Article 3 The Arbitration Commission takes cognizance of cases in accordance with an arbitration agreement
between the parties concluded before or after the occurrence of the dispute to refer their dispute to the Arbitration Commission for
arbitration and upon the written application by one of the parties.
An arbitration agreement means an arbitration clause stipulated by
the parties in their contract, bill of lading, waybill, documents
invoked or a written agreement concluded by the parties in other
forms to submit their dispute for arbitration. Where the parties
agree to submit their dispute to the Arbitration Commission for
arbitration or agree to conduct the arbitration under these Rules,
these Rules shall constitute a part of the arbitration agreement
concluded by parities, except that the parties have otherwise
agreed.

Article 4 The Arbitration Commission has the power to decide
on the existence, validity of an arbitration agreement and the
jurisdiction over an arbitration case. If a party challenges the
validity of the arbitration agreement and requests the Arbitration
Commission to make a decision thereupon while the other party
applies to the people's court for a ruling, the latter's ruling
shall prevail. However, in case of a challenge made against the
validity of an arbitration agreement, if the acceptance of the
application by the Arbitration Commission precedes that by the
people's court and a decision is made thereupon, the decision by the
Arbitration Commission shall prevail.

 Article 5 An arbitration
agreement shall exist independently. The validity of an arbitration
agreement shall not be affected by the modification, rescission,
termination, invalidity, revocation or non-existence of the
contract. The arbitration tribunal has the power to affirm the
validity of a contract, as well as unsettled procedural issues in
arbitration. Article 6 Any objections to an arbitration agreement or
the jurisdiction over an arbitration case shall be raised before the
first hearing conducted by the arbitration tribunal. Where a case is
examined on the basis of documents only, the objections to the
jurisdiction shall be raised before submission of the first
substantive defense. The objections raised later than the prescribed
time shall be taken to have waived his right to object. If a party
has not raised any objection to the jurisdiction and has submitted
substantive defense or has lodged a counterclaim, he shall be
regarded as admission of the validity of the arbitration agreement
and jurisdiction of the Arbitration Commission. The objections
raised to the arbitration agreement or jurisdiction over the
arbitration case shall not affect the process of the arbitration
proceedings. Article 7 Where the parties agree to submit their
dispute for arbitration to the Arbitration Commission, or to the
Logistics Dispute Resolution Center of the Arbitration Commission or
to the Fishery Dispute Resolution Center of the Arbitration
Commission, the arbitration proceedings shall be conducted under
these Rules; and the Special Provisions on Fishery Disputes Cases of
CMAC Arbitration Rules shall also apply to the fishery disputes
arbitration proceedings. Nevertheless in case that the parties have
otherwise agreed upon arbitration procedures and the Arbitration
Commission agrees thereto, the agreement of the parties shall
prevail. However, if the parties have agreed otherwise, and subject
to consent by the Arbitration Commission, the parties' agreement
shall prevail. The parties may shorten or extend by an agreement the
procedural deadlines stipulated in these Rules or modify the
arbitration procedural matters concerned to by an agreement meet the
special needs of their specific casein accordance with the situation
of the arbitration case, and also may apply to the Arbitration
Commission or the arbitration tribunal for modification of the
arbitration proceedings during the process of the arbitration
proceeding by an agreement in accordance with the situation of the
arbitration case. The Arbitration Commission or the arbitration
tribunal has the power to decide whether to ratify the preceding
agreement.; and they may also authorize by agreement the Arbitration
Commission or the arbitration tribunal to make any necessary
procedural adjustment as see fit while the arbitration procedure is
underway. The power stays with the Arbitration Commission and/or the
Arbitration tribunal to decide thereupon. With regard to cases of
ships collision cases, the Arbitration Commission or the arbitration
tribunal may modify the arbitration proceedings according to the
special demand of the evidence of the cases make any necessary
adjustment relating to evidentiary issues.

Section 2  Organization

Article 8 The Arbitration Commission shall have one
honorary Chairman and several advisers.

Article 9 The Arbitration
Commission is composed of one Chairman, several Vice-Chairmen and a
number of Commission members. The Chairman performs the functions
and duties vested in him by these Rules and the Vice-Chairmen may
perform the Chairman's functions and duties with the Chairman's
authorization.

Article 10 The Arbitration Commission shall maintain
a Panel of Arbitrators. The arbitrators shall be selected and
appointed by the Arbitration Commission from among Chinese and
foreign personages with special knowledge and practical experience
in the fields of admiralty, maritime, logistics, insurance, law and
other fields. The Arbitration Commission may maintain a Panel of
Arbitrators in special academy, if necessary.

Article 11 The
Arbitration Commission is based in Beijing. The Arbitration
Commission has a Sub-Commission in Shanghai. The Sub-Commission can
take cognizance of and handle cases. The Arbitration Commission may,
according to the growing need for arbitration service, set up its
Sub-Commissions or liaison offices in other places within China's
territory. The Arbitration Commission and the Sub-Commission shall
have respective Secretariats, and the Secretariats shall have
respective Secretary-Generals. The Secretariat of the Arbitration
Commission and the Secretariat of the Sub-Commission (hereinafter
generally referred to as the Secretariat, except referred otherwise)
handle their day-to-day work under the leadership of the
Secretary-Generals respectively. Liaison offices are organs of the
Arbitration Commission for public relations, consultancy and
liaison, and are, under the unified leadership of the Arbitration
Commission, engaged in publicity, investigation and research and
consultancy in respect of maritime arbitration. The offices shall
assist the Arbitration Commission or the Sub-Commission in arranging
oral hearings held in their locality, but they shall not take
cognizance of any case, collect fees or charges, nor shall they
examine or hear any case. The Arbitration Commission shall have
Logistics Disputes Resolution Center and Fishery Disputes Resolution
Center.

Article 12 These Rules and its Arbitration Fee Schedule
uniformly apply to the Arbitration Commission and its
Sub-Commission. When arbitration proceedings are conducted in the
Sub-Commission, the functions and duties under these Rules to be
carried out by the Chairman, the Secretariat and the
Secretary-General of the Arbitration Commission shall be performed
by the Vice-Chairman as authorized by the Chairman, the Secretariat
and Secretary-General of the Sub-Commission respectively. The
parties may agree to have their dispute arbitrated by the
Arbitration Commission in Beijing or by the Sub-Commission in the
place where the Sub-Commission locates. In the absence of such
agreement, the Claimant will have the option to submit the case to
the Arbitration Commission or the Sub-Commission. When both parties
submit the case, the first choice shall be final. In case of any
dispute, the Arbitration Commission shall make a decision
accordingly.

Chapter II Arbitration Proceedings

Section 1 Application for Arbitration, Defense and Counter-claim

Article 13 The
arbitration proceedings shall commence from the date on which the
Notice of Arbitration is sent out by the Arbitration Commission or
the Sub-Commission.

Article 14 The Claimant, when submitting his
Application for Arbitration, shall (1) Submit an Application for
Arbitration which shall specify: (a) The name and address of the
Claimant and those of the Respondent, including the zip code,
telephone number, telex number, fax number and cable number or other
electronic communication address, if any; (b) The arbitration
agreement relied upon by the Claimant; (c) The facts of the case and
the main points of dispute; (d) The Claimant's claim along with
underlying facts and evidence. The Application for Arbitration shall
be signed and/or stamped by the Claimant and/or the attorney
authorized by the Claimant. (2) Append to the Application for
Arbitration the relevant documentary evidence on which the
Claimant's claim is based. (3) Pay an arbitration fee in advance to
the Arbitration Commission according to its Arbitration Fee
Schedule.

Article 15 Where after receipt of the Application for
Arbitration and its attachments, the Secretariat finds upon
examination that the Claimant has not completed the formalities
required for arbitration, the Secretariat shall require the Claimant
to complete them, and when the Secretariat finds that the Claimant
has completed the formalities, the Secretariat shall immediately
send to the Respondent a Notice of Arbitration together with one
copy each of the Claimant's Application for Arbitration and its
attachments as well as the Arbitration Rules, the Panel of
Arbitrators and the Arbitration Fee Schedule of the Arbitration
Commission, and shall simultaneously send to the Claimant one copy
each of the Notice of Arbitration, the Arbitration Rules, the Panel
of Arbitrators and Arbitration Fee Schedule. The Secretariat, when
sending the Notice of Arbitration to the Claimant and Respondent,
shall appoint one of its staff-members to take charge of procedural
administration of the case.

Article 16 The Respondent shall, within
30 days from the date of receipt of the Notice of Arbitration,
submit his written defense with clearly stated facts, reasons and
relevant documentary evidence to the Secretariat. Beyond the
specified time limit, the arbitration tribunal is entitled to decide
whether to accept the written defense.

Article 17 The Respondent
shall, within 30 days from the date of receipt of the Notice of
Arbitration, lodge with the Secretariat his counterclaim in writing,
if any. The arbitration tribunal may, at request, extend that time
limit if it considers that there is a justified reason.When lodging
a counterclaim, the Respondent shall state in his written
counterclaim his specific claim, reasons for his claim and the
related facts and evidence for his claim, and shall attach to his
written counterclaim the relevant documentary evidence. When lodging
a counterclaim, the Respondent shall pay an arbitration fee in
advance according to the Arbitration Fee Schedule within the time
limit specified by the Arbitration Commission.

Article 18 The
Claimant may request to amend his claim whilst the Respondent may
request to amend his counterclaim. However the arbitration tribunal
may refuse such a request for amendment if it considers that it is
too late to raise the request as the amendment may affect the normal
process of the arbitration proceedings.

Article 19 The parties shall
submit, in quintuplicate, application for arbitration, written
defense, statement of counterclaim, relevant documentary evidence
and other documents. If the number of the parties exceeds two,
additional copies shall be submitted accordingly; if the arbitration
tribunal is composed of only one member, two sets of copies may be
saved.

