Update on Commencement of The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance

November 2023

The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap.645) (the “Ordinance”) was passed by the Legislative Council in October 2022 for the purpose of implementing the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and Hong Kong (the “Arrangement”).

The Ordinance provides mechanisms for the registration of Mainland Judgments in civil or commercial matters in Hong Kong and application to Hong Kong courts for certified copies of and certificates for Hong Kong Judgments in civil or commercial matters to facilitate parties in seeking recognition and enforcement of the Judgments on the Mainland.

The commencement date of the Arrangement and the Ordinance is subject to agreement and establishment of the necessary procedures and mechanisms for implementation of the Arrangement by both the HKSAR Government and the Supreme People’s Court (“SPC”).

On 10 November 2023, the HKSAR Government announced that it has agreed with the SPC for the Arrangement to take effect on 29 January 2024 and published in the Gazette the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Rules (the “Rules”) and the Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Commencement) Notice. Both the Ordinance and the Rules will come into operation on 29 January 2024.

The Rules are made by the Chief Judge of the High Court pursuant to section 35 of the Ordinance and set out provisions for the operation of the mechanisms and the practice, procedure and fees payable for applications under the Ordinance.

The main provisions of the Rules are:

Part 2 deals with matters relating to the registration in Hong Kong of Mainland judgment in civil and commercial matters. Rule 4 provides that a registration application must be made ex parte to the High Court by originating summons. The application must be supported by affidavit setting out the information and documents required (as the case may be) under rules 5 to 12. Pursuant to rule 13, the Court may order the applicant of a registration application to furnish security for costs.
Part 3 contain provisions dealing with execution of registered judgment and rule 19 sets out the documents required to be produced by a party wishing to issue execution on a registered judgment, including affidavit of service of the notice of registration of the Mainland judgment, and affidavit setting out information on the effectiveness of and the actions taken to enforce the underlying Mainland judgment.
Part 4 deals with applications for certified copies of (and certificates for) Hong Kong judgment for enforcement in the Mainland, which must be made ex parte on affidavit in accordance with the requirements as set out under rule 21.
Part 5 (and the Schedule) provides that the fee payable for a registration application under Part 2 is HK$1,045, and for an application for certified copy of Hong Kong judgment under Part 4 is HK$125.

Implication

The Government has commented, “The implementation of the Ordinance and the Rules establishes a more comprehensive mechanism for reciprocal enforcement of judgments (REJ) in civil and commercial matters between Hong Kong and the Mainland, thereby reducing the need for re-litigation of the same disputes in both places and offering better protection to the parties' interests. They would enhance certainty and predictability of the cross-boundary enforceability of judgments in civil and commercial matters between the two places, and reduce the risks, legal costs, and time usually associated with the cross-boundary enforcement of such judgments. This would in turn improve the environment for cross-boundary trade and investment.”

The commencement of the new reciprocal regime will significantly improve and facilitate the enforcement of Court judgments in civil and commercial matters between Hong Kong and the Mainland, and further strengthen the relationship and the level of judicial co-operations between the Courts and the judiciaries in the two jurisdictions. This will no doubt further enhance and promote Hong Kong’s status as a centre for international legal and dispute resolution services in the region, particularly within the Greater Bay Area.