2013 Administered Arbitration Rules

Effective from 1 November 2013

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SECTION V.AWARDS, DECISIONS AND ORDERS OF THE ARBITRAL TRIBUNAL


Article 32 – Decisions
32.1 When there is more than one arbitrator, any award or other decision of the arbitral tribunal shall be made by a majority of the arbitrators. If there is no majority, the award shall be made by the presiding arbitrator alone.

32.2 With the prior agreement of all members of the arbitral tribunal, the presiding arbitrator may make procedural rulings alone.

Article 33 – Costs of the Arbitration
33.1 The arbitral tribunal shall determine the costs of the arbitration in its award. The term “costs of the arbitration” includes only:

    1. the fees of the arbitral tribunal, as determined in accordance with Article 10;
    2. the reasonable travel and other expenses incurred by the arbitral tribunal;
    3. the reasonable costs of expert advice and of other assistance required by the arbitral tribunal;
    4. the reasonable travel and other expenses of witnesses and experts;
    5. the reasonable costs for legal representation and assistance if such costs were claimed during the arbitration;
    6. the Registration Fee and Administrative Fees payable to HKIAC in accordance with Schedule 1.

33.2 The arbitral tribunal may apportion all or part of the costs of the arbitration referred to in Article 33.1 between the parties if it determines that apportionment is reasonable, taking into account the circumstances of the case.

33.3 With respect to the costs of legal representation and assistance referred to in Article 33.1(e), the arbitral tribunal, taking into account the circumstances of the case, may direct that the recoverable costs of the arbitration, or any part of the arbitration, shall be limited to a specified amount.

33.4 Where arbitrations are consolidated pursuant to Article 28, the arbitral tribunal in the consolidated arbitration shall allocate the costs of the arbitration in accordance with Article 33.2 and 33.3. Such costs shall include, but shall not be limited to, the fees of any arbitral tribunal designated or confirmed and any other costs incurred in an arbitration that was subsequently consolidated into another arbitration.

33.5 When the arbitral tribunal issues an order for the termination of the arbitration or makes an award on agreed terms, it or HKIAC shall determine the costs of the arbitration referred to in Article 33.1, in the text of that order or award.

Article 34 – Form and Effect of the Award
34.1 The arbitral tribunal may make a single award or separate awards regarding different issues at different times and in respect of all parties involved in the arbitration in the form of interim, interlocutory, partial or final awards. If appropriate, the arbitral tribunal may also issue interim awards on costs.

34.2 Awards shall be made in writing and shall be final and binding on the parties and any person claiming through or under any of the parties. The parties and any such person shall be deemed to have waived their rights to any form of recourse or defence in respect of enforcement and execution of any award, in so far as such waiver can validly be made.

34.3 The parties undertake to comply without delay with any award or order made by the arbitral tribunal, including any award or order made in any consolidated proceedings under Article 28 or any arbitration under Article 29.

34.4 An award shall state the reasons upon which it is based unless the parties have agreed that no reasons are to be given.

34.5 An award shall be signed by the arbitral tribunal. It shall state the date on which it was made and the seat of arbitration as determined under Article 14 and shall be deemed to have been made at the seat of the arbitration. Where there are three arbitrators and any of them fails to sign, the award shall state the reason for the absence of the signature(s).

34.6 Subject to any lien, originals of the award signed by the arbitrators and affixed with the seal of HKIAC shall be communicated to the parties and HKIAC by the arbitral tribunal. HKIAC shall be supplied with an original copy of the award.

Article 35 – Applicable Law, Amiable Compositeur
35.1 The arbitral tribunal shall decide the substance of the dispute in accordance with the rules of law agreed upon by the parties. Any designation of the law or legal system of a given jurisdiction shall be construed, unless otherwise expressed, as directly referring to the substantive law of that jurisdiction and not to its conflict of laws rules. Failing such designation by the parties, the arbitral tribunal shall apply the rules of law which it determines to be appropriate.

35.2 The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly agreed that the arbitral tribunal should do so.

35.3 In all cases, the arbitral tribunal shall decide the case in accordance with the terms of the relevant contract(s) and may take into account the usages of the trade applicable to the transaction(s).

