inal ersion 1.0 for use fro 1 uly 2013 Better Cotton Chain of Custody ...€¦ · from this purchase may be allocated to an equal quantity of conventional cotton from any country

Better Cotton Chain of Custody Guidelines | 1 www.bettercotton.org

Final version 1.0 for use from 1 July 2013

Better Cotton Chain of Custody Guidelines

Table of Contents 1.0 Introduction 2

2.0 Scope 3

3.0 Definitions/Terminology 5

4.0 Content of each section 6

5.0 Ginners 7

6.0 Traders(cottonlint/balesonly) 10

7.0 Spinners 13

8.0 Allothersupplychainactors(betweenspinnerandretailer) 17

9.0 Retailersandbrands 20

Annex1–Segregation&AdministrativeMass-Balance 22

Annex2–OutputDeclarationSAMPLES 23



1.0 IntroductionBCIexiststomakeglobalcottonproductionbetterforthepeoplewhoproduceit,betterfortheenvironmentitgrowsinandbetterforthesector’sfuture.BCIworkswithadiverserangeofstakeholderstopromotemeasurableandcontinuingimprovementsfortheenvironment,farmingcommunitiesandtheeconomiesofcotton-producingareas.BCIaimstotransformcotton production worldwide by developing Better Cotton as a sustainablemainstreamcommodity.

BCI’s specific aims are to:

1. Reducetheenvironmentalimpactofcottonproduction

2. Improvelivelihoodsandeconomicdevelopmentincottonproducingareas

3. ImprovecommitmenttoandflowofBetterCottonthroughoutthesupplychain

4. EnsurethecredibilityandsustainabilityoftheBetterCottonInitiative

Building on the Better Cotton successes to date in creating positive change for theenvironmentandfarmingcommunities,andgrowingdemandfromBCIRetailerandBrandmembers, BCI has set robust targets for the future: to increase Better Cotton volumeproductionto2.6mMTby2015and8.2mMTby2020.

TheBCI Production Principles and Criteria provide a global definition of Better Cottonand include social and environmental criteria that are applicable to producers. TheseBetter Cotton Chain of Custody (CoC) GuidelinesprovideguidanceonBetterCottonCoCrequirementsforallsupplychainactorsafterproducerlevel,includingRetailersandBrandswhomakeclaimsabouttheirBetterCottonprocurement.

TheChain of Custodymechanism employed after gin level is an administrativeMass-Balance(MBa)system,whichallowsforBetterCottontobesubstitutedwithconventionalcotton, and ensures that the quantity of Better Cotton purchased with a Better CottonclaimisequaltothequantityofcottonsoldwithaBetterCottonclaim.ThissystemdoesnotrequirethattheBetterCottondata(e.g.balenumbers)mustremainassociatedwithphysical Better Cotton.

http://www.bettercotton.org/files/BCSInfoPack/2A_Production_Principles_and_Criteria_2.0_final_eng_ext.pdf



2.0 Scope Ginners will implement the Segregation CoCGuidelines at Site Level, and the BetterCottonCoCrequirementsanddatawillbemaintainedateachginsiteindividually.

Traders1 ofcottonlintwillimplementtheMBaCoCGuidelinesatCountryLevel,coveringmaterial from thesamecountryoforigin.Forexample: ifa traderbuysBrazilianBetterCotton, the claim associated with this purchasemay be allocated to any conventionalBrazilian cotton thatmay be in a different sitewithin Brazil, as long as it is owned bythetrader.ThetradercannotallocateclaimsfromBrazilianBetterCottontoconventionalcottonortoBetterCottonfromadifferentcountryoforigine.g.Mali.

