Section 3： Hearing and Arbitral Awards

Article 39 An arbitration tribunal shall hold a tribunal session to hear an arbitration case. If the parties agree not to hold a hearing， the arbitration tribunal may render an award in accordance with the arbitration application， the defence statement and other documents.

Article 40 An arbitration shall not be conducted in public. If the parties agree to a public hearing， the arbitration may proceed in public， except those concerning state secrets.

Article 41 The arbitration commission shall notify the two parties within the time limit provided by the Arbitration Rules of the date of the hearing. Either party may request to postpone the hearing with in the time limit provided by the Arbitration Rules if there is a genuine reason. The arbitration tribunal shall decide whether to postpone the hearing.

Article 42 If the applicant for arbitration who has been given a notice in writing does not appear before the tribunal without good reasons， or leaves the tribunal room during a hearing without the permission of the arbitration tribunal， such applicant shall be deemed as having withdrawn his application.

If the party against whom the application was made was served with a notice in writing but does not appear before the tribunal without due reasons or leaves the tribunal room during a hearing without the permission of the arbitration tribunal， an award by default may be given.

Article 43 The parties shall produce evidence in support of their claims.

An arbitration tribunal may collect on its own evidence it considers necessary.

Article 44 For specialized matters， an arbitration tribunal may submit for appraisal to an appraisal organ agreed upon by the parties or to the appraisal organ appointed by the arbitration tribunal if it deems such appraisal to be necessary.

According to the claim of the parties or the request of the arbitration tribunal， the appraisal organ shall appoint an appraiser to participate in the hearing. Upon the permission of the arbitration tribunal， the parties may question the appraiser.

Article 45 Any evidence shall be produced at the start of the hearing. The parties may challenge the validity of such evidence.

Article 46 In the event that the evidence might be destroyed or if it would be difficult to obtain the evidence later on， the parties may apply for the evidence to be preserved. If the parties apply for such preservation， the arbitration commission shall submit the application to the basic-level people's court of the place where the evidence is located.

Article 47 The parties have the right to argue during an arbitration procedure.

At the end of the debate， the presiding arbitrator or the sole arbitrator shall ask for the final opinion of the parties.

Article 48 An arbitration tribunal shall make a written record of the hearing. If the parties or other participants to the arbitration consider that the record has omitted a part of their statement or is incorrect in some other respect， they shall have the right to request correction thereof. If no correction is made， the request for correction shall be noted in the written record.

The arbitrators， recorder， parties and other participants to the arbitration shall sign or affix their seals to the record.

Article 49 After the submission of an arbitration application， the parties may settle the dispute among themselves through conciliation. If a conciliation agreement has been reached， the parties may apply to the arbitration tribunal for an award based on the conciliation agreement. Then may also withdraw the arbitration application.

Article 50 If the parties fall back on their words after the conclusion of a conciliation agreement and the withdrawal of the arbitration application， application may be made for arbitration in accordance with the arbitration agreement.

Article 51 Before giving an award， an arbitration tribunal may first attempt to conciliate. If the parties apply for conciliation voluntarily， the arbitration tribunal shall conciliate. If conciliation is unsuccessful， an award shall be made promptly.

When a settlement agreement is reached by conciliation，

the arbitration tribunal shall prepare the conciliation statement or the award on the basis of the results of the settlement agreement. A conciliation statement shall have the same legal force as that of an award.

Article 52 A conciliation statement shall set forth the arbitration claims and the results of the agreement between the parties. The conciliation statement shall be signed by the arbitrators， sealed by the arbitration commission， and served on both parties.

A conciliation statement shall have legal effect once signed and accepted by the parties.

If the parties fall back on their words before the conciliation statement is singed and accepted by them， an award shall be made by the arbitration tribunal promptly.

Article 53 An award shall be based on the opinion of the majority arbitrators. The opinion of the minority arbitrators shall be recorded in writing.

If an opinion of the minority arbitrators shall be recorded in writing. If an opinion of the majority arbitrators can not be constituted at the tribunal， the award shall be given according to the opinion of the presiding arbitrator.

Article 54 The arbitration claims， the matters in dispute， the grounds upon which an award is given， the results of the judgement， the responsibility for the arbitration fees and the date of the award shall be set forth in the award. If the parties agree not to include in the award the matters in dispute and the grounds on which the award is based， such matters may not be stated in the award. The award shall be signed by the arbitrators and sealed by the arbitration commission. The arbitrator who disagrees with the award may select to sign or not to sign it.

Article 55 During the course of arbitration by an arbitration tribunal， where a part of facts has been made clear， a partial award may first be given in relation to that part.

Article 56 The parties may， within 30 days of the receipt of the award， request the arbitration tribunal to correct any typographical errors， calculation errors or matters which had been awarded but omitted in the award.

Article 57 An award shall be legally effective on the date it is given.

Chapter V Application for Cancellation of an Award

Article 58 The parties may apply to the intermediate people's court at the place where the arbitration commission is located for cancellation of an award if they provide evidence proving that the award involves one of the following circumstances：

1. there is no arbitration agreement between the parties；

2. the matters of the award are beyond the extent of the arbitration agreement or not within the jurisdiction of the arbitration commission；

3. the composition of the arbitration tribunal or the arbitration procedure is in contrary to the legal procedure；

4. the evidence on which the award is based is falsified；

5. the other party has concealed evidence which is sufficient to affect the impartiality of the award； and

6. the arbitrator（s） has （have） demanded or accepted bribes， committed graft or perverted the law in making the arbitral award.

