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CHAPTER XIII. FEED GRADE COTTONSEED


Article 1. Definition of Words and Terms

RULE F- 1: Applicability.
RULE F-2: A Contract.
RULE F-3: A Conveyance.

Article 2. Grade and Quality
RULE F-4: Prime Feed Grade Cottonseed.
RULE F-5: Delinted Prime Feed Grade Cottonseed.
RULE F-6: Feed Grade Cottonseed, Off Quality.

Article 3. Adjustments and Variations

RULE F-7: Quantity Variations.
RULE F-8: Settlements.
RULE F-9: Variation in Value.


Article 4. Performance of Contract

RULE F-10: Default in Acceptance or Delivery.
RULE F- 11: Shipping Instructions.
RULE F-12: Shipment.
RULE F-13: Notice of Shortage in Weight.
RULE F-14: Shipper's Official Weights.
RULE F-15: Rejection.

Article 5. Claims

RULE F-16: Period for Filing Claims.
RULE F-17: Basis for Claims.

Article 1. Definitions of Words and Terms

RULE F- 1: Applicability. 

Feed grade cottonseed is that intended for feeding to livestock. Unless otherwise specified, all rules in Chapter XIII shall apply to feed grade cottonseed, either before or after mechanical removal of linters.

RULE F-2: A Contract. 

Unless otherwise specified, contracts shall be expressed as a specific number of tons as defined in Rule 25. Contracts covering more than one carload or truckload shall be construed as divisible and not entire, so that default, in quantity or quality, on one or more cars or trucks shall be treated as a separate contract for purposes of quality determination. 

Nothing in the Rule shall prevent buyer and seller from agreeing to average out weights on contracts involving shipments over more than one month or to more than one consignee.

RULE F-3: A Conveyance. 

Except in cases where the railroad tariff specifies a higher minimum weight, a car of Feed Grade Cottonseed shall be 60 tons. If gondola cars are used, a gondola of Feed Grade Cottonseed shall be 85 tons unless otherwise stated. 
Barges: A standard barge shall be 1,100 tons unless otherwise stated. 
Trucks: A truck shall be 23 tons unless otherwise stated. 

Settlements for overweights and underweights shall be made in accordance to Rule F-7.

Article 2. Grade and Quality

RULE F-4: Prime Feed Grade Cottonseed. 

Prime Feed Grade Cottonseed shall meet the following criteria: 
Foreign substances shall not exceed 2 percent. 
Moisture shall not exceed 13 percent. 
Free fatty acids in the oil shall not exceed 3 percent. 
Crude protein and crude fat (dry matter basis) will be at least 34 percent when the separate totals for each are combined. 

Cottonseed of the Pima variety or other varieties of long staple cotton containing 3 percent or less residual lint on seed after ginning, or admixtures containing such seed must be identified as such at the time of sale.

RULE F-5: Delinted Prime Feed Grade Cottonseed. 

Delinted prime feed grade cottonseed shall be mechanically delinted. Lint on seed shall not exceed 5 percent. Foreign substances shall not exceed 1 percent. Moisture shall not exceed 13 percent. Free fatty acids in oil shall not exceed 3 percent. Crude protein and crude fat (dry matter basis) will be at least 37-1/2 percent when the separate totals for each are combined.

RULE F-6: Feed Grade Cottonseed, Off Quality. 

Feed Grade Cottonseed, off quality, are those that do not meet the specifications of Rule F-4.

Article 3. Adjustments and Variations 

RULE F-7: Quantity Variations. 

If a contract for feed grade cottonseed is for one carload or less, a variation of 10 percent above or below contract quantity shall constitute a good delivery as to weight. If the contract is for a quantity in excess of one carload, a variation of 5 percent above or below contract quantity shall constitute a good delivery, provided 5 percent does not exceed 5 tons. Settlement for overweights or underweights shall be made in accordance with Rule 41.

RULE F-8: Settlements. 

Sec. 1. No claims for deficiency in combined protein and fat shall be made by the buyer unless such deficiency shall exceed 1/2 unit of combined protein and fat. 