Other Supply Chain Actors will implementtheMBaCoCGuidelinesatSiteLevel.TheCoCrequirementsanddatawillbemaintainedateachsiteownedbyanorganisationorsupplychainactor.Forexample:ifaspinnerbuysBrazilianBetterCottonthentheclaimfromthispurchasemaybeallocatedtoanequalquantityofconventionalcottonfromanycountryoforiginas longas it isownedby thespinner,and locatedat thesamesiteofprocessinge.g.conventionalcottonfromIndia.

a) Membership requirements

GinsmayhandleBetterCottonandmakeclaimsaboutBetterCottonavailabilitywithoutformalmembership of theBCI.However, all gins processingBetterCotton need to belistedwithandtrainedbylocalBCIstaff.GinsprocessingBetterCottonaresubjecttotherequirementsoftheBCI Ginner Monitoring Guidelines and associated annexes.

RegisteredMembershipofBCIisobligatoryforthosetradersandspinningmillsthatwishtoaccesstheBetterCottonTraceabilitySystem.SpinningmillsandtradersarenotpermittedtomakeclaimsaboutBetterCottonuseandsourcingiftheyarenotRegisteredMembersof BCI.

Supply chainactors, after spinner level,whodonotholdBCImembershipmayhandleproductswithallocatedBetterCottonclaimsbutcannotmakeanysourcingclaims(exceptprovidingtheofficialOutput Declaration,seesectiononothersupplychainactors).

UseoftheBetterCottonTraceabilitySystemisrequiredbyallatginner,trader,spinner,andretailerlevels.In2013,theBetterCottonTraceabilitySystemconsistsoftheBaleTrackingSystem(BTS)andtheBetterCottonTracer.Overtime,BCIwilluseonlyoneTraceabilitySystem.OverallitismoreadvantageoustobeamemberofBCIateverylevel.

1 All reference to traders in this documentistotraders of cotton lint only.

http://bettercotton.org/site_v2/wp-content/uploads/2013/07/Tool-5-Ginning-Monitoring-Guidelines.-July-2013.pdf

http://bettercotton.org/site_v2/wp-content/uploads/2013/07/Tool-9-Output-Declaration-Forms.July-2013.pdf



b) List of BCI tools available

These Better Cotton Chain of Custody Guidelines together with a number of otherdocumentswillformasuiteoftoolstosupporttheBetterCottonChainofCustody.Supplychainactorswillbetrainedontheseatdedicatedevents.Othertoolsinclude:

BeTTer COTTOn ChAIn Of CuSTOdy TOOLS Relevant foR:

Tool1 IntroductiontoRegisteredMembership All

Tool2 Better Cotton Chain of Custody Guidelines All

Tool3 Better Cotton Supply Chain updates All

Tool4 FAQsforSuppliers&Manufacturers All supply chain actors betweenginandretailer

Tool5 BCIGinnerMonitoringGuidelines Ginner

Tool6 Support tools for Ginners (gin declaration form,informationtocreateBTSaccountetc.)

Ginner,Trader,Spinner,Retailer

Tool7 Terms and Conditions of Better CottonTraceability System (BTS and Better CottonTracer)

Ginner,Trader,Spinner,Retailer

Tool8 BetterCottonTraceabilitySystemUsermanual(BTSandBetterCottonTracer)

All supply chain actors betweenginandretailer

Tool9 OutputDeclaration formsforallactorsnotusingtheBetterCottonTraceabilitySystem2

All supply chain actors betweenspinnerandretailer

Tool10 BetterCottonClaimsFramework All

Tool11 BCIMembershipCodeofPractice Allmembers

Tool12 VolumeBasedFeebriefing Retailers

2 Output Declarationformsforactorsusingthe Better Cotton TraceabilitySystem(tradersandspinners)aregeneratedautomaticallybythe Better Cotton Tracer.



3.0 Definitions/terminology Term defInITIOn

BaleTrackingSystem(BTS)

PartoftheBetterCottonTraceabilitySystem.OnlinetoolusedbyginnerstorecordpurchasesofBetterCotton.

Better Cotton Chain of Custody

Thedataanddocumentationflowthroughthesupplychain,fromthefarmertothefinalretailertoprovethattheBetterCottonvolumesbeingclaimedbyretailersareequaltothevolumeofBetterCottonbeingproducedatfarmlevel.

Better Cotton Chain of Custody Guidelines

BCI’srequirementsforsupplychainactorsimplementingclaim/datamanagementsystemsforhandlingBetterCottonproducts.

