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CHAPTER VIII. COTTONSEED OIL EXPORT RULES


Article 1. Identification and Administration

RULE E-1: Definitions of Words and Terms.
RULE E-2: Export Committee.
RULE E-3: Arbitration.

Article 2. Official Contract Form

RULE E-4: Contract Form.

Article 3. Grade and Quality

RULE E-5: Crude Cottonseed Oil.
RULE E-6: Prime Bleachable Summer Yellow Oil (PBSY).
RULE E-7: Cottonseed Cooking Oil (Fully Refined Cottonseed Oil).
RULE E-8: Cottonseed Salad Oil (Fully Refined Cottonseed Oil).

Article 4. Quantities and Quantity Tolerances

RULE E-9: Quantitative Terms.
RULE E-10: Ship's Tanks.
RULE E-11: Quantity Tolerance.

Article 5. Shipment

RULE E-12: Shipping Terms and Periods.
RULE E-13: Dates of Shipment.
RULE E-14: Each Shipment A Separate Contract.

Article 6. Default

RULE E-15: Default By Seller.
RULE E-16: Default By Buyer.
RULE E-17: Suspended Payments, Bankruptcy, Insolvency.
RULE E-18: Profit As A Result of Default.
RULE E-19: Washouts, Closeouts or Defaults.
RULE E-20: Force Majeure.


Article 7. Bills of Lading, Notices, Charges, Insurance

RULE E-21: Bills of Lading.
RULE E-22: Notice of Shipment.
RULE E-23: Freight Arrangements.
RULE E-24: Expenses Chargeable to Seller and Buyer.
RULE E-25: Insurance.

Article 8. Survey, Weighing, Sampling and Analysis

RULE E-26: Official Weighers and Inspectors.
RULE E-27: Survey-Inspection of Vessel's Tanks.
RULE E-28: Determination of Weights.
RULE E-29: Sampling.
RULE E-30: Analysis.

Article 9. Arbitration

RULE E-40: Agreement To Arbitrate.
RULE E-41: Arbitrators.
RULE E-42: Initiation of Arbitration.
RULE E-43: Amendment of Claim.
RULE E-44: Site of Arbitration.
RULE E-45: Appointment of Arbitrators.
RULE E-46: Oral Hearing.
RULE E-47: Procedure Other Than Oral Hearing.
RULE E-48: Waiver of Objections.
RULE E-49: Extensions of Time.
RULE E-50: Service of Notices.
RULE E-51: The Award.
RULE E-52: Deposits, Expenses and Fees.
RULE E-53: Interpretation and Application of the Rules.

Article 10. Amendments

RULE E-60: Amendment Procedure.


Article 1. Identification and Administration


RULE E-1: Definitions of Words and Terms. 

Sec. 1. Wherever used in these rules, the term "NCPA" shall mean the National Cottonseed Products Association, Inc. 

Sec. 2. The words "these rules" shall mean the Cottonseed Oil Export Rules of the National Cottonseed Products Association, as distinguished from the NCPA Trading Rules. 

Sec. 3. The term "Secretary" means the Secretary of the National Cottonseed Products Association, Inc.

RULE E-2: Export Committee. 

An Export Committee on Cottonseed Oil, to be appointed by the President with approval of the Board of Directors, is hereby established. It shall be the responsibility of this Committee to discharge the duties imposed upon it by these export rules.

RULE E-3: Arbitration. 

All disputes and controversies arising out of contracts made under these export rules shall be settled by arbitration, as provided in the Export Arbitration Rules for Cottonseed Oil which are contained in Section IX hereof.

Article 2. Official Contract Form

RULE E-4: Contract Form. 

The following form of contract is recognized as Official by the National Cottonseed Products Association for the export of cottonseed oil in bulk and in drums and, unless otherwise specified therein, shall be considered the contract entered into by parties trading under these export rules.

Official Export Contract for Cottonseed Oil

1. Seller 13. Price Basis
2.  14.
3. Buyer 15. Terms
4. 16.
5. Commodity and Grade 17.
6. 18.
7.Packing 19. Special Conditions
8. 20.
9. Quantity 21.
10. 22.
11. Shipment 23.
12. 24.

Except as otherwise specified herein, each applicable provision of the rules of the National Cottonseed Products Association relating to cottonseed oil shall be considered part of this contract. The provisions of this contract shall be construed as the rights of the parties determined in accordance with the laws of the State of New York and of the United States of America. 

The parties hereto agree that any and all disputes, controversies or claims arising out of or related to this contract or the claimed breach thereof shall be settled by arbitration in accordance with the Export Rules of the National Cottonseed Products Association and that judgment upon any award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Written demand for such arbitration shall be made, by the buyer, within thirty (30) calendar days after the vessel carrying the commodity contracted for has arrived in its port of discharge and, by the seller, within thirty (30) days after he receives written notice from the buyer that delivery is unsatisfactory. Failure to demand arbitration within the prescribed time limits shall be deemed a waiver of the provisions of this paragraph.

Article 3. Grade and Quality 

RULE E-5: Crude Cottonseed Oil. 

Crude cottonseed oil shall be traded on the basis of NCPA Rule 146, with settlement to be made in accordance with NCPA Rule 201.

RULE E-6: Prime Bleachable Summer Yellow Oil (PBSY). 

PBSY shall be produced from fair, average quality crude cottonseed oil. Contract quality shall be as described in NCPA Rule 162 with the following exceptions: 

(a) It may contain moisture and volatile matter no higher than 0.20% but seller shall pay buyer an allowance of 0.05% of the contract price for each 0.01% of moisture and volatile matter in excess of 0.10%; and 
(b) When bleached in the laboratory in accordance with NCPA Rule 405, Sec, 4 color may not exceed AOCS 2.7 and seller shall pay buyer an allowance of 0.25% of the contract price for each 0.1 in excess of AOCS 2.5.

