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China’s Nansha International Arbitration Center

Guidelines on the Procedures of Hong Kong International Arbitration Model

These Guidelines on the Procedures of Hong Kong International Arbitration Model of China’s Nansha International Arbitration Center (these "Guidelines") are developed for the purpose of conducting arbitration in the Hong Kong International Arbitration Model under these Guidelines upon consent of the parties and by applying the General Arbitration Rules of China’s Nansha International Arbitration Center. For a party applying the General Arbitration Rules of China’s Nansha International Arbitration Center, any consent to arbitration in the Hong Kong International Arbitration Model or in accordance with these Guidelines on the Procedures of Hong Kong International Arbitration Model or the Hong Kong International Arbitration Model Flow Chart or to similar expressions shall be deemed as a consent to arbitration in the Hong Kong International Arbitration Model under these Guidelines.

Unless otherwise agreed by the parties or otherwise specified by the Chairman of the Center based on the circumstances of the case, the Hong Kong Arbitration Ordinance shall apply to the arbitration, the place of arbitration shall be Hong Kong, and the hearing may be held in Nansha, Guangzhou or another place within the People’s Republic of China.

1. Matters uncovered in these Guidelines, the General Arbitration Rules of China’s Nansha International Arbitration Center, and the Hong Kong Arbitration Ordinance shall be governed by an agreement reached by the parties through negotiation and confirmed by the Chairman of the Centre. If the parties do not negotiate or fail to reach a consensus upon negotiation, the matters are up to the decision of the Chairman of the Center.

1. Composition of tribunal

Article 1 The tribunal shall be composed of a sole arbitrator or three arbitrators. The parties may agree on the number of members of the tribunal, except as provided in Article 4 of these Guidelines. If the parties do not agree on the number of arbitrators, the Chairman of China’s Guangzhou Arbitration Commission shall determine the number of arbitrators at the request of any party.

Before determining the number of arbitrators, the parties may submit to the Center a brief written opinion, proposing a number they consider appropriate and giving the reasons for it. If the Center does not receive any opinion within 14 days after issuing a notice to seek opinions, the number of arbitrators will be decided by the Chairman of China’s Guangzhou Arbitration Commission.

Article 2 If the parties agree that the tribunal shall be composed of a sole arbitrator, the parties shall jointly appoint the sole arbitrator within 30 days from the date on which the respondent receives the notice of arbitration or the date on which the parties agree to submit the dispute to the sole arbitrator, whichever is later.

If the Chairman of China’s Guangzhou Arbitration Commission decides that the tribunal shall be composed of a sole arbitrator, the parties shall jointly appoint the sole arbitrator within 30 days from the date on which the claimant or the respondent receives the decision, whichever is later.

The joint appointment by the parties of the sole arbitrator may take effect only upon confirmation by the Chairman of China’s Guangzhou Arbitration Commission. The Chairman of China’s Guangzhou Arbitration Commission is not obliged to state the reasons for not confirming the arbitrator. Within 30 days from the date on which the claimant or the respondent receives the decision not to confirm, whichever is later, the parties shall jointly select the arbitrator.

If the parties do not jointly appoint a sole arbitrator, the sole arbitrator shall be appointed by the Chairman of China’s Guangzhou Arbitration Commission.

Article 3 If a three-arbitrator tribunal is required, unless otherwise agreed by the parties, the tribunal shall be formed as follows:

(1) Each party shall appoint an arbitrator. If a party fails to appoint an arbitrator within 30 days from the date of receiving the notice from the Center that the other party has appointed an arbitrator or within the time limit agreed on by the parties, the Chairman of China’s Guangzhou Arbitration Commission shall appoint the second arbitrator.

(2) The two arbitrators appointed in the manner described above shall jointly appoint a third arbitrator as the presiding arbitrator. If the third arbitrator is not appointed within 30 days after the Chairman of China’s Guangzhou Arbitration Commission confirms or appoints the second arbitrator or within the time limit agreed on by the parties, the presiding arbitrator shall be appointed by the Chairman of China’s Guangzhou Arbitration Commission.