The peoples' court shall rule to cancel the award if the existence of one of the circumstances prescribed in the preceding clause is confirmed by its collegiate bench.

The people's court shall rule to cancel the award if it holds that the award is contrary to the social and public interests.

Article 59 If a party applies for cancellation of an award， an application shall be submitted within 6 months after receipt of the award.

Article 60 The people's court shall， within 2 months after receipt of the application for cancellation of an award， render its decision for cancellation of the award or for rejection of the application.

Article 61 If the people's court holds that the case may be re-arbitrated by the arbitration tribunal after receipt of the application for cancellation of an award， the court shall inform the arbitration tribunal of re-arbitrating the case within a certain period of time and rule to suspend the cancellation procedure. If the arbitration tribunal refuses to re-arbitrate， the people's court shall rule to resume the cancellation procedure.

Chapter VI Enforcement

Article 62 The parties shall execute an arbitration award. If one party fails to execute the award， the other party may apply to a people's court for enforcement in accordance with the relevant provisions of the Civil Procedure Law， and the court shall enforce the award.

Article 63 A people's court shall， after examination and verification by its collegiate bench， rule not to enforce an award if the party against whom an application for enforcement is made provides evidence proving that the award involves one of the circumstances prescribed in Clause 2， Article 217 of the Civil procedure Law.

Article 64 If one party applies for enforcement of an award while the other party applies for cancellation of the award， the people's court receiving such application shall rule to suspend enforcement of the award.

If a people's court rules to cancel an award， it shall rule to terminate enforcement. If the people's court overrules the application for cancellation of an award， it shall rule to resume enforcement.

Chapter VII Special provisions on Foreign-Related Arbitration

Article 65 The provisions of this Chapter shall apply to all arbitration of disputes arising from foreign economic， trade， transportation or maritime matters. In the absence of provisions in this Chapter， other relevant provisions of this Law shall apply.

Article 66 A foreign arbitration commission may be organized and established by the China International Chamber of Commerce.

A foreign arbitration commission shall comprise one chairman， several vice-chairmen and several committee members.

The chairman， vice-chairmen and committee members may be appointed by the China International Chamber of Commerce.

Article 67 A foreign arbitration commission may appoint foreigners with professional knowledge in such fields as law， economic and trade， science and technology as arbitrators.

Article 68 If the parties to a foreign-related arbitration apply for evidence preservation， the foreign arbitration commission shall submit their applications to the intermediate people's court in the place where the evidence is located.

Article 69 The arbitration tribunal of a foreign arbitration commission may record the details of the hearing in writing or record the essentials of the hearing in writing. The written record of the essentials shall be signed or sealed by the parties and other participants in the arbitration.

Article 70 A people's court shall， after examination and verification by its collegiate bench， rule to cancel an award if a party to the case provides evidence proving that the arbitration award involves one of the circumstances prescribed in Clause 1， Article 260 of the Civil Procedure Law.

Article 71 A people's court shall， after examination and verification by its collegiate bench， rule not to enforce an award-if the party against whom an application is made provides evidence proving that the arbitration award involves one of the circumstances prescribed in Clause 1， Article 260 of the Civil Procedure Law.

Article 72 Where the party subject to enforcement or its property is not within the territory of the People's Republic of China， a party applying for the enforcement of a legally effective arbitration award shall apply directly to the foreign court having jurisdiction for recognition and enforcement of the award.

Article 73 Foreign arbitration rules may be formulated by the China International Chamber of Commerce in accordance with this Law and the relevant provisions of the Civil Procedure Law.

Chapter VIII Supplementary Provisions

Article 74 If the law has stipulated a time limitation of arbitration， such provisions of the law shall apply. If the law has not stipulated a time limitation of arbitration， the provisions on the limitation of actions shall apply.

Article 75 The arbitration Commission may formulate provisional arbitration rules in accordance with this Law and the relevant provisions of the Civil Procedure Law before the formulation of the arbitration rules by the China Arbitration Association.

Article 76 The parties shall pay arbitration fees in accordance with the relevant provisions.

The methods for the collection of arbitration fees shall be submitted to the commodity prices administration department for approval.

Article 77 Arbitration of labor disputes and disputes over contracts for undertaking agricultural projects within agricultural collective economic organizations shall be separately stipulated.

Article 78 In the event of conflict between the provisions on arbitration formulated before the coming into effect of this Law and the provisions of this Law， the provisions of this Law shall prevail.

Article 79 Arbitration organs established before the coming into effect of this Law in the municipalities directly under the Central Government， in the municipalities where the people's governments of the provinces or autonomous regions and in other cities divided into districts must be re-organized in accordance with the relevant provisions of this Law. The arbitration organs which are not re-organized shall be terminated at the expiration of one year after the date of effectiveness of this Law.

All other arbitration organs established before the implementation of this Law and not conforming to the provisions of this Law shall be terminated on the date of effectiveness of this Law.

Article 80 This Law shall be effective as of September 1， 1995.