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  • 3.3.2-COTTON MARKETING-DISPUTES ADDRESSED BY ICA ARBITRATION

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  • Disputes addressed by ICA arbitration

    Chapter 3 - Cotton marketing - Arbitration 

     
     
    ‘Quality’ arbitration relates to the manual examination and appraisal of certain cotton characteristics. This excludes values that can be measured only by mechanical testing.

    ‘Technical’ arbitration deals with all other disputes.

    Whatever the dispute, it is important to recognize that there are time limits to comply with in order to validate a party’s claim and application for arbitration. For example, in quality arbitrations, arbitration must be commenced within 49 days of the date of arrival of the cotton. Likewise, samples must be drawn within 42 days and dispatched to the place of arbitration within 70 days of the date of arrival of the cotton. Failure to comply with these timelines may prejudice a party’s position at arbitration.

    Physical or mechanical tested characteristics of the cotton fibre


    Arbitration is conducted on actual samples drawn and sealed under supervision of the seller’s and buyer’s representatives and dispatched to an agreed location for arbitration.

    Physical arbitration is arbitration based on fibre values that are possible to identify by physical inspection, namely grade (colour, leaf/trash content, preparation) and staple (length).

    Mechanical testing or testing by High Volume Instrument (HVI) or SITC testing provides results on various fibre properties, some of which cannot be identified by manual classification. These include strength, elongation, uniformity, micronaire and maturity. As there is no physical valuation involved this can be placed under the category of technical arbitration, with the arbitrators handling paper certificates.

    Technical arbitration – dealing with the written aspects of the contract


    Arbitration is normally conducted on the written evidence supplied by the parties. An oral hearing can be requested, but this will be permitted only on the authorization of the tribunal. An oral hearing involves personal representation: one or both parties would attend or be represented by a nominee on their behalf and address the tribunal.

    Arbitration is normally conducted on the written evidence supplied by the parties. An oral hearing can be requested, but this will be permitted only on the authorization of the tribunal. An oral hearing involves personal representation: one or both parties would attend or be represented by a nominee on their behalf and address the tribunal.

    Technical arbitration may involve issues relating to non-fulfilment of a contract or portion of a contract, or breach of any express terms of the contract and conditions, for example late payment of cotton or claims arising during the performance of the contract.