RULE E-7: Cottonseed Cooking Oil (Fully Refined Cottonseed Oil). 

Cottonseed cooking oil shall be pure cottonseed oil produce from fair, average quality crude cottonseed oil from which essentially all of the free fatty acids and non-oil substances have been removed by chemical treatment and mechanical or physical separation. It shall meet the following specifications: 

(a) Clarity. No cold test shall be required but the oil shall be clear and brilliant at 85 degrees Fahrenheit. 
(b) Color, as determined under Rule 405, Sec. 1, shall not exceed 35.0 yellow and 4.0 red, except that color in excess of 4.0 red shall not be rejectable if seller pays buyer 1/20 of 1.0% of the contract price for each 0.1 of such excess. 
(c) Flavor shall be bland. 
(d) Free Fatty Acid (as oleic), determined under NCPA Rule 405, Sec. 6, shall not exceed 0.05%. 
(e) Moisture and Volatile Matter, as determined under NCPA Rule 404, Sec. 2, shall not exceed 0.10%. 
(f) Unsaponifiable Matter, as determined by AOCS Method Ca 6a-40, Reapproved 1993, shall not exceed 1.5%. 
(g) Initial Peroxide Value shall be determined by AOCS Method Cd 8-53 and it shall not exceed 2.0 meg/kg at time of loading ship or filling drums. Seller shall allow buyer 50 cents per metric ton for each 0.10 meg/kg in excess of 1.0 meg/kg. 
(h) The Fat Stability after eight (8) hours, as determined by AOCS Tentative Method Cd 12-57, Reapproved 1993, shall not exceed 62 meg/kg with the following allowances to be paid by seller to buyer: 

Not exceeding 35 0.0
36-50 meg/kg 0.125 cents per lb.
51-62 meg/kg  0.250 cents per lb.

(i) Oil shall be deodorized and, during the cooling stage of deodorization, 0.005% of citric acid or 0.006% of monoisopropyl citrate shall be added.

RULE E-8: Cottonseed Salad Oil (Fully Refined Cottonseed Oil). 

Cottonseed salad oil shall be pure cottonseed oil produced from fair, average quality crude cottonseed oil from which essentially all of the free fatty acids and non-oil substances have been removed by chemical treatment and mechanical or physical separation. 

(a) Cottonseed salad oil will stand a cold test of 5 - 1/2 hours (AOCS Official Method Cc 11-53, Reapproved 1993). 
(b) Color, as determined under Rule 405, Sec. 1, shall not exceed 35.0 yellow and 4.0 red, except that color in excess of 4.0 red shall not be rejectable if seller pays buyer 1/20 of 1% of the contract price for each 0.1 of such excess. 
(c) Flavor shall be bland. 
(d) Free Fatty Acid (as oleic), determined under NCPA Rule 405, Sec. 6, shall not exceed 0.05%. 
(e) Moisture and Volatile Matter, as determined under NCPA Rule 404, Sec. 2, shall not exceed 0.10%. 
(f) Unsaponifiable Matter, as determined by AOCS Method Ca a-40, Reapproved 1993, shall not exceed 1.5%. 
(g) Initial Peroxide Value shall be determined by AOCS Method Cd 8-53 and it shall not exceed 2.0 meg/kg at time of loading ship or filling drums. Seller shall allow buyer 50 cents per metric ton for each 0.10 meg/kg in excess of 1.0 meg/kg. 
(h) The Fat Stability after eight (8) hours, as determined by AOCS Tentative Method Cd 12-57, Reapproved 1993, shall not exceed 62 meg/kg with the following allowances to be paid by seller to buyer: 

Not exceeding 35 0.0
36-50 meg/kg  0.125 cents per lb.
51-62 meg/kg  0.250 cents per lb.

(i) Oil shall be deodorized and, during the cooling stages of deodorization, 0.005% of critic acid or 0.006% of monoisopropyl citrate shall be added.

Article 4. Quantities and Quantity Tolerances

RULE E-9: Quantitative Terms. 

The terms "short ton", "metric ton" and "long ton" shall be understood to mean 2,000 lbs., 2,204.6 lbs. and 2,240 lbs., respectively. 

RULE E-10: Ship's Tanks. 

Ship's tanks shall be understood to mean any and all tanks and/or compartments, within a vessel, that are suitable for shipping oil in bulk.

RULE E-11: Quantity Tolerance. 

On CIF and C&F contracts, a variation of 5% above or below the quantity specified in the contract is recognized and permissible as a custom of the trade. On FOB steamer contracts, a variation of 2% above or below the quantity specified in the contract, at seller's option, is recognized as permissible. 

If a contract states a quantity followed by the notation "min/max," the acceptable variation will be one (1) metric ton over or under the stated quantity. If the quantity shipped differs by more than the permissible variation, buyer may not reject but seller shall make an allowance for the entire difference above or below contract quantity in amount agreed to by buyer and seller. If not agreed upon such allowance shall be fixed by arbitration as provided in these Rules. If a contract states a variation above or below the quantity specified in the contract at buyer's option, buyer shall specify the quantity to be loaded at the time of vessel nomination.

Article 5. Shipment

RULE E-12: Shipping Terms and Periods. 

Sec. 1. The term "first half" of a named month shall mean the period from the first through the fifteenth day of that month, both inclusive; and the term "second half" of a named month shall mean the period from the sixteenth through the last day of said month. 
Sec. 2. The terms "early or beginning", "middle" and "end" or "late" shall mean, respectively, the first through the tenth day, the eleventh through the twentieth day and the twenty-first day through the last day of the month, each inclusive.

RULE E-13: Dates of Shipment. 

