(Revised by the lst Meeting of the 5th Committee of Shanghai
Arbitration Commission on October 19, 2012. Effective as from January 1, 2013)

SOMMARIO:

CHAPTER I General Provisions - CHAPTER II Request for Application, Defense and Counterclaim - CHAPTER III Formation of Arbitral Tribunal - CHAPTER IV Evidence - CHAPTER V Hearing - CHAPTER VI Conciliation - CHAPTER VII Arbitral Award - CHAPTER VIII Summary Procedure - CHAPTER IX Special Provisions for International Commercial and Foreign-related Arbitrations - CHAPTER X Supplementary Provisions

CHAPTER I General Provisions

Article 1 – Basis of Formulation The rule is formulated with a view to ensure fair and timely arbitration of civil and commercial disputes, reliable protection to legitimate rights and interests of parties concerned, pursuant to the Arbitration Law of the People’s Republic of China (referred to as “Arbitration Law” hereinafter) and other relevant laws. Article 2 – Jurisdiction Shanghai Arbitration Commission (SHAC) and its sub-commissions (collectively hereinafter referred to as “SHAC”) shall accept contractual disputes and other disputes arising from pro­perty rights between natural persons, legal persons or other economic organizations if parties or either party concerned are (or is) Chinese or foreign equal subject(s). The following disputes cannot be put to arbitration: 1. Disputes arising from marriage, adoption, guardianship, bringing up of children and inhe­ritance. 2. Labor disputes. 3. Disputes that have been stipulated by administrative organs. 4. Disputes over contracts for undertaking agricultural projects within agricultural collecti­ve economic organizations. Article 3 – Arbitration Agreement SHAC accepts arbitral cases based on the Request for Arbitration of the Claimant and the Arbitration Agreement between parties. An arbitration agreement includes arbitration clauses in a contract, and any other forms of written agreement concluded between the parties either before or after the occurrence of the di­spute. An arbitration agreement shall be treated as independent. The validity of arbitration agreement shall not be affected by any modification, transfer, cancellation, termination, or ineffecti­veness, invalidity, expiry, or non-existence of the contract. Article 4 – Resolution of Dispute SHAC shall have the power to determine the existence and validity of an arbitration agreement and its jurisdiction over an arbitration case based on application of parties. Article 5 – Basis of Award The arbitral tribunal shall independently, impartially and timely render a fair and reasonable arbitral award based on the facts of the case, in accordance with the law, and with reference to international practices. Article 6 – Finality of Award The arbitral award is final. After the award is given, the arbitration commission shall not accept the re-application of the suit concerning the same [continua ..]

CHAPTER II Request for Application, Defense and Counterclaim

Article 9 – Conditions for Arbitration Application The parties concerned should meet the following requirements in applying for arbitration. 1. The Claimant is a natural person, legal person or other organization with direct interests in the case. 2. There is a specific Respondent. 3. There is an agreement for arbitration. 4. There are specific requests for arbitration and facts and reasons. 5. The matters to be put to arbitration shall fall into the limits of the authority of SHAC. Article 10 – Application Documents Submission A Claimant applying for arbitration shall submit a Request for Arbitration and the following documents: 1. Certifications of parties’standing to participate in the arbitration. 2. Arbitration agreement, text of contract and its attachments. 3. Relevant evidences and supporting documents. The Claimant shall submit copies of Request for Arbitration, materials and documents li­sted in the preceding paragraph according to the number of members of arbitration tribunal and the Respondent(s) agreed by parties or pursuant to the provision of the Rules. Where the claimant is represented by representative(s) in submitting the Request for Arbitration, a Power of Attorney and the representative(s)’ identification documents shall be submitted. Article 11 – The Application for Arbitration The application for arbitration shall specify the following matters: 1. Basic information of the Claimant and Respondent: name, sex, age, profession, work unit, residence, zip code, telecommunication numbers and etc. of parties concerned as natural persons; the name, residence, zip code, telecommunication numbers of parties concerned as legal persons or other organizations and the name, position and contact information of the legal representati­ves or principal leading members. 2. The basis of the arbitration. 3. The claimants’claim and the facts and evidence on which the claim is based. 4. Evidence and sources of evidence, name, residence and zip code, telecommunication num­bers of witnesses. The Claimant shall sign the application for arbitration. Where the Claimant is legal person or other organizations, legal representatives or principal leading members should sign the applica­tion, or the seal of work unit shall be affixed. Article 12 – Acceptance The SHAC shall notify the Claimant to pay the arbitration fee in [continua ..]