(3) The appointment by any of the parties of the arbitrator or the arbitrators may take effect only upon confirmation by the Chairman of China’s Guangzhou Arbitration Commission. The Chairman of China’s Guangzhou Arbitration Commission is not obliged to state the reasons for not confirming the arbitrator. Within 30 days from the date on which anyone of the parties or the arbitrators receives the decision not to confirm, whichever is later, the party or the arbitrator shall re-select an arbitrator.

Article 4 If there are multiple claimants or respondents, a three-arbitrator tribunal shall be formed. Unless otherwise agreed by the parties, the tribunal shall be formed as follows: 

(1) The claimants or co-claimants shall select an arbitrator within 30 days from the date of receiving the notice of arbitrator selection, and then, the respondents or co-respondents shall select an arbitrator within 30 days from the date of receiving the notice from the Center that the other party has selected an arbitrator or within the time limit agreed by the parties.

(2) If the parties have appointed two arbitrators in accordance with the preceding paragraph, the presiding arbitrator shall be appointed by such two arbitrators.

(3) If a party or co-party fails to appoint an arbitrator, the Chairman of China’s Guangzhou Arbitration Commission shall appoint the arbitrator and the presiding arbitrator. Before such appointment, the Center shall ask the party or co-party that has appointed an arbitrator to choose in writing within a set time limit whether to withdraw its appointment and permit the Chairman of China’s Guangzhou Arbitration Commission to appoint all three arbitrators. If the party or co-party fails to make the choice within the set time limit, the appointment shall be deemed to have not been withdrawn.

(4) The appointment by any of the parties or the arbitrators of the arbitrator may take effect only upon confirmation by the Chairman of China’s Guangzhou Arbitration Commission. The Chairman of China’s Guangzhou Arbitration Commission is not obliged to state the reasons for not confirming the arbitrator. Within 30 days from the date on which anyone of the parties or the arbitrators receives the decision not to confirm, whichever is later, the party or the arbitrator shall re-select an arbitrator.

1. Pre-hearing procedures

Article 5 The tribunal shall adopt appropriate procedures for arbitration, in order to avoid unnecessary delays and costs. Nevertheless, the procedures must guarantee equal treatment of both parties and give each party reasonable opportunities to make its case.

Upon prior authorization of the tribunal, the presiding arbitrator may decide solely on the procedural issues of hearing.

Article 6 The parties shall submit relevant written statements to the tribunal within relevant time limit, and the statements submitted by a party shall be forwarded by the Center to the other party. In addition to the statement of claim, statement of defense, statement of counterclaim (if any), statement of reply, statement of defense against counterclaim (if any), and statement of reply to defense against counterclaim (if any), if the tribunal requires or permits the parties to submit further written statements, it shall make an order and set a time limit for exchange.

Unless otherwise agreed by the parties or directed by the tribunal, written statements such as statement of claim, statement of defense, statement of counterclaim (if any), statement of reply, statement of defense against counterclaim (if any), and statement of reply to defense against counterclaim (if any) shall be accompanied by relevant exhibits.

The time limit set by the tribunal for submitting written statements, including statement of claim and statement of defense, shall generally not exceed 60 days. Nevertheless, the tribunal may extend the time limit if it considers the extension appropriate.

Article 7 At the beginning of the arbitration proceedings, the tribunal shall, after consultation with the parties, prepare a provisional timetable for the arbitration proceedings, make it available to the parties, and submit it to the Center for filing.

Article 8 Any documents and information provided by a party to the tribunal shall be forwarded by the Center to the other party in the meantime.  

Article 9 The tribunal has the power to add one or more third parties to the arbitration, at the request of one of the parties and upon the written consent of such third parties and the other party.

Article 10 If the claimant fails to file a statement of claim within the time limit set by the tribunal and fails to give sufficient reasons for it, the tribunal shall issue an order to terminate the arbitration proceedings; if the respondent has made a counterclaim and wishes to proceed with the arbitration, the tribunal may proceed with the arbitration. If the respondent fails to file a statement of defense within the time limit set by the tribunal and fails to give sufficient reasons for it, the tribunal may proceed with the arbitration.