Article 36 – Settlement or Other Grounds for Termination
36.1 If, before the award is made, the parties agree on a settlement of the dispute, the arbitral tribunal shall either issue an order for the termination of the arbitration or, if requested by both parties and accepted by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms. The arbitral tribunal is not obliged to give reasons for such an award.

36.2 If, before the award is made, the continuation of the arbitration becomes unnecessary or impossible for any reason not mentioned in Article 36.1, the arbitral tribunal shall issue an order for the termination of the arbitration. The arbitral tribunal shall issue such an order unless a party raises a justifiable objection, having been given a reasonable opportunity to comment upon the proposed course of action.

36.3 Copies of the order for termination of the arbitration or of the arbitral award on agreed terms, signed by the arbitral tribunal, shall be communicated by the arbitral tribunal to the parties and HKIAC. Where an arbitral award on agreed terms is made, the provisions of Articles 34.2, 34.3, 34.5 and 34.6 shall apply.

Article 37 – Correction of the Award
37.1 Within 30 days after receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors, or any errors of similar nature. The arbitral tribunal may set a time limit, normally not exceeding 15 days, for the other party to comment on such request.

37.2 The arbitral tribunal shall make any corrections it considers appropriate within 30 days after receipt of the request but may extend such period of time if necessary.

37.3 The arbitral tribunal may within 30 days after the date of the award make such corrections on its own initiative.

37.4 The arbitral tribunal has the power to make any further correction to the award which is necessitated by or consequential on (a) the interpretation of any point or part of the award under Article 38; or (b) the issue of any additional award under Article 39.

37.5 Such corrections shall be in writing, and the provisions of Articles 34.2 to 34.6 shall apply.

Article 38 – Interpretation of the Award
38.1 Within 30 days after receipt of the award, either party, with notice to the other party, may request that the arbitral tribunal give an interpretation of the award. The arbitral tribunal may set a time limit, normally not exceeding 15 days, for the other party to comment on such request.

38.2 Any interpretation considered appropriate by the arbitral tribunal shall be given in writing within 30 days after receipt of the request but the tribunal may extend such period of time if necessary.

38.3 The arbitral tribunal has the power to give any further interpretation of the award which is necessitated by or consequential on

    1. the correction of any error in the award under Article 37; or
    2. the issue of any additional award under Article 39.

38.4 Any interpretation given under Article 38 shall form part of the award and the provisions of Articles 34.2 to 34.6 shall apply.

Article 39 – Additional Award
39.1 Within 30 days after receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to make an additional award as to claims presented in the arbitration but omitted from the award. The arbitral tribunal may set a time limit, normally not exceeding 30 days, for the other party to comment on such request.

39.2 If the arbitral tribunal considers the request for an additional award to be justified, it shall make the additional award within 60 days after receipt of the request but may extend such period of time if necessary.

39.3 The arbitral tribunal has the power to make an additional award which is necessitated by or consequential on

    1. the correction of any error in the award under Article 37; or
    2. the interpretation of any point or part of the award under Article 38.

39.4 When an additional award is made, the provisions of Articles 34.2 to 34.6 shall apply.

Article 40 – Deposits for Costs
40.1 As soon as practicable after receipt of the Notice of Arbitration by the Respondent, HKIAC shall, in principle, request the Claimant and the Respondent each to deposit with HKIAC an equal amount as an advance for the costs referred to in Article 33.1, paragraphs (a), (b), (c) and (f). HKIAC shall provide a copy of such request to the arbitral tribunal.

40.2 Where a Respondent submits a counterclaim, or it otherwise appears appropriate in the circumstances, HKIAC may request separate deposits.

40.3 During the course of the arbitration HKIAC may request the parties to make supplementary deposits with HKIAC. HKIAC shall provide a copy of such request(s) to the arbitral tribunal.

40.4 If the required deposits are not paid in full to HKIAC within 30 days after receipt of the request, HKIAC shall so inform the parties in order that one or another of them may make the required payment. If such payment is not made, the arbitral tribunal may order the suspension or termination of the arbitration or continue with the arbitration on such basis and in respect of such claim or counterclaim as the tribunal considers fit.

40.5 In its final award, the arbitral tribunal shall render an account to the parties of the deposits received by HKIAC. Any unexpended balance shall be returned to the parties by HKIAC.

40.6 HKIAC shall place the deposit(s) made by the parties in interest bearing deposit account(s) at a reputable licensed Hong Kong deposit-taking institution. In selecting the account(s), HKIAC shall have due regard to the possible need to make the deposited funds available immediately.  