Article 20 Neither the Respondent fails to file his defense in
writing nor the Claimant fails to submit his written defense against
the Respondent's counterclaim shall affect the process of the
arbitration proceedings.

Article 21 The parties may authorize
arbitration agents to deal with the matters relating to arbitration;
the authorized attorney must produce a Power of Attorney to the
Arbitration Commission. Chinese and foreign citizens can be
authorized to act as arbitration agents.

Article 22 The arbitral
tribunal may, upon the agreement in writing made by parties, decide
to hear in combination two or more than two cases of which the
subject-matters are the same or related to each other.

Article 23
When a party applies for preservation of maritime claim or
preservation of other property, the Arbitration Commission shall
submit the party's application to the maritime court or other
people's court at the place of the Respondent's domicile or at the
place where the property is located. Where a party applies for
preservation of maritime claim or preservation of other property
before the commencement of arbitration proceedings, he shall,
according to the provisions of "Maritime Procedure Law of the
People's Republic of China" or other provisions concerned, submit
the application directly to the maritime court or other people's
court at the place of the property subject to preservation. When a
party applies for preservation of evidence, the Arbitration
Commission shall submit the party's application to the maritime
court or other people's court at the place where the evidence to be
preserved is located. Where a party applies for preservation of
evidence before the commencement of arbitration proceedings, he
shall, according to the provisions of "Maritime Procedure Law of the
People's Republic of China" or other provisions concerned, submit
his application directly to the maritime court or other people's
court at the place where the evidence to be preserved is located.
When a party applies for a maritime injunction, the Arbitration
Commission shall submit the party's application to the maritime
court at the place where the maritime dispute arises. Where a party
applies for a maritime injunction before the commencement of the
arbitration proceedings, he shall, according to the provisions of
"Maritime Procedure Law of the People's Republic of China", submit
his application directly to the maritime court at the place where
the maritime dispute arises. Article 24 When a party applies for the
constitution of a limitation fund for maritime claims, the
Arbitration Commission shall submit the party's application to the
maritime court at the place of the accident, the place of
performance of the contract or the place of ship arrest. Where a
party applies for constitution of a limitation fund for maritime
claims before the commencement of the arbitration proceedings, he
shall, according to the provisions of "Maritime Procedure Law of the
People's Republic of China", submit his application directly to the
maritime court at the place of the accident, the place of
performance of the contract or the place of ship arrest.

Section 2 Formation of Arbitration Tribunal

Article 25 The same Panel of
Arbitrators shall be used in Arbitration Commission and the
Sub-Commission. Where a case submitted to the China Maritime
Arbitration Commission or its Logistics Dispute Resolution Center,
the parties and the Chairman of the Arbitration Commission may
appoint proper arbitrators from among the arbitrators on the Panel
of Arbitrators of China Maritime Arbitration Commission or from
among the arbitrators on the Panel of Arbitrators in
Logistics（hereinafter generally referred to as the Panel of
Arbitrators, except referred otherwise.） In case of the
fishery disputes, the arbitrators can only be appointed from among
the arbitrators on the Panel of Arbitrators in Fishery. Article 26
The Claimant and Respondent shall appoint one arbitrator
respectively from among the Panel of Arbitrators of the Arbitration
Commission or entrust the Chairman of the Arbitration Commission to
appoint one arbitrator within 15 days from the date of receipt of
the Notice of Arbitration. The Claimant and the Respondent shall
jointly appoint or jointly entrust the Chairman to appoint a third
arbitrator as the presiding arbitrator. Where the Claimant or
Respondent fails to appoint or fails to entrust the Chairman of the
Arbitration Commission to appoint an arbitrator respectively within
15 days from the date of receipt of the Notice of Arbitration, the
Chairman of the Arbitration Commission shall make such appointment.
In case the parties fail to jointly appoint or jointly entrust the
Chairman of the Arbitration Commission to appoint the presiding
arbitrator within 15 days from the date on which the Respondent
receives the Notice of Arbitration, the presiding arbitrator shall
be appointed by the Chairman of the Arbitration Commission. The
presiding arbitrator and the two arbitrators as appointed above
shall jointly form an arbitration tribunal to jointly hear the case.
The parties may, within the time limit stipulated by the paragraph
above, nominate more than one candidate for the presiding arbitrator
from the presiding arbitrator candidate list provided by the
Arbitration Commission. The candidate nominated by both parties
shall act as the presiding arbitrator. If more than one candidate
are nominated by both parties, the Chairman of the Arbitration
Commission shall appoint one from them as the presiding arbitrator.
Article 27 Both parties may agree to jointly appoint or jointly
authorize the Chairman of the Arbitration Commission to appoint an
arbitrator from the arbitrators on the Panel as the sole arbitrator
to form an arbitration tribunal to hear the case alone. If both
parties have agreed on a sole arbitrator to hear their case alone
but have failed to agree on the choice of such a sole arbitrator
within 15 days from the date of receipt by the Respondent of the
Notice of Arbitration in the way provided in Article 26, the
Chairman of the Arbitration Commission shall make the appointment.
Article 28 When there are two or more Claimants and/or Respondents
in an arbitration case, the Claimants' side or the Respondents' side
each shall, through consultation, appoint or entrust the Chairman of
the Arbitration Commission to appoint one arbitrator from among the
Panel of Arbitrators of the Arbitration Commission. If the
Claimants' side or the Respondents' side fails to make such
appointment or entrustment within 15 days as from the date on which
the Respondents' side receives the Notice of Arbitration, the
appointment shall be made by the Chairman of the Arbitration
Commission. Article 29 The arbitrators shall sign the Arbitrator's
Declaration if they accept the appointment by the parties or the
Chairman of the Arbitration Commission. The Declaration shall be
delivered to the parties. Article 30 If one of the following
circumstances happened to the arbitrators, the appointed arbitrator
shall himself disclose such circumstances to the Arbitration
Commission and request a withdrawal from his office: a. The
arbitrator is one of the parties or relative or attorney of the
party; b. The arbitrator has any interests related to the case;c.
The arbitrator has other relationship with the party or the attorney
which may affect the impartiality of the arbitration; d. The
arbitrator has met the party or the attorney privately, or accepted
invitation or gifts from the party or the attorney.

