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  • 4.3.2-COTTON TRADING-THE FUTURE

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  • The future

    Chapter 4 - Cotton trading - Cotton exports and Internet trading 

     
     
    E-commerce in cotton and other commodities is a permanent feature of the market. However, as with all production and processing activities, enhancements to technology and business practices are inevitable. One probable enhancement will be the ability to provide certified HVI data for electronic auctioning, so that the buyer knows the description of each bale being offered. This is already a reality in the United States, and has been for many years, through The Seam’s online cotton market. As other cotton producing areas become HVI enabled, the market, especially spinning mills, will demand the data at the time of sale. Another advantage is that the seller does not have to deal with any claims for lower than contracted quality. The certified data is final, and thus cannot be disputed.

    Electronic data may also present opportunities for electronic documentation. If the contract, all the specifications, and the shipment details are already confirmed electronically, then the first step for electronic documents to be presented has been completed. If export documents, such as the bill of lading, phytosanitary certificate, invoice and certificate of origin could also be generated electronically and certified as original, this package could be sent electronically to the buyer, thus speeding up payment time for the origin seller.

    Many of these advantages rely upon different segments of the trade and government creating common technology that can communicate easily.