Sec. 1. Time of shipment shall be as specified in the contract. In the absence of evidence to the contrary, the on board date of bill of lading shall be proof of date of shipment. In the event of non-shipment under a contract providing for "name steamer" or "name steamer or substitute", seller shall be considered to have met the shipping terms of the contract if he furnishes proof of freight contract engagement and/or charter party therefore and also proof that the goods were available in contact quantity and quality in time for shipment from designated port. In such event, shipment shall be made by the next available vessel. 
Sec. 2. The period herein specified, within which bills of lading must be dated, may include an additional period of not more than eight (8) days, if desired by the shipper, provided he notifies buyer by telegraph, sent no later than the business day following the last day of the originally scheduled shipment period, of his intention to claim additional days. Such notice shall be passed on by other sellers or their buyers promptly after receipt. Said notice need not state the number of additional days claimed by the seller and he may ship at any time within eight (8) additional days. The seller shall make the buyer an allowance based upon the number of days by which the originally specified shipping period is exceeded, as follows: 

1, 2, 3 or 4 days 1/2 of 1% of the F.0.B. price
5 or 6 days 1% of the F.0.B. price
7 or 8 days 1-1/2% of the F.0.B. price

Any such allowance shall be deducted from the contract price in the invoice. 

If, after giving notice to buyer as provided above, the seller fails to make shipment within eight (8) days, the contract shall be construed as calling for shipment during the originally specified period plus eight (8) days at contract price less 1-1/2%; and any settlement for default shall be calculated on that basis.
Sec. 3. If shipment within the contract period is impossible on contracts in which the seller is required to provide the freight, seller shall promptly advise buyer of that fact, together with the reason therefore. If called for, seller must produce proof to justify his claim for extension or cancellation. If, on F.0.B. vessel contract, buyer cannot furnish a ship, the buyer may request a transfer to a barge or to another tank located at the facility that the seller has declared for loading. However, under no circumstances is the seller obligated to effect a transfer before first receiving funds for the value of the oil being transferred. The seller is not obligated to effect an in store transfer before the last day of the contract period or after the lapse of the required preadvice time period, whichever comes last. 

Sec. 4. For F.0..B. Vessel Contracts buyer shall give seller vessel nomination(s), either by telex and/or TWX and/or cablegram, which shall include as accurately as possible the estimated date of arrival of the vessel(s) and vessel(s) name(s). The nomination(s) shall be given at least 14 calendar days in advance of the said estimated date of arrival, and these 14 days shall commence to run on the business day following the date of receipt of the nomination(s) by the seller. For the purpose of this Rule the business day expires at 3:00 p.m. (1500 hours ) New York time. 

Buyer will be allowed two vessel substitutions, provided the substituting vessels are of approximately the same size and expected arrival at port of loading. If the expected time of arrival of the substituting vessel is earlier than the vessel originally nominated the seller shall be entitled to 14 days of vessel nomination. If the expected time of arrival of the substituting vessel is later than the vessel originally nominated the buyer is to provide seller a minimum of five days notice of vessel substitution along with the adjusted vessel ETA. Without specific consent of the seller, no substitution of vessel will be allowed within five (5) days of loading date of vessel initially nominated or vessel substituted whichever is later. The vessel substitute must not be earlier than the vessel initially nominated nor later than the end of the contract period, except as provided below. In the case of an optional loading port in the Gulf, i.e. New Orleans or Houston seller's option declarable upon vessel nomination, seller shall declare the port of loading immediately upon receipt of such vessel nomination. 

If, on F.0.B. vessel contracts, buyer fails to present a vessel ready for loading by the last day of the specified shipping period, or fails to nominate a vessel so as to preserve the required notification period stated in the contract, that period shall be deemed extended for an additional period not exceeding eight (8) days, if so desired by buyer. In such case, seller must deliver the goods onto buyer's vessel within such additional eight (8) days and buyer shall pay seller a premium, based upon the number of days by which the originally specified shipping period is extended, as follows:

1, 2, 3 or 4 days 1/2 of 1% of the F.0.B. price
5 or 6 days 1% of the F.0.B. price
7 or 8 days 1-1/2% of the F.0.B. price

Any such allowance shall be added to the contract price in the invoice.

If the buyer notifies the seller on or before the last day of the original shipping period of his intention to present his vessel for loading within such additional eight (8) days and fails to do so, the contract shall be construed as calling for shipment during the originally specified shipping period plus eight (8) days at contract price plus 1 - 1/2%; and any settlement for default shall be calculated on that basis.

RULE E-14: Each Shipment A Separate Contract. 

Each shipment shall be deemed a separate contract and adjustments as to weight and quality shall be made accordingly. All contracts involving more than one shipment shall be construed to be divisible and not entire, so that default or error as to one or more shipments shall not affect the remainder of the contract.

Article 6. Default 

RULE E-15: Default By Seller. 

Should seller be in default on a contract, buyer shall have the right to buy in the open market, goods of the kind, quality and description specified in the contract. If such right is exercised, said purchase must be made within seven (7) calendar days after buyer becomes aware of default (cf. Rule E-22) and after he has notified seller by telegraph of his intention to buy. The seller shall reimburse the buyer in the amount of any direct market loss. 

If seller is dissatisfied with the price of the covering purchase or if buyer's right to cover the defaulted contract is not exercised as provided in these rules, then the matter of any damages shall be settled by arbitration. Damages shall be measured by the difference between the contract price and the fair market value of the contract commodity on the day the defaulted contract is covered, plus freight, insurance and other applicable costs.

RULE E-16: Default By Buyer. 

Should buyer be in default of contract, seller shall have the right to sell in the open market, goods of the kind, quantity, quality and description specified in the defaulted contract. If such right is exercised, said sale must be made within seven (7) calendar days after seller becomes aware of default and after he has notified the buyer by telegraph of his intention to sell. The buyer shall reimburse the seller in the amount of any direct market loss. 

If buyer is dissatisfied with the price of the covering sale or if seller's right to cover the defaulted contract is not exercised as provided in these rules, then the matter of any damages shall be settled by arbitration. Damages shall be measured by the difference between the contract price and the fair market value of the contract commodity on the day the defaulted contract is covered, plus freight, insurance and other applicable costs.