BetterCottonClaimUnits(BCCU)

TheunitsofconventionalcottonthatcanbesubstitutedforequivalentunitsofBetterCotton.AnequivalentquantityofphysicalBetterCotton(1kilo)thatmaybeallocatedtoacorrespondingquantityofconventionalvirgincottonorvirgincottoncontentinyarn.ABCCUcannotbesmallerthan1kilo.

BetterCottonTraceabilitySystem

ConsistsoftheBTSandtheBetterCottonTracer.BCIonlinesystemsfortrackingBetterCottonclaimstobeusedbyginners,traders,spinnersandretailerswishingtomakeaclaimabouttheirBetterCottonuse.

BetterCottonTracer PartoftheBetterCottonTraceabilitySystem.Onlinetoolusedbytraders,spinnersandretailerstorecordpurchasesandsalesofBetter Cotton.

Buyer(purchaser) Thenextactorinthesupplychainwhoistakinglegaland/orphysicalownershipoftheBetterCottonproduct.

ChainofCustody(CoC)system

TherecordkeepingsystemimplementedbyeachsupplychainactorinordertoensurethattheBetterCottoninputsandoutputsarebeingmaintainedinlinewiththeCoCGuidelines.ThisisinadditiontotheentryofdataontheBetterCottonTraceabilitySystem.

MassBalanceAdministrative(MBa)

AsystemforadministrativelymonitoringtheinputsandoutputsofBetterCotton.ItallowsforsubstitutionofBetterCottonwithconventionalcottonprovidedthattheoutputsofBetterCottondonot exceed the inputs of Better Cotton.

Products Thephysicalgoodsthatarebeingpassedalongthesupplychain.Thesemaybefinishedorunfinished.

Scope TherangewithinwhichphysicalBetterCottoncanbesubstitutedbyconventionalcotton.Countryscope–substitutionfromthesamecountryoforigin.Sitescope–substitutionfromanycountryoforiginbutonlywithinonesite.

Segregation AsystemforphysicallymonitoringtheinputsandoutputsofBetterCotton.BetterCottonproductsmustbekeptseparate(segregated)fromconventionalcottonproducts,andtheoutputsofBetterCottonshould not exceed the inputs of Better Cotton.

Site Ageographicallocation(withinpreciseboundaries)whereasupplychainactorcarriesoutproductionorprocessingprocedures.

Supplier Theprevioussupplychainactorinthesupplychainwhoispassingonlegaland/orphysicalownershipoftheBetterCottonproduct.

Supply chain Theseriesoforganisationsthathandleacommodityduringproduction,processing,shippingandretail.

Supply chain actor TheentitythatishandlingBetterCottonproducts.

Traderofcottonlint Anorganisationthattakeslegaland/orphysicalownershipofcottonlintbutdoesnotundertakeanyproducttransformation(processingandproductionforexample).Duringtransportbetweentheactors(supplier,traderandbuyer)thecottonlintmaycrossinternationalborders.



4.0 Content of each sectionForeaseofreferencetheCoC Guidelines havebeendesignedtoallowadedicatedsectionforeachsupplychainactorwithintheBetterCottonsupplychain.Therelevantsectionsarealsoavailablewithineachactor’saccountontheBetterCottonTraceabilitySystem(BTSandBetterCottonTracer).Thesectionscoverthefollowing:

a) Documented procedures, training and responsibilities GuidanceregardingtheproceduralandtrainingrequirementsforeachsupplychainactorforsuccessfulimplementationoftheBetterCottonCoC.

b) records High-levelguidanceregardingthemaintenanceofdatarecordsbyeachsupplychainactorforsuccessfulimplementationoftheBetterCottonCoC.

c) material input records SpecificguidanceregardingthecollectionofdatafromsellerstomaintaintheBetterCottonCoCincludingstandardformatsinwhichthisinformationshouldbecollected.ThisisinadditiontotheenteringofinformationontheBetterCottonTraceabilitySystem(eitherontheBTSortheBetterCottonTracer).

