The Xiamen FTZ Administrative Committee and the Xiamen International Commercial Court witness the settlement and signing of the compliance commitment letter. [Photo by Lin Yuyang for en.ftz.xm.gov.cn]
The Xiamen Intermediate People's Court recognized the arbitration award made by the International Cotton Association (ICA) in Liverpool, the United Kingdom, at the Maritime Silk Road International Legal and Business Integration Service Base of Xiamen Free Trade Zone, on Feb 20.
The panel of judges read and explained the civil arbitral award to the parties on-site. The Xiamen FTZ Administrative Committee and the Xiamen International Commercial Court witnessed the settlement and signing of the compliance commitment letter between a company from Singapore and a logistics enterprise in the Xiamen FTZ.
The validity of the cotton import trade contract signed by the parties in this case is disputed. Due to the failure to issue a 100 percent irrevocable letter of credit on time, disputes such as market price differentials regarding the goods have been submitted to arbitration by ICA. ICA is the oldest cotton association organization globally, and the majority of international cotton trade transactions worldwide are governed by the ICA constitution and rules.
China is the world's largest cotton importing country, and Fujian province is a hub for the textile and garment industry. Recognizing ICA arbitration awards in accordance with the law and promoting automatic compliance is beneficial for the development of the cotton supply chain in the Fujian Free Trade Zone and is important for Xiamen's efforts to build a global supply chain innovation center.
Both parties in this case have committed to: respecting and acknowledging the ICA arbitration awards by the Xiamen International Commercial Court; upholding the principle of good faith and conscientiously fulfilling the settlement agreements and supplementary agreements reached; understanding each other's situations and reasonable concerns; and actively restoring commercial credit and mutual trust. Both parties appreciate the legal and business environment in the Xiamen FTZ and look forward to further opportunities for cooperation in the future.
Since the Xiamen Intermediate People's Court and the Xiamen FTZ Administrative Committee jointly issued the "Implementation Opinions on Comprehensive Deepening of Judicial Service Guarantee for the Construction of Xiamen Free Trade Zone", hereinafter referred to as the "Opinions", a new pattern has been formed in which the Xiamen FTZ Administrative Committee collaborates with the two levels of courts and three specialized courtrooms to provide services to support the development of the FTZ.
They are actively exploring and supporting diverse dispute resolution methods such as ad hoc arbitration and commercial mediation, as well as promoting the continuous improvement of the legal and business environment in the FTZ.
The recognition by the Xiamen International Commercial Court of the arbitration awards made by the ICA in London, and the witnessing of the automatic compliance by companies in the park by the Xiamen FTZ Administrative Committee, signifies the extent to which the "Opinions" have been implemented. It demonstrates the positive results of the Xiamen FTZ in aligning with international rules and enhancing the level of judicial service guarantee. It is also an innovative initiative by the Xiamen FTZ to enhance arbitration service capabilities and empower a friendly arbitration ecosystem.
Cai Huiqun, secretary-general of the Maritime Silk Road International Law and Business Integration Service Base, stated: "The active compliance by the Xiamen FTZ Administrative Committee in witnessing international commercial arbitration awards effectively reduces the costs of resolving cross-border commercial disputes. It is also an innovative initiative by the Xiamen FTZ to align with international rules, enhance arbitration service capabilities, and create a friendly ecosystem. This initiative provides strong support for building a stable, fair, and predictable legal and business environment. "