A judgment or arbitration award made by a foreign country, including Mainland China, Hong Kong and Macao can be executed in Taiwan only Taiwan Court recognize or confirm the judgment or award. After the recognition, the judgment or arbitration award maybe rendered executable in Taiwan. In accordance with the following Acts and Regulations, a Court in Taiwan can give its recognition if:
- Recognition of a final judgment concluded by Foreign Courts
According to Article 402 of Taiwan Code of Civil Procedure, the Taiwan Court will not give its recognition of the judgment if any one of the following occurs:
- that according to Taiwan Law, the Foreign Court does not have jurisdiction over the matter;
- where Default Judgment has been granted against the Defendant, but this does not include situation where summons or order was legally served according to the laws of that foreign country or with the service assistance according to Taiwan Law;
- that the content of the judgment/arbitration award or litigation procedure is contrary to Taiwan’s public policy or ethics; and
- where there is no reciprocal recognition between the two countries.
- Recognition of Arbitration Award given by the Foreign Court/Arbitration Committee
~ In terms of Article 49 of Arbitration Law of ROC, the Court may refuse the recognition of the award if such award contains one of the following:
- where the content of the arbitration award is contrary to Taiwan’s public order or good morals; or
- according to Taiwan Law, the matter in dispute cannot be arbitrated or settled through arbitration.
~ The Court can also reject the recognition of the Arbitration Award where there is no reciprocal recognition between the two countries.
~ Apart from the Taiwan Court can refuse the recognition of the Arbitration Award, the respondent also have the right to raise objection and have the matter dismissed within 20 days after receipt of the application. But the respondent may only request for dismissal if it falls under one of the following circumstances:
- the arbitration agreement is invalid due to incapacity of any one of the parties involved;
- if the Arbitration agreement has been declared as null and void by the country of jurisdiction;
- where there was no proper notification to the Respondent or the appointment of the arbitrator or any other matter that might be required notification thereof;
- the award that is not relevant to the dispute or exceed the scope of the arbitration agreement, unless the dispute clause can be severed from the rest of the agreement and have affection thereof;
- the formation of the arbitration tribunal or the procedure infringes the arbitration agreement/the jurisdiction where this agreement arises; and
- where the arbitration agreement has became unenforceable or the has been suspended or revoked by the Competent Authority.
3. Recognition of a Judgment or an Arbitration Award from a Court of Mainland China
~ According to Article 74of Act Governing Relations Between Peoples of the Taiwan Area and Mainland Area, the civil judgment and arbitration might be confirmed by Taiwan Court if of it has be complied with Article 402 of Taiwan Code of Civil Procedure and Article 4(1) of Enforcement of Execution Act.
~ In 1998, the judicial body of Mainland China passed the “Regulation of Supreme People’s Court Regarding People’s Court Recognizing Civil Judgments of a Court of Taiwan”. The judicial body of Taiwan restored its recognition of judgments and arbitration decision from Mainland China immediately following the announcement. The judicial bodies from both countries reciprocally recognized each other’s judicial judgments and arbitration decisions
4. Recognition of a Judgment or an Arbitration Award of Hong Kong and Macao Areas
~ In terms of Article 42 of Hong Kong Macao Relations Regulations, the civil litigations dealt in Hong Kong and Macao, the judgment, effects, jurisdiction and execution shall only be confirmed of it has be complied with Article 402 of Taiwan Code of Civil Procedure and Article 4(1) of Enforcement of Execution Act.
~ As for Hong Kong and Macao’s civil arbitration, in order for the court to confirm and stop execution, Article 30 to Article 34 of the Commercial Arbitration Regulations.
~ Currently, no further reciprocal agreements which render reciprocal judicial assistance, including mutual recognition and execution of judgments are signed among the three places. Hence, the Taiwan Court shall determine each matter individually.