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Article 1. Definitions of Words and Terms

RULE 340: Applicability
RULE 341: A Contract
RULE 342: Dimensions And Tare
RULE 343: Quantity Designations

Article 2. Grade and Quality
RULE 345: Type Designation: Cotton Linters
RULE 347: Linters From Damaged Or Burned Seed Or Having Bad Odor
RULE 348: Weather Damage
RULE 350: Cottonseed Hull Fiber

Article 3. Adjustments and Variations

RULE 355: Quantity Variations

Article 4. Performance of the Contract

RULE 360: Inspection And Acceptance
RULE 361: Passage Of Title
RULE 362: Shipping Instructions
RULE 364: Shipment
RULE 365: Rejections And Replacements

Article 5. Sampling

RULE 370: Chemical Linters And Hull Fiber

Article 6. Claims

RULE 375: Period For Filing Claims
RULE 376: Weight Claims

Article 1. Definitions of Words and Terms

RULE 340: Applicability. 

Unless otherwise specified, all rules in Chapter VI shall apply to cotton linters, hull fiber, oil mill motes, flues, sweepings, and grabbots.

RULE 341: A Contract. 

All contracts covering more than one carload or truckloads of linters shall be construed to be divisible and not entire, so that default or error as to one or more cars or trucks will not affect the remainder of the contract. In addition, and unless otherwise specified, each car- load or truckloads of linters shall be treated as a separate contract for purposes of claims for shortage in weight or quality or cellulose determination.

RULE 342: Dimensions And Tare. 

The standard bale of cotton linters shall, for contract purposes, be uncompressed, and of such dimensions as to permit loading contractual requirements. The tare shall not exceed 5 per cent.

RULE 343: Quantity Designations. 

Unless otherwise specified, a bale is six hundred pounds, gross weight.

A carload is that weight required to insure the lowest published rail freight rate in effect at time of shipment unless otherwise agreed between buyer and seller.

A truckload shall be 40,000 lbs. minimum or loaded to capacity, whichever is less, unless otherwise agreed between buyer and seller.

Article 2. Grade and Quality 

RULE 345: Type Designation: Cotton Linters. 

Cotton linters mean the residual fibers removed from cottonseed by mechanical processes. They include the following general categories:

Mill Run Linters. Mill run linters are cotton linters obtained by passing cottonseed through linter machines only once.

First Cut Linters. First cut linters are cotton linters obtained by the first passing of cottonseed through linter machines if subsequent passes are made.

Second Cut Linters. Second cut linters are cotton linters obtained by passing cottonseed through linter machines after first-cut linters have been removed.

Chemical Linters. Chemical linters are cotton linters which are traded on a cellulose content basis.

RULE 347: Linters From Damaged Or Burned Seed Or Having Bad Odor. 

Unless otherwise specified, linters made from burned or dam- aged seed, and which are consequently affected in quality, or linters carrying an objectionable odor, shall not be a good delivery on contract, and may be rejected by buyer, and replacement may be demanded.

RULE 348: Weather Damage. 

Unless otherwise specified, linters must be suitably baled and tied and free from weather damage.

RULE 350: Cottonseed Hull Fiber. 

Cottonseed hull fiber shall be that form of fiber removed from cottonseed hulls by passing through a hull fiber machine or a defibrator.

Article 3. Adjustment and Variations 

RULE 355: Quantity Variations. 

The weight of linters specified in a contract shall be delivered with a variation of one per cent above or below contract quantity. Settlement for overweighs and underweights shall be made in accordance with Rule 41.

Article 4. Performance of the Contract 

RULE 360: Inspection And Acceptance. 

Where linters are sold subject to quick, immediate or prompt inspection and acceptance, buyer shall inspect and accept or reject within the following time limits, all exclusive of the data on which the contract is made:

(a) Quick................................ 2 working days 
(b) Immediate.......................... 5 working days 
(c) Prompt.............................. 10 working days

RULE 361: Passage Of Title. 

When contracts of sale specify f.o.b. cars or trucks, the product covered thereby will not become the property of buyer until actually loaded at point of origin and covered by bill of lading. If such product is destroyed before contract terms are completed, seller may replace and buyer may demand replacement within the time limits provided in Rule 365.

If by special agreement, partial or complete payment for the product has been made by buyer, prior to loading, title to such product passes to buyer with and at the time of such payment. Such product will be at buyer's risk of insurance and in case of destruction no replacement can be demanded.

RULE 362: Shipping Instructions. 

Sec. 1. If products are sold for quick, immediate or prompt shipment, shipping instructions shall be furnished by buyer within the following time limits computed from the time the trade is closed:

Quick shipment .................................... 1 day 
Immediate shipment .............................. 2 days 
Prompt shipment ................................... 5 days

When sale is made subject to buyer's inspection and acceptance, the trade shall be considered closed when the linters are accepted by buyer.

If sold for shipment not hereinbefore provided for, buyer shall furnish shipping instructions in time for seller to complete shipment or shipments within the contract time.

Sec. 2. In case seller has not asked for shipping instructions at least twenty days before the expiration of contract period, buyer may then furnish same. Seller may request shipping instructions on or after the beginning of contract period, and the buyer must furnish shipping instructions for half-month contracts within five days after receipt of request, and for monthly contracts as follows: not less than 50 per cent of contract tonnage within ten days after receipt of such request and 50 per cent within twenty days after receipt of such request. Such instructions must provide for shipments to begin immediately and permit seller to continue shipments in an orderly manner throughout the contract period. Shipping instructions on the entire contract shall be furnished so as to permit shipments being completed within contract time.

