According to the relevant provisions of the Civil Procedure Law, the parties may apply to the people's court before applying for arbitration or during arbitration, for taking property or evidence preservative measures. For preservation before arbitration, the parties shall apply directly to the people's court. After accepting an application, a people's court must issue a ruling within 48 hours; and if it rules to take a preservative measure, the measure shall be executed immediately. Where the applicant fails to institute an action or apply for arbitration in accordance with law within 30 days after the people's court takes a preservative measure, the people's court shall remove preservation.

The parties to the arbitration may also file an application for property preservation with CMAC on the same time of applying for arbitration or at any stage before the award is made, and CMAC shall submit the application to the relevant court in accordance with the relevant provisions of Article 23 of the Arbitration Rules of CMAC. In applying for property preservation during arbitration, the parties shall firstly  clearify jurisdiction, and CMAC shall transfer the property preservation materials to the relevant court according to the instructions of the parties.

Guide to Application for Preservation

1. What kind of preservation can the parties apply for?

According to Article 23 and Article 24 of the Arbitration Rules, the parties may apply for property preservation and evidence preservation.

Guidelines:

Article 23 Preservation of Maritime Claim

When a party applies for preservation of maritime claim or preservation of other property, CMAC shall submit the party's application to the maritime court or other people's court at the place of the Respondent's domicile or at the place of the property. Where a party applies for preservation of maritime claim or preservation of other property before the commencement of arbitral proceedings, it shall, according to the provisions of Maritime Procedure Law of the People's Republic of China or other provisions concerned, submit its application directly to the maritime court or other people's court at the place of the property subject to preservation.

Article 24 Preservation of Evidence

When a party applies for preservation of evidence, CMAC shall submit the party's application to the maritime court or other people's court at the place where the evidence to be preserved is located. Where a party applies for preservation of evidence before the commencement of arbitral proceedings, it shall, according to the provisions of Maritime Procedure Law of the People's Republic of China or other provisions concerned, submit its application directly to the maritime court or other people's court at the place where the evidence to be preserved is located.

2. When can the parties apply for preservation?

 The parties may apply for preservation either before or after the arbitration proceedings begin.

 3. Submission method and Precautions of preservation application

The parties may submit the application to the court by themselves or refer the application to the Arbitration Commission (recommendation).

If a party files an application with the court prior to the arbitration proceedings, please note:

Article 101 of the Civil Procedure Law provides，Where the applicant fails to institute an action or apply for arbitration in accordance with law within 30 days after the people's court takes a preservative measure, the people's court shall remove preservation.

Article 18 of the Special Maritime Procedure Law provides, If the maritime claimant fails to bring an action or apply for arbitration according to the arbitration agreement within the time limit specified by this Law, the people's court shall cancel the property reservation or return the guaranty promptly.

Article 28 of the Special Maritime Procedure Law provides, The period of arresting a ship for maritime claim preservation shall be 30 days. If a maritime claimant brings a law suit or applies for arbitration within 30 days, and applies for arrest of a ship in the course of the litigation or arbitration, the arrest of the ship shall not be restrained by the period stipulated in the preceding paragraph.

Article 46 of the Special Maritime Procedure Law provides, The period of arresting the goods on board for maritime claim preservation shall be 30 days.If a maritime claimant brings a law suit or applies for arbitration within 15 days, and applies for arrest of the goods on board in the course of the litigation or arbitration, the arrest of the goods on board shall not be restrained by the period stipulated in the preceding paragraph.

Article 50 of the Special Maritime Procedure Law provides, Application by a maritime claimant for maritime claim preservation imposed upon fuel and materials used by a ship related to the maritime claim shall be governed by the provisions of this Section. (Article 46)

If the parties refer the application for preservation to CMAC, please note:

When submitting the application of property preservation or evidence preservation on the same time of applying for arbitration, shall be respectively submitted to CMAC and preservation court the original  preservation application form and the corresponding arbitration documents (including an arbitration application and the evidence materials), and a written confirmation to the name of the preservation court (It is better to clarify tribunal name) and the contact address. If there is any clue of property preservation and relevant evidence materials, it is suggested to provide them together. The more detailed and accurate, the better.

 4. Determination of jurisdiction:

 General commercial disputes：

For domestic arbitration,  before applying for arbitration, the parties may apply to the people's court at the place where the property to be preserved is located or at the place of domicile of the respondent for taking preservative measures.

 maritime dispute：

For preservation of Maritime Claim, according to the arbitration Rules of CMAC (2015), article 13 and 14 of the Special Maritime Procedure Law shall be applicable. Maritime claims shall not be bound by procedure jurisdiction agreements or arbitration agreements relating to the said maritime claims between the parties.