d) material output records SpecificguidanceregardingthepassingonofinformationtobuyerstomaintaintheBetterCottonCoCincludingstandardformatsinwhichthisinformationshouldbecollected.ThisisinadditiontoenteringrequiredinformationinBetterCottonTraceabilitySystem(eitherontheBTSortheBetterCottonTracer).

e) Better Cotton traceability System High-levelguidanceonthefunctioningoftheBetterCottonTraceabilitySystem (eitherfortheBTSortheBetterCottonTracer),onlytobeusedinconjunctionwiththeBetter Cotton Traceability System User Manual (BTSorBetterCottonTracer)andinadditiontothemaintenanceofotherrecordsasindicatedabove.

f) Physical Better Cotton GuidanceonthetreatmentofphysicalBetterCottonbythespecificsupplychainactor,inlinewitheitheraSegregationCoC(ginners),oranMBaCoC(allothersupplychainactorsincludingtradersandspinners).

g) outsourcing Guidanceontheuseofthirdpartiesorsubcontractors(forbothbuyingandsellingproducts)inordertoensurethesuccessfulimplementationoftheBetterCottonCoC.

h) Penalties DescriptionofpenaltiesapplicabletoeachactorincaseofwilfulmisuseorbreachoftherulesoftheBetterCottonTraceabilitySystemandtheBetter Cotton Chain of Custody Guidelines.

i) Claims RulesonpermissibleclaimsregardingBetterCottonuse.ImportantspecificsregardingtheBetter Cotton Claims Framework.Anynon-conformitywiththerequirementsoftheseGuidelineswillbesubjecttopenaltiesdefinedintheGinner Monitoring Guidelines or the BCI Membership Code of Practice,dependingontheactor in question.

(Allthesectionsmentionedabovemaynotberelevanttoeachsupplychainactor.Wherethisisthecase,onlyrelevantsectionshavebeenincluded.)

http://bettercotton.org/site_v2/wp-content/uploads/2013/06/BC-Claims-Framework-MS.pdf



5.0 Ginners 5.1 Documented procedures, training and responsibilities5.1.1 Theginnermaintainswritten procedures covering the requirements of theBetter

Cotton CoC Guidelines.3

5.1.2 Theginnerkeepsacopyof theBetter Cotton CoC Guidelines and Better Cotton Traceability System User Manual (BTS)oneachofthepremiseswhereBetterCottonbalesareproduced(asoftcopyisacceptable).

5.1.3 The ginner identifies the persons who are responsible for implementing eachprocedureandensuresthattheyhaveadequatetraining4andthequalificationstoimplementtheprocedure.

5.1.4 TheginnerappointsamanagementrepresentativewithoverallresponsibilityfortheimplementationoftheBetterCottonCoCandrecordingrelevantdataontheBTS.5

5.2 records5.2.1 Theginnerimplementsarecordkeepingsystem(CoCSystem)tomaintaincomplete

andup-to-daterecordscoveringallaspectsoftheBetterCottonCoC.

5.2.2 Recordsmustberetainedforatleastfive(5)yearsandopenforverificationbyBCIinlinewiththeGinner Monitoring Guidelines (softcopyisacceptable).

5.3 material input records5.3.1 TheginnerchecksthattheBCIProducerUnit(PU)licensecodeandanysupporting

documentation is availableandaccurate to thebest of his/her knowledgebeforeenteringthisinformationontheBTS.

5.3.2 TheginnerensuresthatthequantityofseedBetterCottonreceivedisincompliancewiththesupplieddocumentationbeforeitisrecordedontheBTS.

5.3.3 TheginnerensuresthattheseedBetterCotton(receivedfromqualifiedBetterCottonfarmers) isaccompaniedbyallrelevant informationrequiredfortheBetterCottonCoC.Thisshouldinclude–

»Nameandaddressoftheseller

» Date of declaration

»VolumeofseedBetterCottondelivered(weightinkilos)

»Descriptionofproduct(qualityparameters6)

»OriginofseedBetterCotton(PUlicensecodeandcountry)

»Typeofcotton:CmiA-BCorBC

5.3.4 The ginner ensures that a mechanism is in place for handling non-conformingmaterial/documents. In the event that non-conformity is identified, BCI will takeappropriateactioninlinewiththeGinner Monitoring Guidelines includingapplicationofpenaltiesandassociateddisputeresolutionmechanisms.

