China International Economic and Trade Arbitration Commission (CIETAC)

Consulting on the issues of applying to CIETAC and legal representation in cases considered by CIETAC

The China International Economic and Trade Arbitration Commission (hereinafter also referred to as “CIETAC”, “China Arbitration Commission”) was founded in 1956 and is one of the largest permanent arbitration institutions in the world. The main office of this commercial arbitration is located in Beijing.

Like other international commercial arbitrations, CIETAC has adopted its own arbitration rules, according to which cases are considered.

Jurisdiction of the China International Economic and Trade Commission (CIETAC)

This commercial arbitration in China (Beijing) accepts disputes arising in the course of international economic cooperation and foreign trade, on the basis of an arbitration agreement to refer the dispute to the China Arbitration Commission for an arbitration award reached between the parties before the dispute arose or after the dispute arose, and upon the presence of a written application by one of the parties.

In order to submit a dispute to CIETAC, the parties to a foreign trade transaction must include a section or clause in the contract for submission to CIETAC, for example, with the following wording:

“Any dispute arising from or in connection with this Contract shall be submitted to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration which shall be conducted in accordance with the CIETAC's arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties. Procedure for Submission Case to CIETAC”

To submit a case to CIETAC, it is necessary to file a statement of claim, which must include:

1. the names and addresses of the plaintiff and the defendant;
2. the arbitration agreement under which the plaintiff is acting;
3. the plaintiff’s claims, as well as the supporting facts and evidence.

The statement of claim must be signed by the plaintiff or an authorized representative of the plaintiff. In addition, when filing a statement of claim with the China Arbitration Commission, the plaintiff's supporting documents must be attached to it, and an advance payment of arbitration costs must be made.

After receiving the statement of claim and attachments, the China Arbitration Commission, having verified and recognized that the plaintiff has completed the procedure for filing a statement of claim, shall send the plaintiff's statement of claim to the defendant and attach thereto 1 copy of the Arbitration Rules and the list of arbitrators. The defendant, in turn, shall, within 20 days from the date of receipt of the statement of claim, appoint one arbitrator from the list of arbitrators of the China Arbitration Commission or entrust his appointment to the Chairman of CIETAC, and also, within 45 days from the date of receipt of the statement of claim, submit to the China Arbitration Commission a response to the claim with relevant supporting documents.

Also, if the Respondent has a counterclaim in a case accepted for consideration by the Arbitration Commission, it must file it within the same time limits. In the counterclaim, the Respondent must clearly state its claims and provide supporting facts and evidence, as well as attach relevant supporting documents. In addition, when filing a counterclaim, the Respondent must make an advance payment of the arbitration costs. However, in addition to the Arbitration Rules, CIETAC has also adopted Guidelines on Evidence, the application of which depends on the agreement of the parties in each specific case. The parties may agree to accept the Guidelines in whole or in part, or they may agree to vary them. It is important to note that in the event of a conflict between the Arbitration Rules and the Guidelines that the parties have agreed to accept in a specific case, the arbitral tribunal shall apply the Guidelines. However, the parties may agree that the tribunal and the parties shall use the Guidelines for reference and not in any mandatory capacity.

According to the Guidelines, each party bears the burden of proof of the facts relied upon, provided that, in a dispute over the conclusion or entry into force of a contract, the burden of proof is on the party alleging the same; the party alleging a modification, termination, rescission or annulment of the contract bears the burden of proof of the facts leading to a modification of the contractual relationship. In addition, facts that do not require proof include:

1. facts not in dispute between the parties;
2. laws of nature and theorems;
3. a fact of common knowledge or common knowledge;
4. a fact that can be inferred from a legal provision, known fact or generally accepted understanding and practice.

It should also be noted that a party shall disclose and produce to the tribunal and the other party all evidence on which it relies, which may include:

1. documentary evidence;
2. a request for submission;
3. witnesses of fact;
4. expert opinions.

In this case, the China Arbitration Commission ensures that each party has the opportunity to express its opinion on the evidence submitted by the other party, which may be expressed orally or in writing. At the same time, the international commercial arbitration tribunal, at its own discretion, determines the admissibility, relevance, materiality and weight of the evidence submitted.

The arbitration tribunal shall issue an arbitration award within 45 days from the date of completion of the case hearing. In this case, in the case of hearing by three arbitrators, the arbitration award shall be made on the basis of the opinion of the majority of the arbitrators, however, the opinion of the arbitrator remaining in the minority may be given in an appendix to the minutes. The arbitration award shall be signed by all or a majority of the arbitrators, and it shall also clearly indicate the date of the arbitration award, the place. It is important to note that the arbitration award is final. Neither party is allowed to apply to the court with a claim, is not allowed to file a petition to other organs to change the arbitration award.

The parties shall, in accordance with the time limits specified in the arbitration award, voluntarily implement the arbitration award. In cases where the arbitration award does not provide for a time limit, it must be executed immediately. If one of the parties fails to execute the arbitration award, the other party may, in accordance with the provisions of the laws of the PRC, apply to the court with a request for execution or, in accordance with the Convention on the Recognition and Enforcement of Arbitral Awards of Foreign Arbitral Institutions or other international treaties concluded by or to which the PRC is a party, apply to a foreign court with the appropriate authority with a request for enforcement.

Applying to international commercial arbitration allows the parties to resolve a dispute fairly and impartially, to obtain a court decision that must be executed by all parties to the dispute. At the same time, it should be noted that in order to apply to CIETAC, it is important to know not only the norms of international law in the field of foreign trade activities, but also the rules for conducting cases directly with the China International Economic and Trade Arbitration Commission. Involving an experienced specialist in the field of international law to participate in resolving a case in CIETAC will allow you to receive not only qualified advice, but also competent conduct of the case in international commercial arbitration.

Legal services

1. Legal representation and case management in CIETAC
2. Preparation of necessary documentation, collection and submission of evidence to CIETAC
3. Support for the enforcement of an award made by the China International Economic and Trade Commission in Russia