CHAPTER III Formation of Arbitral Tribunal

Article 26 – Panel of Arbitrators SHAC establishes a Panel of Arbitrators, and a Professional Panel of Arbitrators according to specific requirements. The parties shall nominate arbitrators from the Panel of Arbitrators or Professional Panel of Arbitrators provided by SHAC. Article 27 – Composition of Arbitral Tribunal An arbitral tribunal may be composed of one arbitrator or three arbitrators. In the case of three arbitrators, there should be a chief arbitrator. Article 28 – Nomination of Arbitrator Where the amount in dispute exceeds RMB 1,000,000 or where the amount in dispute does not exceed RMB 1,000,000 but the parties agree to have an arbitral tribunal composed of three arbitrators, all parties shall each nominate one arbitrator from the Panel of Arbitrators to compose the arbitral tribunal within the periods of time specified in the Notice of Acceptance and the Notice of Arbitration. All parties concerned shall jointly nominate one presiding arbitrator. The parties may each nominate one to three arbitrators as candidates for presiding arbitrator from the Panel of Presiding Arbitrators recommended by SHAC. Where there is one common candidate nominated by all parties, such candidate shall be the presiding arbitrator jointly nominated by the parties. Where there are two or more common candidates nominated by all parties, the Chairman of SHAC shall choose a presiding arbitrator from among the common candidates. Where there is no common candidate or the parties fail to nominate arbitrators, it shall be dee­med as the parties have failed to jointly nominate the presiding arbitrator. Where one party is composed of two or more people, they shall jointly nominate one arbitrator or presiding arbitrator for the arbitral tribunal. Where all parties agree to or under these Rules that the arbitral tribunal is composed of one arbitrator, all parties shall jointly nominate one arbitrator from the Panel of Arbitrators or the list of recommended candidates of SHAC within the specified periods of time Article 29 – Prepayment of Special Arbitration Fee Where the parties have nominated an arbitrator who resides or works outside of the Shanghai Administrative Area, they shall pay reasonable costs such as travel and accommodation expenses incurred in dealing with the case according to the notice of SHAC. But where parties fail to pay in advance, they shall be deemed not to have [continua ..]

CHAPTER IV Evidence

Article 36 – Burden of Proof Each party shall bear the burden of proving the facts on which it relies to support its claim, counterclaim or defense. If a party bearing the burden of proof fails to produce evidence that is sufficient to support its claim, it shall bear the consequences thereof. Article 37 – Time Limitations on Evidence Submission Parties concerned shall produce evidence to SHAC within the time period specified by SHAC or the arbitral tribunal. Where a party fails to produce evidence with the specified time period, it shall be deemed to have waived its right to proof. If a party experiences difficulties in producing evidence within the specified time period, it shall apply for an extension in writing to SHAC or the arbitral tribunal within the time period. SHAC or the arbitral tribunal shall decide whether or not to extend the time period. Where the evidence is produced after that time period, the arbitral tribunal may decide whether or not to accept and examine the evidence. Article 38 – Forms of Evidence Evidence produced by parties concerned includes documentary evidence, material evidence, audio and video evidence, depositions, appraisals, records of onsite investigation and other statutory evidence. Documentary evidence and material evidence shall be original. If it is too difficult to produce originals, then copies, excerpts, photos, etc. thereof can instead be produced with description of sources. If documentary evidence produced is in a foreign language, the arbitral tribunal can require party concerned to present translations in Chinese and/or other languages directly at the discretion of the arbitral tribunal. Article 39 – Collection of Evidence The arbitral tribunal may undertake investigations and collect evidence on its own initiative as it considers necessary. When investigating and collecting evidence on its own initiative, the arbitral tribunal may notify the parties to be present. In the event that one or both parties fail to be present after being notified, the investigation and collection of evidence shall proceed without being affected. Article 40 – Protection of Evidence Where evidence may be lost or is difficult to be recollected later, a party can apply for protection of evidence. Where a party applies for protection of evidence, SHAC shall forward the application to the court with jurisdiction according [continua ..]

