Rules is vested in the Arbitration Commission.

Appendix I
China International Economic and Trade Arbitration Commission Model
Arbitration clause for Financial Disputes

Any dispute arising from or in connection with this Contract or this transaction shall be submitted for arbitration to China
International Economic and Trade Arbitration Commission and such arbitration shall be conducted in accordance with the Financial Arbitration Rules of the Arbitration
Commission.

Appendix II
China International Economic and Trade Arbitration Commission
Financial Arbitration Fee schedule

Amount of Claim (RMB)	Amount of Fee (RMB)
1,000,000Yuan or less	1.5% of the Claimed Amount, minimum 8,000 Yuan
1,000,000Yuan to 5,000,000Yuan	15,000Yuan plus 1% of the amount above 1,000,000 Yuan
5,000,000Yuan to 50,000,000 Yuan	55,0000Yuan plus 0.75% of the amount above 5,000,000 Yuan
50,000,000Yuan or more	392,500Yuan plus 0.5% of the amount above 50,000,000Yuan

Upon the acceptance of each case, an additional RMB 10,000 Yuan shall be charged as Registration Fee which shall cover the expenses for examining the application for
arbitration, initiating the arbitration proceedings, computerizing management, filing the
documents, etc.
Where the amount of the claim cannot be ascertained at the time when the Application for Arbitration is fi1ed, or there exist special circumstances, the amount of arbitration fee shall be determined by the Secretariat of the Arbitration Commission or the Secretariats of its Sub-Commissions.
If the arbitration fee is to be paid in a foreign currency, the amount payable in the
foreign currency shall be equiralent to the corresponding RMB value specified in this Fee Schedule.
Apart from charging arbitration fee according to this Fee Schedule, the Arbitration
Commission or its Sub-Commissions may collect other extra, reasonab1e and actual expenses pursuant to the provisions of the Arbitration Rules of the Arbitration Commission.