 

SECTION VI.OTHER PROVISIONS


Article 41 – Expedited Procedure
41.1 Prior to the constitution of the arbitral tribunal, a party may apply to HKIAC in writing for the arbitration to be conducted in accordance with Article 41.2 where:

    1. the amount in dispute representing the aggregate of any claim and counterclaim (or any set-off defence) does not exceed HKD 25,000,000 (twenty-five million Hong Kong Dollars); or
    2. the parties so agree; or
    3. in cases of exceptional urgency.

41.2 When HKIAC, after considering the views of the parties, grants an application made pursuant to Article 41.1, the arbitral proceedings shall be conducted in accordance with an Expedited Procedure based upon the foregoing provisions of these Rules, subject to the following changes:

    1. the case shall be referred to a sole arbitrator, unless the arbitration agreement provides for three arbitrators;
    2. if the arbitration agreement provides for three arbitrators, HKIAC shall invite the parties to agree to refer the case to a sole arbitrator. If the parties do not agree, the case shall be referred to three arbitrators;
    3. HKIAC may shorten the time limits provided for in the Rules, as well as any time limits that it has set;
    4. after the submission of the Answer to the Notice of Arbitration, the parties shall in principle be entitled to submit one Statement of Claim and one Statement of Defence (and Counterclaim) and, where applicable, one Statement of Defence in reply to the Counterclaim;
    5. the arbitral tribunal shall decide the dispute on the basis of documentary evidence only, unless it decides that it is appropriate to hold one or more hearings;
    6. the award shall be made within six months from the date when HKIAC transmitted the file to the arbitral tribunal. In exceptional circumstances, HKIAC may extend this time limit;
    7. the arbitral tribunal shall state the reasons upon which the award is based in summary form, unless the parties have agreed that no reasons are to be given.

41.3 Unless the parties agree otherwise, the Expedited Procedure contained in Article 41 shall not apply to any consolidated proceedings under Article 28 or to any arbitration commenced under Article 29.

Article 42 – Confidentiality
42.1 Unless otherwise agreed by the parties, no party may publish, disclose or communicate any information relating to: (a) the arbitration under the arbitration agreement(s); or (b) an award made in the arbitration.

42.2 The provisions of Article 42.1 also apply to the arbitral tribunal, any Emergency Arbitrator appointed in accordance with Schedule 4, expert, witness, secretary of the arbitral tribunal and HKIAC.

42.3 The provisions in Article 42.1 do not prevent the publication, disclosure or communication of information referred to in Article 42.1 by a party:

    1. (i) to protect or pursue a legal right or interest of the party; or
      (ii) to enforce or challenge the award referred to in Article 42.1;

      in legal proceedings before a court or other judicial authority;
    2. to any government body, regulatory body, court or tribunal where the party is obliged by law to make the publication, disclosure or communication; or
    3. to a professional or any other adviser of any of the parties, including any actual or potential witness or expert.

42.4 The deliberations of the arbitral tribunal are confidential.

42.5 An award may be published, whether in its entirety or in the form of excerpts or a summary, only under the following conditions:

    1. a request for publication is addressed to HKIAC;
    2. all references to the parties’ names are deleted; and
    3. no party objects to such publication within the time limit fixed for that purpose by HKIAC. In the case of an objection, the award shall not be published.

Article 43 – Exclusion of Liability
43.1 None of the Council of HKIAC nor any committee, sub-commitee or other body or person specifically designated by it to perform the functions referred to in these Rules, nor the Secretary General of HKIAC or other staff members of the Secretariat of HKIAC, the arbitral tribunal, any Emergency Arbitrator, tribunal-appointed expert or secretary of the arbitral tribunal shall be liable for any act or omission in connection with an arbitration conducted under these Rules, save where such act was done or omitted to be done dishonestly.

43.2 After the award has been made and the possibilities of correction, interpretation and additional awards referred to in Articles 37 to 39 have lapsed or been exhausted, neither HKIAC nor the arbitral tribunal, any Emergency Arbitrator, tribunal-appointed expert or secretary of the arbitral tribunal shall be under an obligation to make statements to any person about any matter concerning the arbitration, nor shall a party seek to make any of these persons a witness in any legal or other proceedings arising out of the arbitration.

