Recently, the website of the United Nations Commission on International Trade Law (UNCTAD) published 14 judicial cases of Chinese courts applying international treaties in batches. The case of WS China Import GmbH, represented by Dacheng lawyers, applying for recognition and enforcement of a German arbitration award has been honored and published.
Recently, the website of the United Nations Commission on International Trade Law (UNCTAD) published 14 judicial cases of Chinese courts applying international treaties in batches. The case of WS China Import GmbH, represented by Dacheng lawyers, applying for recognition and enforcement of a German arbitration award has been honored and published.
As a case in the Case Law on UNCITRAL Texts (CLOUT) system, the total number of cases in which Chinese courts have applied international treaties has reached 50. This is a concrete practice and important achievement of the Supreme People's Court in implementing the important deployment of the 20th National Congress of the Communist Party of China and the Third Plenary Session of the 20th Central Committee on strengthening the construction of foreign-related rule of law, as well as the important instructions and directives of General Secretary Xi Jinping on foreign-related rule of law construction. It has positive significance for enriching the judicial practice of international treaty application, promoting the unification of international trade, investment and dispute resolution rules.
The United Nations Commission on International Trade Law is the core legal body of the United Nations that maintains a fair order in international trade and commercial transactions. The international treaties it reviews and formulates cover various fields such as dispute resolution, international trade, shipping, bankruptcy, and e-commerce. Among them, the most successful and widely applicable international treaties include the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the United Nations Convention on Contracts for the International Sale of Goods. The United Nations Commission on International Trade Law established the Case Law System in 1988, which compiles case abstracts and specifies the specific provisions of the relevant treaties in the form of United Nations General Assembly documents. It is the main window and important reference for international organizations, judicial organs, arbitration institutions, academic institutions, and other organizations to study the interpretation and application of relevant international treaties by various countries.
As of now, the United Nations Commission on International Trade Law's case law system has collected over 1300 excellent judicial judgments and arbitration awards from more than 40 countries applying international treaties. Chinese courts actively apply relevant international treaties in judicial cases, deeply elaborating on the concept, propositions, and successful practices of foreign-related rule of law with Chinese characteristics, demonstrating the good judicial image of Chinese courts in adhering to international treaty obligations, promoting international judicial exchanges and cooperation, and being open and inclusive. [1]
The arbitration tribunal of the Hamburg Commodity Trading Registration Association in Germany accepted the arbitration case between Weishi GmbH and Sichuan Rongfeng Company, and made an award in March 2020, requiring Sichuan Rongfeng Company to pay the goods to Weishi GmbH. In 2022, Weishi GmbH applied to the Chengdu Intermediate People's Court for recognition and enforcement of the arbitration award. Sichuan Rongfeng Company claims that according to the Hague Convention on Service of Service, China has made reservations to the relevant provisions regarding the direct delivery of judicial documents to persons abroad by mail. The Hamburg Commodity Trading Registration Association's submission of arbitration procedural documents to Sichuan Rongfeng Company by mail does not comply with Chinese legal provisions. According to the requirement of "appropriate notice" under the New York Convention, the arbitration award should not be recognized and enforced as it has not received appropriate notice of the arbitration hearing and other procedures.
The Chengdu Intermediate People's Court believes that the arbitration award in question stated that the arbitration tribunal of the Hamburg Commodity Trading Registration Association sent the arbitration documents to Sichuan Rongfeng Company by mail. Although Sichuan Rongfeng Company refused to accept the relevant documents, the documents were deemed to have been submitted in accordance with Article 179 (3) of the German Civil Procedure Law (ZPO). The Hague Convention on Service of Service applies only to judicial documents and not to the service of arbitration proceedings. The mailing address for the hearing notice sent by the Hamburg Commodity Trading Registration Association Arbitration Tribunal to Sichuan Rongfeng Company is the registered domicile of Sichuan Rongfeng Company, and the reserved contact phone number is the phone number of the agent of Sichuan Rongfeng Company. At the same time, the Sichuan Provincial High People's Court successfully delivered the arbitration award related to the case to the address. Based on this, the arbitration tribunal of the Hamburg Commodity Trading Registration Association shall be deemed to have sent the arbitration procedure documents to the registered domicile of Sichuan Rongfeng Company, which shall be deemed to have actually arrived at Sichuan Rongfeng Company or to be sufficient to assume that Sichuan Rongfeng Company could receive the email, meeting the standard of "appropriate notice". The arbitration award in question does not fall under the circumstances of refusal of recognition and enforcement as stipulated in Article 5 of the New York Convention. Accordingly, the ruling recognizes and enforces the arbitration award involved in the case.
This case is a typical case of Chengdu Intermediate People's Court recognizing and enforcing foreign arbitration awards through the application of international treaties in accordance with the law. It has been successfully selected as a "Typical Case of the Supreme People's Court's Application of International Treaties and International Practices in Foreign related Civil and Commercial Cases" and "Top Ten Typical Cases of Chengdu Court's Foreign related Civil and Commercial Trial (2018-2022)". The handling of this case is a result of the People's Court's accurate understanding of the scope of application of the Hague Service of Service Convention, combined with the context of the provisions and the overall purpose of the treaty, and made a good faith and reasonable interpretation of the judgment standard of "appropriate notice" in Article 5 (1) (b) of the New York Convention, providing reference for the trial of similar cases and enhancing the uniformity, stability, and predictability of the application of international treaties. At the same time, the judicial judgment and ruling of this case demonstrate the judicial style of Chinese courts in strictly fulfilling international treaty obligations and actively supporting international arbitration, creating a "arbitration friendly" judicial atmosphere and playing an important role in the resolution of international commercial disputes, which is conducive to the creation of an international business environment.
The inclusion of this batch of cases represents further international recognition of the judicial precedents of Chinese courts in applying international treaties, enhances the international influence of Chinese courts, and also reflects the affirmation and recognition of China's open and inclusive judicial image and rule of law business environment by the United Nations Commission on International Trade Law.
Annotations in the text
1. Quoted from the official account article of the Supreme People's Court on December 28, 2023, "Typical Cases of Application of International Treaties and International Practices to Foreign related Civil and Commercial Cases Published by the Supreme Law"