Article 31 Any
party who has justified reasons to suspect the impartiality and
independence of an arbitrator may make request in writing to the
Arbitration Commission for that arbitrator's withdrawal. In the
request, the facts and reasons on which the request is based shall
be stated with the supporting evidence provided. A challenge against
an arbitrator must be put forward in writing no later than the first
oral hearing. If the grounds for the challenge comes out or are made
known after the first oral hearing, the time of raising challenge is
not subject to such restriction. In cases without oral hearing, the
challenge against an arbitrator must be put forward in writing no
later than the first submission of written statement of substantive
defense. If the grounds for the challenge comes out or are made
known thereafter, the time of raising challenge is not subject to
such restriction. Article 32 The Chairman of the Arbitration
Commission shall decide on the withdrawal of the challenged
arbitrator.Before the Chairman of the Arbitration Commission makes a
decision on whether the challenged arbitrator should be withdrawn,
the arbitrator shall proceed with his function.

Article 33 If an
arbitrator cannot perform his duty owing to withdrawal, demise,
removal or other reasons, a substitute arbitrator shall be appointed
in accordance with the procedure whereby the replaced arbitrator was
appointed. After the appointment of the substitute arbitrator, the
arbitration tribunal has discretion to decide whether the whole or
part of the previous hearings shall be repeated. Section 3 Burden of
Proof and Time limits

Article 34 The parties shall submit evidence
to prove the facts on which their claim, defense and counter-claim
are based. If any party fails to submit the evidence, or, if the
evidence submitted by the party is not sufficient to prove the
allegation, the party having the burden of proof shall bear the
ensuing adverse consequence. Article 35 As the case may require, the
arbitration tribunal may send Notice of Proof to the parties,
informing the proof allocation principle, the requirement of proof,
the time limits, the legal consequence of delayed submission of
evidence, the non-submission of evidence and non-persuasion. Subject
to the confirmation of the arbitration tribunal, the time limits may
be scheduled by the agreement of the parties. The parties shall
submit evidence within the time limits, otherwise they shall be
considered as giving up the right to submit evidence. The
arbitration tribunal may refuse to accept the evidence which is
submitted beyond the time limits. The parties may apply for
extension before the expiration of the period where they indeed have
difficulty in submitting evidence in the time limits. Where it is
proved by evidence that certain evidence being in possession of one
party, but without justified reason that party refuses to submit the
said evidence, presumption can be made that the evidence is against
the possessor if the opposite party so alleges. Article 36 Where the
parties are unable to collect evidence by themselves for objective
reasons, they can apply to the arbitration tribunal for evidence
investigation and collection, and the arbitration tribunal shall
decide whether so permits. The arbitration tribunal may undertake
investigations and collect evidences on its own initiative if
necessary. When investigating and collecting evidence by itself, the
arbitration tribunal shall promptly inform the parties to be present
if it considers necessary. Should one party or both parties fail to
appear, the investigation and collection of evidence shall not be
affected. If any party applies for the presence of a witness,
including a natural person, the representative of a legal person or
other organization, to appear at the oral hearing in order to
clarify the facts and protect the legitimate rights and interests of
parties concerned, the arbitration tribunal has the power to decide
whether so permits. No party is allowed to entrust the same person
as an attorney and invite him or her simultaneously as a witness in
the same arbitration case. Article 37 Where a party applies for the
presence of a witness at the oral hearing, it shall inform the
Secretariat in writing 5 days prior to the oral hearing or within
the time limits designated by the arbitration tribunal. The witness
shall submit necessary identification proof when appearing at the
oral hearing, subject himself or herself to the inquiry of the
parties and their attorneys and answer questions raised by the
parties and their attorneys. The procedure to be applied shall be
determined by the arbitration tribunal.