SCHEDULE 1

REGISTRATION AND ADMINISTRATIVE FEES

(All amounts are in Hong Kong Dollars, hereinafter “HKD”)
Effective 1 February 2015

1.    Registration Fee
1.1    When submitting a Notice of Arbitration, the Claimant shall pay a Registration Fee in the amount set by HKIAC, as stated on HKIAC's website on the date the Notice of Arbitration is submitted.

1.2     If the Claimant fails to pay the Registration Fee, HKIAC shall not proceed with the arbitration subject to Article 4.7 of the Rules.

1.3    The Registration Fee is not refundable.

2.    HKIAC’s Administrative Fees
2.1    HKIAC’s Administrative Fee shall be determined in accordance with the following table:

ADMINISTRATIVE FEE

Sum in dispute (in HKD)Administrative fee (in HKD)
Up to 400,00019,800
From 400,001 to 800,00019,800 + 1.300% of amt. over 400,000
From 800,001 to 4,000,00025,000 + 1.000% of amt. over 800,000
From 4,000,001 to 8,000,00057,000 + 0.545% of amt. over 4,000,000
From 8,000,001 to 16,000,00078,800 + 0.265% of amt. over 8,000,000
From 16,000,001 to 40,000,000100,000 + 0.200% of amt. over 16,000,000
From 40,000,001 to 80,000,000148,000 + 0.110% of amt. over 40,000,000
From 80,000,001 to 240,000,000192,000 + 0.071% of amt. over 80,000,000
From 240,000,001 to 400,000,000305,600 + 0.059% of amt. over 240,000,000
Over 400,000,000400,000

2.2    Claims and counterclaims are aggregated for the determination of the amount in dispute. The same rule applies to any set-off defence, unless the arbitral tribunal, after consulting with the parties, concludes that such set-off defence will not require significant additional work.

2.3    An interest claim shall not be taken into account for the calculation of the amount in dispute. However, when the interest claim exceeds the amounts claimed in principal, the interest claim alone shall be considered in calculating the amount in dispute.

2.4    Pursuant to Articles 18.2, 27.14 or 28.8 or where in the opinion of HKIAC there are exceptional circumstances, HKIAC's Administrative Fees may exceed the amounts calculated in accordance with paragraph 2.1.

2.5    If the amount in dispute is not quantified, HKIAC’s Administrative Fees shall be fixed by HKIAC, taking into account the circumstances of the case.

2.6    Amounts in currencies other than Hong Kong Dollars shall be converted into Hong Kong Dollars at the rate of exchange published by HSBC Bank on the date the Notice of Arbitration is submitted or at the time any new claim, set-off defence or amendment to a claim or defence is filed.

SCHEDULE 2

ARBITRAL TRIBUNAL'S FEES, EXPENSES, TERMS AND CONDITIONS

Based on Hourly Rates
Effective 1 November 2013

1.    Scope of Application and Interpretation
1.1    Subject to Article 9.2 of the Rules, this Schedule shall apply to arbitrations in which the arbitral tribunal's fees and expenses are to be determined in accordance with Article 10.1(a) of the Rules and to the appointment of an Emergency Arbitrator under Schedule 4.

1.2    HKIAC may interpret the terms of this Schedule as well as the scope of application of the Schedule as it considers appropriate.

1.3    This Schedule is supplemented by the Practice Note on Arbitral Tribunal's Fees, Expenses, Terms and Conditions Based on Schedule 2 and Hourly Rates in force on the date the Notice of Arbitration is submitted.

2.    Payments to Arbitral Tribunal
2.1    Payments to the arbitral tribunal shall generally be made by HKIAC from funds deposited by the parties in accordance with Article 40 of the Rules. HKIAC may direct the parties, in such proportions as it considers appropriate, to make one or more interim or final payments to the arbitral tribunal.

2.2    If insufficient funds are held at the time a payment is required, the invoice for the payment may be submitted to the parties for settlement by them direct.

2.3    Payments to the arbitral tribunal shall be made in Hong Kong Dollars unless the tribunal directs otherwise.

2.4    The parties are jointly and severally liable for the fees and expenses of an arbitrator, irrespective of which party appointed the arbitrator.
3.    Arbitral Tribunal's Expenses
3.1    The arbitral tribunal shall be reimbursed for its reasonable expenses in accordance with the Practice Note referred to at paragraph 1.3.