If, after being duly notified, a party fails to make statements, submit documents, and take other actions in accordance with these Guidelines (including the direction of the tribunal) and fails to give sufficient reasons for it, the tribunal may proceed with the arbitration and make an award accordingly.

Article 11 Unless otherwise agreed by the parties, the tribunal shall hold hearings in camera, so that witnesses (including expert witnesses) may testify or conduct an oral argument on the substantive issues of the case.

In the arbitration proceedings after the first hearing, the tribunal may make a decision on whether to hold another hearing as the case may be. If the tribunal decides not to hold another hearing, the parties shall conduct a written argument.

1. If another hearing is held, the tribunal shall give the parties an appropriately prior notice on the time and place of the hearing.

2. Article 13 Unless otherwise agreed by the parties, the place of hearing shall be Nansha, Guangzhou, the People’s Republic of China.

1. Evidence and hearing

Section I Evidence

Article 14 The parties shall cooperate with the tribunal to ensure that the arbitration proceedings are fair and efficient.

Article 15 The parties shall bear the burden of proof in respect of the facts on which their claims or defenses are based.

Article 16 In arbitration proceedings, the tribunal may, at any time, require the parties to submit relevant documents, exhibits or other evidence within a time limit set by the tribunal. The tribunal has the power to accept or reject any documents, witness statements or other evidence.

Article 17 The tribunal shall decide whether any evidence submitted by a party is admissible, relevant, material and of appropriate probative value, including whether to apply strict rules of evidence.

Article 18 If a party wishes to call a witness or an expert witness to testify in the hearing, such party shall notify the tribunal within the time limit agreed by the parties or specified by the tribunal, and the Center shall notify the other party of the name and address of and the matter to be testified and language to be used by the witness or expert witness.

Article 19 The witness or expert witness shall appear in the hearing to testify in accordance with the directions of the tribunal or the requirements of the parties. The tribunal may determine the manner in which the witness or expert witness will testify or be questioned, including but not limited to witness affidavit or examination-in-chief, cross-examination and re-examination procedures.

Article 20 The witness or expert witness may also testify in the form of signed written witness statement or expert report. Nevertheless, if the witness or expert witness fails to appear as directed by the tribunal or as required by the party without justifiable reasons, the tribunal has the power not to admit the evidence provided by the witness or expert witness.

Section II Hearing

Article 21 Where the tribunal holds a hearing, unless the tribunal otherwise determines, the general procedures shall be as follows:

(1) The claimant’s opening statement;

(2) The respondent’s opening statement;

(3) After the examination-in-chief, cross-examination and re-examination procedures, the claimant’s witness’ testimony, the respondent’s witness’ testimony, the claimant’s expert witness’ testimony, and the respondent’s expert witness’ testimony;

(4) The claimant’s closing statement;

(5) The respondent’s closing statement.

Article 22 If considering it necessary for the case, the tribunal may direct the oral statements and testimony in the hearing to be interpreted or recorded.

Article 23 Each party or its manager, employee, attorney, or counsel may meet with its own witnesses, potential witnesses, or expert witnesses, beyond the period of testimony of such witnesses or experts, unless otherwise directed by the tribunal or agreed by the parties.

Article 24 The tribunal shall declare the hearing be closed, if it is satisfied that each party has had reasonable opportunities to make its case. Thereafter, no further statements, arguments or evidence may be submitted, unless the tribunal reopens the hearing, on its own initiative or at the request of a party, when the tribunal considers reopening necessary in relevant special circumstances.

Article 25 A party shall be deemed to have waived its right to raise objections if it keeps participating in the arbitration without raising any objection immediately after it has become aware or ought to have become aware of the provisions of these Guidelines (including the arbitration agreement) or the requirements arising therefrom.

1. Award and Settlement

Section I Award

Article 26 If the tribunal is composed of three arbitrators, unless otherwise agreed by the parties or otherwise provided in these Guidelines or the General Arbitration Rules of China’s Nansha International Arbitration Center, the tribunal shall make any award or other decisions according to the majority rule, or if no majority opinion is formed, according to the opinion of the presiding arbitrator.

