Rules for the Prevention and Resolution of Trade Dispute in China Import and Export Fair
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ItemI GeneralPrinciples

 

Clause1 Subjectto the applicable laws and regulations of the People’s Republic of China andthe relevant measures of China Import and Export Fair (Hereinafter referred toas ” Canton Fair” or “the Fair”), the following rules relating to the Fair arehereby made for the purpose of efficiently resolving trade disputes arisingamong the Fair-participating parties, maintaining fair trading order,protecting the legitimate rights and interests of the parties concerned, andfostering a trustworthy and harmonious environment for international trade.

 

Clause2 TheseRules shall apply in respect of prevention of trade disputes among theFair-participating parties, and lodging and thereafter handling of complaintsin connection with such disputes.

 

Clause3 TheFair-participating parties shall be bona fide and observe the contracts theyhave concluded; in particular, they shall pay due care to risk control andresolve conflicts in an amicable manner.

 

Clause4 TheReception Station of Complaints and Settlements for IPRs and Trade Disputes(hereinafter referred to as “the Complaint Office”) set up by the Fair is theonly agency for dealing with trade disputes in the Fair’s complex while theFair is in session.

ChinaForeign Trade Centre, the organizer of the Fair, and South China InternationalEconomic and Trade Arbitration    Commission    (hereinafter    referred   to  as “SCIA”)jointlymanage the Complaint Office throughout the Fair so as to deal with complaintsand trade disputes.

 

Item IIDisputes Prevention

 

Clause5 Forthe purpose of effectively controlling trade risks and resolving disputes, theFair advocates adopting the recommended model contracts, incorporating clausesfor resolving disputes harmoniously and effectively.

 

Clause6 TheFair shall, through trade delegations and relevant chambers of commerce,require the Fair-participating sellers to execute a “Booth User Covenant” so asto encourage them to take active steps in preventing and resolving disputes, ifany, with the buyers. If and when a dispute arises, the Fair-participatingparty concerned shall lodge a complaint, which upon request shall be dealt within accordance with these Rules, unless otherwise agreed between the disputingparties as to the manner of solving dispute.

 

ItemIII Complaint and Resolution


Clause7 Thecomplainant shall comply in full with the following conditions:

Thecomplainant must disclose his/her real name and must hold a valid badge for thecurrent session of the Fair; The respondent shall be a participating party at acurrent session of  the  Fair, and  must be  present at  the Fair’s complex either personally or through an agent;

Thecomplainant shall submit relevant evidences such as contracts, paymentdocuments, etc. If neither the respondent nor the respondent’s agent is presentat the Fair’s complex, the Complaint Office will assist the complainant inapproaching the relevant trade delegation for possible ways and means ofsettling the dispute concerned.

 

Clause8 Uponreceipt of a complaint, the Complaint Office shall determine whether or not toaccept the case. If the complainant does not comply with any of the conditionsas referred to in Clause 7 above, the Complaint Office may refuse to accept thecase. Once the case is accepted, the complainant shall complete a ComplaintApplication Form, which shall be lodged with the Complaint Office. TheComplaint Office shall promptly appoint professional(s) to deal with the case.

 

Clause9 TheComplaint Office shall notify the respondent according to the contact  information provided by the complainant. Ifthe respondent is a Fair-participating seller, the Complaint Office shall atthe same time notify the trade delegation to whom the respondent belongs. Therespondent as well as the relevant trade delegation shall be cooperative withthe Complaint Office in dealing with the dispute(s).

 

Clause10 Anydispute shall initially be dealt with by way of mediation which shall bejointly conducted  by staff members ofChina Foreign Trade Centre and SCIA at the Complaint Office. The ComplaintOffice may mediate the case in the manner it considers appropriate for thedisputing parties to enter into a settlement agreement in writing.

 

Clause11 Ifthe dispute is successfully settled, a settlement agreement in writing shall bemade and executed by or on behalf of the parties concerned, and the ComplaintOffice’s seal may be affixed. To make the settlement agreement enforceable,either party shall be entitled to submit the settlement agreement to SCIA foran arbitral award.

 

Clause12 Ifthe mediation fails, the dispute shall, unless the parties agree otherwise, bereferred to SCIA for arbitration. The parties concerned may apply forarbitration during and after the Fair session, but in any event within thelimitation period prescribed by the law.