3.2    The expenses of the arbitral tribunal shall not be included in the arbitral tribunal's fees charged by reference to hourly rates under paragraph 9 of this Schedule.

4.    Administrative Expenses
The parties shall be responsible for expenses reasonably incurred and relating to administrative and support services engaged for the purposes of the arbitration, including, but not limited to, the cost of hearing rooms, interpreters and transcription services. Such expenses may be paid directly from the deposits referred to in Article 40 of the Rules as and when they are incurred.

5.    Fees and Expenses Payable to Replaced Arbitrators
Where an arbitrator is replaced pursuant to Article 12, 27 or 28 of the Rules, HKIAC shall decide the amount of fees and expenses to be paid for the replaced arbitrator's services (if any), having taken into account the circumstances of the case, including, but not limited to, the applicable method for determining the arbitrator's fees, work done by the arbitrator in connection with the arbitration, and the complexity of the subject-matter.

6.    Fees and Expenses of Secretary to Arbitral Tribunal
Where the arbitral tribunal appoints a secretary in accordance with Article 13.4 of the Rules, such secretary shall be remunerated at a rate which shall not exceed the rate set by HKIAC, as stated on HKIAC's website on the date the Notice of Arbitration is submitted. The secretary's fees and expenses shall be charged separately. The arbitral tribunal shall determine the total fees and expenses of a secretary under Article 33.1(c) of the Rules.

7.    Lien on Award
HKIAC and the arbitral tribunal shall have a lien over any awards issued by the tribunal to secure the payment of their outstanding fees and expenses, and may accordingly refuse to release any such awards to the parties until all such fees and expenses have been paid in full, whether jointly or by one or other of the parties.

8.    Governing law
The terms of this Schedule and any non-contractual obligation arising out of or in connection with them shall be governed by and construed in accordance with Hong Kong law.

9.    Arbitral Tribunal's Fee Rates
9.1    An arbitrator shall be remunerated at an hourly rate for all work reasonably carried out in connection with the arbitration.

9.2    Subject to paragraphs 9.3 and 9.4 of this Schedule, the rate referred to in paragraph 9.1 is to be agreed in accordance with Article 10.2 of the Rules. An arbitrator shall agree in writing upon fee rates in accordance with paragraph 9 of this Schedule prior to the confirmation of his or her appointment by HKIAC in accordance with Article 9 of the Rules.

9.3    An arbitrator's agreed hourly rate shall not exceed a rate set by HKIAC, as stated on HKIAC's website on the date the Notice of Arbitration is submitted.

9.4    Subject to paragraph 9.3, an arbitrator may review and increase his or her agreed hourly rate by no more than 10% on each anniversary of the confirmation of his or her appointment by HKIAC.

9.5    Higher rates may be charged if expressly agreed in writing by all parties to the arbitration or if HKIAC so determines in exceptional circumstances.

9.6    If an arbitrator is required to travel for the purposes of fulfilling obligations as an arbitrator, the arbitrator shall be entitled to charge and to be reimbursed for:

    1. time spent travelling but not working at a rate of 50% of the agreed hourly rate; and
    2. time spent working whilst travelling at the full agreed hourly rate.

10.    Cancellation Fees
10.1    All hearings booked shall be paid for, subject to the following conditions:

    1. if a booking is cancelled at the request of the arbitral tribunal, it will not be charged;
    2. if a booking is cancelled at the request of a party less than 30 days before the day booked it shall be paid at a daily rate of 75% of eight times the applicable hourly rate;
    3. if a booking is cancelled at the request of a party less than 60 days but more than 30 days before the day booked, it shall be paid at a daily rate of 50% of eight times the applicable hourly rate;
    4. if a booking is cancelled at the request of a party more than 60 days before the day booked it will not be charged; and
    5. in all cases referred to above, credit will be given against all time spent on the case during the day(s) booked.

10.2    Where hearing days are cancelled or postponed other than by agreement of all parties, this may be taken into account when considering any subsequent allocation of costs.

