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  • Arbitration sampling, micronaire sampling and sampling for strength

    Chapter 3 - Cotton marketing - Controlling 

     
     

    Part 3: Sampling (other than for moisture)

    Rule 209

    1. Sampling must take place at the point of delivery or other location as determined between buyer and seller. The buyer’s and seller’s representatives must supervise the sampling. The seller must give the name of his representative to the buyer:

    • Before sending the buyer an invoice; or
    • With the invoice. 

    2. Samples for arbitration must be drawn, sealed and marked in the presence of both the buyer and seller and/or their respective representatives.’

    (Please read Bylaw 325)

    Rule 210

    1. A sample from a bale of cotton should weigh about 100 grams.

    2. American and Australian cotton must be sampled 100%. Unless otherwise agreed, other cottons need only be sampled on the basis of 10% representative samples from each lot or mark as defined on the seller’s commercial invoice.

    3. Samples may be drawn from part lots and/or shipments; however, a claim may only be made on the number of bales available at the time of sampling.

    4. If the buyer or seller believes that the cotton or cotton waste is false packed, mixed packed or in plated bales, every bale must be sampled, and samples must be drawn from each side of the bale.

    5. In the event that a quality arbitration award is made, the party, whose final written offer for amicable settlement is furthest from the quality arbitration award, must pay for the cost of drawing of samples and dispatch of samples.

    However, if the quality arbitration award is less than the seller’s final offer for amicable settlement, then the buyer must pay for the cost of drawing and dispatch of samples.

    If there is no written offer for amicable settlement by both of the parties, the cost of drawing and dispatching of samples shall be shared in equal proportions.

    Rule 211

    The buyer must not sample the bales before weighing without the seller’s permission.

    Rule 212

    If the seller takes a set of samples, he must pay for them at the contract price of the cotton.

    Arbitration sampling

    Bylaw 325

    1. In quality arbitrations, unless both firms agree otherwise:

    • Samples to be used must be taken within 42 days of the date of arrival of the cotton;
    • Arbitration must be commenced in line with Bylaw 319 within 49 days of the date of arrival of the cotton; and
    • Samples must be sent to the place of arbitration within 70 days of the date of arrival of the cotton. 

    2. A committee appointed by the Directors (Standing Committee A) can extend these limits, but only if the firm concerned can show that substantial injustice would otherwise be done and that the request for an extension is reasonable in all the circumstances. Applications must be made to us in writing. The committee will take the other firm’s comments into account before it makes a decision.

    Micronaire sampling

    Bylaw 340

    1. This bylaw applies to all disputes about micronaire, including disputes concerning American cotton. Its terms are intended to be consistent with a micronaire agreement between us and the American Cotton Shippers Association, but if there is any conflict between the two, the terms of this bylaw will take priority after the terms of the contract.

    2. If there is a dispute about the micronaire, the cotton will be tested again and the following will be done:

    • The buyer will choose which bales are to be tested. The time limits for commencing arbitration and sending samples for testing are the same as those laid down for quality arbitration.

     

    (Please read Bylaw 325)

     

    • If samples have already been taken for arbitration in line with Rule 209, the same samples can be used for the micronaire tests.
    • For American cotton: If new samples have to be taken, they should be taken in line with ASTM sampling procedures Designation D1441-54, except that both samples may be taken from one side of each bale. If one firm asks that an average micronaire reading be obtained from these two samples, that firm asking must pay the additional cost.
    • For non-American cotton: If new samples have to be taken, they should be taken in line with Rule 209.
    • A first set of tests will be done in a laboratory agreed between the buyer and seller or their arbitrators. If there is no agreement or no other laboratory available, the tests will be done in our laboratory.
    • The laboratory which does the tests will issue a certificate signed by one of its officers. The certificate will show the results of the test, and the fees, costs and expenses.
    • Either firm can appeal against the first test results within 21 days of the results being dispatched. The appeal must apply to the total number of bales in the first test. If no appeal is lodged against the test results, the information on the certificate will be final and both firms will be bound by it, and the arbitrator, arbitrators or umpire will then make an Award.
    • A second set of tests, done as a result of the appeal against the test results, can be done in any laboratory agreed between the buyer and seller or their arbitrators. If there is no agreement or no other laboratory available, the tests will be done in our laboratory. The tests will be made on pieces of cotton drawn from the original samples.
    • If another laboratory is to do a second set of tests, the first test results must not be given to that laboratory.
    • Unless both firms agree otherwise, our laboratory can do the second set of tests, even if it also did the first set.
    • The laboratory which does the second tests will issue a certificate signed by one of its officers. The certificate will show the results of the test, and the fees, costs and expenses. The information on the certificate will be final and both firms will be bound by it. The arbitrator, arbitrators or umpire will then make an Award.
    • Either firm can appeal against the Award given by the arbitrator, arbitrators or umpire in line with Bylaw 349, but no further tests will be conducted unless both firms agree otherwise.