CHAPTER V Hearing

Article 45 – Conduct of Hearing The arbitral tribunal shall hold oral hearings to hear a case. Whereas the parties concerned agree not to hold oral hearings, the arbitral tribunal may give the award based on the arbitration application, claims and counter-claims and other documents. The oral hearing may not be held in open sessions. The parties and their representatives, the witnesses, the arbitrators, the experts consulted by the arbitral tribunal, the appraisers appointed by the arbitral tribunal and other relevant persons shall bear the burden of confidentiality, and shall not disclose to any outsider any substantive or procedural matters relating to the case unless otherwise stipulated by law. Whereas parties concerned agree to have the case heard in open sessions, they shall submit a written agreement to SHAC five (5) days before the first oral hearing, except cases that involve State secrets. The place of oral hearings shall be decided by SHAC. Where parties have otherwise agreed on or jointly requested alternative locations with the approval of SHAC, the case can be heard at other locations. Additional fees wherefrom shall be borne by requesting parties. Article 46 – Consolidation of Arbitrations Where cases involve the same parties and objects of arbitration that belong to the same category, or that belong to different but relevant categories, the arbitral tribunal can decide, with the consent of the parties involved, to consolidate two or more cases. Where cases involving different arbitral tribunal members cannot be consolidated for hearing. Article 47 – Notice of Hearing Notice of the first hearing shall be serviced to all parties ten (10) days before the hearing. The date of the first hearing can be advanced by negotiation of Parties and approval of arbitral tribunal. Time for service of Notice of Hearing is unrestricted by the preceding article. Where a party having justified reasons may request a postponement of the oral hearing in writing five (5) days in advance of the oral hearing. The arbitral tribunal shall decide whether or not to postpone the oral hearing. Article 48 – Default Whereas a claimant or counter-claimant is absent from the hearing without justifiable reasons after receiving the written notice or withdraws from hearing half way without the prior permission by the arbitral tribunal, it may be deemed as a withdrawal of claims or [continua ..]

CHAPTER VI Conciliation

Article 52 – Principle of Conciliation The arbitral tribunal organizes intermediation in the principle of voluntariness. Where the terms of the settlement agreement are not included in the claims, it shall be permitted. The terms of the settlement agreement shall not impair the interests of the state, collective and a third party. Article 53 – Time and Location of Intermediation Arbitral tribunal can organize intermediation during or after a hearing. The arbitral tribunal can organize intermediation before hearing if parties agree to intermediation voluntarily or if facts of the case are explicit. Time and location of intermediation shall be agreed upon by parties and approved by the arbitral tribunal; the arbitral tribunal can also designate time and location. Article 54 – Involvement of Third Party If one of the parties applies for a third party intermediary and the other party and the third party approve the application, the arbitral tribunal shall notify the third party with the details of participation. If the third party agrees to undertake civil liabilities, the arbitral tribunal shall respect its intentions. Article 55 – Invocation of Terms of Conciliation The conciliation proceedings shall not be recorded. Any statement, opinion, view or proposal stated by either party or by arbitrators in the process of conciliation, shall not be invoked by either party in the subsequent arbitration proceedings, judicial proceedings, or any other proceedings. The arbitral tribunal shall not take the opinions stated by either party in the conciliation proceedings as grounds to render an award. Article 56 – Results of Conciliation Whereas an agreement is reached through conciliation, the arbitral tribunal shall compile the conciliation document or make an award based on the results of the agreement. Where the settlement can be fulfilled immediately or the parties concerned do not need to make a conciliation document or the settlement agreement of an award shall be written down in the record, the record becomes legally binding immediately after being signed or affixed with seals by all parties, arbitrators and the case manager. If the conciliation cannot reach an agreement or any party concerned has gone back on his word before receiving the document of conciliation, the arbitral tribunal shall make a timely ruling. Article 57 – Document of [continua ..]

CHAPTER VII Arbitral Award

Article 59 – Making of Award Where the arbitral tribunal is composed of three arbitrators, the case shall be deliberated before issuance of an award. The case manager shall write down the deliberation in record. An arbitral award shall be decided by the majority of the arbitrators and the views of the minority can be written down in the record. Whereas a majority vote cannot be reached, the award shall be decided based on the opinion of the chief arbitrator. Where the arbitral tribunal is composed of one arbitrator, the award shall be decided by the arbitrator directly. Article 60 – Partial Award In the hearing of a case, the arbitral tribunal may pass the ruling on part of the facts that have already been made clear. Article 61 – Compensation of Reasonable Expenses The arbitral tribunal has the power to decide that the default party to compensate the observant party for the expenses reasonably incurred by it in pursuing the case. Article 62 – Time Limit for Hearing The arbitral tribunal shall render an arbitral award within four (4) months from the date on which the arbitral tribunal is formed. If the time limit for hearing shall be extended due to special circumstances, the arbitral tribunal shall apply to the Chairman of SHAC for approval. Any suspension period and the time for audition, appraisal, review, checking, evaluation and inspection of special issues, and the time period required in writing by parties concerned for settling the case by themselves outside the tribunal, shall be excluded when calculating the time limit in the proceeding Paragraph 1. Article 63 – Making of Award The arbitral award shall specify the basic information of the parties concerned, arbitration claims, facts in disputes, reasons for award, result of the award, arbitration expenses and date of the award given. Whereas parties concerned object to the specification of the facts in dispute and reasons for the ruling, such specification and reasons may be omitted. The arbitral award shall be signed by arbitrators and affixed with the seals of SHAC. An ar­bitrator holding differences of views may sign or may not sign the award. Article 64 – Correction of Award An arbitral tribunal shall correct the errors involving context or computation and add things that have been omitted in the rulings in the arbitral award. The parties concerned may apply for [continua ..]