Section 4 Hearing

Article 38 The arbitration tribunal will hold oral hearings. At the request of
the parties or their consent, the arbitration tribunal may, if it
also considers oral hearings unnecessary, hear and decide a case on
the basis of documents only. The arbitration tribunal shall treat
the parties fairly and impartially, giving each party reasonable
opportunity to present his case and make arguments. During the
process of arbitration proceedings, the arbitration tribunal may
issue procedural orders, send out questionnaires, hold meetings
before hearing, convene preliminary hearings, draw up Terms of
Reference, etc.. Article 39 The arbitration tribunal in consultation
with the Secretariat of the Arbitration Commission shall decide the
date of the first oral hearing. The Secretariat shall notify the
parties of the decision 15 days before the date of the hearing. Any
party having justified reasons may request a postponement of the
hearing, but a written request must be submitted to the secretariat
of the Arbitration Commission 7 days before the date of the hearing.
The arbitration tribunal will then decide whether to postpone the
hearing or not.

Article 40 The notice of the date of hearing
subsequent to the first oral hearing and the date of postponed
hearing is not subject to the 15-day time limit provided in Article
39. Article 41 Where the parties have agreed on the place of
arbitration, the oral hearing of the arbitration case shall be held
in that place. The cases taken cognizance of by the Arbitration
Commission or the Sub-Commission shall be heard in the locus of the
Arbitration Commission or the Sub-Commission, or may be heard in
other places with the approval of the Secretary-General of the
Arbitration Commission or the Secretary-General of the Sub-
Commission.

Article 42 The arbitration tribunal shall not hear cases
in open session. If both parties request a hearing to be held in
open session, the arbitration tribunal shall decide whether to hold
the hearing in open session or not.

Article 43 When a case is heard
in closed session, no substantive or procedural matters of the case
shall be disclosed to the outsiders by the parties, their attorneys,
witnesses, arbitrators, experts consulted by or appraisers appointed
by the arbitration tribunal and the relevant staff-members of the
Secretariat.

Article 44 Evidence shall be produced at the oral
hearing and be questioned by the parties except that both parties
agree to examine the case on the basis of documentary evidence or
that evidence shall be questioned in writing.

Article 45 The
arbitration tribunal may consult an expert or appoint an appraiser
for their expertise or appraisal on special issues relating to the
case. Such an expert or appraiser may be a Chinese or foreign
organization or a citizen. The arbitration tribunal is entitled to
request the parties who are also obliged to submit or produce to the
expert or appraiser any relevant materials, documents, properties or
goods related to the case for check-up, inspection and/or appraisal.
The arbitration tribunal shall, after making duplicate copies or
effective records of the evidence, return in time the original
evidence submitted by the party.

 Article 46 The report prepared by
the expert or the appraiser and other evidence collected by the
arbitration tribunal shall be copied to the parties so that they may
have the opportunity to give their opinions thereon. At the request
of any party to the case and with the approval of the arbitration
tribunal, the expert and appraiser may be present at the hearing and
give explanations of their reports when the arbitration tribunal
considers it necessary and appropriate.

Article 47 The evidence
submitted by the parties shall be examined and evaluated by the
arbitration tribunal. The adoption or non-adoption of the report
prepared by the expert or the appraiser and copies or duplications
(including audiovisual materials) of other evidence collected by the
arbitration tribunal shall be determined by the arbitration
tribunal. Article 48 Should the Claimant fail, without justified
reason, to appear at the oral hearing he has been informed of by a
written notice or withdraw halfway from the hearing without the
approval of the arbitration tribunal, the arbitration tribunal may
regard it as withdrawal of the application for arbitration, and in
case the Respondent has raised a counterclaim, an award by default
can be made. Should the Respondent fail, without justified reason,
to appear at the hearing he has been informed of by a written notice
or withdraw halfway from the hearing without approval of the
arbitration tribunal, an award by default may be rendered, and in
case the Respondent has laid counterclaim, the counterclaim may be
regarded as withdrawn. Article 49 The arbitral tribunal shall make
record of the hearings in writing. The parties and other
participants in the arbitration may apply for rectification of the
records of their own statements if they consider that such records
contain any omission or error. If the arbitral tribunal does not
make the rectification, the application shall be recorded. The
written record shall be signed or sealed by the arbitrator(s), the
recorder, the parties, and other participants in the arbitration, if
any. Article 50 Where a person other than the parties to the
arbitration case considers he or she has a legal interest, in the
conclusion of the case in relation to the claim or counterclaim
submitted by any of the parties, the person may, after concluding an
agreement with both parties, apply, with the approval of the
arbitration tribunal, for participation as a party in the
arbitration case.

