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China - Maritime Arbitration Commission Arbitration Rules, 1995

China Maritime Arbitration Commission

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Rights: Copyright ©  1995 China Maritime Arbitration Commission


China Maritime Arbitration Commission Arbitration Rules
(Revised and adopted on September 4, 1995 by China Chamber of International Commerce, effective as from October 1, 1995)

Chapter I - General Provisions

Section 1 - Jurisdiction

Article 1

Article 2

Article 3

Article 4

Article 5

Article 6

Article 7

Section 2 - Organization

Article 8

Article 9

Article 10

Article 11

Chapter II - Arbitration Proceedings

Section 1 - Application for Arbitration, Defense and Counter-claim

Article 12

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

Article 20

Article 21

Article 22

Section 2 - Formation of Arbitration Tribunal

Article 23

Article 24

Article 25

Article 26

Article 27

Article 28

Article 29

Article 30

Section 3 - Hearing

Article 31

Article 32

Article 33

Article 34

Article 35

Article 36

Article 37

Article 38

Article 39

Article 40

Article 41

Article 42

Article 43

Article 44

Article 45

Article 46

Article 47

Article 48

Article 49

Article 50

Section 4 - Award

Article 51

Article 52

Article 53

Article 54

Article 55

Article 56

Article 57

Article 58

Article 59

Article 60

Article 61

Article 62

Chapter III - Summary Procedure

Article 63

Article 64

Article 65

Article 66

Article 67

Article 68

Article 69

Article 70

Article 71

Article 72

Article 73

Chapter IV - Supplementary Provisions

Article 74

Article 75

Article 76

Article 77

Article 78

Article 79

Article 80

Appendix


These Rules are formulated in accordance with the Arbitration Law and the provisions of the relevant laws of the People's Republic of China (PRC) and pursuant to the 'Decision', the 'Notice' and ' Official Reply' of the State Council of the PRC.

China Maritime Arbitration Commission (formerly known as Maritime Arbitration Commission of the China Council for the Promotion of International Trade, and hereinafter referred to as the ' Arbitration Commission') independently and impartially resolves, by means of arbitration, contractual or non-contractual maritime disputes arising from, or in the process of , transportation, production and navigation by or at sea, in coastal waters and other waters connected with sea, in order to protect the legitimate rights and interests of the parties and promote the development of the domestic and international shipping industry and economy and trade.

The Arbitration Commission shall take cognizance of cases of following maritime disputes:

(1) dispute arising from salvage and general average;

(2) dispute arising from collision between vessels, or from damage caused by a vessel to the structure and installation on the sea, waterways connected with sea, in the harbor as well as the submarine or underwater installation;

(3) dispute arising from management, operation, chartering, mortgage, agency, towage, raising, sale, repair, building, demolition, of sea-going/river vessel, as well as carriage by sea in virtue of contracts of affreightment, bill of lading or other documents, and marine insurance;

(4) dispute regarding the utilization of the marine resources and pollution damages to the marine environment;

(5) dispute arising from contract of freight forwarding, supply of ship's stores, employment of seaman aboard a foreign vessel, fishery production and fishing;

(6) other maritime dispute submitted for arbitration by agreement between the parties.

The Arbitration Commission takes cognizance of cases in accordance with an arbitration agreement between the parties concluded before or after the occurrence of the disputes to refer their dispute to the Arbitration Commission for arbitration and upon the written application by one of the parties.

An arbitration agreement means an arbitration clause stipulated by the parties in their contract or a written agreement concluded by the parties in other forms to submit their dispute for arbitration.

The Arbitration Commission has the power to decide on the existence and validity of an arbitration agreement and the jurisdiction over an arbitration case. If a party challenges the validity of the arbitration agreement and requests the Arbitration Commission to make a decision thereupon, and the other party applies to the People's Court for a ruling, the latter's ruling shall prevail.

An arbitration clause contained in a contract shall be regarded as existing independently and separately from the other clauses of the contract, and an arbitration agreement attached to a contract shall be treated as a part of the contract existing independently and separately from the other parts of the contract. The validity of an arbitration clause or an arbitration agreement shall not be affected by the modification, rescission, termination, invalidity, revocation or non-existence of contract.