RULE E-17: Suspended Payments, Bankruptcy, Insolvency. 

Should either party to a contract suspend payments, admit bankruptcy or commit an act of insolvency, the other party need not await maturity of the contract or any unfulfilled portion thereof to take appropriate action; but may, after giving one business day's notice by telegraph, resell or repurchase an appropriate quantity of the contract material and thereby earn the right to recover any direct market loss incurred. 

Seller reserves the right to alter the terms of payment if in his judgment the financial responsibility of the Buyer does not warrant shipment on terms originally stated in contract.

RULE E-18: Profit As A Result of Default. 

If there is a profit in any covering purchase, covering sale, resale or repurchase as provided for in Section VI, the party making such covering purchase, covering sale, resale or repurchase shall be entitled to keep such profit.

RULE E-19: Washouts, Closeouts or Defaults. 

Washouts and closeouts, in connection with defaults, shall be of contract quantity without regard to tolerances that may be specified in the contract or elsewhere in these rules. If a minimum and maximum quantity is specified, the mean thereof shall govern.

RULE E-20: Force Majeure. 

Sec. 1. If war, hostilities and/or blockade should prevent shipment during the contract period, the contract or any unfulfilled portion thereof shall be cancelled. 

Sec. 2. Should shipment be delayed by fire, strike, lockout, riot, revolution or any restrictions imposed by any governmental authority with jurisdiction over the territory where the port or ports of shipment or destination, named in the contract, is or are located, or by any cause comprehended in the term "force majeure," other than those named in Sec. 1 of this rule, the time of shipment shall be extended by thirty (30) calendar days beyond the termination of the event preventing shipment; but such extension shall not exceed two (2) months. If shipment is not possible within these two (2) months, the contract shall be considered cancelled.

Article 7. Bills of Lading, Notices, Charges, Insurance 

RULE E-21: Bills of Lading.

When seller is responsible for obtaining bills of lading, he shall deliver to the buyer bills issued in accordance with the terms and conditions set forth in the "charter party" or, at seller's option, in the "berth term oil booking agreement" and either type of bill shall be accepted by the buyer. An exact copy of the charter party or booking arrangement shall be attached to the bill of lading, except on an F.0.B. or F.A.S. sale.

RULE E-22: Notice of Shipment. 

Sec. 1. No later than seven (7) days after date of ocean bill of lading, seller shall send telegraphic notice of shipment to buyer or to buyer's representative. Such notice shall contain the name of the vessel, date of the bill of lading, the quantity shipped and the loading port. Intermediate contracting parties shall immediately forward this notice to the buyer. 

Sec. 2. Time periods provided in these rules shall be understood to be exclusive of Saturdays, Sundays and legal holidays. Shipments and deliveries, however, must be executed in accordance with the rules applicable thereto.

RULE E-23: Freight Arrangements. 

Sec. 1. When seller arranges for ocean freight space, he may advise the buyer of the name of the vessel, its ports of loading and its expected departure dates; however, such declaration shall not be deemed to modify the terms of the contract. 

Sec. 2. Upon demand at any time subsequent to date of shipment, seller shall immediately notify buyer of conditions of affreightment related to and affecting loading and discharge and/or any other conditions not specified in the bill of lading.

RULE E-24: Expenses Chargeable to Seller and Buyer. 

Sec. 1. On F.0.B. vessel contracts, seller shall pay all charge except dockage, incurred in placing the goods on board the vessel designated and provided by or for the buyer on the date or within the period fixed. The normal charges are based upon a minimum parcel size of 500 metric tons and a straight set of documents. Any additional charges incurred because of a smaller than minimum parcel being loaded to a vessel, barge or land tank or because of special document instructions will be for the account of the buyer. Such charges shall include wharfage, if any, and expenses for pumping the goods on board. "On board" shall mean over the ship's rail. 

Sec. 2. On F.A.S. vessel contracts, seller shall pay all charge incurred in placing the goods alongside vessel; however, seller shall only be obligated to deliver cargo to one (1) location designated by vessel's agent. If cargo must subsequently be moved under ship's tackle, any resulting expense shall be for account of buyer. 

Sec. 3. Seller shall pay bank charges for collection of documents. When the contract provides for landed weights, seller shall pay the costs for determining them. 

Sec. 4. On C. & F. and C.I.F. contracts, buyer shall receive goods upon arrival at destination and shall handle and pay for all subsequent movement thereof. Buyer shall take delivery of goods from the vessel in accordance with terms of the bill of lading and shall pay all costs of landing at named port of destination; including any duties, taxes and other expenses.

RULE E-25: Insurance. 

Sec. 1. On C.I.F. sales, basis delivered weights, seller shall provide insurance coverage on institute cargo clauses (WA) average payable irrespective of percentages, including the risk of contamination. On C.I.F. sales, basis delivered weights, buyer shall return to seller original certificate of insurance together with other supporting documents, when requesting settlement for differences between shipped and outturn weights. 

Sec. 2. On C.I.F. sales basis shipped weights final, seller shall provide insurance on bulk oil clause conditions covering all and every risk and all damage and loss, however caused, including contamination from the time the oil leaves the shore tanks or containers at point of shipment by any conveyance by land or water until safely delivered, subject however to the following: 
a) To pay average irrespective of percentage. 
b) To pay actual shortage or loss in weight and/or leakage. Underwriters to be liable only for the excess of 1/2% trade ullage of contents of each tank, which shall be deducted in all settlements. 
c) Warranted free of claims for rancidity or inherent vice.
 
Sec. 3. Seller shall insure goods against war risk on usual underwriters conditions in force and generally obtainable on date of vessel's sailing from each loading port for which a bill or bills of lading are issued. Any war risk premium in excess of 1/2 of 1% shall be for account of and payable by buyers at time of presentation of documents.
 
Sec. 4. Certificates shall be issued for a value calculated at minimum of 105% of C.I.F. value. 

