The Asia-Pacific Economic Cooperation (APEC) online dispute resolution (ODR) mechanism was an APEC-sponsored initiative to provide quick, inexpensive ODR service for resolving B2B cross-border disputes of low value through ODR proceedings of negotiation, mediation and arbitration, under the APEC Collaborative Framework for ODR of Cross-Border B2B Disputes (Collaborative Framework) and its Model Rules of Procedure, so as to promote B2B cross-border confidence and healthy development of the business environment in the Asia-Pacific Region.

As an important APEC economy, China has been actively advocating and supporting the Collaborative Framework. China International Economic and Trade Arbitration Commission (CIETAC), as the first arbitration institution in China and a well-known international permanent arbitration institution, was recommended by the Ministry of Justice to be one of the first Chinese ODR service providers under the Collaborative Framework. CIETAC has been officially recognized by APEC as one of the present three ODR service providers listed on its official website.

CIETAC has been actively participating in the joint construction and cooperation of the APEC ODR mechanism. Its APEC ODR Platform (https://casettle.odrcloud.cn/CIETAC.html) is now officially launched. Parties may access the platform from APEC’s official website or CIETAC’s official website. Through this platform, CIETAC provides ODR service with an entirely online process of negotiation, mediation and arbitration to resolve B2B cross-border commercial disputes, especially for micro, small, and medium enterprises (MSMEs).

(APEC ODR·CIETAC platform officially launched)

(Parties may access the APEC ODR·CIETAC Platform from APEC’s official website)


(Parties may also access the APEC ODR·CIETAC Platform from CIETAC’s official website)

Providing APEC ODR service through its ODR platform marks a new step in CIETAC’s continuous exploration of online dispute resolution and its promotion of dispute resolution in the digital economy. In the era of digital economy, the proportion of digital economy in the national economy is growing year by year, and cross-border e-commerce is booming. Thus, high-quality economic development inevitably requires a bigger, stronger and better digital economy, which in turn calls for the development of ODR service to adapt to the needs of digital economy. The APEC ODR mechanism represents the active exploration and cutting-edge development of the online dispute resolution mechanism on the international level. It is an important new step of CIETAC in its exploration of online dispute resolution over the years to actively participate in the joint construction of the APEC ODR mechanism.

It is also an important measure of CIETAC to continuously innovate, facilitate parties and respond to market demands by its active participation in the joint construction of the APEC ODR mechanism to provide ODR service for cross-border commercial disputes for corporate parties. Today, the COVID-19 pandemic continues to spread, the economic globalization encounters adverse current, market players are under enormous pressure, and cross-border trade is facing severe challenges. Enterprises are in urgent need of dispute resolution service that can better adapt to the current economic situation and market needs. The APEC ODR mechanism and service perfectly meet this demand and can help relieve the difficulties for MSMEs and promote the development of cross-border trade.

Under the APEC ODR mechanism, after its commencemen, the APEC ODR proceedings will go through 3 stages, namely, negotiation, mediation and arbitration, which will be entirely conducted on the ODR platform. If the parties fail to settle their dispute during the negotiation stage, CIETAC will appoint a neutral from its List of Neutrals to assist with the resolution of the dispute. If no settlement is reached during the mediation stage, the parties will proceed to the arbitration stage for final resolution of the dispute. The quick and inexpensive APEC ODR proceedings make full use of existing internet technologies, and greatly reduce the dispute resolution costs for corporate parties in international trade, which provides an innovative paradigm and path for cross-border low volume commercial dispute resolution, and contributes to the a more convenient and economic international legal business environment for cross-border trade.

According to the Model Procedural Rules, the disputes to be setted under the APEC ODR mechanism shall satisfy the following conditions:

1. only business-to-business (B2B) disputes;

2. disputes relating to a sales or service contract;

3. where the parties have agreed that disputes relating to the transaction shall be resolved under the Model Procedural Rules, so long as the dispute falls within the scope of the Rules;

4. excluding consumer transactions, i.e., contracts concluded for personal, family or household purposes.

In addition, in light of the purpose of the Collaborative Framework and the scheme design of its Model Procedural Rules, also considering the development status quo of online dispute resolution, the APEC ODR service provided by CIETAC currently shall only be applied to cases where the amount in dispute (calculated by the aggregate of the claims and counterclaims) is no more than RMB 5,000,000.

Considering the APEC ODR service is primarily for MSMEs to settle low volume disputes, CIETAC adopts a lump-sum fee schedule with substantially lowered fee standards, to keep the total dispute resolution cost relatively low and as reasonable and manageable as possible.

Parties may agree, before or after a dispute has arisen, to submit the dispute to CIETAC for resolution via its APEC ODR service platform in accordance with the Model Procedural Rules.

With rich experience in cross-border commercial dispute resolution and expert resources, CIETAC will endeavor to provide convenient, efficient, professional and inexpensive APEC ODR service, and promote the development of cross-border trade as well as dispute resolution in the digital economy.

________________________________________________________________________________

Model Clause

Any dispute, controversy, or claim arising hereunder and within the scope of the Model Procedural Rules for the APEC Collaborative Framework for ODR of Cross-Border B2B Disputes ( “ the Procedural Rules ” ) providing for an online resolution process through negotiation, mediation and binding arbitration, shall be submitted to CIETAC for resolution via its APEC ODR service platform in accordance with the Procedural Rules presently in force.

Parties hereby confirm their electronic addresses designated for the purpose of the ODR proceedings as follows:

Party A:

Party B:

Note: Parties should consider adding:

(a) The number of neutrals shall be one.

(b) The place/seat of arbitration shall be .

(c) The language used in the ODR proceedings shall be [ Chinese/English].