Further to our previous article, in a significant development for cross-border legal proceedings, the Hong Kong government has recently gazetted the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (the “Ordinance”) and its accompanying court rules. This new legislation, coming into operation on 29 January 2024, aims to establish mechanisms for the recognition and enforcement of judgments between Hong Kong and Mainland China to enhance legal cooperation and facilitate cross-boundary trade and investment.
The Ordinance is designed to implement the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region (the “Arrangement”) in Hong Kong. This is expected to establish mechanisms in Hong Kong for the registration of Mainland judgments in civil or commercial matters, and the process for certifying Hong Kong judgments for use in the Mainland courts, thereby facilitating parties in seeking recognition and enforcement of judgments in both jurisdictions.
The Ordinance will be implemented through judicial interpretation to be promulgated by the Supreme People’s Court in Mainland China. In Hong Kong, the Ordinance will be complemented by the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Rules (the “Rules”), which have been made by the Chief Judge of the High Court under section 35 of the Ordinance. These Rules cover various matters, including practice and procedure relating to applications under the Ordinance, the execution of registered judgments, and the applicable fees.
The implementation of the Ordinance and the Rules establishes a comprehensive mechanism for reciprocal enforcement of judgments in civil and commercial matters between Hong Kong and Mainland China. This development is expected to decrease the need for re-litigation of the same disputes in both jurisdictions, saving time, legal costs, and resources for litigants on both sides of the border. By enhancing certainty and predictability in cross-border enforceability of judgments, the new legislation also creates a more favourable environment for cross-boundary trade and investment.
Notably, Hong Kong’s inclusion of judgments on certain intellectual property rights in the Arrangement is a significant breakthrough. This makes Hong Kong the first jurisdiction to have such a wide coverage of intellectual property rights in its reciprocal enforcement arrangement with Mainland China. This will help bolster Hong Kong’s position as a regional intellectual property trading centre and a regional hub for international legal and dispute resolution, in line with the goals outlined in the National 14th Five-Year Plan.
The anticipated implementation of the Ordinance and the Rules marks a significant step forward for legal cooperation between Hong Kong and Mainland China. By establishing mechanisms for the recognition and enforcement of judgments, this Ordinance aims to streamline cross-border legal proceedings, reduce costs, and enhance the environment for trade and investment. The comprehensive framework provided by the Ordinance and the Rules reflects Hong Kong’s commitment to maintaining its position as a uniquely advantageous venue for dispute resolution involving Mainland China parties.
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