Shanghai No.2 Intermediate People's Court issued regulations Sunday that aim to more efficiently deal with arbitration appeals related to the China (Shanghai) Pilot Free Trade Zone (FTZ).
The court has been charged with reviewing the validity and enforcing arbitration rulings made by the Shanghai International Arbitration Center (SHIAC) in regard to commercial disputes in the FTZ, according to a court press release.
The regulations aim to ensure that arbitration appeals are handled efficiently, Wang Xinfang, president of the Shanghai No.2 Intermediate People's Court, said at a press conference.
The regulations set specific time limits on handling arbitration appeals, which the country's current Arbitration Law does not require, according to the press release.
The regulations require the court to hold a hearing within 15 days and make a decision within 30 days after an appeal is filed to either overrule or review the validity of an arbitration ruling.
For appeals about commercial disputes of less than 100,000 yuan ($16,980), the court must hold hearings within 10 days and make decisions within 20 days.
The regulations require the court to complete an asset investigation of an enterprise within 24 hours after the company's counterpart applies for enforcement of arbitration.
The regulations also include clauses that prevent involved enterprises from getting rid of evidence and transferring assets to interfere with an investigation before or during an arbitration appeal.
In the past, this has been a difficult but important procedure to deal with arbitration appeals, but now the regulations can help to address this problem, said Guo Junxiu, general law counselor for China Eastern Airlines.
The regulations require the court to accept enterprises' applications immediately.
The court's regulations will serve as powerful support for the China (Shanghai) Pilot Free Trade Zone Arbitration Rules, said Li Zhigang, vice director of SHIAC.
SHIAC tailored the rules to address commercial disputes related to the FTZ. The rules went into effect Thursday.