Any objections to an arbitration agreement and/or jurisdiction over an arbitration case should be raised before the first hearing conducted by the arbitration tribunal. Where a case is examined on the basis of documents only, the objections to jurisdiction should be raised before submission of the first substantive defense.

Once the parties agree to submit their dispute to the Arbitration Commission for arbitration, they shall be deemed to have agreed to conduct the arbitration under these Rules.

The Arbitration Commission shall have one honorary Chairman and several advisers.

The Arbitration Commission is composed of one Chairman, several Vice-Chairmen and a number of Commission members. The Chairman performs the functions and duties vested in him by these Rules and the Vice-Chairmen may perform the Chairman's functions and duties with the Chairman's authorization.

The Arbitration Commission shall have a secretariat to handle its day-to-day work under the leadership of the secretary-general of the Arbitration Commission.

The Arbitration Commission shall maintain a Panel of Arbitrators. The arbitrators shall be selected and appointed by the Arbitration Commission from among Chinese and foreign personages with special knowledge and practical experience in the fields of navigation, carriage by sea, foreign trade, insurance and law and other fields.

The Arbitration Commission is located in Beijing. The Arbitration Commission may, according to the requirement of development of arbitration business, set up its Sub-Commissions in other places within China's territory.

The arbitration proceedings shall commence from the date on which the Notice of Arbitration is issued.

The Claimant shall satisfy the following requirements when submitting his Application for Arbitration:

(1) An Application for Arbitration in writing shall be submitted and the following shall be specified in the Application for Arbitration:

(a) 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, if any;

(b) The arbitration agreement relied upon by the Claimant;

(c) The facts of the case and the main points of dispute;

(d) 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.

(2) When an application for Arbitration is submitted to the Arbitration Commission, the relevant documentary evidence on which the Claimant's claim is based shall accompany the Application for Arbitration.

(3) The Claimant shall pay an arbitration fee in advance to the Arbitration Commission according to the Arbitration Fee Schedule of the Arbitration Commission.

After receipt of the Application for Arbitration and its attachments and when the secretariat of the Arbitration Commission, after examination, deems that the Claimant has not completed the formalities required for arbitration, the secretariat shall demand the Claimant to completed them, and when the secretariat deems that the Claimant has completed the formalities, the secretariat shall immediately send to the Respondent a Notice of Arbitration together with one copy each of the Claimant's Application for Arbitration and its attachments as well as the Arbitration Rules, the Panel of Arbitrators and the Arbitration Fee Schedule of the Arbitration Commission, and shall simultaneously send to the Claimant one copy each of the Notice of Arbitration, the Arbitration Rules, the Panel of Arbitrators and Arbitration fee Schedule.

The secretariat of the Arbitration Commission, after sending the Notice of Arbitration to the Claimant and Respondent, shall appoint one of its staff-members to take charge of procedural administration of the case.

The Claimant and the Respondent shall, within 20 days as from the date of receipt of the Notice of Arbitration, appoint an arbitrator from among the Panel of Arbitrators of the Arbitration Commission or authorize the Chairman of the Arbitration Commission to make such appointment.

The Respondent shall, within 45 days from the date of receipt of the Notice of Arbitration, submit his written defense and relevant documentary evidence to the secretariat of the Arbitration Commission.

The Respondent shall, at the latest within 60 days from the date of receipt of the Notice of Arbitration, lodge with the secretariat of the Arbitration Commission his counterclaim in writing, if any. The arbitration tribunal may extend that time limit if it deems that there are justified reasons.

When lodging a counterclaim, the Respondent must state in his written statement of counterclaim his specific claim, reasons for his claim and facts and evidence upon which his counterclaim is based, and attach to his counterclaim the relevant documentary evidence.

When lodging a counterclaim, the Respondent shall pay an arbitration fee in advance according to the Arbitration Fee Schedule of the Arbitration Commission.

The claimant may request to amend his claim and the Respondent may request to amend his counterclaim; 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.

When submitting application for arbitration, written defense, statement of counterclaim, documentary evidence and other documents, the party/parties shall submit them in quintuplicate.* If the number of the parties exceeds two, additional copies shall be submitted accordingly; if the number of arbitrator composing the arbitration tribunal is one, two copies may be reduced.

