Ordinance on the Shenzhen Court of International Arbitration

The Standing Committee of the Sixth People's Congress of Shenzhen Municipality Announcement

No. 207

The Ordinance on the Shenzhen Court of International Arbitration, adopted at the 44th session of the Standing Committee of the 6th People's Congress of Shenzhen Municpality on 26 August 2020, is hereby promulgated and shall come into force as of 1 October 2020.

The Standing Committee of the People's Congress of Shenzhen Municipality

31 August 2020

Provisions on the Shenzhen Court of International Arbitration

(Adopted at the 44th session of the Standing Committee of the 6th People's Congress of Shenzhen Municipality on 26 August 2020)

Table of Contents

Chapter I General Provisions
Chapter II The Council
Chapter III The Executive Body
Chapter IV Rules and Panels
Chapter V Management of Finance and Human Resources
Chapter VI Supervision Mechanisms
Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1 In order to regulate the operations of the Shenzhen Court of International Arbitration, safeguard its independent, impartial, and efficient resolution of commercial disputes, and protect the lawful rights and interests of the parties, the Provisions is hereby formulated in accordance with the basic principles of the Arbitration Law of the People's Republic of China and other relevant laws and administrative regulations.

Article 2 The Shenzhen Court of International Arbitration (hereinafter referred to as "the SCIA") is an arbitration institution lawfully established by the Shenzhen Municipal People's Government (hereinafter referred to as "the Municipal Government"), performs the duties prescribed for arbitration commissions under the Arbitration Law of the People's Republic of China, and is administered and operated in accordance with the Provisions.

The SCIA concurrently operates under the name of South China International Economic and Trade Arbitration Commission and Shenzhen Arbitration Commission.

Article 3 The SCIA is a non-profit statutory body.

The SCIA adopts a council-based corporate governance system to achieve organic unity of decision-making, execution, and supervision.

Article 4 The SCIA operates independently of all administrative organs.

Arbitrations are conducted independently in accordance with law, without interference from administrative organs, social organizations, and individuals.

Article 5 The SCIA may resolve contractual disputes and other disputes concerning property rights and interests between domestic and international individuals, legal entities, and other organizations through arbitration, mediation, negotiation facilitation, expert review, or by such other means that organically connects with arbitration as agreed upon or requested by the parties.

The SCIA shall proactively explore arbitration mechanisms that help resolve international investment disputes.

Article 6 The SCIA is domiciled in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, serving as the platform of the Shenzhen Special Economic Zone for pursuing cooperation opportunities in international arbitration.

The SCIA shall enhance communication and cooperation with arbitration institutions in Hong Kong SAR, Macao SAR, and other overseas regions as well as with relevant international organizations, develop innovative mechanisms for resolving international commercial disputes, and help build the Guangdong-Hong Kong-Macao Greater Bay Area into an international arbitration center.

The SCIA may establish branches or hearing centers overseas.

Article 7 The SCIA shall pursue smart arbitration by fully utilizing the internet, big data, artificial intelligence, and other information technologies to provide efficient and convenient dispute resolution services to the parties.

Chapter II The Council

Article 8 The SCIA establishes a council as its decision-making body (hereinafter referred to as "the Council").

Article 9 The Council consists of 11 to 15 members, including 1 chairperson and 2 to 4 vice chairpersons.

The Council members shall be selected from renowned domestic and international figures in the legal, business, and other relevant sectors. At least one-third of the Council members shall be from Hong Kong SAR, Macao SAR and other overseas jurisdictions.

Article 10 The chairperson, vice chairperson, and other members of the Council shall be engaged by the Municipal Government.

Each Council shall serve a term of five years; terms of the Council members may be renewed consecutively.

Any Council member who is no longer able to perform his/her duties may be dismissed by the Municipal Government.

Article 11 The Council shall perform the following duties:

(1) reviewing, approving, and amending the Articles of Association of the SCIA (hereinafter referred to as "the Articles"); rules of procedure of the Council; and rules for arbitration, mediation, and other forms of dispute resolution;

(2) nominating candidates for the president of the SCIA;

(3) reviewing and approving the establishment, change, and dissolution of special committees of the Council, and deciding the composition thereof;

(4) reviewing and approving the panels of arbitrators, and deciding on the engagement and dismissal of arbitrators;

(5) reviewing and approving the annual work reports, budget plans, and final accounts of the SCIA;

(6) reviewing and approving proposals for the establishment or change of internal bodies and branches and the scale thereof;

(7) formulating major rules and regulations, including but not limited to the rules on remuneration of arbitrators and on the hiring, management, and remuneration of the SCIA staff members; and

(8) other duties prescribed in the Articles.

