Provisions on the Administration of Shenzhen Court of International Arbitration (for Trial Implementation)

• Document Number：Order No. 245 of the Shenzhen Municipal People's Government
• Area of Law： Mediation & Arbitration
• Level of Authority： Local Government Rules
• Date issued：11-24-2012
• Status： Effective
• Issuing Authority： Guangdong Province

Order of the Shenzhen Municipal People's Government
(No. 245)
The Provisions on the Administration of Shenzhen Court of International Arbitration (for Trial Implementation), as deliberated and adopted at the 71st executive meeting of the Municipal People's Government on November 6, 2012, are hereby issued, and shall come into force on the date of issuance.
Mayor: Xu Qin
November 24, 2012
Provisions on the Administration of Shenzhen Court of International Arbitration (for Trial Implementation)
Chapter I General Provisions
Article 1 In order to innovate commercial dispute resolution mechanisms, standardize the operation of the Shenzhen Court of International Arbitration (the “SCIA”), resolve the commercial disputes at home and abroad in an independent, fair and efficient manner, safeguard the legitimate rights and interests of the parties concerned at home and abroad, and promote the construction of Shenzhen into a modern international advanced city and the construction of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, these Provisions are hereby formulated in accordance with the Regulation on the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and other relevant laws and regulations.
Article 2 The SCIA is the arbitration institution renamed according to law by the Shenzhen Municipal People's Government on the basis of the China International Economic and Trade Arbitration Commission South China Subcommission, and also known as the “South China International Economic and Trade Arbitration Commission.”
The SCIA, with the registered address at the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (hereinafter referred to as the "Qianhai Cooperation Zone"), shall perform the functions of an arbitration committee according to law, and conduct administration and operation in accordance with these Provisions and the Articles of Association of the SCIA (hereinafter referred to as “Articles of Association”).
Article 3 As a non-profit legal organ, the SCIA operates independently as an incorporated public institution.
The SCIA shall establish the corporate governance structure with the Council as the core to implement the governance mechanism for effective checks and balances among decision-making, execution and supervision.
Article 4 The SCIA shall conduct communication and cooperation with the relevant industries and organizations at home and abroad, and introduce advanced systems for international commercial arbitration to resolve the contract disputes and other property rights disputes among individuals, legal persons, organizations and other equal parties at home and abroad in a fair and reasonable manner.
The SCIA may resolve disputes through arbitration, mediation, negotiation promotion, expert review and other legal means as agreed upon or requested by the parties concerned.
Chapter II Council
Article 5 The SCIA shall establish the Council which acts as the decision-making body.
Article 6 The Council of the SCIA shall be composed of eleven to fifteen Council members. The Council shall have one Chairman, and two to four Vice Chairmen.
The Council members shall be the famous public figures in legal profession, industrial and commercial circle and other relevant fields, and the number of the overseas persons from Hong Kong Special Administrative Region and other areas shall not be less than one third of that of the Council members.
Article 7 The Council members shall be appointed by the Shenzhen Municipal People's Government, with each term of office being five years, and may be reappointed upon expiration of each term of office. The Chairman of the Council shall be appointed by the Shenzhen Municipal People's Government in accordance with the prescribed procedures.
Article 8 The Council shall perform the following functions:
(1) formulating and amending the Articles of Association, rules of procedure of the Council, arbitration rules, mediation rules, and dispute solution rules in other forms;
(2) proposing upon deliberation the candidates for Secretary-General and Deputy Secretaries-General;
(3) examining and approving the establishment, alteration and revocation of the ad hoc committee or the professional committee, and determining the members of the ad hoc committee or the professional committee;
(4) establishing the roster of arbitrators and determining the appointment and dismissal of other dispute resolution experts;
(5) examining and approving annual work reports and budget (final) reports;
(6) examining and approving the plans for establishment and modification of internal organs and the number of employers;
(7) formulating important rules and regulations, including, but not limited to, arbitrator remuneration system, and employment, management and remuneration systems for the staff in execution and management organs; and
(8) other duties as provided for by the Articles of Association.