The arbitration proceedings shall not be affected in case the Respondent fails to file his defense in writing or the Claimant fails to submit his written defense against the Respondent's counterclaim.

The parties may authorize arbitration agents to deal with the matters in relation to arbitration; the authorized attorney must produce a Power of Attorney to the Arbitration Commission.

Chinese and foreign citizens can be authorized to act as arbitration agents.

When a party applies for property preservative measures, the Arbitration Commission shall submit the party's application for a ruling to the Maritime Court in the place where the domicile of the party against whom the property preservative measures are sought is located or in the place where the property of the said party is located.

When a party applies for interim measures of protection of evidence, the Arbitration Commission shall submit his application for a ruling to the maritime Court in the place where the evidence is located.

Each of the parties shall appoint one arbitrator from among the Panel of Arbitrators of the Arbitration Commission or entrust the Chairman of the Arbitration Commission to make such appointment. The third arbitrator shall be jointly appointed by the parties or appointed by the Chairman of the Arbitration Commission upon the parties' joint authorization.

In case the parties fail to jointly appoint or jointly entrust the Chairman of the Arbitration Commission to appoint the third arbitrator within 20 days 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 third arbitrator shall act as the presiding arbitrator.

The presiding arbitrator and the two appointed arbitrators shall jointly form an arbitration tribunal to jointly hear the case.

Both parties may jointly appoint or jointly authorize the Chairman of the Arbitration Commission to appoint a sole arbitrator to form an arbitration tribunal to hear the case alone.

If both parties have agreed on the appointment of a sole arbitrator to hear their case alone but have failed to agree on the choice of such a sole arbitrator within 20 days from the date on which the Respondent receives the Notice of Arbitration, the Chairman of the Arbitration Commission shall make such an appointment.

If the Claimant or the Respondent fails to appoint or authorize the Chairman of the Arbitration Commission to appoint an arbitrator according to Article 15 of these Rules, the Chairman of the Arbitration Commission shall appoint an arbitrator on his behalf.

When there are two or more Claimants and/or Respondents in an arbitration case, the Claimants' side and the Respondents' side each shall, through consultation, appoint or entrust the Chairman of the Arbitration Commission to appoint one arbitrator from among the Panel of Arbitrators of the Arbitration Commission.

If the Claimants side or the Respondents' side fails to make such appointment or entrustment* within 20 days as from the date on which the Respondent's side receives the Notice of Arbitration, the appointment shall be made by the Chairman of the Arbitration Commission.

Any appointed arbitrator having a personal interest in the case shall himself disclose such circumstances to the Arbitration Commission and request withdrawal from his office.

A party may make a request in writing to the Arbitration Commission for the removal of an appointed arbitrator from his office, if the party has justified reasons to suspect the impartiality and independence of the appointed arbitrator. In the request, the facts and reasons on which the request is based and evidence must be given.

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.

The Chairman of the Arbitration Commission shall decide on the challenge.

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.

After the appointment of the substitute arbitrator, the arbitration tribunal has discretion to decide whether or not the whole or part of the previous hearings shall be repeated.

The arbitration tribunal shall hold oral hearings when examining a case. At the request of the parties or with their consent, oral hearings may be omitted if the arbitration tribunal also deems that oral hearings are unnecessary, and then the arbitration tribunal may examine the case and make an award on the basis of documents only.

The date of the first oral hearing shall be fixed by the arbitration tribunal in consultation with the secretariat of the Arbitration Commission. The notice of the date of the hearing shall be communicated by the secretariat of the Arbitration Commission to the parties 30 days before the date of the hearing. A party having justified reasons may request a postponement of the date of the hearing. His request must be communicated to the secretariat of the Arbitration Commission 12 days before the date of the hearing and the arbitration tribunal shall decide whether to postpone the hearing or not.

The notice of the date of hearing subsequent to the first hearing is not subject to the 30-day time limit.

The cases taken cognizance of by the Arbitration Commission shall be heard in Beijing, or in other places with the approval of the Secretary General of the Arbitration Commission.

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 closed session, 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.

The parties shall produce evidence for the facts on which their claim, defense and counterclaims are based. The arbitration tribunal may undertake investigations and collect evidence on its own initiative, 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.

