Rules of Arbitration of TOMAC of The Japan Shipping Exchange, Inc (2001)

　　Made 13th September, 1962

　　Last amended 15th June, 2001

　　In force 1st September, 2001

　　Section 1. [Purpose of these Rules]

　　These Rules apply to arbitrations to be held at The Japan Shipping Exchange, Inc. (hereinafter referred to as "the JSE").

　　Section 2. [Tribunal of Arbitrators]

　　(1) Arbitration described in the preceding Section shall be performed by the Tribunal of Arbitrators (including the case of a sole arbitrator, hereinafter referred to as "the Tribunal") to be constituted by arbitrators appointed in accordance with Section 14 hereof.

　　(2) The Tribunal shall perform arbitration independently of the JSE and the Tokyo Maritime Arbitration Commission (hereinafter referred to as "the TOMAC") .

　　Section 3. [Relation between an Arbitration Agreement and these Rules]

　　Where the parties to a dispute have, by an arbitration agreement entered into between them or by an arbitration clause contained in any other contract between them, stipulated that any dispute shall be referred to arbitration of the JSE or arbitration in accordance with its rules, these Rules (or whichever version of these Rules is in force at the time the application for arbitration is referred) shall be deemed to constitute part of such arbitration agreement or arbitration clause.

　　Section 4. [Secretariat of Arbitration]

　　The Secretariat of the JSE shall assume and conduct for the TOMAC or the Tribunal all business provided for in these Rules or directed by the TOMAC or the Tribunal.

　　Section 5. [Documents to be Filed for Application for Arbitration]

　　(1) Any party desirous to apply for arbitration (hereinafter referred to as "the Claimant") shall file with the TOMAC the following documents:

　　1. Two (2) originals of Statement of Claim;

　　2. A document evidencing the agreement that any disputes shall be referred to arbitration of the JSE or arbitration in accordance with its rules;

　　3. Documents in support of his claim, if any;

　　4. Where a party is a body corporate, a document evidencing the capacity of its representative;

　　5. Where an agent or attorney is nominated by the Claimant, a document empowering that person to act on behalf of the Claimant.

　　(2) The documents under the preceding Sub-Section shall be submitted in the number of copies as instructed by the Secretariat.

　　Section 6. [Particulars to be Specified in Statement of Claim]

　　The following items must be particularized in the Statement of Claim:

　　1. The names and addresses of the parties (in case of a body corporate, the address of its head office or main place of business, its name, the name of the representative and its capacity);

　　2. The preferred place of arbitration;

　　3. The factual substance and grounds of the claim.

　　Section 7. [Acceptance of Application for Arbitration]

　　(1) Where the Secretariat has acknowledged that the application for arbitration conforms with the requirements of the preceding two (2) Sections, the Secretariat shall accept it, provided that where special circumstances are acknowledged, the Secretariat may accept the application for arbitration on condition that the documents required in Nos. 3 to 5 of Section 5 shall be filed later.

　　(2) The date when the Secretariat accepts the application for arbitration in accordance with the preceding Sub-Section shall be deemed to be the date of commencement of the arbitration proceedings.

　　Section 8. [Attempt of Conciliation]

　　(1) The Secretariat may, after it accepted the application for arbitration, recommend the parties to first conciliate the dispute which is the subject of arbitration.

　　(2) Where the parties agree to conciliate their dispute in accordance with the preceding Sub-Section, TOMAC suspends the arbitration proceedings until the termination of conciliation proceedings.

　　(3) The conciliation shall be conducted by one conciliator, who shall be appointed by Chairman of TOMAC, within 60 days from the day on which the above agreement is reached between the parties.

　　(4) The conciliation proceedings shall be in accordance with the Conciliation Rules of the JSE (hereinafter referred to as the "Conciliation Rules") unless otherwise provided for in this Section.

　　(5) If the dispute is resolved by conciliation, the Filing Fee for arbitration shall be appropriated as part of the preliminary investigation fee and conciliation fee under the Conciliation Rules.

　　(6) The conciliator may become an arbitrator in the arbitration proceedings subsequent to the failure of the conciliation attempt only if the parties so agree.

　　(7) The Arbitration Fee for the resumed arbitration proceedings shall be the sum in accordance with the Tariff of Fees for Arbitration, minus the conciliation fee if paid.