Article 51 The Claimant may waive his claim and/or
apply for the dismissal of the case; the Respondent may waive his
counterclaim and/or apply for dismissing the relevant part of the
case. The Secretary-General of the Arbitration Commission shall
decide on the request for a dismissal of the case if the request is
made before the formation of the arbitration tribunal, and the
arbitration tribunal shall decide if the request is put forward
after the formation of the arbitration tribunal. Any party of an
amicable settlement agreement resulting from consultation or
mediation may nominate a mutually agreed sole arbitrator, or request
the Chairman of the Arbitration Commission to appoint one sole
arbitrator, to make an award in accordance with the contents of
their amicable settlement agreement and the arbitration clause
stipulated therein; and the actual procedure and time limits are not
confined by other stipulations of these Arbitration Rules. In any
undergoing arbitration case, if the parties to an arbitration case
reach an amicable settlement agreement by themselves, they may
either request the arbitration tribunal to conclude the case by
making an award in accordance with the contents of their amicable
settlement agreement or request a dismissal of the case. If the
party or the parties refer the dismissed case again to the
Arbitration Commission for arbitration, the Chairman of the
Arbitration Commission shall decide whether to accept the reference.

Article 52 A party who knows or should have known that any provision
or requirement of these Rules has not been complied with and yet
proceeds with the arbitration proceedings without explicitly raising
in writing his objection to non-compliance in a timely manner shall
be taken to have waived his right to object.

Article 53 If both
parties have a desire for conciliation or one party so desires and
the other party agrees to it when consulted by the arbitration
tribunal, the arbitration tribunal may conciliate the case under its
cognizance in the process of arbitration. Article 54 The arbitration
tribunal may conciliate cases in the manner it considers
appropriate.

Article 55 The arbitration tribunal shall terminate
conciliation when one of the parties requests a termination of
conciliation or when the arbitration tribunal believes that further
efforts to conciliate will be futile.

Article 56 If the parties have
reached an amicable settlement outside the arbitration tribunal in
the course of conciliation conducted by the arbitration tribunal,
such settlement shall be considered as one which has been reached
through conciliation by the arbitration tribunal.

Article 57 The
parties shall sign a settlement agreement in writing when an
amicable settlement is reached through conciliation conducted by the
arbitration tribunal, and the arbitration tribunal shall conclude
the case by making an award in accordance with the contents of the
settlement agreement unless otherwise agreed by the parties. Article
58 Should conciliation fail, any statement, opinion, view or
proposal which has been made, raised, put forward, acknowledged,
accepted or rejected by either party or by the arbitration tribunal
in the process of conciliation shall not be invoked by the other
party as grounds for any claim, defense and/or counterclaim in the
subsequent arbitration proceedings, judicial proceedings or any
other proceedings. Section 5 Award

Article 59 The arbitration
tribunal shall render an award within 6 months as from the date on
which the arbitration tribunal is formed. The Secretary-General of
the Arbitration Commission may extend this time limit at the request
of the arbitration tribunal if the Secretary-General of the
Arbitration Commission considers the request justifiable and really
necessary. Article 60 The arbitration tribunal shall independently
and impartially make its award on the basis of the facts, in
accordance with the law and the terms of the contracts, with
reference to international practices and in compliance with the
principle of fairness and reasonableness.

Article 61 Where an
arbitration tribunal composed of three arbitrators hears a case, the
award shall be rendered in accordance with the opinion of the
unanimity or the majority of the arbitrators and the minority
opinion and reason may be recorded on file and written in the award.
When the arbitration tribunal cannot attain a majority opinion, the
award shall be rendered in accordance with the presiding
arbitrator's opinion. The different opinions of other arbitrators
may be recorded on file and written in the award. Article 62 The
arbitration tribunal shall state in the award the claims, the facts
of the dispute, the reasons for making the award, the result of the
award, the allocation of the arbitration fees and costs, the date
and the place of the award. The facts of the dispute and the reasons
for making the award may not be stated in the award if the parties
have so agreed or the award is made in accordance with the contents
of the agreement on amicable settlement reached between the parties.
Article 63 The arbitrators shall submit their draft award to the
Arbitration Commission before signing the award. The Arbitration
Commission and the Sub-commission may remind the arbitrators of any
issue related to the form of the award provided that the
arbitrator's independence in respect of making a decision is not
affected. The arbitrators shall sign the award. The official seal of
the Arbitration Commission shall be affixed to the award. The date
on which the award is made is the date on which the award comes into
legal effect. If the arbitrators with different opinions in article
61 do not sign or do not give the reasons of his different opinion,
the making and enforcing of the award shall not be affected.

Article 64 The arbitration tribunal may, at any time in the course of
arbitration before the final award is made, make an interlocutory
award or a partial award on any issue of the case if it considers it
necessary or agrees to such a request made by a party. Either
party's failure to perform the interlocutory award does not affect
the continuation of the arbitration proceedings and the making of
the final award by the arbitration tribunal.