The arbitration tribunal may consult an expert or appoint an appraiser for the clarification of special questions relating to the case. Such an expert and appraiser can be an organization or a citizen, Chinese or foreign.

The arbitration tribunal has the power to order the parties and the parties are also obliged to submit or produce to the expert or appraiser any materials, documents, properties or goods related to the case for check-up, inspection and/or appraisal.

The expert's report and the appraiser's report shall be copied to the parties so that they 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.

The evidence submitted by the parties shall be examined and decided by the arbitration tribunal. The adoption of the expert's report and the appraiser's report shall be determined by the arbitration tribunal.

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.

During the hearing, 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 seals to it.

The record in writing or tape-recording are only for the use and reference of the arbitration tribunal.

If the parties to an arbitration case reach an amicable settlement agreement by themselves, they may either request the arbitration tribunal to make an award in accordance with the contents of their amicable settlement agreement to end the case or request a dismissal of the case. The Secretary General of the Arbitration Commission shall decide on the request for a dismissal of the case if the request is made before the formation of the arbitration tribunal and the arbitration tribunal shall decide on the request if the request is put forward after the formation of the arbitration tribunal.

If the party or the parties refer the dismissed case again to the Arbitration Commission for arbitration, the Chairman of the Arbitration Commission shall decide whether to accept the reference or not.

A party who knows or should have known that any provision or requirement of these Rules has not been complied with and yet proceeds with the arbitration proceedings without explicitly raising in writing his objection to non-compliance in a timely manner shall be deemed to have waived his right to object.

If both parties have a desire for conciliation or one party so desires and the other party agrees to it when consulted by the arbitration tribunal, the arbitration tribunal may conciliate the case under its cognizance in the process of arbitration.

The arbitration tribunal may conciliate cases in the manner it deems appropriate.

The arbitration tribunal shall terminate conciliation and continue the arbitration proceedings when one of the parties requests a termination of conciliation or when the arbitration tribunal believes that further efforts to conciliate will be futile.

If the parties have reached an amicable settlement outside the arbitration tribunal in the course of conciliation conducted by the arbitration tribunal, such settlement shall be deemed as one which has been reached trough the arbitration tribunal's conciliation.

The parties shall sign a settlement agreement in writing when an amicable settlement is reached through conciliation conducted by the arbitration tribunal, and the arbitration tribunal shall end the case by making an arbitration award in accordance with the contents of the settlement agreement unless otherwise agreed by the parties.

Should conciliation fail, any statement, opinion, view and 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.

The arbitration tribunal shall render an arbitral* award within 9 months as from the date on which the arbitration tribunal is formed. The Secretary General of the Arbitration Commission may extend this time limit at the request of the arbitration tribunal if the Secretary General of the Arbitration Commission considers that it is really necessary and the reasons for extension are truly justified.

The arbitration tribunal shall independently and impartially make its arbitral award on the basis of the facts, in accordance with the law and the terms of the contracts, with reference to international practices and in compliance with the principle of fairness and reasonableness.

Where a case is heard by an arbitration tribunal composed of three arbitrators, the arbitral award shall be decided by the majority of the arbitrators and the minority opinion may be written in the record and docketed into the file.

When the arbitration tribunal cannot attain a majority opinion, the arbitral award shall be decided in accordance with the presiding arbitrator's opinion.

The arbitration tribunal shall state in the arbitral award the claims, the facts of the dispute, the reasons on which the arbitral award is based, the result of the arbitral award, the allocation of the arbitration costs, the date on which and the place at which the arbitral award is made. The facts of the dispute and the reasons on which the award if the parties have agreed not to state them in the arbitral award, or the arbitral award is made in accordance with the contents of the settlement agreement reached between the parties.

Unless the arbitral award is made in accordance with the opinion of the presiding arbitrator or the sole arbitrator, the arbitral award shall be signed by all the arbitrators or the majority arbitrators sitting on the arbitration tribunal. An arbitrator who has a dissenting opinion may sign or not sign his name on the arbitral award.

The arbitrators shall submit his draft arbitral award to the Arbitration Commission before signing the award. The Arbitration Commission may remind the arbitrators of the issues related to the form of the arbitral award on condition that the arbitrators' independence of decision is not affected.

The Arbitration Commission's stamp shall be affixed to the arbitral award.

