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How to Drafting Arbitration Clauses


The Shenzhen Court of International Arbitration (SCIA), registered in Qianhai, accepts the following types of cases: 

1. international or foreign-related arbitration cases;
2. arbitration cases related to the Hong Kong Special Administrative Region, the Macao Special Administrative Region and the
Taiwan region; and
3. Chinese Mainland arbitration cases.

For the first type of case:

One party must be foreign; or

The agreement must have been signed or performed in foreign country; or

The subject of the case (land, for example), must be in a foreign country.

For the second type, the analysis is similar, except that the case must involve either Hong Kong, Macao, or Taiwan

For the parties to submit their commercial dispute for arbitration they must have a dispute resolution clause/agreement designating arbitration. Usually, the parties may choose to include an arbitration clause in the contract when negotiating the contract. After the dispute arises, the parties may conclude a separate arbitration agreement if they have not included a dispute resolution clause in their original agreement or have changed their minds about their original clause.

The arbitration clause/agreement must include the following:

l        The intent to arbitration

l        The matters to be arbitrated

l        Arbitration institution specified

Besides, the arbitration clause/agreement may also include the following:

l        Place of arbitration/place of hearing

l        Arbitration language

l        Number of arbitrators (one or three usually)

l        Natioanality of arbitrator

l        Formation of arbitral tribunal

l        Applicable law

l        Ordinary or summary procedures

l        Applicable arbitration rules

l        The allocation of arbitration fees

 

Model Arbitration Clauses

The SCIA recommends the parties to incorporate one of the following model arbitration clauses when conclude a contract:

Model Arbitration Clause 1:

Any dispute arising from or in connection with this contract shall be submitted to South China International Economic and Trade Arbitration Commission (SCIA) for arbitration.

Model Arbitration Clause 2:

Any dispute arising from or in connection with this contract shall be submitted to Shenzhen Court of International Arbitration (SCIA) for arbitration.

 

 

Model Med-Arb Clause

Model Clause 1: before the occurrence of the dispute

Any dispute arising from or in connection with this Contract shall be submitted to South China International Economic and TradeArbitrationCommissionMediationCenter for mediation. If the mediation is successful, the parties agree to submit the settlement agreement to SCIA to request that an arbitral award be rendered in accordance with the Arbitration Rules and based on the terms of the settlement agreement. If any party is unwilling to mediate or the mediation fails, the dispute shall be referred to SCIA for arbitration."

Model Clause 2: before the occurrence of the dispute

Any dispute arising from or in connection with this Contract shall be submitted to South China International Economic and TradeArbitrationCommissionMediationCenter for mediation. If any party is unwilling to mediate or the mediation fails, the dispute shall be referred to SCIA for arbitration.

Model Clause 3: after the occurrence of the dispute

Each party agrees to submit the dispute to South China International Economic and TradeArbitrationCommissionMediationCenter for mediation. If any party is unwilling to mediate or the mediation fails, the dispute shall be referred to SCIA for arbitration.

 

Model Settlement-Arbitration Clause

Both parties agree that any party may submit the settlement agreement to the South China International Economic and Trade Arbitration Commission and request for rendering an arbitral award in accordance with the terms of the settlement agreement pursuant to the Arbitration Rules. The arbitral award is final and binding upon both parties.

 

Note:

The SCIA has established an ADR (“Alternative Dispute Resolution”) cooperation platform with various organizations, such as: the China Import and Export Fair, the China International High-Tech Fair, the Guangdong Federation of Industry & Commerce Mediation Center, the Shenzhen Association of Enterprises with Foreign Investment (“SZAEFI”) Mediation Commission, the Shenzhen General Chamber of Commerce Mediation Center, and the Hong Kong Chinese Enterprises Association Commercial Mediation Commission. The parties may choose these organizations for mediation and combine  mediation with arbitration service in the SCIA.

 

 

South China International Economic and Trade Arbitration Commission/Shenzhen Court of International Arbitration

Add.: Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone, Shenzhen 518026, P.R.China

Tel+86-755-83501700

Fax: +86-755-82468573

E-mail: info@scia.com.cn

Website: www.scia.com.cn

 

 

 

 






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