　　Section 9. [Instruction for Filing of Defense and Supplementary Statements]

　　(1) Where the Secretariat has accepted the application for arbitration, it shall forward to the other party (hereinafter referred to as "the Respondent") an original of the Statement of Claim together with the respective copies of the documentary evidence submitted, and shall instruct the Respondent to send to the Secretariat and the Claimant respectively the Defense and documents in support of the defense (if any) within twenty-one (21) days from the day of receipt of such instruction, provided that an allowance of a reasonable longer period will be granted to the Respondent where its address, its head office or main place of business is located in a foreign country, or special circumstances are acknowledged.

　　(2) Where the Respondent nominates its agent, the Respondent shall file, on filing of the Defense, a document empowering the agent to act on its behalf.

　　(3) When the Claimant has received the Defense and documentary evidence (if any), the Claimant shall, if it has any objection to the Defense, send to the Secretariat and the Respondent respectively within fourteen (14) days from the day of receipt thereof its Supplementary Statement and further documentary evidence, if any.

　　(4) In the event of any further Supplementary Statement and documentary evidence being filed, the procedures provided in the preceding Sub-Section shall be repeated.

　　(5) The Defense, Supplementary Statements and documentary evidence may be submitted via e-mail or fax, provided that the sending party shall bear the burden of proving that the copies are identical to the originals and that it has in fact forwarded those to the other party.

　　(6) The documents under this Section shall be submitted in the number of copies as instructed by the Secretariat.

　　Section 10. [Service of Documents]

　　Documents relating to arbitration shall, unless handed in person to the other party or his agent, be served to the address of the party indicated in the Statement of Claim, to the address of his agent or to the place which the party designates.

　　Section 11. [Counterclaim by the Respondent]

　　(1) If the Respondent wishes to apply for arbitration of a counterclaim arising out of the same cause or matter, as a rule, he must do so within the period stipulated in Section 9(1).

　　(2) Counterclaim applications made within the period specified in the preceding Sub-Section shall, in principle, be heard concurrently with the arbitration applied for by the Claimant.

　　Section 12. [Amendment of the Claim]

　　Amendment of the claim (if any) must be made prior to appointment of the arbitrators, with the exception, however, where approval of the Tribunal is obtained, even after the arbitrators are appointed.

　　Section 13. [Place of Arbitration]

　　(1) Arbitration shall be performed in Tokyo or Kobe.

　　(2) Where no place of arbitration is designated in the arbitration agreement or the arbitration clause, Tokyo shall be the place of arbitration.

　　(3) Where it is not clear whether the arbitration agreement or the arbitration clause designates Tokyo or Kobe as the place of arbitration, and no mutual consent of the parties is obtained, arbitration shall be performed in Tokyo.

　　Section 14. [Appointment of Arbitrators]

　　(1) The arbitrator(s) shall be appointed from among the persons who are listed on the Panel of TOMAC Arbitrators and who have no connection with either of the parties or with the matter in dispute. However, TOMAC may appoint a person or persons not on the Panel if TOMAC deems such appointment necessary.

　　(2) The Claimant may, when filing its Application for Arbitration, and the Respondent may, when sending its Defense, inform the Secretariat of preferred nominations of up to seven (7) arbitrators respectively (hereinafter referred to as "the nominees") who may satisfy the requirements in the text of the preceding Sub-Section. The parties must not however contact the preferred nominees as regards the matter in dispute.

　　(3) Where the parties have informed of the nominees in accordance with the preceding Sub-Section, TOMAC shall appoint one arbitrator from each set of the nominees and a further third arbitrator. In case the parties agree to nominate one person and have no objection to a sole arbitrator, TOMAC may appoint such nominee as a sole arbitrator.

　　Where the parties do not provide nominees, or where TOMAC deems it inappropriate to appoint arbitrators from among the nominees, TOMAC shall appoint either a sole or three arbitrators taking into account the further preferences of the parties.

　　(4) Appointment of arbitrators shall be made by consultations of Chairman and Vice-Chairmen of TOMAC.

　　(5) Where appointment was made in accordance with the preceding Sub-Section, the Secretariat shall advise the parties of the names and resumes of the arbitrators.