Sec. 5. On C.I.F. deliveries or shipped weight sales, seller shall furnish buyer with original policy or original negotiable insurance certificate covering the goods shipped. All claims shall be payable in the currency stipulated on the insurance certificate and shall be payable in the United States of America. 

Sec. 6. On F.0.B. and/or C. & F. sales, buyer shall provide seller with evidence of insurance covering buyers/sellers, as their interest may appear, at least five (5) days prior to vessel's sailing.

Article 8. Survey, Weighing, Sampling and Analysis

RULE E-26: Official Weighers and Inspectors. 

Survey, sampling, and weighing shall be performed by official weighers and inspectors of the National Cottonseed Products Association or others specified in NCPA Rule 66. If the contracting parties cannot agree, each of them may, at his own expense, appoint his own surveyor.

RULE E-27: Survey-Inspection of Vessel's Tanks. 

Sec. 1. Tank and heating coils, if present, shall be dry and completely free of any previous cargo, loose scale or rust. 

Sec. 2. Tanks must withstand a 3 psi, 30-minute air test. Coils if any, must be tested under a minimum of 80 psi steam pressure. If there are double bottoms beneath the tanks, they must be tested using a head of fuel oil or water, equivalent to the height of the tank. If the vessel is unable to conduct the above tests, a certificate guaranteeing tightness must be given to the surveyor by the Master prior to the loading of any cargo.

Sec. 3. Tightness and cleanliness of pipelines, valves and pumps are the responsibility of the vessel.

RULE E-28: Determination of Weights. 

Sec. 1. Scales. When used, scales shall bear a certificate of approval issued by a recognized authority and dated not more than one (1) year prior to date of weighing. Weighing shall be performed by or under the direct supervision of an official Association weigher and inspector or by others specified in NCPA Rule 66. 

Sec. 2. Tank Cars and Tank Wagons. 
(a) All tank cars and tank wagons shall be weighed, first loaded and then unloaded, on the same scale at port of shipment. 
(b) Prior to weighing, tank cars and tank wagons shall be made reasonably free of snow, ice and other foreign substances; or a suitable allowance shall be jointly assessed and shown as a deduction. 
(c) All tank cars shall be weighed free, uncoupled and centered on the scale; all weight-bearing wheels shall be on the scale platform; and approach and live rails shall not be in contact with each other. No double or split weighing shall be acceptable.

Sec. 3. Drum Shipments. 
(a) If drums are uniform in size and gauge, an average tare weight shall be established by weighing at least 10% of the empty drums. 
(b) If various types of drums are used, a tare weight must be established for each additional drum. 
(c) Scales for drum weighing shall be checked periodically with test weights, in the same weight range as that of the full drums. 
(d) Weight shall be marked on drums at the time of weighing, using a fast-color paint or marking device. 

Sec. 4. Storage Tanks. 
(a) All storage tanks shall be calibrated by a recognized official calibration company. The certified gauge charts must show a tank height from a specific gauge point at all openings in the tank where gauges are to be taken. Calibration charts must be available to the surveyor at all times. 
(b) Each tank shall have been calibrated by a qualified tank scrapper within the last three years; or an acceptable check on calibration as detailed as ASTM D-1220, paragraph 16, shall have been performed within the same period. 

Sec. 5. Storage Tank Gauging Procedure. 
(a) Standard gauging tapes must be used and checked for accuracy. 
(b) All gauging shall be performed jointly by the surveyor and a representative of the warehouse or plant, each using his own equipment. Deviations between gaugers must not be more than 1/8 inch and both gauges shall be averaged. 
(c) All gauge records shall show gauge height, innage and outage. Any difference between the gauge height shown on the calibration chart and that actually obtained must be noted and all parties so advised. 
(d) Temperatures shall be taken by a calibrated cup thermometer that can be accurately read to 1oF. Temperatures must be obtained from at least two (2) gauge holes on tanks having four (4) such holes and from four (4) gauge holes on tanks having eight (8) such holes. Temperatures shall be taken from opposite sides of the tank. 
(e) Temperatures must be taken three (3) feet from the bottom, at the middle and three (3) feet below the surface of the oil. If there is wide variation in these readings, intermediate readings must be taken. 

Sec. 6. Specific Gravity Determination. 
(a) A standardized pycnometer shall be used to determine specific gravities at the temperature of the oil in the storage tank. 
(b) Specific gravities may run at temperature over temperature (T/T), temperature over 77oF (T/77oF), or temperature over 60oF (T/60oF). The specific gravity shall then be converted to pounds per gallon, using the standard pounds per gallon of water applicable to each temperature.

Sec. 7. Shore Pipelines and Pumps. 
(a) The terminal or plant is responsible for the adequacy of all equipment used in loading the vessel; however, the surveyor shall, so far as practicable, inspect all such equipment.
(b) All take-offs from the line to be used in the loading operation must be blanked or sealed closed. Loading lines must be pigged or blown with air before and after loading, in the presence of the surveyor.

RULE E-29: Sampling.

Sec. 1. Storage Tanks. 
(a) If oil is uniform, samples of equal size must be obtained from the tank at one foot intervals and composited. 
(b) If oil is not uniform, a representative proportionate sample shall be drawn and composited. 

Sec. 2. Vessel's Tanks. 
(a) Immediately after loading, a representative sample shall be drawn from the vessel's entire depth of the oil, using accepted sampling techniques. 
(b) The official sample shall be based on a weighted composite sample of oil drawn from all tanks used for a specific shipment. 
(c) If more than one tank is used for a shipment of oil and an analysis is made of each tank, the quality of the shipment shall be based on the analysis of the weighted composite sample only, and not on the analysis of any individual tank. 
(d) Samplers used must be of the Bacon Bomb or Curtis and Tompkins types. 
(e) When more than one (1) shipper supplies oil for a co- mingled shipment, a representative sample of each shipper's material must be secured prior to comingling.
(f) Two (2) sealed representative samples must be left on board the ship, one for the consignee and one for the vessel. If more than one surveyor is in attendance, all samples must be jointly sealed. A receipt for the samples must be obtained from the ship. 
(g) Upon completion of loading and in the presence of a ship's officer, the surveyor shall record temperatures and ullages of the contents of each tank loaded. Such information, together with the ship's draft and list, shall be shown in the report of loading.

