Cross-Border Dispute Resolution Flowchart
This document is based on the World Internet Conference Cross-Border E-Commerce Case Studies (2024), the China International Economic and Trade Arbitration Rules, and practical insights from the Hangzhou Internet Court’s Cross-Border Trade Division.
I. Cross-Border Dispute Resolution Flowchart
A[Dispute Occurs] --> B{Negotiation}
B -- Success --> C[Sign Settlement Agreement]
B -- Failure --> D{Choose Resolution Method}
D --> E[Platform Mediation]
D --> F[Third-Party Arbitration]
D --> G[Litigation]
E -- Mediation Success --> C
E -- Mediation Failure --> D
F --> H[Arbitration Award]
G --> I[Court Judgment]
H & I --> J[Enforcement]
II. Step-by-Step Explanation
1. Dispute Occurrence
- Triggers: Quality issues, logistics delays, IP infringement, etc.
- Evidence Preservation: Order records, communication logs (emails/chats), shipping documents, inspection reports.
2. Negotiation (Within 30 Days)
- Direct Communication: Sellers must contact buyers within 7 days to propose solutions (refund, replacement, compensation).
- Platform Intervention: If negotiation fails, request platform mediation .
3. Platform Mediation (Optional)
- Mechanisms:
- AI Mediation Systems: e.g., Guangzhou Arbitration Commission ODR Platform, L-Code AI System, offering multilingual translation and digital signing.
- Human Mediation: Platform-appointed mediators review evidence and facilitate agreements.
- Timeline: Typically 15–30 days; unresolved cases proceed to arbitration/litigation.
4. Arbitration (60–180 Days)
- Applicability: Requires pre-agreed arbitration clauses or post-dispute arbitration agreements.
- Key Steps:
1）. File arbitration claims (include arbitration agreement, dispute facts, and evidence).
2）. Form arbitral tribunal (each party selects one arbitrator; jointly appoint a presiding arbitrator).
3）. Hearings (primarily written; video hearings if necessary).
4）. Enforce awards under the New York Convention (enforceable in 160 countries).
5. Litigation (6–24 Months)
- Jurisdiction:
- Chinese Courts: e.g., Hangzhou Internet Court’s Cross-Border Trade Division, supporting cross-border e-evidence authentication.
- Foreign Courts: Based on contractual terms or jurisdictional rules (e.g., defendant’s domicile, contract performance location).
- Governing Law: Contract-specified law; absent terms, apply the "most closely connected" law (e.g., goods delivery location).
6. Enforcement
- Arbitration Awards: Apply to the intermediate court in the respondent’s jurisdiction with the original award and arbitration agreement.
- Court Judgments: Enforce via the Hague Judgments Convention or bilateral judicial assistance treaties.
III. Key Tools & Rules
1. AI Mediation Systems:
- L-Code System: Real-time multilingual translation, case analysis; reduces processing time to 7 days.
- Guangzhou ODR Platform: Offers online "negotiation-mediation-arbitration" with e-signatures.
2. IP Dispute Special Procedures:
- Counter-Notice: Submit within 48 hours of infringement claims, including comparison charts or authorization proofs.
- Defending Malicious Claims: Provide supply chain proof (e.g., VAT invoices, licenses).
3. Data Compliance:
- Dispute-related data must comply with GDPR and China’s Personal Information Protection Law; sensitive data cannot be cross-border transferred.
IV. Simplified Flowchart
Dispute → Negotiation (30 days) → Failure → Choose Resolution
├─ Platform Mediation (15–30 days) → Success → Settlement
├─ Arbitration (60–180 days) → Award → Enforcement
└─ Litigation (6–24 months) → Judgment → Enforcement
Recommendations:
- Prioritize platform mediation or arbitration to reduce time and costs.
- For multi-jurisdictional conflicts, reference the UNIDROIT Principles of International Commercial Contracts as supplementary rules.
Note: This flowchart aligns with global best practices for cross-border e-commerce dispute resolution, emphasizing efficiency and enforceability.