Article 65 The
arbitration tribunal has the power to determine in the award the
arbitration fee and other expenses to be eventually paid by the
party or the parties to the Arbitration Commission.

Article 66 The
arbitration tribunal has the power to decide in the award that the
losing party shall pay the winning party as compensation a
proportion of the expenses reasonably incurred by the winning party
in dealing with the case. The amount of such compensation shall not
in any case exceed 10% of the total amount awarded to the winning
party.

Article 67 The award is final and binding upon both disputing
parties. Neither party may bring a suit before a court of law or
make a request to any other organization for revising the award.
Article 68 Either party may request in writing that a correction be
made to the writing, typing, calculating and similar errors
contained in the award within 30 days from the date of receipt of
the award; if there is really an error in the award, the arbitration
tribunal shall make a correction in writing within 30 days form the
date of receipt of the written request for correction. The
arbitration tribunal may by itself make a correction in writing
within 30 days from the date on which the award is issued. The
correction in writing forms a part of the award. Article 69 In case
anything that should be awarded has been omitted in the award,
either of the parties may make a request in writing to the
arbitration tribunal for an additional award within 30 days from the
date on which the award is received. If something which shall be
awarded is really omitted, the arbitration tribunal shall make an
additional award within 30 days from the date of receipt of the
request in writing for an additional award. The arbitration tribunal
may by itself make an additional award within 30 days from the date
on which the award is issued. The additional award forms a part of
the award which has been previously issued. Article 70 The parties
must automatically execute the award within the time limit specified
in the award. If no time limit is specified in the award, the
parties shall carry out the award immediately. In case one party
fails to execute the award, the other party may apply to the Chinese
court for enforcement of the award pursuant to Chinese law or apply
to the competent foreign court for enforcement of the award
according to the 1958 Convention on Recognition and Enforcement of
Foreign Arbitral Awards or other international treaties that China
has concluded or acceded. Chapter III Summary Procedure Article 71
Unless otherwise agreed by the parties, this Summary Procedure shall
apply to any case in dispute where the amount of the claim totals
not more than RMB 1,000, 000 yuan (inclusive of RMB1,000,000 yuan,
but exclusive of interest except for financing dispute). This
Summary Procedure shall also apply to cases where the amount of the
claim totals more than RMB 1000,000 Yuan provided that the parties
agree or one party applies for and the other party agrees to it in
writing. Where there is no amount in dispute, or the amount in
dispute is not definite, or the parties hold different opinions on
the amount in dispute or the way to count, the Arbitration
Commission shall decide by considering the complexity of the case,
the sum and scope of the interests concerned and other factors
comprehensively whether the Summary Procedure shall apply to the
case. Article 72 Where an application for arbitration submitted by
the Claimant to the Arbitration Commission or the Sub-Commission is
accepted after examination and the Summary Procedure is applicable,
the Secretariat shall immediately serve a Notice of Arbitration to
each of the parties. Both parties shall jointly appoint or jointly
entrust the Chairman of the Arbitration Commission to appoint one
sole arbitrator from the Panel of Arbitrators within 10 days from
the date on which the Notice of Arbitration is received by the
Respondent. Should the parties fail to make such appointment or
entrustment within the time limit, the Chairman of the Arbitration
Commission shall immediately appoint one sole arbitrator to form an
arbitration tribunal to hear the case. The parties may, within the
time limit stipulated by the above paragraph, nominate more than one
as the candidate(s) for the sole arbitrator from the sole arbitrator
candidate list provided by the Arbitration Commission. The candidate
nominated by both parties shall act as the sole arbitrator. If more
than one candidate are nominated by both parties, the Chairman of
the Arbitration Commission shall appoint one from them as the sole
arbitrator. Where no sole arbitrator can be appointed by this
method, any arbitrator on the Panel of the Arbitration Commission,
except those the parties expressly exclude, may be appointed as the
sole arbitrator.

Article 73 The Respondent shall, within 20 days
from the date of receipt of the Notice of Arbitration, submit his
defense and relevant documentary evidence to the Arbitration
Commission; a counterclaim, if any, shall be lodged together with
documentary evidence within the said time limit.

Article 74 The
arbitration tribunal may hear the case in the way it considers
appropriate. The arbitration tribunal may, in its discretion, hear
the case only on the basis of the written materials and evidence
submitted by the parties or holds an oral hearing. The arbitration
tribunal shall hold an oral hearing if any party so requests.

Article 75 Where a case is to be heard orally, the Secretariat
shall, after the arbitration tribunal fixes a date for the hearing,
inform the parties of the date of the hearing 10 days before the
date of the hearing.

Article 76 If the arbitration tribunal decides
to hear the case orally, only one oral hearing shall be held.
However, the arbitration tribunal may hold a second hearing if
really necessary.