Sec. 2. A good delivery is, if within l - 1/2 units of guaranteed combined protein and fat and within 2 units of guaranteed moisture. 

Sec. 3. Settlement prices shall be reduced in such proportion as the deficiency bears to the guarantee, with the exception of free fatty acids in the oil. Reductions for excess free fatty acids in the oil shall be computed as follows: 
1. Above 3 percent, but below 6 percent, the factor shall be 1/4 of 1 percent for each 1 percent in excess of 3 percent, fractions in proportion. 
2. 6 percent and above; the factor shall be 1/2 of 1 percent for each 1 percent in excess of 3 percent, fractions in proportion. 

Sec. 4. Reductions in price made according to Sections 1, 2 and 3 of this Rule shall be based on the contract price minus cheapest published tariff freight in cases of c.a.f. or delivered contracts, and on the contract price in cases of f.o.b. or basis f.o.b. contracts.

Sec. 5. If a product is sold on sample, the permissible variations in analysis and in other quality factors shall be in accordance with this Rule and Rule F-9, unless otherwise specified in the contract.

RULE F-9: Variation in Value. 

Where all or any portion of a shipment of a product equals 90 percent or more of contract value, on the basis of quality, buyer shall accept delivery at an allowance to be agreed upon or fixed by arbitration. If the value of a product does not equal 90 percent or more of contract value, the buyer may reject. Value under this Rule shall be determined as the basis of contract price. The variation permitted in this Rule is exclusive of that permitted under Rule F-8 and a product may be rejected under that Rule even though it equals 90 percent or more of contract value.

Article 4. Performance of Contract

RULE F-10: Default in Acceptance or Delivery. 

If seller delivers feed grade cottonseed in the quantity and of the quality contracted for, within the shipping period (s) specified in the contract, and buyer fails or refuses to accept any portion of such cottonseed, the seller may treat such portion as breached by buyer and, if he elects to do so, he shall proceed in accordance with Rules 50, 51, 52 and 53. Such action by the seller shall not affect the balance of a contract which shall remain in full force and effect. 

If seller fails to deliver cottonseed in the manner specified in the contract, the buyer may treat the contract as breached by the seller and, if he elects to do so, he shall proceed in accordance with Rules 50, 51, 52 and 53.

RULE F- 11: Shipping Instructions. 

Sec. 1. Specified or Scattered Shipments. In the case of contracts for delivery on a basis other than quick, immediate or prompt, either buyer or seller may, at the time the contract is made or at least five (5) days prior to the beginning of the contract delivery period, furnish the other contracting party with a shipping schedule. Unless such a schedule is rejected in writing by either contracting party at least two (2) days prior to first shipping date, it shall be considered part of the contract. If the contracting parties cannot agree on such a schedule or if no schedule is furnished by either party, it shall be understood that shipments will be made on a scattered basis as defined in Rule 28. 

Sec. 2. Equipment Requirements and Complete Instructions. Where shipments are to be made on a scattered or specified basis, the buyer shall furnish the seller with equipment requirements at least seven (7) days prior to scheduled shipments. If, at the time of loading, shipping instructions have not been furnished in accordance with the terms of the contract, the shipper may load a box car (or a hopper car in the case of delinted cottonseed). At least one day prior to scheduled shipment, buyer must furnish complete shipping instructions which shall permit seller to ship in an orderly manner and to complete shipment according to schedule and within the contract period. 

If buyer requires seller to provide railroad owned equipment, so long as proof is available that the seller ordered the railroad owned equipment in a timely manner, the seller shall not be responsible if equipment fails to arrive as ordered by schedule, thus the seller shall not be held responsible for failure of providing loaded cars to the buyer. 

Sec. 3. Other Shipments. When contracts call for quick or immediate shipment, buyer shall furnish shipping instructions within 24 hours of date of contract. When sold for prompt shipment, buyer shall furnish such instructions within 5 days of date of contract.