    3. Unless the firms agree otherwise, the usual control limit of 0.3 will apply.

    4. If the contract states ‘micronaire’ but does not say whether it should be the ‘minimum’ or ‘maximum’, it will be taken to mean ‘minimum micronaire’. However, both firms can agree otherwise in writing before they send the samples for testing.

    5. A contract may say how much variation is acceptable in the other fibre characteristics that can be determined by recognized laboratory tests.

    6. Whoever asks for the tests must pay the laboratory the whole cost. But if the buyer pays, the seller must repay the cost of testing every bale which does not come within the control limit set out in the contract.

    7. The costs of micronaire tests done in our laboratory are laid down in AppendixDof our rule book.

    Sampling for strength

    Bylaw 341

    1. In any dispute about strength, the procedure in Bylaw 342 will apply. However, the terms of the contract will take priority over Bylaw 342 if the two conflict.

    2. Unless the buyer and seller agree otherwise, for contracts which set out a minimum strength value, the allowances for bales which do not reach this minimum will be as follows:

     

    3.6.5.9-en 


    Bylaw 342

    1. If there is a dispute about the strength, the cotton will be tested again and the following will be done:

    • Only samples from the bales in dispute will be tested. The time limits for commencing arbitration and sending samples for testing are the same as those laid down for quality arbitration.

     

    (Please read Bylaw 325)

     

    • If samples have already been taken for arbitration in line with Rule 209, the same samples can be used for the strength tests.
    • If new samples have to be taken, they should be taken in line with Rule 209.
    • A first set of tests will be done in a laboratory agreed between the buyer and seller or their arbitrators. If there is no agreement, the tests will be done in our laboratory.
    • Either firm can object to the first test results within 21 days of the results being dispatched. The objection must apply to the total number of bales in the first test. If no objection is made against the test results, the information on the laboratory certificate will be final and both firms will be bound by it, and the arbitrator, arbitrators or umpire will then make an Award.
    • If an objection is made, a second set of tests must be done in a laboratory agreed between the buyer and seller. If one firm demands it, the second tests must be done in a different laboratory and if the firms cannot agree which laboratory should be used, we will decide. We will not do both sets of tests in our laboratory unless both firms agree. The tests will be made on pieces of cotton drawn from the original samples. The information on that laboratory certificate will then be final and both firms will be bound by it, and the arbitrator, arbitrators or umpire will then make an Award.
    • If another laboratory is to do a second set of tests, the first test results must not be given to that laboratory.
    • Either firm can appeal against the Award given by the arbitrator, arbitrators or umpire in line with Bylaw 349, but no further tests will be conducted unless both firms agree otherwise.
    • Any laboratory which does tests will issue a certificate signed by one of its officers. The certificate will show the results of the test, and the fees, costs and expenses.

    2. Unless the firms agree otherwise, the usual control limit of 2.0 grams/tex or 3000 psi will apply.

    3. Whoever asks for the tests must pay the laboratory the whole cost. But if the buyer pays, and if an allowance is paid to the buyer, the seller must repay the buyer the cost of testing samples from bales on which an allowance is due.

    4. The costs of strength tests done in our laboratory are laid down in Appendix D of our Rule book.

    Moisture sampling

    Rule 233

    If the buyer and seller disagree about a claim for internal moisture, the dispute will be settled by arbitration under our bylaws.

    Rule 234

    The following will apply when sampling bales to test for internal moisture:

    • Samples of at least 250 grams must be taken from each bale to be sampled. These samples must be taken by the representative of the party who has asked for the test, and in the presence of a representative of the other party (if it appoints one). The samples must be taken at the time of weighing.
    • Representative samples must be taken from 5% of the bales in each lot (at least 3 bales). These bales must be selected at random. Samples must be taken from at least two different parts of each bale from a depth of about 40 centimetres inside the bale. The samples must be placed at once in dry, hermetically-sealed containers and labelled to show the identity of the bale the samples have come from.
    • The samples must be sent immediately to a testing laboratory mutually acceptable to both parties.

    Rule 235

    1. The buyer must:

    • give notice of any claim for internal moisture within 42 days (6 weeks); and
    • produce a report from a mutually agreed laboratory and final claim within 63 days (9 weeks),

    of the date of arrival of the cotton.

    2. The allowance given to the buyer will be based on the laboratory’s report. The allowance will be the difference between:

    • the weight of the absolutely dry fibre in the lot plus the percentage of moisture regain set out in the contract; and
    • the total weight of the lot.

    This allowance will also be based on the invoice price.

    Rule 236

    The party claiming and asking for the moisture test will have to pay the cost of sampling and all related charges. If the claim is proved, sampling, courier and laboratory charges will be reimbursed by the other party.