RULE E-30: Analysis. 

(a) Analysis shall be made in accordance with methods set forth in Chapter VII of the NCPA Trading Rules. If no applicable method is contained in said Chapter, analysis shall conform to that approved by the American Oil Chemists' Society and in effect on the date of the contract. 
(b) Chemical analysis shall be performed by an Official Chemist of the National Cottonseed Products Association or by one mutually acceptable to buyer and seller. 
(c) If the analysis indicates that the commodity does not meet contract specifications, a second analysis of the official sample shall be performed by another Official Chemist of the National Cottonseed Products Association not previously involved. 
(d) If the two above analyses do not agree, a referee chemist, acceptable to all parties, shall analyze the material and the mean of the two analyses coming closest together shall determine quality. If the parties concerned can not agree on the third chemist, the Secretary of the National Cottonseed Products Association shall make the selection.

Article 9. Arbitration 

RULE E-40: Agreement To Arbitrate. 

Sec. 1. Whenever parties enter into a contract under NCPA Cottonseed Oil Export Rules, they shall be deemed to have agreed to submit to arbitration any dispute(s), arising out of such a contract, which cannot be amicably resolved. 

Sec. 2. Parties to a cottonseed oil export contract, which contains general arbitration clause, are also eligible to initiate arbitration under these rules. In such cases, both parties shall advise the Association Secretary in writing of their willingness to arbitrate and to bide by the arbitrators' award. 

Sec. 3. When parties to a dispute agree to arbitrate under these rules and an arbitration is initiated hereunder, said parties agree that the NCPA Secretary shall act as administrator of the arbitration. Should the Secretary, for any reason, be unable to serve in this capacity, the Association president shall appoint a substitute with the authority to carry out all responsibilities assigned to the Secretary.

RULE E-41: Arbitrators. 

Sec. 1. The Export Committee on Cottonseed Oil shall establish and maintain a panel of Arbitrators, the members of which shall be appointed by the President. The panel shall consist primarily of members of the Association who are active in the export trade and such additional members as the President considers desirable. No person shall serve as an arbitrator in any dispute in which he has a financial or personal interest, direct or indirect. The principals in a dispute may, at their option, waive such disqualification by so notifying the Secretary in writing. 

Sec. 2. Arbitrations shall be conducted before a board of three arbitrators who shall be chosen from the panel of arbitrators or the Export Committee or both.

RULE E-42: Initiation of Arbitration. 

Any party to a contract made under these export rules or any party to an export contract for cottonseed oil containing a general arbitration clause, if the parties have agreed in writing to arbitrate under said rules, may commence an arbitration as follows:
(a) By giving written notice to the other party of intention (demand) to arbitrate. In addition to the name and address of the party upon whom demand is made, the notice shall contain (1) the date and other identification of the contract and the complete text of the arbitration clause, if other than Rule E-3; (2) a brief but specific statement of the dispute(s) to be arbitrated, the amount claimed, if any, and other relief sought; (3) a request of the other party to comply with the arbitration agreement; and the signature and address of the person authorized to act for the party giving the notice. 
(b) Two (2) copies of the notice described in (a) above, together with two (2) copies of the contract or such parts thereof including the arbitration provisions, as related to the dispute, and the appropriate fee, as provided in Rule E-52, shall be filed with the Secretary. The Secretary shall promptly notify the other party of such filing. 
(c) The party upon whom demand for arbitration is made may, if he so desires, file an answering statement in duplicate with the Secretary within seven (7) days after receiving the Secretary's notice provided in (b) above. If he does so, he shall send a copy of his answer to the other party. If no answer is filed within the stated time limit, it will be assumed that the claim is denied. Failure to file an answer shall not, however, operate to delay the arbitration.
(d) Parties to a dispute arising out of a contract, such as described above, may also initiate an arbitration by filing with the Secretary two (2) copies of a written agreement to arbitrate under these rules. Said agreement, signed by both parties, shall contain a statement of the matter in dispute, the amount of money involved, if any, and the remedy sought, together with the appropriate fee as provided by Rule E-52. 
(e) If, in any way dispute where arbitration has been demanded, the defendant fails or refuses to respond as required to the Secretary, the complainant may demand an ex parte arbitration. Such demand shall be made by letter or telegram addressed to the Secretary. Upon receipt of such demand, the Secretary shall notify the defendant that demand for ex parte arbitration has been made. If the defendant fails to respond as required to the Secretary, the Secretary shall refer the matter to an arbitration committee of the complainant's selection. He shall by telegram notify the defendant of the selection. The designated committee will proceed with the arbitration and its decision will be binding on all contestants involved. Any documents filed with the Secretary by the defendant before the case is heard may be considered by the committee if it so desires. Costs of the arbitration will be charged to the complainant but the committee shall, if it decides in the complainant's favor, add such costs to the award.

RULE E-43: Amendment of Claim. 

If, after a claim and answer, if any, have been filed, either party desires to make any new or different claim, he shall so notify the Secretary in writing and shall mail a copy of said notice to the other party in the dispute. The latter shall have seven (7) days from the date of such mailing to file an answer with the Secretary. After appointment of the arbitrators, however, no new or different claim may be submitted to them except with their consent.

RULE E-44: Site of Arbitration. 

Unless the arbitrators and the parties to a dispute agree on another U.S. location, arbitrations shall be held in New York, New York.

RULE E-45: Appointment of Arbitrators. 