Article 9 Chairman shall perform the following duties:
(1) convening and presiding over the meetings of the Council;
(2) checking the implementation of the resolutions of the Council;
(3) organizing the formulation of all systems concerning the operation of the Council; and
(4) other duties as required by Articles of Association and arbitration rules.
Article 10 The meetings of the Council shall be held at a minimum of twice a year.
The meetings of the Council shall be convened and presided over by the Chairman of the Council, who may, according to the work demands and the written proposals of not less than three members of the Council, convene the meetings of the Council. The Chairman may entrust the Deputy Chairman to convene and preside over the meetings of the Council.
A meeting of the Council is not valid unless more than two thirds of the members of the Council are present, and the resolution of relevant matters of the Council shall be made by voting, and be voted through by more than two thirds of the members of the Council present at the meeting. Any amendment to the Articles of Association shall be voted through by more than three quarters of all the members of the Council.
Chapter III Execution and Management Organs
Article 11 The SCIA shall have Secretary-General and Deputy Secretaries-General, and may establish, as required, necessary internal bodies which are to be responsible for the execution and management of the routine work of the SCIA.
The Secretary-General is the legal representative of the SCIA, who is responsible for the routine management of the SCIA, and is accountable to the Council and accepts the supervision of the Council. Deputy Secretaries-General shall assist the Secretary-General in his work.
Article 12 The candidates for the Secretary-General and Deputy Secretaries-General shall be nominated by the Council. The Secretary-General shall be selected from the members of the Council.
The Secretary-General and Deputy Secretaries-General shall be appointed by the Shenzhen Municipal People's Government according to their respective management powers and procedures.
Article 13 The Secretary-General shall fulfill the following duties with the assistance of the Deputy Secretaries-General:
(1) organizing the implementation of the Council resolutions;
(2) taking charge of the procedural administration of cases;
(3) organizing the training and assessment of arbitrators and other dispute resolution experts;
(4) being responsible for the routine administrative management of the SCIA;
(5) organizing the formulation of annual work reports, financial budgets (final) reports and plans for establishment of internal bodies, and submitting them to the Council for deliberation;
(6) determining the establishment of positions and the conditions for employment of staff, and appointing or dismissing the staff of internal bodies; and
(7) other duties and functions as required by Articles of Association, arbitration rules, dispute resolution rules in other forms and the Council.
Chapter IV Dispute Resolution Rules and Principles for Establishing the Rules
Article 14 The SCIA shall, in accordance with relevant laws and regulations and the provisions of these Provisions, and in light of the actual circumstances of the Shenzhen Special Economic Zone and the Qianhai Cooperation Zone, learn from the advanced international commercial dispute systems, innovative dispute resolution mechanisms, formulate arbitration rules, mediation rules, negotiations promotion rules, expert review rules, and the dispute resolution rules in other forms, to provide choices for domestic and foreign parties concerned.
The SCIA shall establish the mechanisms for cooperation with overseas arbitration institutions, and may provide arbitral tribunal facilities for the overseas arbitration institutions which are to carry out arbitration activities within the territory of China, and provide certain procedural assistances.
Article 15 The SCIA shall appoint arbitrators according to statutory conditions, and establish the roster of arbitrators according to different professions.
The number of the overseas arbitrators from Hong Kong Special Administrative Region and other places shall be not less than one third of that of the arbitrators employed by the SCIA.
Article 16 The SCIA shall accept and hear foreign and domestic arbitration cases according to the arbitration agreements reached by the parties concerned.
Article 17 The parties concerned at home and abroad may agree on the application of the arbitration rules of the SCIA or the arbitration rules of other arbitration institutions at home and abroad or the arbitration rules of the United Nations Commission on International Trade Law (“UNCITRAL”), may agree on the alteration of relevant contents of the arbitration rules of the SCIA, and may agree on the applicable laws, modes of arbitral tribunal formation, ways of court trial, rules of evidence, arbitration language, and the place where a court session is opened or the place where the arbitration is conducted. However, their agreements shall be able to be implemented and may not conflict with the mandatory laws and regulations in the places where the arbitrations are conducted.
