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Hong Kong International Arbitration Centre ("HKIAC")

A concise overview of the key procedural features, advantages, disadvantages, and practical considerations associated with the Hong Kong International Arbitration Centre ("HKIAC").

Overview

Overview: advantages and disadvantages

ADVANTAGES DISADVANTAGES 
Structured Procedure and Clear Timeframes. The HKIAC Rules provide a well-defined procedural framework, including timelines for submissions, Tribunal appointments and hearings, which enhances predictability and efficiency. Limited Party Autonomy. While the HKIAC Rules offer procedural clarity, they may restrict parties’ ability to customise the arbitration process. For example, deadlines and procedural steps are largely fixed, which may not suit all dispute types or party preferences.
Confidentiality. HKIAC arbitration proceedings are confidential. Potential for Institutional Delay. Although HKIAC is known for efficiency, reliance on an institution means parties are subject to its internal processes and timelines (e.g. for appointing arbitrators or deciding challenges), which occasionally causes delays.
Expedited Procedures. Claims under HK$50 million (approx. USD$6.4 million) may qualify for expedited procedures, reducing time and cost. Complexity in Rule Interpretation. The Rules are comprehensive and sophisticated, which can be a disadvantage for parties unfamiliar with institutional arbitration. 
Tribunal Efficiency Safeguards. HKIAC can intervene to preserve the efficiency of proceedings, including by revoking an arbitrator’s appointment in extreme cases. Scrutiny. The HKIAC has a limited role in scrutinising awards.
Enforcement. Arbitration awards issued under HKIAC rules are recognised and enforceable internationally under the New York Convention. Finality. HKIAC awards are final and can only be appealed in very limited circumstances, which could be a disadvantage for parties seeking a robust review.
Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions.  

Overview: Process

Procedural element Details
Rules
Commencing Proceedings
  • A Notice for Arbitration is submitted to the HKIAC and the Respondent. 
Answer to the Request
  • To be submitted within 30 days of receipt of the Notice for Arbitration.
  • Must contain the information specified in Article 5.
Terms of Reference
  • Terms of Reference are normally established by consent of the parties. 
  • If the parties do not agree, Terms of Reference will be established by hearing before the Tribunal.
Constitution of the Tribunal 
  • Where the Tribunal comprises 3 arbitrators, the Claimant and Respondent will each appoint a co-arbitrator. The co-arbitrators will appoint the third arbitrator. 
  • If a Tribunal consists of a sole arbitrator, the parties are to agree on which arbitrator to appoint within a prescribed time, failing which HKIAC will step in to make an appointment.
Procedural measures
  • There is an obligation on both the Tribunal and the parties to do everything necessary to ensure the fair and efficient conduct of the arbitration.
Witness evidence 
  • If witnesses are to be called, the Tribunal will usually require the parties to file witness statements, which form evidence-in-chief. 
  • Oral cross-examination of witnesses is usual if the evidence given involves a contested issue.
Fees & costs
  • HKIAC requires a registration fee of HK$10,000 upon commencement of the arbitration. 
  • Costs follow the Final Award. 

Expedited arbitrations

The Rules provide for an expedited procedure in the following circumstances:  

1. The amount in dispute falls below the threshold.

2. By agreement of the parties. 

3. In exceptional urgency. 

Note: Bifurcation is not common, but is possible under Article 13.6.

Constitution of the tribunal

HKIAC maintains a panel and list of arbitrators but parties are free to make external appointments.

If HKIAC is required to step in to appoint an arbitrator, it will usually appoint from such panel or list. 

Note: Emergency Arbitrators

Emergency arbitrators can be appointed under the Rules. The process for appointing an emergency arbitrator and the rules governing an emergency arbitrator's appointment are set out in Schedule 4 of the Rules.

Arbitrator conflicts / disclosure of interest

Arbitrators must disclose any circumstances which give rise to a reasonable doubt on neutrality or independence. 

Note:

The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.

Consolidation

Article 28 enables HKIAC to consolidate 2 or more arbitrations into a single arbitration in 3 scenarios: 

1. The parties have agreed to consolidation;

2. All of the claims are made under the same arbitration agreement; or

3. There is a common question of law or fact arising in all of the arbitrations, the rights to relief claimed are in respect of or arise out of the same transaction(s), and the arbitration agreement is compatible.

 

Pleadings or memorial approach?

The memorial approach applies by default. However, the Tribunal may vary the form of submissions.

Summary judgment

Neither default or summary judgment is available under the Rules, but the Tribunal has power to determine preliminary issues.

Security for costs

It is possible for security for costs applications to be made, although the Rules do not specify any substantive requirements to ground such an application.  

Note: In practice, an HKIAC Tribunal will be less inclined (compared to a national Court) to order security for costs.

Disclosure of documents

The Rules do not provide for the mandatory disclosure of documents. At any time during the arbitration, the Tribunal may allow or require a party to produce documents that the Tribunal determines to be relevant to the case and material to its outcome.

Hearings

The Tribunal may hold hearings for the presentation of evidence or oral arguments, after consulting the parties on the date, time, and format.

Hearings can be conducted in person, by videoconference, or by other appropriate means. 

The Tribunal has discretion to determine the procedure for hearings, ensuring that parties receive reasonable notice and an opportunity to be heard. 

HKIAC's role in scrutiny of arbitral awards

HKIAC may scrutinise a draft award for formal compliance, prior to the award being issued.  

Appeals

Appeals against awards are possible only where the parties opt-in to the right to appeal under Arbitration Ordinance (Cap. 609). The Rules themselves do not contain an opt-in procedure. The Rules do not preclude appeals if such a right is found in the arbitration agreement or otherwise agreed by the parties.

Further information

    Model clause
    Any dispute, controversy, difference or claim arising out of or relating to this contract, including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non- contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (HKIAC) under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted.
    The law of this arbitration clause shall be … ( Hong Kong law ).
    The seat of arbitration shall be … ( Hong Kong ).
    The number of arbitrators shall be … ( one or three ). The arbitration proceedings shall be conducted in … ( insert language ).
    The fees and expenses of the arbitral tribunal shall be determined on the basis of … (Schedule 2 or Schedule 3) of these Rules.

If you would like any further information about HKIAC arbitrations, please contact Wai Yue Loh (wloh@dacbeachcroft.com).   

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