Sec. 1. Immediately after the initiation of an arbitration, as provided in Rule E-42, the Secretary shall submit, to each party to the dispute, an identical list of names of persons eligible to serve as arbitrators. Each party shall have fourteen (14) days from the date of such mailing to examine the list, to cross off any names to which he objects, to number the remaining names in the order of his preference and to return the list to the Secretary.
 
Sec. 2. If either party fails to return the list within the time specified, all persons named thereon shall be deemed acceptable to said party or parties. From the persons approved by both parties and in accordance with mutual preference, if any, the Secretary shall invite arbitrators to serve. If any so invited decline or are unable to serve or if for any other reason, appointment can not be made from the disputants' selections, the Secretary shall have authority to make appointments from the list. 

Sec. 3. The Secretary shall notify each arbitrator of his appointment and the arbitrator shall, within five (5) days, advise the Secretary of his acceptance or rejection. 

Sec. 4. When notified of appointment, each arbitrator must inform the Secretary of any circumstances that might create a presumption of bias or in any way disqualify him as an impartial arbitrator. Upon receipt of any such information, the Secretary must immediately disclose it to the disputants. If the latter are willing to proceed under the circumstances disclosed they shall within five (5) days so advise the Secretary in writing. If either party declines to waive the presumptive disqualification, a vacancy shall exist.

Sec. 5. If any arbitrator should resign, die, withdraw, refuse or be unable or disqualified to perform the duties of his office, the Secretary shall, on proof satisfactory to him, declare the office vacant and shall proceed to fill such vacancy in accordance with Sections 1 and 2 of this Rule. If a hearing shall have begun prior to the occurrence of a vacancy, the matter shall be reheard, unless the principals agree otherwise.

RULE E-46: Oral Hearing. 

Sec. 1. The arbitrators shall fix the time and place of each hearing which shall be held within three (3) weeks of their appointment and shall immediately notify the Secretary of their decision. At least ten (10) days prior to the date fixed, the Secretary shall notify each party of the time and place of said hearing, The principals may, by mutual agreement, waive the time specified for such notice or modify the terms thereof; but final decision shall rest with the arbitrators. 

Sec. 2. Any party to an arbitration may be represented by counsel. A party intending such representation shall notify the other party of the name and address of said counsel and shall file copy of such notice with the Secretary at least three (3) days prior to the date set for the hearing at which counsel will first appear. If the initiation of an arbitration is made by counsel or if the reply of a party is made by counsel, such notice is deemed to have been given. 

Sec. 3. Upon request of one or both parties, the Secretary shall arrange for a stenographic record of the testimony. Unless otherwise directed by the arbitrators, the cost of such record and all transcripts thereof shall be paid equally by all parties ordering copies. 

Sec. 4. The Secretary shall arrange for the services of an interpreter when needed. The parties shall deposit the estimated cost of such service with the Secretary. 

Sec. 5. Persons having a direct interest in an arbitration are entitled to attend hearings. The arbitrators may determine the propriety of attendance by other parties and shall have the power to require the retirement of any witness or witnesses during testimony by others. 

Sec. 6. Upon request and for good cause shown by any party to the proceeding, or upon their own initiative, the arbitrators may take one or more adjournments; when all parties agree thereto, an adjournment shall be taken. 

Sec. 7. Before proceeding with the first hearing or with examination of the file, as provided in Sec. 9 of this Rule and in Rule E-47, each arbitrator shall take an oath of office administered by the Secretary. The arbitrators may, at their discretion, require witnesses to testify under oath administered by any qualified person; if required by law or demanded by either party, they must do so.

Sec. 8. All decisions of the arbitrators shall be by majority vote. Unless otherwise required by the arbitration agreement or the law, the award shall also be made by majority vote. 

Sec. 9. A hearing shall be opened by the filing of the oaths of the arbitrators and by recording the place, time and date, the presence of the arbitrators, parties and counsel, if any, and by the receipt by the arbitrators of the submission or statement of claim and answer, if any. The arbitrators may, at the beginning of the hearing, request statements clarifying the issues involved. The complaining party or his counsel shall then present his claim and proofs and his witnesses. When offered by either party, exhibits may be received in evidence. When so received, they shall be numbered and made part of the record. A list of the names and addresses of all witnesses shall be placed in the record. AlI persons who testify shall be subject to questioning or other examination by opposing party, his counsel and the arbitrators. The arbitrators may, at their discretion, vary this procedure but shall afford full and equal opportunity to all parties to present any relevant material and proofs. 

Sec. 10. An arbitration may proceed in the absence of any party who, after due notice, fails to appear or to obtain an adjournment. An award shall not be made solely on the default of a party. The arbitrators shall require the other party to submit such evidence as they consider necessary for the making of an award. 

Sec. 11. The parties may offer such evidence as they desire and shall produce such additional evidence as the arbitrators deem necessary to an understanding and determination of the dispute. If authorized by law to do so, the arbitrators may subpoena witnesses or documents, on their own initiative or the request of either party. The arbitrators shall decide the relevancy and materiality of the evidence offered; and conformity to legal rules of evidence shall not be necessary. All evidence shall be taken in the presence of all arbitrators and of all parties to the proceeding, except any party who is absent in default or has waived his right to be present. 

Sec. 12. The arbitrators may but are not required to receive and consider evidence in the form of affidavits. They may give that evidence only such weight as they consider appropriate, after consideration of any objections that may be made to its admission. All documents not filed with the arbitrators at the hearing but which the parties, at the hearing or subsequently, agree shall be submitted shall be filed with the Secretary for transmission to the arbitrators. All parties shall be given an opportunity to examine such documents. 

Sec. 13. Whenever the arbitrators deem it necessary to make an inspection or investigation, they shall direct the Secretary to inform the parties of their intention and the time and place thereof. Any party or his representative or counsel who so desires may be present at such inspection and investigation. If any party is not present, the arbitrators shall make a verbal or written report to such absentee(s) and afford him an opportunity to comment or give testimony relating thereto. 