SCHEDULE 3 

ARBITRAL TRIBUNAL'S FEES, EXPENSES, TERMS AND CONDITIONS

Based on Sum in Dispute
(All amounts are in Hong Kong Dollars, hereinafter “HKD”)
Effective 1 November 2013

1.    Scope of Application and Interpretation
1.1    Subject to paragraph 1.2 below and Article 9.2 of the Rules, this Schedule applies to arbitrations in which the arbitral tribunal's fees and expenses are to be determined in accordance with Article 10.1(b) of the Rules.

1.2    This Schedule shall not apply to the appointment of an Emergency Arbitrator under Schedule 4.

1.3    HKIAC may interpret the terms of this Schedule as well as the scope of application of the Schedule as it considers appropriate.

1.4    This Schedule is supplemented by the Practice Note on Arbitral Tribunal's Fees, Expenses, Terms and Conditions Based on Schedule 3 and the Sum in Dispute in force on the date the Notice of Arbitration is submitted.

2.    Payments to Arbitral Tribunal
2.1    Payments to the arbitral tribunal shall generally be made by HKIAC from funds deposited by the parties in accordance with Article 40 of the Rules. HKIAC may direct the parties, in such proportions as it considers appropriate, to make one or more interim or final payments to the arbitral tribunal.

2.2    If insufficient funds are held at the time a payment is required, the invoice for the payment may be submitted to the parties for settlement by them direct.

2.3    Payments to the arbitral tribunal shall be made in Hong Kong Dollars unless the tribunal directs otherwise.

2.4    The parties are jointly and severally liable for the fees and expenses of an arbitrator, irrespective of which party appointed the arbitrator.

3.    Arbitral Tribunal's Expenses
3.1    The arbitral tribunal shall be reimbursed for its reasonable expenses in accordance with the Practice Note referred to at paragraph 1.4.

3.2    The expenses of the arbitral tribunal shall not be included in the determination of fees charged in accordance with paragraph 6 of this Schedule.

4.    Administrative Expenses
The parties shall be responsible for expenses reasonably incurred and relating to administrative and support services engaged for the purposes of the arbitration, including, but not limited to, the cost of hearing rooms, interpreters and transcription services. Such expenses may be paid directly from the deposits referred to in Article 40 of the Rules as and when they are incurred.

5.    Fees and Expenses Payable to Replaced Arbitrators
Where an arbitrator is replaced pursuant to Article 12, 27 or 28 of the Rules, HKIAC shall decide the amount of fees and expenses to be paid for the replaced arbitrator's services (if any), having taken into account the circumstances of the case, including, but not limited to, the applicable method for determining the arbitrator's fees, work done by the arbitrator in connection with the arbitration, and the complexity of the subject-matter.

6.    Determination of Arbitral Tribunal's Fees
6.1    The arbitral tribunal’s fees shall be calculated in accordance with the following table. The fees calculated in accordance with the table represent the maximum amount payable to one arbitrator.

ARBITRAL TRIBUNAL FEE

Sum in dispute (in HKD)Arbitrator's Fees (in HKD)
Up to 400,00011.000% of amount in dispute
From 400,001 to 800,00044,000 + 10.000% of amt. over 400,000
From 800,001 to 4,000,00084,000 + 5.300% of amt. over 800,000
From 4,000,001 to 8,000,000253,600 + 3.780% of amt. over 4,000,000
From 8,000,001 to 16,000,000404,800 + 1.730% of amt. over 8,000,000
From 16,000,001 to 40,000,000543,200 + 1.060% of amt. over 16,000,000
From 40,000,001 to 80,000,000797,600 + 0.440% of amt. over 40,000,000
From 80,000,001 to 240,000,000973,600 + 0.250% of amt. over 80,000,000
From 240,000,001 to 400,000,0001,373,600 + 0.228% of amt. over 240,000,000
From 400,000,001 to 600,000,0001,738,400 + 0.101% of amt. over 400,000,000
From 600,000,001 to 800,000,0001,940,400 + 0.067% of amt. over 600,000,000
From 800,000,001 to 4,000,000,0002,074,400 + 0.044% of amt. over 800,000,000
Over 4,000,000,0003,482,400 + 0.025% of amt. over 4,000,000,000

Maximum of 12,574,000

6.2    The arbitral tribunal’s fees shall cover the activities of the arbitral tribunal from the time the file is transmitted to it until the last award.

6.3    Claims and counterclaims are added for the determination of the amount in dispute. The same rule applies to any set-off defence, unless the arbitral tribunal, after consulting with the parties, concludes that such set-off defence will not require significant additional work.