Article 77 Should one of the parties fail to act
in compliance with this Summary Procedure during summary
proceedings, such failure shall not affect the continuation of the
arbitration proceedings and the power of the arbitration tribunal to
render an award. Article 78 Any amendment of the claim or filing of
a counterclaim, which results in the amount in dispute exceeding RMB
1,000,000 yuan, shall not affect the conducting of the Summary
Procedure if the parties agree. Otherwise the case shall apply the
ordinary procedure. Unless otherwise agreed by the parties, the sole
arbitrator previously appointed shall act as the presiding
arbitrator. The re-composed tribunal shall decide whether or not to
re-conduct the proceedings conducted prior to its re-composing.
Under the circumstances of the paragraph 3 of Article 71, where the
Arbitration Commission or arbitration tribunal decides to apply the
ordinary procedure, the above provisions shall apply. Article 79
Where a case is heard orally, the arbitration tribunal shall make an
award within 30 days from the date of the oral hearing or from the
date of the second oral hearing if any. Where a case is examined on
the basis of documents only, the arbitration tribunal shall render
an award within 90 days from the date of the formation of the
arbitration tribunal. The Secretary-General of the Arbitration
Commission may, at the request of the arbitration tribunal, extend
the said time limit if he considers such extension is necessary and
justifiable.

Article 80 For matters not covered in this Chapter, the
relevant provisions in the other Chapters of these Rules shall
apply. Chapter IV Supplementary Provisions

Article 81 Where the
limitation of arbitration is provided in the law, it shall be
applied, otherwise the limitation of actions shall be applied.

Article 82 The Chinese language is the official language of the Arbitration Commission. If the parties have otherwise agreed, their
agreement shall prevail. At the oral hearing, if the parties or their attorneys or witnesses require language interpretation, the
Secretariat may provide an interpreter for them or the parties may retain their own interpreters. The arbitration tribunal or the
Secretariat may, if it considers it necessary, request the parties to furnish it with corresponding translation copies in Chinese
language or other languages of the documents and evidential materials submitted by the parties.

Article 83 All the arbitration
documents, notices and materials may be sent in person to the parties or their attorneys, or by registered letter or express
airmail, telefax, telex, cable or by any other means which are
deemed proper by the Secretariat.

Article 84 Any written correspondence to the parties or their arbitration agents shall be
deemed to have been properly served if it is delivered to the addressee or delivered at his place of business, habitual residence
or mailing address; or if none of these can be found after reasonable inquiries, the written correspondence is sent to the
addressee's last known place of business, habitual residence or
mailing address by registered letter or by any other means which
provides a record of the attempt to deliver it.

Article 85 The Arbitration Commission charges the arbitration fees according to the Arbitration Fee Schedule attached herewith. The Claimant and the
Respondent shall pay the arbitration fee for the claim and the counter-claim in advance respectively. The losing party shall be
liable for the arbitration fees. The arbitration tribunal shall finally decide which party shall be liable for the arbitration fees
where both parties win and lose partly or the winning and losing is not clear. Apart from charging arbitration fees from the parties
according to the Arbitration Fee Schedule of the Arbitration Commission, the Arbitration Commission may collect from the parties
other extra, reasonable and actual expenses including arbitrators' special remuneration and their travel and boarding expenses for
dealing with the case as well as the fees and expenses for experts, appraisers and interpreters etc. appointed by the arbitration
tribunal. If a case is withdrawn after the parties have reached between themselves an amicable settlement, the Arbitration
Commission may charge a certain amount of fees from the parties in consideration of the quantity of work and the amount of the actual
expenses incurred by the Arbitration Commission. According to Article 61 of Arbitration Law, the Arbitration Commission shall not
charge fees any longer if the arbitration tribunal agrees to re-arbitrate the case. According to Article 68 and Article 69, the
Arbitration Commission shall not charge fees any longer if the arbitration tribunal makes a correction to the award or an
additional award. Article 86 Where it is explicitly stipulated in an arbitration agreement or an arbitration clause contained in the
contract that arbitration to be conducted by China Maritime Arbitration Commission, its Sub-Commission, its Logistics Dispute
Resolution Center or its Fishery Dispute Resolution Center or by its formerly named Maritime Arbitration Commission of the China Council
for the Promotion of International Trade/China Chamber of International Commerce, or the China Council for the Promotion of
International Trade（CCPIT）/China Chamber of International Commerce and the dispute by nature is admiralty,
maritime, logistics or fishery dispute, it shall be considered that the parties have unanimously agreed that the arbitration shall be
conducted by China Maritime Arbitration Commission or the Sub-Commission according to Article 16 of Arbitration Law of the People's Republic of China.

Article 87 Where the parties agree to apply these rules hereof, unless otherwise agreed, it is deemed that
they have agreed to have their award published by the Arbitration Commission. But the Arbitration Commission shall delete the parties'
name and other contents by which the party's identification can be recognized when the Arbitration Commission publishes the award.

Article 88 These Rules shall come into force as from October 1, 2004.

Article 89 The power to interpret these Rules is vested in the Arbitration Commission.
　

Bright Jon, Attorney-at-law  Fax: +86-512-53516040 
email@colaw.cn