    General

    Tag numbers and marks should always be checked to ensure that the correct bales are sampled. Before sampling, bale covers and the surface cotton in the areas to be sampled should be removed and samples drawn from within the contents of the bales.

    Surveying

    Damage and/or foreign matter contamination surveys are generally conducted after landing. Controllers normally attend surveys on shippers’ behalf, that have been arranged by buyers on allegedly damaged bales (whether exterior or interior damage) or bales with foreign matter contamination. Surveys are covered by the following Rules 205A, 206, 207, 230 and 231. Tag numbers and bale marks should always be recorded.

    Rule 205A

    Unless otherwise agreed between the parties, the seller shall be responsible for country damage, subject to the limitations detailed in Rule 207 b.

    Rule 206

    The following conditions apply to contracts where the seller is responsible for providing marine cargo insurance, transit insurance and country damage insurance:

    a. There must be a policy document or certificate of insurance. This document or certificate must be produced as one of the shipping documents.

    b. If the cotton is country-damaged when it arrives, the buyer must separate the damaged bales and must make a claim against the seller within 7 days (1 week) of weighing or devanning, whichever is later, notwithstanding that the claim must be made within 42 days (6 weeks) of arrival of the cotton. The parties must try to agree on an allowance. If they cannot do so, a Lloyd’s Agent, or a qualified surveyor recognized by the insurance company shall be appointed to inspect the damaged cotton. The cost of the survey shall be for buyer’s account in the first instance. If the survey confirms country damage, the seller’s insurance shall be called upon to pay:

    • the buyer for the market value of any country damaged cotton removed from the bales as set out in the surveyor’s report, plus any reasonable charges incurred in the separation of the country damaged cotton,
    • the cost of the survey

    c. If a charge is made for collecting the insurance claim and the buyer pays it, the seller must refund the buyer. If the loss is not covered by seller’s insurance the seller must pay.

    Rule 207

    The following conditions apply to contracts where the buyer is responsible for providing marine cargo insurance or transit insurance, and the seller responsible for providing country damage insurance:

    a. So that the buyer can arrange insurance, the seller must give the buyer the necessary details of each shipment.

    b. If the cotton is country-damaged, the buyer must separate the damaged bales and must make a claim against the seller within 7 days (1 week) of weighing or devanning, whichever is later notwithstanding that the claim must be made within 42 days (6 weeks) of arrival of the cotton. The parties must try to agree on an allowance. If they cannot do so, a Lloyd’s Agent, or a qualified surveyor recognized by the insurance company shall be appointed to inspect the damaged cotton. The cost of the survey shall be for buyer’s account in the first instance. If the survey confirms country damage and that the damage is greater than 1.0% of the total weight of the shipment, subject to a minimum claim of $500.00, the seller’s insurance shall be called upon to pay:

    • the buyer for the market value of any country damaged cotton removed from the bales as set out in the surveyor’s report, plus any reasonable charges incurred in the separation of the country damaged cotton,
    • the cost of the survey.

    c. If a charge is made for collecting the insurance claim and the buyer pays it, the seller must refund the buyer. If the loss is not covered by the seller’s insurance the seller must pay.

    Part 10: Claims for false packed, mixed bales and so on

    Rule 230


    1. The buyer must claim for false packed, mixed packed or plated bales within 6 months (26 weeks) of the date of arrival of the cotton. If the seller tells the buyer within 14 days (2 weeks) of the claim being proved that he intends to take back this cotton, he has the right to do so. If the buyer has already paid for the cotton, the seller must buy it back at the market value of good cotton on the date the claim is proved and repay the buyer his expenses.

    2. If the seller does not take back the cotton, the claim must be settled based on the market value of good cotton on the date the claim is proved to the seller. The seller must also repay the buyer his expenses.

    3. The buyer must claim for unmerchantable cotton within 6 months (26 weeks) of the date of arrival of the cotton. The bales must be set aside for inspection for a further 56 days (8 weeks) and the inspection must be done by an agreed expert. The buyer will be able to claim reasonable expenses from the seller for putting the bales into a merchantable condition. The buyer can also claim the value of any damaged cotton removed from the bales. The value must be based on the market value of the good cotton on the date the claim is proved to the seller. Any bales damaged as the result of fire can be invoiced back to the seller. This paragraph does not apply to country damage or damage caused by salt water or any accident during shipping.

    4. The buyer must claim for foreign matter in the cotton within 6 months (26 weeks) of the date of arrival of the cotton. The bales must be set aside for inspection for 56 days (8 weeks) after the claim is made and the inspection must be done by an agreed expert. The buyer will be able to claim reasonable expenses from the seller for removal of the foreign matter.

    Rule 231

    The buyer must give notice of any claim for country damage as detailed in Rules 206 or 207 and the survey shall be completed within 14 days (2 weeks) of the notice of claim, or within 56 days (8 weeks), of the date of arrival of the cotton, whichever is earlier.

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