Article 12 The chairperson shall perform the following duties:

(1) convening and presiding over the Council meetings;

(2) reviewing the implementation of the Council's resolutions; and

(3) other duties prescribed in the Articles or the arbitration rules.

Article 13 Council meetings shall be held at least once every six months, convened as deemed necessary by the chairperson or upon a written proposal of three or more Council members, and chaired by the chairperson. The chairperson may delegate a vice chairperson to convene and chair the meeting on his/her behalf.

At least two-thirds of the Council members shall be present at a Council meeting to make a quorum. Every decision taken by the Council shall require the affirmative votes of at least two-thirds of all attending Council members by ballot; an amendment of the Articles shall require the affirmative votes of at least three-fourths of all Council members.

Article 14 The SCIA shall formulate the Articles in accordance with the Provisions and specify the following matters therein:

(1) the qualification requirements, method of appointment, and job responsibilities of the Council members;

(2) rules of procedure of the Council;

(3) rules of procedure of the executive body;

(4) financial and accounting system; and

(5) other matters that should be specified.

The SCIA shall file the Articles with the Municipal Government for record.

Article 15 The Council may establish the following special committees:

(1) the Strategic Development and Rules Making Committee, responsible for assessing the SCIA's development strategies and rule amendment efforts from time to time and making recommendations thereon at Council meetings;

(2) the Arbitrators Qualification and Ethics Examination Committee, responsible for reviewing the qualifications of arbitrators, supervising arbitrators on their professional conducts, sanctioning arbitrators for violations, and advising the Council on the engagement and dismissal of arbitrators;

(3) the Financial Supervision and Remuneration Assessment Committee, responsible for making comments and suggestions on annual budget plans and final accounts, assessing and supervising the enforcement of rules on remuneration of arbitrators as well as the SCIA staff members, and deciding on the appointment of auditors;

(4) the Hong Kong and Macao Affairs Committee, responsible for facilitating the communication and cooperation with organizations in Hong Kong SAR and Macao SAR; and

(5) such other special committees as deemed necessary.

The director, deputy directors, and members of the special committees shall be Council members.

Chapter III The Executive Body

Article 16 The SCIA shall have one president and one or more vice presidents, and may set up such internal bodies and branches as necessary.

The president is the legal representative of the SCIA and shall be accountable to the Council and supervised by the Council. The vice president(s) shall assist the president in his/her work.

Article 17 The president shall be nominated by the Council and the vice president(s) by the president, each to be appointed by the Municipal Government according to applicable administrative authority and procedures.

The president shall be nominated from the Council members.

Article 18 The president shall perform the following duties:

(1) organizing the implementation of the Council's resolutions;

(2) managing the day-to-day affairs of the SCIA;

(3) nominating the vice president(s);

(4) deciding on the engagement and dismissal of experts for mediation, negotiation facilitation, and other forms of dispute resolution;

(5) organizing the training and performance review of arbitrators and other dispute resolution experts;

(6) organizing the preparation of annual work reports, budget plans, final accounts, and proposals on the establishment or change of internal bodies and branches, and submitting the same to the Council for review;

(7) deciding on the setup and qualification requirements for staff positions at internal bodies and branches as well as the hiring and dismissal of staff members; and

(8) other duties prescribed in the Articles, arbitration rules, or other dispute resolution rules or mandated by the Council.

Chapter IV Rules and Panels

Article 19 The SCIA shall, in accordance with applicable national laws and regulations and the Provisions, formulate the rules for arbitration, mediation, negotiation facilitation, expert review, and other forms of dispute resolution by reference to the modern rules of international arbitration and according to the basic principles of respecting the party autonomy and ensuring the independence of arbitration.

Article 20 Domestic and foreign parties may agree on the application of the arbitration rules of the SCIA, of other domestic or foreign arbitration institutions, or of the United Nations Commission on International Trade Law (hereinafter referred to as "the UNCITRAL Arbitration Rules"); and on the necessary modification of the SCIA arbitration rules as well as on the applicable law, the composition of the arbitral tribunal, the method of hearing, the rules of evidence, the language of arbitration, and the place of hearing or arbitration.

The preceding agreement shall be operable and not in conflict with any mandatory provision of the law of the place of arbitration.

Article 21 The SCIA shall set up panels of arbitrators and engage righteous and upright individuals as arbitrators. No less than one-third of the arbitrators engaged by the SCIA shall be from Hong Kong SAR, Macao SAR and other overseas jurisdictions.