6.4    An interest claim shall not be taken into account for the calculation of the amount in dispute. However, when the interest claim exceeds the amounts claimed in principal, the interest claim alone shall be considered in calculating the amount in dispute.

6.5    Pursuant to Articles 10.3(c), 18.2, 27.14 or 28.8 or in other exceptional circumstances, the arbitral tribunal’s fees may exceed the amounts calculated in accordance with paragraph 6.1.

6.6    If the amount in dispute is not quantified, the arbitral tribunal's fees shall be fixed by HKIAC, taking into account the circumstances of the case.

7.    Lien on Award
HKIAC and the arbitral tribunal shall have a lien over any awards issued by the tribunal to secure the payment of their outstanding fees and expenses, and may accordingly refuse to release any such awards to the parties until all such fees and expenses have been paid in full, whether jointly or by one or other of the parties.

8.    Governing law
The terms of this Schedule and any non-contractual obligation arising out of or in connection with it shall be governed by and construed in accordance with Hong Kong law.

SCHEDULE 4

EMERGENCY ARBITRATOR PROCEDURES

Effective 1 November 2013

1.    A party requiring Emergency Relief may, concurrent with or following the filing of a Notice of Arbitration but prior to the constitution of the arbitral tribunal, submit an application (the "Application") for the appointment of an emergency arbitrator (the "Emergency Arbitrator") to HKIAC.

2.    The Application shall be submitted in accordance with any of the means specified in Article 2.1 of the Rules. The Application shall include the following information:

    1. the names and (in so far as known) the addresses, telephone and fax numbers, and email addresses of the parties to the Application and of their counsel;
    2. a description of the circumstances giving rise to the Application and of the underlying dispute referred to arbitration;
    3. a statement of the Emergency Relief sought;
    4. the reasons why the applicant needs the Emergency Relief on an urgent basis that cannot await the constitution of an arbitral tribunal;
    5. the reasons why the applicant is entitled to such Emergency Relief;
    6. any relevant agreement(s) and, in particular, the arbitration agreement(s);
    7. comments on the language, the seat of the Emergency Relief proceedings, and the applicable law;
    8. confirmation of payment, by cheque or transfer to the account of HKIAC, of the amount referred to in paragraph 6 of this Schedule (the "Application Deposit"); and
    9. confirmation that copies of the Application and any exhibits included therewith have been or are being served simultaneously on all other parties to the arbitration by one or more means of service to be identified in such confirmation.

3.    The Application may contain such other documents or information as the applicant considers appropriate or as may contribute to the efficient examination of the Application.

4.    Two copies of the Application shall be provided, one copy for the Emergency Arbitrator and one copy for HKIAC.

5.    If HKIAC determines that it should accept the Application, HKIAC shall seek to appoint an Emergency Arbitrator within two days after receipt of both the Application and the Application Deposit.

6.    The Application Deposit is the amount set by HKIAC, as stated on HKIAC's website on the date the Application is submitted. The Application Deposit consists of HKIAC's administrative expenses and the Emergency Arbitrator's fees and expenses. The Emergency Arbitrator's fees shall be determined by HKIAC by reference to his or her hourly rate subject to the terms set out in Schedule 2. HKIAC may, at any time during the Emergency Relief proceedings, decide to increase the Emergency Arbitrator's fees or HKIAC's administrative expenses, taking into account, inter alia, the nature of the case and the nature and amount of work performed by the Emergency Arbitrator and HKIAC. If the party which submitted the Application fails to pay the increased fees and/or expenses within the time limit fixed by HKIAC, the Application shall be dismissed.

7.    Once the Emergency Arbitrator has been appointed, HKIAC shall so notify the parties to the Application and shall transmit the file to the Emergency Arbitrator. Thereafter, all written communications from the parties shall be submitted directly to the Emergency Arbitrator with a copy to the other party to the Application and HKIAC. A copy of any written communications from the Emergency Arbitrator to the parties shall also be copied to HKIAC.

8.    Article 11 of the Rules shall apply to the Emergency Arbitrator, except that the time limits set out in Articles 11.7 and 11.9 are shortened to three days.