Article 18 The parties concerned may select the members of an arbitral tribunal from the roster of arbitrators provided by the SCIA, and may also agree to select the persons not included in the roster of arbitrators as the members of the arbitral tribunal.
Where a member of an arbitral tribunal as agreed on by the parties concerned is not included in the roster of arbitrators, the member of the arbitral tribunal may serve as an arbitrator, chief arbitrator or sole arbitrator only after the SCIA has confirmed he is qualified for being an arbitrator according to law.
Article 19 An arbitral tribunal shall try cases independently according to law, and shall not be intervened by any organization or individual except for being subject to judicial supervision according to law.
The SICA shall establish strict code of professional ethics for arbitrators, information disclosure system for arbitrators and withdrawal system for arbitrators to ensure independent and impartial arbitration.
Chapter V Financial and Human Resources Management
Article 20 The SCIA shall establish and improve according to law the financial and asset management systems appropriate for independent incorporated public institutions.
The funding sources of the SCIA shall include:
(1) arbitration charges;
(2) mediation and dispute resolution fees in other forms; and
(3) other legitimate incomes.
Article 21 The SCIA shall establish a competitive and market-oriented employment mechanism, and may employ the professional talents at home and abroad according to demands to create professional dispute resolution services and management team.
The internal bodies and total quota of the staff of the SCIA shall, upon the examination and approval of the Council, be reported to the municipal department in charge of the organization establishment for filing and then implemented. The establishment of positions, the promotion and demotion as well as appointment and dismissal of staff and other matters of the internal bodies of the SCIA shall be determined by the SCIA according to work requirements and managed according to employment contracts.
Article 22 The SCIA shall, by reference to international practice and the market level of the same industry, formulate reasonable arbitrator remuneration system, staff remuneration system and incentive plan, and establish remuneration and salary assessment mechanism.
The staff of the SCIA shall, according to the relevant provisions of the Shenzhen Municipality, participate in pension, medical, unemployment, work-related injury, maternity and other social insurances, and implement housing accumulation fund, annuity and other systems according to relevant provisions.
Chapter VI Supervision Mechanism
Article 23 The applications for property preservation, applications for evidence preservation and applications for confirmation of the validity of SCIA arbitration agreements filed by the parties concerned shall be examined by the judicial organs having jurisdiction according to the provisions of relevant laws and regulations.
Where the parties concerned apply for revoking, executing or refusing to execute the arbitration awards made by the SCIA within the territory of China, or apply for recognition and enforcement overseas, the provisions of relevant laws and international treaties shall apply.
Article 24 The Council of the SCIA shall establish the following ad hoc committees:
(1) Arbitrator Qualification and Professional Ethics Assessment Committee, which shall conduct qualification examination for appointment of arbitrators, supervise arbitrators' professional ethics, and give opinions on the dismissal or renewal of terms of arbitrators to the Council;
(2) Remuneration Committee, which shall conduct evaluation, supervision and inspection of the arbitrator remuneration system and the staff remuneration system on a regular basis.
Article 25 The SCIA shall supervise and urge to improve the efficiency and effectiveness of execution and management organs, and evaluate the performances of Secretary-General and Deputy Secretaries-General on a regular basis.
Article 26 The SCIA shall be subject to financial and audit supervision according to law.
Article 27 The SCIA shall publicize the following matters on its website for public inquiry and social supervision.
(1) SCIA's annual work report and financial budget (final) report as examined and approved by the Council;
(2) dispute resolution rules, service procedures, fee schedules and model documents;
(3) educational and vocational background information of arbitrators, mediators and other dispute resolution experts; and
(4) the laws and regulations related to dispute resolution.
Chapter VII Supplementary Provisions
Article 28 These Provisions shall come into force on the date of issuance.