Sec. 4. Failure or Refusal to Furnish Instructions. Failure or refusal by the buyer to furnish shipping instructions, as required by this Rule, shall give the seller the options, during the contract period or within five (5) days after expiration thereof, (1) to load car or cars on schedule and to place same on track, notifying buyer and railroad that all charges are for buyer's account; or (2) to treat as breached by the buyer all or any part of the contract for which such instructions have not been furnished. If seller elects the latter option, he must proceed as provided in Rules 50, 51, 52 and 53. 

Sec. 5. Extension of Contract. Nothing in this Rule shall prevent buyer and seller from agreeing to extend a contract beyond its expiration date. The terms of such an extension shall be exchanged in writing within five (5) days after the contract's expiration date; and the five (5) day period, referred to in Sec. 4, shall apply at the end of the extension period.

RULE F-12: Shipment. 

Sec. 1. One or More Months. When a shipping schedule has been established under Rule F-11, seller must begin shipment in accordance with such schedule and must complete shipments within the contract period(s), unless (1) seller has ordered and received railroad assurance of available car or cars; (2) railroad fails to furnish such cars on schedule; and (3) seller has notified buyer of the delay. 

Sec. 2. Failure or Refusal to Ship. If seller fails or refuses to ship in accordance with Sec. 1 of this Rule or within such period or periods as may be specified in the contract, buyer shall have the option to treat as breached any part of the contract not shipped on schedule. If buyer elects to do so, he must, within five (5) days after failure of seller to ship on schedule, proceed as provided in Rules 50, 51, 52 and 53. 

Sec. 3. Extension of Contract. Nothing in this Rule shall prevent buyer and seller from agreeing to extend a contract beyond its expiration date. The terms of such an extension shall be exchanged in writing within five (5) days after the original expiration date; and a five (5) day period as described in Sec. 2, shall apply at the end of the extension period.

RULE F-13: Notice of Shortage in Weight. 

In the case of rail shipment, if the gross weight, taken in accordance with these Rules, indicates a shortage exceeding 1,000 pounds, buyer must immediately so notify seller by telegram, stating seal numbers and whether or not seals are intact. Seller shall have 48 hours in which to examine the case and the cars shall be held without breaking seals or unloading during such period. To secure the benefit of this Rule, seller must, within 5 business hours after receipt of notice of discrepancy, notify buyer by telegram of his intention.

RULE F-14: Shipper's Official Weights. 

If the shipper, with his invoice, furnishes an official weight certificate signed by one of the parties described in Rule 66, the weight shown on that certificate shall govern settlement.

RULE F-15: Rejection. 

Sec. 1. If all or any portion of a shipment is not equal to contract quality, within the tolerances permitted in Rules F-8 and F-9, the buyer may reject, and Rule 69 shall apply. If he does so, he must so advise the seller by telegram within 48 hours after arrival of shipment at destination. 

Sec. 2. If seller is notified of rejection, he shall have the privilege of replacement with a product of contract quality provided, within 48 hours of receipt of rejection notice, he informs buyer of his intention to do so. All replacements shall be for immediate shipment as defined in Rule 28. Each replacement shall be made from the original point of shipment or from any point if shipper equalizes freight and transit privileges. Only one replacement is permitted. 

Sec. 3. Whether or not seller exercises his privilege of replacement, he must, within 48 hours after receipt of rejection notice, repay to buyer all amounts paid out by the buyer on account of the rejected product. If seller declines to replace or make the refund herein required, buyer must, to preserve a claim, proceed as provided in Rules 50, 51, 52 and 53. 

Sec. 4. If buyer unloads a shipment of a product which he claims to be of rejectable quality, thereby making it impossible for seller to obtain an official sample, settlement shall be made on the basis of shipper's analysis at point of origin.

Article 5. Claims 

RULE F-16: Period for Filing Claims. 

All claims shall be made by the buyer within 30 days after the arrival at first destination.

RULE F-17: Basis for Claims. 

All weight claims shall be supported by a weight certificate, as provided in Rule 70, showing weight of each car or truck and date of arrival at destination. Claims for quality shall be based upon each carload or truckload. All quality claims shall be supported by an official analysis.


Effective August 1, 2008
2002 National Cottonseed Products Association. All rights reserved.