Originally from Business Disputes In China - 3rd Edition

Taiwan1 is not a signatory to the New York Convention.2 This state of affairs presents unique legal issues and challenges, both when arbitral awards from New York Convention jurisdictions are sought to be enforced in Taiwan, as well as when arbitral awards made in Taiwan are sought to be enforced in New York Convention jurisdictions.

In this paper, we will discuss first, how arbitration awards from New York Convention jurisdictions are enforced in Taiwan. We will then discuss how arbitral awards made in Taiwan are enforced in some jurisdictions which are signatories to the New York Convention, such as Mainland China, Hong Kong and Singapore.

I. Enforcement of Arbitral Awards Made in New York Convention Jurisdictions in Taiwan

The main legislation governing the enforcement of “foreign” arbitral awards in Taiwan is Taiwan’s Arbitration Law.3 The predecessor of the Arbitration Law was the Commercial Arbitration Law.4 The Arbitration Law was promulgated on 24 June 1998 and came into force on 24 December 1998 to replace the Commercial Arbitration Law.

A. Application for Recognition and Enforcement of a Foreign Arbitral Award Generally

A “foreign arbitral award” is defined (in Article 47 of the Arbitration Law) as “an arbitral award which is issued outside the territory of the Republic of China or issued pursuant to foreign laws within the territory of the Republic of China”.

Foreign arbitral awards are enforceable in Taiwan only after they have been recognized by the Taiwanese Courts. Under Article 49 of the Arbitration Law, a plea for recognition and enforcement of foreign arbitral award would be dismissed: