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The International Cotton Association Ltd Your Partner in International Cotton Business

The International Cotton Association Ltd Your Partner in International Cotton Business. On 9th December 2004, the name Liverpool Cotton Association was changed to the International Cotton Association. Our Standards:-. Integrity. Reliability. Impartiality. Service.

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The International Cotton Association Ltd Your Partner in International Cotton Business

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  1. The International Cotton Association Ltd Your Partner in International Cotton Business

  2. On 9th December 2004, the name Liverpool Cotton Association was changed to the International Cotton Association

  3. Our Standards:- Integrity Reliability Impartiality Service

  4. International Membership Members from about 60 countries involved in the Cotton business:- Growers Spinners Merchants Controllers Banks Insurance companies All these are represented on our Board of Directors, to ensure impartiality and balance

  5. International Membership Currently estimated 70-80 percent all the raw cotton traded internationally, bought and sold subject to the International Cotton Association Rules – otherwise known as the- “INTERNATIONAL RULES”

  6. The International Rules are designed to be fair to both buyer and seller protecting and reflecting their interests on a totally impartial basis. The ICA provides support to an Industry whose value in trade exceeds 20 billion U$ year without a single bale of this cotton, physically passing through Liverpool. The location of Liverpool as a neutral location, guarantees our impartiality.

  7. Our Objectives To serve buyers and sellers of raw cotton by facilitating and promoting fair trading. To reduce the risks involved in international trading by providing a clear framework of rules within which both buyer and seller can operate To support the philosophy of sanctity of contracts for all parties, on an international level

  8. Our Objectives To provide Trading rules supported by a standard, simple proforma ICA contract An Arbitration service producing Awards that can be enforced in the courts of most countries in the world To provide Protection for all parties, by way of a clear, internationally recognised set of Trading Rules and Arbitration procedures.

  9. PROTECTION FOR INTERNATIONAL COTTON BUSINESS INTERNATIONAL COTTON RULES

  10. Who benefits from using the International Rules? The International Rules are intended to apply to all parties involved in the cotton chain: Growers Ginners Shippers Agents Spinners

  11. International Rules Protection Cotton Grower Cotton Shipper Cotton Ginner Cotton Spinner

  12. THE INTERNATIONAL RULES AND BYLAWS OF THE ICA: “THE INTERNATIONAL RULES”

  13. International Rules You may not be able to see into the future…but you can prepare for it.

  14. The International Rules The ICA Trading Rules anticipate what can go wrong with a contract- and provide Rules that let both Buyers and Sellers, to deal with it. These Rules act as PROTECTION for your business, by setting out your RIGHTS The Rules can supplement your contract, or form the basis of your contract. This is looked at later in more detail.

  15. The International Rules • By adopting and applying the ICA Rules to your contract, you will know what your rights are in the case of any: • Late shipment • Late opening L/C’s • Sampling of cotton • Quality Problems • Underweight, or overweight shipments • Insurance for shipments • Closing out contracts

  16. The Bylaws and Rules book

  17. The International Rules The Rules are a framework recommended for the purchase and sale of raw cotton. International Football- both sides agree to play to the same rules. International Trade - buyers and sellers can agree to trade on the same rules

  18. The Referee in a football match is there to ensure that both teams play by the rules- and if they do not, that the other team’s rights are to be respected The ICA offers this service - to referee the “game” of cotton

  19. REMEMBER!! The Trading Rules provide the framework for a contract. But the parties must decide if they are acceptable in every detail. This means that they can, if they agree, exclude some of the Rules. “ICA Rules and Arbitration” in your contract means both parties must apply and observe these Rules UNLESS both parties have also agreed that a RULE should not apply, or should be altered in some way.

  20. The International Rules What happens if a contract breaks down? Rules 225 provides for closure and invoicing back. “If for any reason a contract has not been, or will not be, performed (whether due to a breach of the contract by either party or due to any other reason whatsoever) then that contract must be closed by being invoiced back to the seller in accordance with our rules in force at the date of the contract”

  21. Arbitration Arbitration The Role of the Association as an Arbitral Authority

  22. ARBITRATION • Arbitration is by definition: - • ‘The voluntary submission of a dispute between two parties for a decision by a third party or two other parties of their choice’

  23. ARBITRATION ICA cannot advise arbitrators what to decide, or even to assist them to decide. The Association’s role is to facilitate, and manage the arbitration process ICA procedures are based upon the Arbitration Act 1996, and incorporate the mandatory provisions of this Act.

  24. Why choose Arbitration? 1) privacy 2) convenience 3) cost 4) speed 5) expertise 6) satisfaction

  25. Choosing Arbitration By specifying “Arbitration” in your contracts- you are agreeing to chose Arbitration to resolve your disputes There must first be an agreement between the parties that the dispute will be decided by Arbitration – The Arbitration Agreement Where might you find an Arbitration Agreement?

  26. The Arbitration Agreement It can be written in to the Contract Or evidenced in writing, as agreed between the parties

  27. ARBITRATION There must be something in writing which evidences the fact that arbitration was agreed by the parties. This could be recorded by: Fax Correspondence Email

  28. ARBITRATION We recommend using the following wording from our ICA Contract, as your Arbitration Agreement: “All disputes relating to this contract will be resolved through arbitration in accordance with the bylaws of the International Cotton Association Limited.” This wording incorporates the Bylaws which set out the Association’s arbitration procedure.

  29. ARBITRATION Your Contract (and Arbitration agreement) may be on one piece of paper, but they are considered to be separate agreements. This means that Arbitration Agreement is not affected if the Contract is unenforceable for some reason

  30. ICA ARBITRATION ICA MEMBERS No application fee/or A reduced application fee NON-MEMBERS Application fee This will be reduced if decide to also become a member when apply for Arbitration

  31. ARBITRATION Who CANNOT use ICA Arbitration? .

  32. ICA Members that have been expelled or suspended may be prevented from commencing arbitration under the Association’s Bylaws • ICA Members who have traded with a defaulter • If a non-registered firm has traded with firm listed on the ICA or CICCA default list then it too will be refused arbitration facilities.

  33. ARBITRATION “Disputes will be resolved in a fair and impartial manner”

  34. The ICA List of Unfulfilled Awards

  35. The ICA List of Unfulfilled Awards (or “Default List”) The ICA can offer further protection to the International Trade

  36. ICA list of “Unfulfilled Awards” The ICA expects parties to honour Arbitration Awards If an Award is not honoured, the ICA can take steps to publish the details of the other party or (“Defaulter”) on a List, which is sent to the Membership. ICA Members may be subjected to disciplinary action if they trade with a Defaulter

  37. How does this work? A Party must fail to honour an Award The ICA must receive a request to list the defaulter The ICA will check the facts If complaint is upheld: ICA Members and CICCA Member Associations may be informed.

  38. Enforcement of Awards • The ICA Default List is NOT a substitute for formal enforcement of an Award • If you have not been paid, you will have to pursue the payment through the courts

  39. Enforcement of Awards 1958 New York Convention (The Convention on the Recognition and Enforcement of Foreign Arbitral Awards). Under the Convention signatory will require that the country under which the arbitration was conducted must also be a signatory. Most of the countries in the world are signatories.

  40. English Law & Arbitration Act 1996 1958 New York Convention International Rules Protection Cotton Grower Cotton Shipper Cotton Ginner Cotton Spinner

  41. Our Membership is growing internationally More countries are trading on ICA Rules If you choose not to- you may be left behind

  42. Acceptance, Understanding, Application of the International Rules, means we have a level playing field for International Trade

  43. Always be prepared International Cotton Rules

  44. The International Cotton Association has members all over the world… …and more people are adopting the International Rules

  45. OUR OTHER SERVICES Publications and circulars. Membership directory contact addresses members Laboratory fitted with HVI Spectrum Full range of standard boxes Quality arbitration facilities On-line Guidebook to Arbitration Procedures Opportunity to Train as a Technical Arbitrator

  46. OUR ANNUAL EVENTS • International Cotton Trade Seminar • Educational two week conference on all aspects of the raw cotton trade • International Cotton Trade • Conference andDinner • Keynote presentations from international speakers. • Dinner for 800 delegates and guests

  47. Change is constant, we need to embrace the world. Communications are instantaneous, cost are rising, and markets growing. We welcome new members to join us and reinforce this vital ingredient of our business

  48. Let us get together make a strong Association for the long term protection of our industry. The International Cotton Association of the future

  49. World wide harmony International Cotton Trading Rules

  50. The International Cotton Association Ltd Your Partner in International Cotton Business

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