Sec. 14. Before closing a hearing, the arbitrators shall inquire of all parties whether they have any further evidence or witnesses to present. Upon receiving negative replies, the arbitrators shall declare the hearing closed, and shall record the time thereof. If either party desires to file briefs or to submit documents identified as exhibits during the hearing, the arbitrators shall fix a date within which such material may be filed. 

Sec. 15. The hearings may be reopened by the arbitrators on their own motion or upon the request of any party, for good cause shown, before the award is made.

RULE E-47: Procedure Other Than Oral Hearing. 

Sec. 1. By written agreement, the parties may submit their dispute to arbitration by other than oral hearing. The arbitration shall be conducted in accordance with these rules. 

Sec. 2. If no method is specified by the parties, the Secretary shall notify each party to submit to him in writing the party's contentions, including a statement of facts duly sworn to, together with such other supporting evidence as may be pertinent. Such statements and proofs may be accompanied by written arguments or briefs. All such material shall be submitted within seven (7) days after receipt of the Secretary's notice and in the number of copies the Secretary may request. The Secretary shall promptly transmit to each party a copy of the other party's statement and evidence. Each party, in turn, may reply. Failure of any party to reply within seven (7) days after receipt of such documents shall be considered a waiver of the right to reply. 

Sec. 3. The Secretary shall transmit to the duly appointed arbitrators copies of all materials submitted to him under Section 2 of this Rule. The arbitrators shall have ten (10) days from the date they receive these documents within which to request either or both parties to produce additional evidence. The Secretary shall transmit this request to the party or parties involved and they shall have seven (7) days from the receipt of such notice to submit the requested information to the Secretary who shall provide each party with a copy of the material furnished by the other party. Each party may reply but failure to do so within seven (7) days after receipt of the material from the Secretary shall be considered a waiver of that right. 

Sec. 4. When the foregoing time limits have elapsed, the Secretary shall forward any additional requested evidence and replies to the arbitrators who shall meet at the earliest practicable date, consider all evidence and make the award.

RULE E-48: Waiver of Objections. 

Any party who proceeds with an arbitration, after receiving knowledge that any provision of these Rules has not been complied with and who fails to state in writing his objection thereto, shall be deemed to have waived his right to object.

RULE E-49: Extensions of Time. 

By mutual agreement, the parties to an arbitration may, for good cause, modify the time limits provided in these Rules. The arbitrators, also, for good cause, may extend the time limits except that requiring the prompt rendering of the award. The arbitrators must notify the parties of any such extension and the reason therefore.

RULE E-50: Service of Notices. 

Each party to a submission or other agreement providing for arbitration under these Rules shall be deemed to have agreed or shall agree that any papers, notices or process necessary or proper for the initiation or continuation of such arbitration and for any court action in connection therewith or for the entry of judgment on any award made there under may be served upon such party (a) by certified mail addressed to the party or his attorney at his last known address or (b) by personal service within or without the State wherein the arbitration is to be held, whether such party be within or without the United States of America; provided, that reasonable opportunity to be, heard shall be granted to every such party.

RULE E-51: The Award. 

Sec. 1. The arbitrators shall render their award promptly and, in any event, within thirty (30) days after all evidence permitted by these Rules has been received. 

Sec. 2. The award shall be in writing and shall be signed by each of the arbitrators. It shall be executed in the manner required by law. 

Sec. 3. The arbitrators may grant any remedy or relief which they deem just and equitable within the scope of the agreement between the parties, including but not limited to specific performance of the contract. In their award, the arbitrators shall assess the arbitration fees and expenses as provided in Rules E-46 and E-52. They may assess such charges in favor of any party and shall assess any administrative fees or expenses in favor of NCPA. 

Sec. 4. If the parties settle their dispute during the course of an arbitration, the arbitrators may set forth the terms of such a settlement in an award. Such a settlement shall not relieve the parties to the dispute of their obligation to pay costs actually incurred. 

Sec. 5. The parties shall accept as legal delivery of the award (a) the Secretary's dispatch of the award or a true copy thereof via certified mail to the parties or their attorneys at their last known addresses; (b) personal service; or (c) the filing in any manner prescribed by law. 

Sec. 6. Upon written request, the Secretary shall furnish to any party, at the latter's expense, certified copies of any papers in his or the arbitrators' possession that may be required in judicial proceedings related to the arbitration. 

Sec. 7. For the purpose of closing the record, the Secretary may request either party to notify NCPA of compliance with the award.

RULE E-52: Deposits, Expenses and Fees. 

Sec. 1. NCPA may require the parties to an arbitration to deposit in advance such sums of money, including the arbitrators' expenses, as it deems necessary to defray the expenses of the arbitration. When the arbitration is concluded, the Secretary shall render an accounting to the parties and return to them any unexpended balance, subject to the award. 

Sec. 2. The expenses of witnesses shall be paid by the party producing such witnesses. The expenses of a stenographic record and an interpreter shall be paid as provided in Rule E-46, Sections 3 and 4. All other expenses including the expenses of any witness or the cost of any evidence produced at the direct request of the arbitrators, shall be borne equally by the parties to the dispute, unless they otherwise agree or unless the arbitrators in their award assess such expenses or any part thereof against any specified party or parties, as provided in Rule E-51. The arbitrators shall award to NCPA any expenses advanced or paid by it and any fees due and remaining unpaid by any party responsible therefore. 

Sec. 3. Arrangements for arbitrators' expenses shall be made through NCPA and not directly by the parties to the dispute.

RULE E-53: Interpretation and Application of the Rules. 

The arbitrators shall interpret and apply these export rules as written. Any differences of opinion shall be decided by a majority vote of the arbitrators who may at all times call on the Secretary for assistance and advice in reaching their decision.

Article 10. Amendments 

RULE E-60: Amendment Procedure. 

These export rules shall be amended in the same manner as is provided in Article II, Section 1, of the Association's By-Laws for amendment of the NCPA Trading Rules.

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