　　Section 15. [Appointment of Substitute Arbitrators]

　　(1) Where a vacancy occurs amongst the arbitrators due to death, resignation or other reasons, a substitute arbitrator shall be appointed in accordance with the provisions of the preceding Section.

　　(2) In the case of the preceding Sub-Section, the Tribunal shall determine whether any prior hearings shall be repeated.

　　Section 16. [Obligations and Punitive Provisions for Arbitrators]

　　(1) Arbitrators shall carry out their duties fairly and justly, treating the parties equally.

　　(2) Arbitrators shall not privately associate with the parties, their agents or other related persons in regard to the matter in question.

　　(3) Arbitrators shall not reveal to third parties the contents of the arbitration, the names of the parties or anything else related to the matter in question.

　　(4) An arbitrator in violation of any of the preceding three (3) Sub-Sections shall resign immediately.

　　(5) The TOMAC may remove the arbitrator in the preceding Sub-Section from the Panel of Arbitrators.

　　Section 17. [Disclosure by Arbitrators]

　　(1) Arbitrators appointed in accordance with Sections 14 or 15, shall, within seven (7) days of being appointed, provide to the TOMAC a document indicating any circumstances which may give rise to doubts concerning their impartiality or independence, and the Secretariat shall forward copies of same to the parties.

　　(2) The disclosure in the preceding Sub-Section shall include whether the arbitrator has any close personal, commercial or other relationship with the following:

　　1. Parties to the arbitration

　　2. Subsidiary companies or other companies related to the parties

　　3. Parties' agents

　　4. Other appointed arbitrators

　　(3) When a party does not file a motion to challenge the appointment of the arbitrator within seven (7) days from the day of receipt of the disclosure document in the preceding Sub-Section (1), it shall be deemed that the party has no objection to the disclosure in the preceding two (2) Sub-Sections.

　　Section 18. [Challenge to an Arbitrator]

　　(1) Where a party desires to challenge the appointment of an arbitrator, it must do so by making a motion of challenge to the TOMAC in writing showing the name of the arbitrator to be challenged and the reason for challenge.

　　(2) Where the motion of the preceding Sub-Section is made, the arbitration proceedings shall be suspended until the advice provided in Sub-Section (4) of this Section is given.

　　The TOMAC shall constitute an Arbitrator Challenge Review Committee of three (3) persons whom TOMAC shall, by consultations of Chairman and Vice-Chairmen, appoint from among those on the Panel of Members of the TOMAC to decide whether the challenge to the arbitrator shall be accepted or dismissed.

　　(3) Where the aforesaid Committee decides that the challenge to the arbitrator is reasonable, a substitute arbitrator shall be appointed in accordance with the provisions of Section 15.

　　(4) Where a substitute arbitrator is appointed in accordance with the preceding Sub-Section or where the aforesaid Committee concludes that the challenge to the arbitrator is not reasonable, the Secretariat shall so advise the parties.

　　(5) In the case where a challenge has been filed, the arbitrator may voluntarily resign from the matter. However, in such a case it shall not be deemed that the challenge was a reasonable one.

　　Section 19. [Parties’ Obligations]

　　(1) The parties must follow the instructions the Tribunal gives for the purpose of facilitating the arbitration proceedings.

　　(2) Where a party, whether willfully or in gross negligence, fails to submit its statements or documentary evidence within a reasonable period or delays in applying for the hearing of a witness or expert witness such that the Tribunal deems it to unreasonably delay the conclusion of the proceedings, the Tribunal may dismiss such submission or application.

　　(3) The arbitration proceedings and record are not public information and the parties, their agents or any other persons concerned shall not reveal to third parties the contents of the arbitration, the names of the parties or anything else related to the pending matter in question.

　　Section 20. [Hearings]

　　(1) The Tribunal shall conduct the hearing in the presence of all parties. However, where the Tribunal deems it necessary, separate hearings may be held for the parties.

　　(2) The Tribunal shall fix the date and time (hereinafter referred to as "the fixed date") and the place for the hearing, and give notice thereof to the parties at least seven (7) days prior to the fixed date, unless prevented by special circumstances.

　　Section 21. [Appearance of Parties, Witnesses, etc.]

　　(1) The parties (in case of a body corporate, representative thereof) or their agents must appear in person before the Tribunal at the fixed date, in order to gain hearing.