Article 27 In the case of a sole-arbitrator tribunal, the award shall be made by the sole arbitrator.

Article 28 In addition to the final award, the tribunal has the power to make an interim, interlocutory, or partial award. The tribunal may decide on the matter concerning administration fee in a non-final award.

Article 29 The award shall be written, and shall be final and binding upon both the parties. All the parties are obliged to perform the award immediately.

Article 30 The award shall be signed by the arbitrators, and the date and place of making award shall be indicated in the award. If the tribunal is composed of three arbitrators and one or more of the arbitrators does not sign the award, the reasons for the non-signature shall be stated in the award. The arbitral award may be made in the name of China’s Guangzhou Arbitration Commission and be affixed with its common seal, if requested by the parties, or if the tribunal or the Chairman of the Centre considers it appropriate in light of the circumstances of the case.

Article 31 The tribunal shall arbitrate the dispute in accordance with the law chosen by the parties. If the parties do not make the choice, the law most closely relevant to the dispute shall apply.

Article 32 Only upon express authorization by the parties may the tribunal arbitrate the dispute in its capacity as a “amiable compositeur” or in accordance with the principles of fairness and good faith.

Article 33 In any event, the tribunal shall arbitrate the dispute in accordance with relevant contractual terms and by taking into account the commercial practices applicable to the transaction.

Section II Settlement

Article 34 If the parties reach a settlement agreement before the award is made, the tribunal shall issue an order to terminate the arbitration proceedings or, upon the joint request of the parties, make a settlement award based on the content of the settlement agreement. The tribunal is not obliged to give reasons for the settlement award.

China’s Nansha International Arbitration Center

Guidelines on the Procedures of Hong Kong International Arbitration Model

Fee Schedule

(All amounts are in HKD)

The following fees shall apply to all arbitration conducted in accordance with these Guidelines on the Procedures of Hong Kong International Arbitration Model which came into force on September 1, 2019 (these "Guidelines").

Article 1 Except as otherwise provided in the General Arbitration Rules of China’s Nansha International Arbitration Center, the fees for arbitration conducted in accordance with these Guidelines shall be charged in accordance with this fee schedule. The fees include an arbitrator’s fee and the Center's administration fee.

The Center may require the parties to make an advance payment of such fees and additionally pay a deposit. If any of such payments is not made as required, the tribunal and the Center may, after consultation, order the suspension or termination of the arbitration proceedings. After the award is made, the Centre will provide the parties with a statement of account of the deposit received and return any unused balance. Interests received while the deposit is kept by the Center will be credited to the account of deposit.

Article 2 Fees charged by the tribunal

China’s Nansha International Arbitration Center has no provision on charging arbitrator’s fee. At the request of the parties, the Center may assist the parties in negotiating with the arbitrators on the arbitration’s fee.

If the parties do not otherwise agree with the arbitrators on the arbitrator’s fee, the arbitrator’s fee is subject to approval by the Center in accordance with the table below, and shall be paid by the parties.

The fee calculated in accordance with the table above refer to the fee that may be charged by each arbitrator, and is 100% used to cover the arbitrator’s remuneration.

Article 3 Center’s administration fee

The administration fee is used for basic arbitration administration, and the Center charges the administration fee in accordance with the Administration Fee Schedule of China’s Nansha International Arbitration Center.

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Model Arbitration Clauses

Any dispute, controversy, disagreement or claim arising from or in connection with this contract, including the existence, validity, interpretation, performance, breach or termination of this contract, or any non-contractual dispute arising from or in connection with this contract, shall be submitted to China’s Nansha International Arbitration Center for final resolution through arbitration in accordance with the General Arbitration Rules of China’s Nansha International Arbitration Center in effect at the time of submission and by applying these Guidelines on the Procedures of Hong Kong International Arbitration Model.

The tribunal shall be composed of (1 or 3) arbitrator(s). The arbitration shall be conducted in (the language to be selected).