Sec. 3. Failure or refusal on the part of the buyer to furnish shipping instructions as provided in this Rule shall give the seller the option during contract period, or within five days after expiration thereof, to treat as breached by buyer such portion of the contract for which shipping instructions have not been properly furnished, and, in the event he elects to do so, he must proceed as required by Rules 50, 51, 52 and 53.

RULE 364: Shipment. 

Sec. 1. One or More Months. Unless otherwise specified, contracts requiring shipment over one or more months shall permit the seller to ship at his convenience within contract period; provided, that contracts covering two or more months shall be understood to require equal shipments during each month.

If shipping instructions have been requested and given during contract month or have been furnished in accordance with Rule 362, seller must begin shipping within 5 days after receipt of such instructions and must complete shipment within the contract period.

Sec. 2. Failure or Refusal to Ship. If seller fails or refuses, for 10 days after receipt of shipping instructions, to ship in accordance with Section I of this Rule or within the period specified in the contract, buyer may treat the contract as breached. If buyer elects to do so, he must, within 5 days after expiration of the contract period, proceed as provided in Rules 50, 51, 52 and 53.

RULE 365: Rejections And Replacements. 

Sec. 1. If products are purchased or sold subject to buyer's inspection and acceptance, and the contract does not specify quality, the replacement of any tender on contract not accepted by buyer may not be demanded by either party.

Sec. 2. If products are purchased or sold on the basis of actual samples or private sales types, the tender must be equal to the contract quality. If buyer and seller agree that the quality of the tender is not equal to the contract quality or if there is a sustained rejection, replacement may be demanded by either party. The actual expense connected with sustained rejections shall be paid by the seller.

Sec. 3. Whenever, under these Rules, following agreed or sustained rejection, replacement is made, seller shall have the following time limits to make such replacement. It is understood that this time limit is to begin with the actual date of notice or demand by buyer or seller, as the case may be, that replacement is desired, and it is further understood in computing time that delivery f.o.b. a shipping point is implied.

(a) Where contracts provides for "quick" or "immediate" shipment, replacement is to be made within three days.

(b) In all other cases, replacement is to be made within ten days.

Article 5. Sampling 

RULE 370: Chemical Linters And Hull Fiber. 

If products are sampled at mills, at warehouses, or upon unloading at first United States or Canadian destination, the following procedures shall apply:

Sec. 1. Samples for Cellulose Determination. All bales must be dry when sampled, and sampling shall be in units of a carload or more, except remnants of less than carload quantity, when desired. Cellulose samples of 3 to 4 ounces each shall be taken from one shoulder, and from opposite side of at least each third bale, unless otherwise agreed between buyer and seller. If sampled from only one place of a bale, all bales must be sampled. The covering shall be cut between bands at different side positions of each bale, and surface sample of at least one inch in depth discarded before the cellulose sample is taken. Each sample shall be placed in a bag or other container, when and as taken from the bale.

Sec. 2. Samples for Moisture Determination. At the time of taking cellulose samples, a smaller sample, of at least 1/2-ounce in weight shall be taken immediately at greater depth from the same bale hole from which the cellulose sample was taken. This moisture sample shall be immediately packed in an airtight container of adequate size with proper lot identification inside the container and place in the container with the cellulose sample, properly addressed to the laboratory or other consignee, as the case may be.

Cellulose sample as drawn in accordance with the above specified procedure shall be forwarded to official chemist for analysis together with moisture sample. Chemist shall perform analysis in accordance with the official methods of analysis set forth in Rule 403. Approximately one-half of the cellulose sample shall be retained by the official chemist for a period of not less than 30 days after the date of issuance of the certificate of analysis covering the sample, for use, if needed, as a referee sample.

Article 6. Claims

RULE 375: Period For Filing Claims. 

All claims by the buyer must be made within fifteen days after arrival at first United States or Canadian unloading point or, in case of the seller, within ten days after receipt of statement from buyer.

RULE 376: Weight Claims. 

Unless otherwise agreed between buyer and seller, all claims for shortage in weight shall be supported by sworn weight documents of the general form of the seller's documents by which the invoice is supported. If bales are individually weighed, tagged, and listed, claims shall be similarly detailed and documented. Where only the total shipment weight is provided by seller, truckload or carload weighing and documentation in accordance with General Rule No. 73 shall suffice for claim purposes. Also, in any case where untagged and/or unlisted bales are shipped, weighing of bales in pairs on certified scales shall be acceptable for claim purposes provided a certified weight sheet is provided. No tagging or listing shall be required of buyer where none is initially provided by seller. No claim for shortage in weight shall be made unless the shortage exceeds 1/2 of 11%.

Where only the total shipment weight is provided by seller, the consignee may substantiate claim for shortage in weight by reweighing the contents of the rail carload or trailer load in question listing individual bale weights and identifying tags or markings when existent.

Buyer shall advise seller by written notice of his intention to file claim, stating amount of weight claimed, car number and date of shipment. If seller wishes the shipment reweighed, he shall advise buyer by written notice within 24 hours of receipt of claim notice. Failure to do so shall indicate seller's willingness to honor claim when supported as described above.

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