CHAPTER VIII Summary Procedure

Article 67 – Standard of Summary Procedure Unless otherwise agreed by the parties that the case is examined by an arbitral tribunal com­posed of three arbitrators, Summary Procedure shall apply to any case where the amount in di­spute does not exceed RMB 1,000,000; or to any case where the amount in dispute exceeds RMB 1,000,000, yet all parties concerned decide to examine the case under the Summary Procedure. If the amount in dispute exceeds RMB 1,000,000 after modification of claims by parties concerned or the sum of amount in dispute and amount of counterclaim exceeds RMB 1,000,000, the summary procedure is also applicable, unless parties concerned jointly decide not to apply this Rule or SHAC considers it to be not applicable. Article 68 – Formation and Notice of Arbitral Tribunal For arbitral case applicable to the Chapter, the arbitral tribunal shall be formed of a sole-arbitrator. After the formation of the arbitral tribunal, SHAC shall send a Notice of the Formation of the Arbitral Tribunal to the arbitrators and parties concerned. Article 69 – Notice of Hearing For a case examined by way of a hearing, the Notice of Hearing shall be delivered to parties concerned seven (7) days for the first hearing. Where a party have justified reason to postpone the hearing shall raise the application three (3) days before the hearing. The arbitral tribunal shall decide whether or not to postpone the hearing. A notice of a subsequent hearing shall not be subject to the time periods specified in the preceding Paragraph 1. Article 70 – Time Limit for Hearing For a case applicable to the rules of this Chapter, the arbitral award shall render an arbitral award within two (2) months from the date on which the arbitral tribunal is formed. In special circumstance, the arbitral tribunal shall apply to SHAC for approval on extension of the time limit. Article 71 – Context Reference The relevant provisions in the other Chapters of these Rules shall apply to matters not co­vered in this Chapter.

CHAPTER IX Special Provisions for International Commercial and Foreign-related Arbitrations

Article 72 – Condition of Application Where parties concerned submit international or foreign-related civil and commercial di­sputes to SHAC, the provisions of this Chapter shall apply. The provisions of this Chapter shall apply to cases related to Hong Kong, Macao and Taiwan. Article 73 – Submission of Statement of Defense and other Documents The respondent shall file a Statement of Defense in writing within forty-five (45) days from the date of receipt of the Notice of Arbitration, and shall, inter alia, submit the following documents: 1. Certifications of Respondent’s standing to participate in the arbitration; 2. Relevant evidence on which the defense is based; 3. Documentary that supports its opinion. Failure byof the Respondent to file a Statement of Defense shall not affect the conduct of the arbitration proceedings. Submit Answer doesn’t affect hearing of the case. Article 74 – Counterclaim The Respondent shall file a counterclaim, if any, in writing within forty-five (45) days from the date of receipt of the Notice of Arbitration. The Claimant shall file a Statement of Defense to the Respondent’s counterclaim within forty-five (45) days from the date of receipt of the Notice of Counterclaim Arbitration; where the Claimant fails to file a Statement of Defense shall not affect the conduct of the arbitration proceedings. Article 75 – Formation of Arbitral Tribunal Where the amount in dispute does not exceed RMB 1,000,000, the arbitral tribunal is composed of one arbitrator, unless agreed by parties otherwise. Where the amount in dispute exceeds RMB 1,000,000, the arbitral tribunal is composed of three arbitrators, unless agreed by parties otherwise. All parties shall nominate arbitrators within the periods of time specified in the Notice of Acceptance or Notice of Arbitration, and submit a list of nominated arbitrators to SHAC. Article 76 – Notice of Hearing If a case is heard for the first time, the Notice of Hearing shall be delivered to parties concerned thirty (30) days in advance of the hearing. A party having justified reasons to postpone the hearing shall submit an application of postponement to SHAC twelve (12) days in advance of the hearing. The arbitral tribunal shall decide whether or not to postpone the hearing. Article 77 – Advancing the Time of Oral Hearing If parties concerned apply for an earlier [continua ..]

CHAPTER X Supplementary Provisions