The SCIA may set up various panels of arbitrators by specialty, industry, territory and other classification standards.

Article 22 The SCIA shall proactively introduce innovations to arbitration rules, encourage the parties to fully exercise their rights to appoint arbitrators, and facilitate the joint appointment of the presiding arbitrator or sole arbitrator by the parties.

Article 23 The SCIA may establish panels of mediation experts, negotiation facilitators, and other dispute resolution experts as necessary.

Article 24 Parties that agree on the application of the UNCITRAL Arbitration Rules or ad hoc arbitration may appoint arbitrators for the arbitral tribunal from within or outside the panels of arbitrators provided by the SCIA.

An arbitrator who is selected by the parties from outside the panels provided by the SCIA may serve as an arbitrator for the case only after being confirmed by the SCIA as meeting the qualification requirements for arbitrators.

Article 25 Where the parties enter into an arbitration agreement providing for the relevant dispute to be arbitrated by certain persons in the Shenzhen Special Economic Zone in accordance with certain arbitration rules and such dispute is so arbitrated, the SCIA may provide such necessary assistance as appointing arbitrators for the parties unless otherwise agreed by the parties.

Article 26 The SCIA shall set up professional and ethical standards, information disclosure rules, and challenge rules for arbitrators, and improve the arbitrator qualification review and supervision mechanisms.

Chapter V Management of Finance and Human Resources

Article 27 The SCIA shall duly develop a financial and asset management system appropriate for a statutory body.

The SCIA is funded by:

(1) arbitration fees;

(2) service charges for mediation, negotiation facilitation, and expert review; and

(3) other lawful incomes.

Article 28 The SCIA shall adopt an internationally competitive, market-driven staffing system, and may set up positions as necessary and engage domestic and international professionals to establish a specialized management and service team for dispute resolution.

Such matters as the hiring, adjustment, and dismissal of staff members shall be determined by the president of the SCIA and managed under employment contracts.

Article 29 The establishment of internal bodies and branches of the SCIA shall be filed with the municipal institutional organization department for record.

The cooperation platforms jointly established by the SCIA and relevant government agencies, international organizations, enterprises and public institutions, associations and other types of organizations shall be managed in accordance with relevant laws, regulations, cooperation agreements, or the Articles.

Article 30 The SCIA may, by reference to international and market practices, develop the rules for dispute resolution fees, arbitrator remuneration, and staff remuneration, and establish a system for periodic remuneration review and long-term incentive mechanisms.

The SCIA and its staff members shall be duly enrolled in social security programs, as well as in such programs as the public housing fund and corporate annuities in accordance with relevant rules.

Chapter VI Supervision Mechanisms

Article 31 An application of a party for preservation of property, preservation of evidence, and other interim measures, and for confirmation of the validity of arbitration agreement, shall be submitted to a competent court for judicial review in accordance with the laws and regulations of the place of arbitration.

Where a party applies in Chinese mainland for the set-aside, enforcement, or non-enforcement of an SCIA award, or in overseas jurisdictions for the recognition and enforcement of an SCIA award, relevant laws and international treaties shall apply.

Article 32 The Council shall supervise the executive body's performance in implementing the Council decisions, review and approve annual work reports, and evaluate the performance of the executive body.

Article 33 The Arbitrators Qualification and Ethics Examination Committee and the Financial Supervision and Remuneration Evaluation Committee shall supervise the engagement and performance of arbitrators and the financial work of the SCIA, respectively.

Article 34 The SCIA is subject to financial supervision and audit in accordance with law.

Article 35 The SCIA shall disclose the following information on its website for public access and supervision:

(1) the main content of annual work reports, budget plans, and final accounts as approved by the Council;

(2) dispute resolution rules, service procedures, fee schedules, and document templates; and

(3) educational and professional background of arbitrators, mediators, and other dispute resolution experts.

Chapter VII Supplementary Provisions

Article 36 Where the parties agreed to arbitration by the SCIA, the South China International Economic and Trade Arbitration Commission, or the Shenzhen Arbitration Commission, such arbitration shall be handled by the SCIA.

Where the parties agreed to arbitration by the SCIA when it was formerly known as the China International Economic and Trade Arbitration Commission South China Sub-commission or the China International Economic and Trade Arbitration Commission Shenzhen Sub-commission, such arbitration shall be handled by the SCIA.

Article 37 The Provisions shall come into force as of 1 October 2020.