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  • 3.6.5-COTTON MARKETING-CONTROLLING

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  • Controlling

    Chapter 3 - Cotton marketing - Controlling

     
     

    Cotton can be sold direct from producer to consumer or it can pass through several hands on its way from the producer to the consumer. Each party in the chain wants to be sure that somebody looks after their interests in the event of claims for weight, quality or damage. This is the role of the independent controller.

     

    The services covered by the cotton controller generally cover either the supervision of, or the actual, weighing, taring, sampling of the bales, either before shipment in the producing country or export port, or after arrival at destination. Other services include, but are not confined to:

    • Tallying of bales prior to loading on conveyances or during unloading of bales from conveyances;
    • Inspecting bales prior to loading on conveyances or during unloading of bales from conveyances;
    • External and internal inspection of bales for damage;
    • Stock checks in warehouses.

    The cotton controller is appointed by either party to a contract. Although controllers may be appointed (and paid) by just one party to the contract, their services should be carried out in accordance with the terms of the contract and the rules under which the cotton has been traded. This helps to maintain smooth relations between the parties to a contract and with the nominated controller.

    The different parties involved can appoint their own controllers for their own account or accept the reports of the controller appointed and paid for by the first party in the chain.

    Cotton can be sold on either ‘shipped’ or ‘landed’ terms. Depending on the contract terms, one party to the contract will arrange and pay for any weighing or sampling charges, while the other party may appoint a controller for its own account to supervise all such weighing and sampling activities.

    Cotton can be sold under a number of terms regarding the weight, such as original gin weight, inbound warehouse weight, outbound warehouse weight and net landed weight. Net landed weight is customarily used for exports. In this case independent controllers must be appointed by the shipper to supervise weighing and sampling of the cotton upon arrival. The weighing is performed by the Buyer or their representative at the agreed point of delivery and the controller supervises the procedure on behalf of the shipper.


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    Preparation of bales for sampling

    Depending on the contract terms, sampling can be done before or after shipment. Pre-shipment sampling can be done at the ginneries, warehouses or at the port of shipment. The buyer usually appoints an independent controller to draw an agreed percentage of samples (of 150–200 grams each) from each lot.

    Post-landed sampling is normally ordered by the seller in the event of quality disputes. In the case of arbitration, the initiating party is usually responsible for drawing and forwarding the samples to the place of arbitration. The opposing party would generally appoint its own controller to supervise and seal those samples.

     

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    Pre-shipment sampling 

     

    Arbitration sampling

    Samples drawn by the controller are used for quality classing at the request of buyers for the purpose of confirming quality prior to purchase or shipment. Classing by independent controllers in the producing countries or at the port of shipment may be undertaken against the national standards of the producing countries, against Universal Standards or against private type samples. Classing can be performed manually, with mechanical testing or HVI equipment, and usually evaluates grade, colour and leaf, staple length and micronaire, and strength (or all HVI parameters).

     

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    HVI testing

    When cotton is sold on landed weights and quality final ‘at destination’, the buyer normally arranges for the bales to be weighed after arrival either by its own staff or by another company acting on its behalf. The sellers appoint their own controllers to supervise weighing to ensure that it is carried out within the terms of the contract.

    Arbitration sampling (for grade, staple, micronaire and strength), is carried out after bales have been weighed, but only if the parties to the contract are unable to resolve any disputes amicably or if requested by either one or both parties to the contract.

    When cotton is sold on shipped weights and quality final, the seller normally arranges for the bales to be:

    • Weighed before shipment by its own staff or by another company acting on its behalf. The Buyer may appoint its own controller to supervise the weighing to ensure that it is carried out within the terms of the contract, or alternatively will agree that the Seller appoint a mutually agreed controller for this purpose.
    • The Buyer may appoint its own controller to supervise the weighing to ensure that it is carried out within the terms of the contract, or alternatively will agree that the Seller appoint a mutually agreed controller for this purpose.

    The following additional services are also frequently carried out by controllers for either buyers or sellers.