9.    Where an Emergency Arbitrator dies, has been successfully challenged, has been otherwise removed, or has resigned, HKIAC shall seek to appoint a substitute Emergency Arbitrator within two days. If an Emergency Arbitrator withdraws or a party agrees to terminate an Emergency Arbitrator's appointment under paragraph 8 of this Schedule, no acceptance of the validity of any ground referred to in Article 11.6 of the Rules shall be implied. If the Emergency Arbitrator is replaced, the Emergency Relief proceedings shall resume at the stage where the Emergency Arbitrator was replaced or ceased to perform his or her functions, unless the substitute Emergency Arbitrator decides otherwise.

10.    If the parties have agreed on the seat of arbitration, such seat shall be the seat of the Emergency Relief proceedings. Where the parties have not agreed on the seat of arbitration, and without prejudice to the arbitral tribunal's determination of the seat of arbitration pursuant to Article 14.1 of the Rules, the seat of the Emergency Relief proceedings shall be Hong Kong.

11.    Taking into account the urgency inherent in the Emergency Relief proceedings and ensuring that each party has a reasonable opportunity to be heard on the Application, the Emergency Arbitrator may conduct such proceedings in such a manner as the Emergency Arbitrator considers appropriate. The Emergency Arbitrator shall have the power to rule on objections that the Emergency Arbitrator has no jurisdiction, including any objections with respect to the existence, validity or scope of the arbitration clause(s) or of the separate arbitration agreement(s), and shall resolve any disputes over the applicability of this Schedule.

12.    Any decision, order or award of the Emergency Arbitrator on the Application (the "Emergency Decision") shall be made within fifteen days from the date on which HKIAC transmitted the file to the Emergency Arbitrator. This period of time may be extended by agreement of the parties or, in appropriate circumstances, by HKIAC.

13.    The Emergency Decision may be made even if in the meantime the file has been transmitted to the arbitral tribunal.

14.    Any Emergency Decision shall:

    1. be made in writing;
    2. state the date when it was made and summary reasons upon which the Emergency Decision is based (including a determination on whether the Application is admissible under Article 23.1 of the Rules and whether the Emergency Arbitrator has jurisdiction to grant the Emergency Relief); and
    3. be signed by the Emergency Arbitrator.

15.    Any Emergency Decision shall fix the costs of the Emergency Relief proceedings and decide which of the parties shall bear them or in what proportion they shall be borne by the parties, subject always to the power of the arbitral tribunal to determine finally the apportionment of such costs in accordance with Article 33 of the Rules. The costs of the Emergency Relief proceedings include HKIAC's administrative expenses, the Emergency Arbitrator's fees and expenses and the reasonable and other legal costs incurred by the parties for the Emergency Relief proceedings.

16.    Any Emergency Decision shall have the same effect as an interim measure granted pursuant to Article 23 of the Rules and shall be binding on the parties when rendered. By agreeing to arbitration under these Rules, the parties undertake to comply with any Emergency Decision without delay.

17.    The Emergency Arbitrator shall be entitled to order the provision of appropriate security by the party seeking Emergency Relief.

18.    Any Emergency Decision may, upon a reasoned request by a party, be modified, suspended or terminated by the Emergency Arbitrator or the arbitral tribunal (once constituted).

19.    Any Emergency Decision ceases to be binding:

    1. if the Emergency Arbitrator or the arbitral tribunal so decides;
    2. upon the arbitral tribunal rendering a final award, unless the arbitral tribunal expressly decides otherwise;
    3. upon the withdrawal of all claims or the termination of the arbitration before the rendering of a final award; or
    4. if the arbitral tribunal is not constituted within 90 days from the date of the Emergency Decision. This period of time may be extended by agreement of the parties or, in appropriate circumstances, by HKIAC.

20.    Subject to paragraph 13 of this Schedule, the Emergency Arbitrator shall have no further power to act once the arbitral tribunal is constituted.

21.    The Emergency Arbitrator may not act as arbitrator in any arbitration relating to the dispute that gave rise to the Application and in respect of which the Emergency Arbitrator has acted, unless otherwise agreed by the parties to the arbitration.

22.    The Emergency Arbitrator Procedures are not intended to prevent any party from seeking urgent interim or conservatory measures from a competent judicial authority at any time.

23.    In all matters not expressly provided for in this Schedule, the Emergency Arbitrator shall act in the spirit of the Rules.

24.    The Emergency Arbitrator shall make every reasonable effort to ensure that an Emergency Decision is valid.

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