Under the Hong Kong Reunification Ordinance, which came into operation immediately after the change of sovereignty, provisions of ordinances conferring privileges on the UK or other Commonwealth countries, other than provisions giving effect to reciprocal enforcement arrangements between Hong Kong and the UK or other Commonwealth countries, ceased to have effect.
In the UK the enforcement of Hong Kong (and certain other) judgments was provided for in Part II of the Administration of Justice Act 1920. Shortly before the change of sovereignty, the UK Foreign Office announced that Hong Kong would be dropped from the Act from that date.
The authorities in Hong Kong accept that the Act can have no application now that Hong Kong has left the Commonwealth. Moreover, they consider that the corresponding ordinance, the Judgments (Facilities for Enforcement) Ordinance, has ceased to apply to UK judgments by reason of the requirement for reciprocity under the Hong Kong Reunification Ordinance. However, notwithstanding the lack of formal reciprocal arrangements in the UK and the HKSAR, judgments may still beenforced in each other's jurisdiction under the common law.
It is not clear what will happen to the formal reciprocal enforcement arrangements between the HKSAR and other countries that were in place prior to the change of sovereignty, but it is understood that the HKSAR has asked some of these countries to agree that the arrangements be continued.
The Arbitration (Amendment) Ordinance 1996 came into effect on 27 June 1997 and makes important amendments to Hong Kong arbitration law, in particular transferring the function of default appointment of arbitrators from the High Court to the Hong Kong International Arbitration Centre and extending the powers of arbitrators. The Ordinance applies to all arbitrations commenced within the meaning of the principal ordinance on or after 27 June 1997. The Arbitration (Appointment of Arbitrators and Umpires) Rules governs the procedure for default appointment by the Hong Kong International Arbitration Centre.
The question of reciprocal enforcement in Hong Kong of arbitration awards made in the rest of the PRC, and vice versa, has not yet been resolved but may be resolved by the end of the year. In the PRC Hong Kong arbitration awards presently do not qualify either as domestic or foreign awards for enforcement purposes. However, an action in the Hong Kong High Court can be brought to enforce an arbitration award made in the PRC relying on the award as a contractual obligation.
This note is intended to provide general information about some recent and anticipated developments which may be of interest. It is not intended to be comprehensive nor to provide any specific legal advice and should not be acted or relied upon as doing so. Professional advice appropriate to the specific situation should always be obtained.