The date on which the arbitral award is made is the date on which the arbitral award comes into legal effect.

The arbitration tribunal may, if it deems it necessary or the parties so request and the arbitration tribunal agrees, make an interlocutory award or partial award on any issue of the case at any time in the course of arbitration before the final award is made. Either party's failure to perform the interlocutory award does not affect the continuation of the arbitration proceedings and the making of the final award by the arbitration tribunal.

The arbitration tribunal has the power to determine in the arbitral award the arbitration fee and other expenses to be eventually paid by the party or the parties to the Arbitration Commission.

The arbitration tribunal has the power to decide in the arbitral award that the losing party shall pay the winning party as compensation an apportion 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.

The arbitral award is final and binding upon both disputing parties. Neither party may bring a suit before a law court or made a request to any other organization for revising the arbitral 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 really an error in the arbitral award, the arbitration tribunal shall make a correction in writing within 30 days from the date of which the arbitral award is issued. The correction in writing forms a part of the arbitral award.

If anything that should be awarded has been omitted in the arbitral award, either of the parties may make a request in writing to the arbitration tribunal for an additional award within 30 days from the date on which the arbitral award is received.

If something which should be awarded is really omitted, the arbitration tribunal shall make an additional award within 30 days from the date of receipt of the request in writing for an additional award. The arbitration tribunal may by itself make an additional award within 30 days from the date on which the arbitral award is issued. The additional award forms a part of the arbitral award which has been previously issued.

The parties must automatically execute the arbitral award within the time limit specified in the arbitral award. If no time limit is specified in the arbitral award, the parties shall carry out the arbitral award immediately.

In case one party fails to execute the arbitral award, the other party may apply to the Chinese court for the enforcement of the arbitral award according to the 1958 Convention on Recognition and Enforcement of Foreign Arbitral Awards or other international treaties that China has concluded or participated in .

Unless otherwise agreed by the parties, this Summary Procedure shall apply to any case in dispute where the amount of the claim totals not more than RMB 500,000 yuan, and to any case in dispute where the amount of the claim totals more than RMB 500,000 yuan provided that one party applies for arbitration under this Summary Procedure and the other party agrees in writing.

When an application for arbitration is submitted to the Arbitration Commission by one of the parties and the applications is accepted by the Arbitration Commission after examination and the Summary Procedure is applicable, the secretariat of the Arbitration Commission shall immediately serve a Notice of Arbitration to each of the parties.

Unless both parties have jointly selected one sole arbitrator from among the Panel of Arbitrators of the Arbitration Commission, they shall jointly appoint or jointly entrust the Chairman of the Arbitration Commission to appoint one sole arbitrator within 15 days from the date on which the Notice of Arbitration is received by the Respondent. When the parties fail to make such appointment or entrustment, the Chairman of the Arbitration Commission shall immediately appoint one sole arbitrator to form an arbitration tribunal to hear the case.

The Respondent shall, within 30 days from the date of receipt of the Notice of Arbitration, submit his defense and relevant documentary evidence to the secretariat of the Arbitration Commission; counterclaim, if any, shall be lodged together with documentary evidence within the said time limit.

The arbitration tribunal may hear the case in the way it deems appropriate. The arbitration tribunal has discretion to hear the case only on the basis of the written materials and evidence submitted by the parties or to hold an oral hearing as well.

The parties must hand in written materials and evidence needed for the arbitration in compliance with the requirements of the arbitration tribunal within the time limit given by the arbitration tribunal.

For a case which needs an oral bearing, the secretariat of the Arbitration Commission shall, after the arbitration tribunal has fixed a date for hearing, inform the parties of the date of the hearing 15 days before the date of the hearing.

If the arbitration tribunal decides to hear the case orally, only one oral hearing shall be held. However, the arbitration tribunal may hold two oral hearings if really necessary.

Should one of the parties fail to act in compliance with this Summary Procedure during summary proceedings, such failure shall not affect the arbitration tribunal's conduct of the proceedings and the arbitration tribunal's power to render an arbitral award.

The conduct of the proceedings shall not be affected by any amendment of the claim or by the lodging of a counterclaim.

