Guidance of Beijing International Commercial Court on Case Filing within Jurisdiction

For the purpose of further regulating case filing and review, the guideline is developed by the Beijing International Commercial Court (BICC) in the light of case adjudication and judicial practices and in accordance with the Civil Procedure Law of the People's Republic of China (PRC) and judicial interpretations of the Supreme People's Court.

Question 1: What kinds of cases belong to the jurisdiction of the BICC?

Answer: (1) Foreign-related commercial cases and those related to the parties (natural persons, legal entities and other organizations) from China's Hong Kong and Macao SARs and Taiwan province involving claims below five billion yuan (roughly US$ 694.5 million) in the first instance, which are supposed to be heard by the Beijing Intermediate People's Courts with the exception of cases under the jurisdiction of the Beijing Financial Court;

(2) Judicial review of arbitration awards over foreign-related cases and those related to the parties (natural persons, legal entities and other organizations) from the Hong Kong, Macao and Taiwan regions, which are supposed to be heard by intermediate people's courts in Beijing. They comprise requests for the recognition of arbitral awards, revocation of arbitral awards granted by domestic arbitration institutions, recognition and enforcement of arbitral awards rendered by arbitration institutions from Hong Kong and Macao SARs and Taiwan province, and recognition and enforcement of arbitral awards (with the exception of labor disputes and financial cases) issued by foreign arbitration institutions.

(3) Requests for recognition and enforcement of verdicts over civil cases made by foreign courts within the jurisdiction of intermediate people's courts in Beijing; requests for recognition and enforcement of verdicts over civil cases (with the exception of cases involving judicial assistance in financial cases) granted by courts in Hong Kong, Macao and Taiwan.

Question 2: How are foreign-related commercial cases defined?

Answer 2: Foreign-related cases shall be defined in accordance with such factors as subjects, objects and disputes in a legal relationship amid judicial practices. Upon the satisfaction of the following conditions, therefore, Chinese mainland courts can classify them as foreign-related cases:

(1) One or more parties to a civil action are foreign nationals, stateless persons, or foreign enterprises or organizations;

(2) The habitual residence of one or more parties to a civil action is located outside the territory of the PRC;

(3) The subjects of civil actions are located outside the territory of the PRC;

(4) Legal facts or steps that generate, change or terminate civil relations have taken place outside the territory of the PRC;

(5) Other matters can be listed as foreign-related cases.

The trial of civil cases related to Hong Kong, Macao and Taiwan will be conducted in accordance with special provisions pertaining to foreign-related civil litigation procedures.

Commercial tribunals in Beijing shall verify whether foreign-related civil cases belong to their jurisdiction in accordance with a Notice of the Beijing High People's Court on Several Matters Concerning Jurisdiction over Civil and Commercial Cases. Commonly seen commercial cases include disputes over loan and sales agreements as well as corporate affairs.

Question 3: How will the BICC's jurisdiction be defined over civil cases whose defendants have residence within the territory of the PRC?

Answer: If defendants of civil cases are residents within the territory of the PRC, the trial of the actions will follow the jurisdiction principles below:

(1) The principle of agreed jurisdiction is adopted when parties to civil cases involving disputes over contracts or property rights have reached a written agreement to file their litigation in a court of the place of the defendant's or plaintiff’s residence, contract enforcement, contract signing, the object of the procedure, or a place connected with the contentious matters on the precondition that their behaviors conform to the provisions on grade and exclusive jurisdiction. In their written agreement, two parties can also render their litigation in foreign courts under the same criteria.

(2) Where there aren't any written agreements over jurisdiction between two parties in a contract lawsuit, the case shall be heard by a court of the defendant's habitual residence or where the contract is implemented.

(3) Civil cases involving corporation registration, confirmation of shareholders' qualification, revenue distribution and corporation dissolution shall be handled by the court of the location of the enterprises concerned.

If Beijing is a connection point of jurisdiction, relevant civil cases can be rendered to the BICC.

Question 4: How will the BICC's jurisdiction be defined over civil cases whose defendants have no residence within the territory of the PRC?

Answer: If the defendants of civil cases have no residence within the territory of the PRC, the trial of the actions will follow these jurisdiction principles:

(1) The principle of agreed jurisdiction is adopted when parties to a civil case that involves disputes over contracts or property rights have reached a written agreement to file their litigation in a court of the place of the defendant's or plaintiff’s residence, contract enforcement, contract signing, the object of procedure and places connected with contentious matters on the precondition that their behaviors conform to the provisions on grade and exclusive jurisdiction. In their written agreement, two parties can also file their litigation in foreign courts under the same criteria.

