A Focus on the GBA: The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance

On October 26^th 2022, the Hong Kong Legislative Council passed the long-awaited The Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (the MJREO). The MJREO implements the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by Courts of the Mainland and of the Hong Kong Special Administrative Region，which was signed between the Supreme People’s Court and the HKSAR Government on January 18^th 2019. It is the sixth arrangement between the Mainland and Hong Kong on mutual legal assistance in civil and commercial matters and the third arrangement providing for recognition and enforcement of judgments between the Mainland and Hong Kong in civil and commercial matters.

It establishes a more comprehensive mechanism for reciprocal recognition and enforcement of judgments in civil and commercial matters between the Mainland and the Hong Kong SAR, thereby reducing the need for re-litigation of the same disputes in both jurisdictions, offering better protection to parties’ interests and enhancing Hong Kong’s competitiveness as a regional, or even global center for legal and dispute resolution services.

The Arrangement applies to matters considered to be of a “civil and commercial” nature under both Hong Kong and Mainland China’s laws. Non-judicial proceedings and judicial proceedings relating to administrative or regulatory matters are excluded, while the Arrangement does cover both monetary and non-monetary relief. It also sets out jurisdictional grounds for the purpose of recognition and enforcement as well as grounds for refusal of recognition and enforcement.

The Arrangement will be implemented by local legislation in Hong Kong, as the Legislative Council has passed the MJREO on October 26^th 2022, the Chief Judge of the High Court will make rules to provide for the relevant practice and procedures. While in the Mainland, the Supreme People’s Court will promulgate a judicial interpretation to implement the Arrangement. When the rules and the judicial interpretation have been prepared, the Department of Justice of HKSAR will liaise with the Mainland as to the date on which the Arrangement will take effect in both jurisdictions simultaneously, which according to the Hong Kong government may take up to six to seven months from such time. The Arrangement will apply to judgments made on or after the commencement date of the Arrangement.

If you have any inquiries or want to know more about the enforcement between Hong Kong and the Mainland of China, feel free to send an e-mail to: info@dandreapartners.com.