Where a case is heard orally, the arbitration tribunal shall make an arbitral award within 30 days from the date of the oral hearing if one oral hearing is to be held, or from the date or the second oral hearing if two oral hearings are to be held. Where a case is examined on the basis of documents only, the arbitration tribunal shall render an arbitral award within 90 days from the date on which the arbitration tribunal is formed. The Secretary General of the Arbitration Commission may extend the said time limit if such extension is necessary and justifiable.

For matters not covered in this Chapter, the relevant provisions in the other Chapters of these Rules shall apply.

The Chinese language is the official language of the Arbitration Commission. If the parties have agreed otherwise, their agreement shall prevail.

At the hearing, if the parties or their attorneys or witnesses request language interpretation, the secretariat of the Arbitration Commission may provide an interpreter for them or the parties may bring with them their own interpreters.

The arbitration tribunal and/or the secretariat of the Arbitration Commission may, if it deems it necessary, request the parties to hand in corresponding translation copies in Chinese language or other languages of the documents and evidential materials submitted by the parties.

All the arbitration documents, notices and materials may be sent to the parties and/or their attorneys in person, or by registered letter or express airmail, telefax, telex, cable or by any other means which are deemed proper by the secretariat of the Arbitration Commission.

Any written communication to the parties is deemed to have been properly served if it is delivered to the addressee or delivered at his place of business, habitual residence or mailing address; or if none of these can be found after making a reasonable inquiry, a written communication is deemed to have been served if it is sent to the addressee's last known place of business, habitual residence or mailing address by registered letter or by any other means which provides a record of the attempt to deliver it.

Apart from charging arbitration fees from the parties according to the Arbitration Fee Schedule of the Arbitration Commission, the Arbitration Commission may collect from the parties other extra, reasonable and actual expenses including arbitrator's special remuneration and their travel and boarding expenses for dealing with the case and the fees and expenses for experts, appraisers and interpreters appointed by the arbitration tribunal, etc.

If a case is withdrawn after the parties have reached between themselves an amicable settlement, the Arbitration Commission may charge a certain amount of fees from the parties in consideration of the quantity of work and the amount of the actual expenses incurred by the Arbitration Commission.

Where a arbitration agreement or an arbitration clause contained in the contract provides for the arbitration to be conducted by China Maritime Arbitration Commission or by its former named Maritime Arbitration Commission of the China Council for the Promotion of International Trade, the parties shall be deemed to have unanimously agreed that the arbitration shall be conducted by China Maritime Arbitration Commission.

These Rules shall come into force as from October 1, 1995. For cases which have been taken cognizance of by the Arbitration Commission before the date on which these Rules become effective, the Rules of Arbitration effective on the date when the cases are taken cognizance of shall apply. However, these Rules shall be applied if the parties so agree.

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

CHINA MARITIME ARBITRATION COMMISSION

ARBITRATION FEE SCHEDULE

(Effective as from April 1, 1995)

Amount of Claim (RMB) Amount of Claim (RMB) Amount of Fee (RMB)

1,000,000 Yuan or less 4% of the Claiming Amount, minimum 20,000 Yuan

1,000,000 Yuan to 5,000,000 Yuan 40,000 Yuan Plus 3% of the excess over 1,000,000 Yuan

5,000,000 Yuan to 10,000,000 Yuan 160,000 Yuan Plus 2% of the excess over 5,000,000 Yuan

10,000,000 Yuan to 50,000,000 Yuan 26,000 Yuan Plus 1% of the excess over 10,000,000 Yuan

50,000,000 Yuan or more 660,000 Yuan Plus 0.5% of the excess over 50,000,000 Yuan

When applying for arbitration, each case shall be charged an additional RMB 10,000 Yuan as a Registration Fee in order to cover the expenses in examining the application for arbitration, filing the case, computer management, and placing the documents on file.

Where the amount of the claim is not specified at the time of submitting the Application for Arbitration, the amount of arbitration fee shall be determined by the secretariat of the Arbitration Commission.

If the arbitration fee is charged in foreign currency, an amount of foreign currency equivalent to the corresponding RMB value specified in this Schedule shall be paid.

Apart from charging arbitration fee according to the above-mentioned Arbitration Fee Schedule, the Arbitration Commission may collect other extra, reasonable and actual expenses pursuant to the relevant provisions of the Arbitration Rules.


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