Item IVDiscipline and Enforcement


Clause13 Atthe close of each Fair session, the Complaint Office shall prepare a name listof the Fair-participating sellers having been complained of and a name list ofpersons allegedly liable for the disputes, and shall deliver the sameinformation to the Operation Department of the Fair, the relevant tradedelegation, and/or the chamber of commerce concerned for disciplining therelevant parties in accordance with the Measures of Canton Fair to Monitor theCommodity Quality and Complaints Relating to Trade Disputes.

 

Clause14 Uponarising of a dispute, if a Fair-participating party concerned fails to lodgethe complaint pursuant to these Rules, or a respondent refuses to respond tothe Complaint Office in  dealing with thecomplaint, then the Complaint Office may approach the relevant trade delegationfor possible means and ways of settling the dispute.

 

Clause15 Ifa party refuses to comply with the arbitral award, the other party may apply toa competent court in China, or to a court of foreign jurisdiction according to theUnited Nations Convention on the Recognition and Enforcement of ForeignArbitral Awards for enforcement of the award.

 

Item VSupplementary Provisions


Clause16 Whenthe Fair is out of session, the complainant intending to take further legalproceedings against the respondent shall act in accordance with the terms ofthe contract and applicable laws and regulations.

 

Clause17 Underthese Rules, any reference to the term “Fair-participating  seller”  shall include  any  of the seller’s affiliated suppliers.

 

Clause18 TheseRules shall be interpreted by China Foreign Trade Centre.

 

Clause19 TheseRules shall be effective as from the date of promulgation and if there is anyinconsistency between these Rules and previously promulgated measures of theCanton Fair, these Rules shall prevail.

  

 


Fair’s complex,the Complaint Office will assist the complainant in approaching the relevanttrade delegation for possible ways and means of settling the dispute concerned.

Clause 8 Upon receipt of a complaint, theComplaint Office shall determine whether or not to accept the case. If thecomplainant does not comply with any of the conditions as referred to in Clause7 above, the Complaint Office may refuse to accept the case. Once the case isaccepted, the complainant shall complete a Complaint Application Form, whichshall be lodged with the Complaint Office. The Complaint Office shall promptlyappoint professional(s) to deal with the case.

Clause 9 The Complaint Office shall notifythe respondent according to the contact information provided by the complainant. If the respondent is aFair-participating seller, the Complaint Office shall at the same time notifythe trade delegation to whom the respondent belongs. The respondent as well asthe relevant trade delegation shall be cooperative with the Complaint Office indealing with the dispute(s).

Clause 10 Any dispute shallinitially be dealt with by way of mediation which shall be jointlyconducted  by staff members of ChinaForeign Trade Centre and SCIA at the Complaint Office. The Complaint Office maymediate the case in the manner it considers appropriate for the disputingparties to enter into a settlement agreement in writing.

Clause 11 If the dispute issuccessfully settled, a settlement agreement in writing shall be made andexecuted by or on behalf of the parties concerned, and the Complaint Office’sseal may be affixed. To make the settlement agreement enforceable, either partyshall be entitled to submit the settlement agreement to SCIA for an arbitralaward.

Clause 12 If the mediationfails, the dispute shall, unless the parties agree otherwise, be referred toSCIA for arbitration. The parties concerned may apply for arbitration duringand after the Fair session, but in any event within the limitation periodprescribed by the law.

ItemIV Discipline and Enforcement

Clause 13 At the close ofeach Fair session, the Complaint Office shall prepare a name list of theFair-participating sellers having been complained of and a name list of personsallegedly liable for the disputes, and shall deliver the same information tothe Operation Department of the Fair, the relevant trade delegation, and/or thechamber of commerce concerned for disciplining the relevant parties inaccordance with the Measures of Canton Fair to Monitor the Commodity Qualityand Complaints Relating to Trade Disputes.

Clause 14 Upon arising of adispute, if a Fair-participating party concerned fails to lodge the complaintpursuant to these Rules, or a respondent refuses to respond to the ComplaintOffice in  dealing with the complaint,then the Complaint Office may approach the relevant trade delegation forpossible means and ways of settling the dispute.

Clause 15 If a party refusesto comply with the arbitral award, the other party may apply to a competentcourt in China, or to a court of foreign jurisdiction according to the UnitedNations Convention on the Recognition and Enforcement of Foreign ArbitralAwards



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