Q: During the Canton Fair, we placed an order with a Chinese company by LC after testing their sample. We fully paid but the company cheated us by shipping waste goods. Please give us a solution for this matter, as this company is not responding to our complaints.

A: When the Canton Fair is in session, you may directly submit the dispute to the Canton Fair Reception Station of Complaints and Settlements for IP rights and Trade Disputes (hereinafter referred to as the Complaint Reception Station). If the Fair is out of session, you may submit the dispute to CIETAC South China for arbitration if there is an arbitration clause in your contract or proforma invoice.

Q: Why arbitration in CIETAC South China?

A: Commercial arbitration is a universal way in settling disputes in today's business world. Highlight several advantages of arbitration in CIETAC South China as follows:
(1) Convenient and Cost-effective: Parties are free to make provisions on place of arbitration, language used, procedures or rules of law applied, nationality of the arbitrators and so on. For short, arbitration is more flexible for the parties. The procedure of arbitration is faster than that of litigation. Therefore, arbitration is more cost-effective than litigation.
(2) Independent and Impartial: As a leading international arbitration institution, the CIETAC South China is independent of any government agencies in China. It independently and impartially resolves disputes between parties only according to facts and laws and is not subject to any other interference.
(3) An Arbitral Award Is Final and Binding: An arbitral award is final and can be enforced in the court within and outside of Mainland China. While compared with litigation, the parties do not need to go through all the civil litigation procedures to get a final judgment.

Q: What shall I do if I would like to get remedies for the goods and losses through arbitration in the CIETAC South China?

A: Please note the following two key factors:
First, foreign parties should consolidate their deals with contracts rather than just signing proforma invoices with the other party. Model contracts are available for free download on CIETAC South China Sub-Commission's official website: www.sccietac.org.
Second, specify an arbitration clause in your contract. To safeguard your rights in doing business, it is strongly recommended that you insert an arbitration clause (Please refer to the Model Arbitration Clause attached hereinafter) in your contract with the other party.

Q: How to apply for arbitration through CIETAC South China? What about the cost?

A: Please refer to www.sccietac.org for detailed instructions for application for arbitration in the CIETAC South China Sub-Commission. On this official website there are also model arbitration documents for free download.
The party applying for arbitration shall advance the arbitration fee according to the Fee Schedule. The party who lose the case shall bear the arbitration fee. The CIETAC South China will charge 0.5%-3.5% of the disputed amount of the case as arbitration fee. The higher the disputed amount is, the lower the percentage will apply. For more details please refer to www.sccietac.org.
Q: It is known that the CIETAC South China is playing an active role in the Complaint Reception Station in the Canton Fair. Where is the Complaint Reception Station?
A: The CIETAC South China Sub-Commission has participated actively in the Complaint Reception Station upon its invitation since the 102nd Canton Fair, which the Commission helped resolve more than 80 cases and enjoys an excellent reputation both between domestic and foreign parties. During the Canton Fair, you may submit the dispute to the Complaint Reception Stations.

The location of the Stations:
Location 1: L1 Hall East, LiuHua Complex
Tel: 86-20-26080333
Location 2: Atrium on the first floor between hall 6 and 8, Pazhou Complex
Tel: 86-20-89131212
Service time: 9:00-18:00

Q: It is known that the CIETAC South China is playing an active role in the Complaint Reception Station in the Canton Fair. Where is the Complaint Reception Station?

A: The CIETAC South China Sub-Commission has participated actively in the Complaint Reception Station upon its invitation since the 102nd Canton Fair, which the Commission helped resolve more than 80 cases and enjoys an excellent reputation both between domestic and foreign parties. During the Canton Fair, you may submit the dispute to the Complaint Reception Stations.

The location of the Stations:
Location 1: L1 Hall East, LiuHua Complex
Tel: 86-20-26080333
Location 2: Atrium on the first floor between hall 6 and 8, Pazhou Complex
Tel: 86-20-89131212
Service time: 9:00-18:00

Q: Whom can I turn to when the Canton Fair is out of session?

A: When the Canton Fair is out of session, you may directly consult or apply to the CIETAC South China for arbitration if you have any disputes. All inquiries about arbitral procedures are free of charge.
Address: 19/F, Block B, Zhong Yin Building, 5015 Caitian Road, Futian District, Shenzhen 518026, China.
Tel: 86-755-83501700
Fax: 86-755-82468573
Website: www.sccietac.org
E-mail: info@sccietac.org