(2) In case that there aren't any written agreements over jurisdiction between two parties in a contract or property right lawsuit, the people's courts can hear the civil case when the defendant has no residence within the territory of the PRC, the contentious contract is signed or executed within the territory of the PRC, the object of procedure is located within the territory of the PRC, the defendant has property that can be lawfully held by representative agencies within the territory of the PRC in accordance with the principle of territorial jurisdiction.

(3) Civil cases involving corporation registration, confirmation of shareholders' qualification, revenue distribution and corporation dissolution shall be handled by courts of the location of the enterprises concerned.

If Beijing a connection point of jurisdiction, relevant civil cases can be rendered to the BICC.

Question 5: What kinds of cases cannot be rendered to foreign courts for trial in accordance with the principle of agreed jurisdiction?

Answer: According to China's Civil Procedure Law, cases that are under the exclusive jurisdiction of Chinese courts cannot be rendered to foreign court for trial through the principle of agreed jurisdiction. These cases include disputes over real estate, port operations, property inheritance, joint-venture business contracts, and the collaboration between Chinese and foreign enterprises on the exploration of natural resources. However, parties in these cases can follow the principle of agreed arbitration.

Question 6: What kinds of conditions shall be met when parties in civil cases file their application for the recognition and enforcement of an arbitral award to the BICC?

Answer: The request for the recognition of an arbitral award shall be filed to the intermediate people's court or a special tribunal of the place where the arbitration institution with joint authorization of the parties in a civil case is located, the arbitration agreement is signed, or the applicant or the respondent has lived.

Applicants can submit their request to the BICC when one of the above-mentioned sites is located in Beijing and the case is related to foreign parties.

Question 7: What kinds of conditions shall be met when parties in civil cases apply for the revocation of an arbitral award in the BICC?

Answer: Parties in a civil case can render their request for revocation of an arbitral award to the intermediate people's court of the place where the arbitration institution is located. The BICC can accept the application for revocation of arbitral awards duly granted by the China International Economic and Trade Arbitration Commission and the Beijing Arbitration Commission with the exception of financial cases.

Question 8: What kinds of conditions shall be met when parties render their request to the BICC for the recognition and enforcement of an arbitral award made by foreign arbitration institutions or those from Hong Kong, Macao and Taiwan?

Answer: The request for the recognition and enforcement of an arbitral award made by foreign arbitration institutions or those from Hong Kong, Macao and Taiwan shall be submitted to the intermediate people's court of the place in which the respondent has a habitual residence or property. Therefore, applicants can render their request to the BICC when relevant conditions are met.

Question 9: What kinds of conditions shall be met when parties submit their request to the BICC for the recognition and enforcement of a legally effective verdict and award granted by foreign courts?

Answer: The request for the recognition and enforcement of a legally effectively verdict and award made by foreign courts shall be submitted to the intermediate people's court of the place in which the respondent has a habitual residence or property. If the connection point of jurisdiction is in Beijing, relevant parties can render their cases to the BICC.

Question 10: What kinds of conditions shall be met when parties submit their request to the BICC for the recognition and enforcement of a legally effective verdict and award over civil cases granted by courts in Hong Kong, Macao and Taiwan?

Answer: The request for the recognition and enforcement of ruling over civil and commercial cases, which is made by Hong Kong courts in accordance with the Arrangement of the Supreme People's Court on Mutual Recognition and Enforcement of Judgments in Civil and Commercial Matters as Agreed to by the Litigation Parties between the Chinese Mainland and the Hong Kong SAR and the Arrangement of the Supreme People's Court on the Mutual Recognition and Enforcement of Judgments in Civil Cases of Marriage and Family Matters between the Chinese Mainland and the Hong Kong SAR, can be rendered to the intermediate people's court of the place where the respondent has a habitual or fixed residence or property.

The request for the recognition and enforcement of ruling over civil and commercial cases, which is made by Macao courts in accordance with the Arrangement of the Supreme People's Court on the Mutual Recognition and Enforcement of Civil and Commercial Judgments between the Chinese Mainland and the Macao Special Administrative Region, can be rendered to the intermediate people's court of the place where the respondent has a habitual or fixed residence or property.

The request for the recognition and enforcement of ruling over civil cases, which is made by Taiwan courts in accordance with the Arrangement of the Supreme People's Court on Mutual Recognition and Enforcement of Judgments in Civil Matters between the Chinese Mainland and Taiwan, can be rendered to the intermediate people's court or special tribunal of the place where the respondent has a habitual or fixed residence or property.

If Beijing is a connection point of jurisdiction, relevant parties can thus render their cases to the BICC.