5.4 material output records5.4.1 The ginner ensures that the lint Better Cotton is accompanied by an Output

Declaration.Thisshouldinclude–

3 Thedetailintheproceduresmayvaryinaccordancewiththesizeandcomplexityoftheorganisation.4Thelevelandstructure of thetrainingwilldependonthesizeandcomplexityoftheorganisation.Trainingmayinclude BCI trainingprovidedtonon-memberginnersinterestedinprocessingBetter Cotton. BCIwilltrainamaximumofthreerepresentativespercompany.Any additional staffsrequiringtrainingaretheresponsibilityoftheorganisationinquestion. 5 All user details captured on theBTScanbeeditedbytheBCIonrequeste.g.changeinstaffduetoturnover,additional trained staff etc. 6Informationon quality is not compulsoryandBetter Cotton can berecognisedas such in the absenceofthisinformationaslongasallotherrequirementsarefulfilled.






»Nameandaddressofthesellerandbuyer


»VolumeoflintBetterCotton(netweightinkilos)

»Numberofbales

»Correspondinglocalidentificationnumbers(e.g.lotnumbers)

»Descriptionoftheproduct(qualityparameters7)

»OriginoflintBetterCotton(gincodeandcountry)


5.4.2 The ginner also provides any additional relevant transport documentation to thetrader/spinner.

5.5 Better Cotton traceability System (BtS) 5.5.1 TheBTSgeneratesauniquegincodeforeachgin.

5.5.2 Inthecaseofginnerswhoarealsotraders,twoseparateaccountsaremaintainedon theBTSand theBetterCottonTracerwith different functionalities as per therequirementsoftheBetter Cotton CoC Guidelines.

5.5.3 TheginnerensuresthatthequantityofBetterCottoninputsandoutputs(byweight)ismonitoredandupdatedonareal-timebasis.

5.5.4 TheginnerenterstherequiredinformationontheBTSinrealtime.BCIreservestherighttoconductrandomginchecks(inlinewiththeGinner Monitoring Guidelines)toensurethatdataisbeingenteredontheBTSinatimelyfashion.

5.5.5 Theginnerensures that the turnout ratio (percentage lossduringprocessing) isaccurately calculated, documented and communicated to BCI during creation ofginnerprofiles.8

5.5.6 TheginneronlydeliverslintBetterCotton/BetterCottonbalesfromapositiveseedBetterCottonaccount, i.e.where volumesof seedBetterCottonare equal to orexceedvolumeoflintBetterCotton(takingintoaccountthelosspercentage).

5.5.7 SeedBetterCottonvolumesarevalidfromthetimeatwhichtheyareenteredontheBTS.Thesevolumesremainvaliduntilthecorrespondinglintquantityisclaimedbybuyers(spinnerortrader).

5.6 Physical Better Cotton5.6.1 Theginner ensures that seedBetterCotton is segregatedandstored separately

fromconventionalcotton.

5.6.2 TheginnerensuresthatseedBetterCottonissegregatedandprocessedintobalesseparatelyfromconventionalcotton.ThereisnorequirementthattheginbecleaneddownpriortocommencingginningoftheBetterCotton.9

5.6.3 GinnersidentifyeachBetterCottonbalewiththestandardisedlocalbaleidentificationnumberANDpassonthisinformationinanOutput Declarationaccompanyingthebales.

5.6.4 OnlyginnermembersofBCIareallowedto identifyaBetterCottonbalewith theBCIlogo.Thenon-memberginnermaynotmakeuseoftheBCIlogotoidentifyanyBetterCottonbales.

7Informationonquality is not compulsoryandBetter Cotton can berecognisedas such in the absenceofthisinformationaslongasallotherrequirementsarefulfilled.8Thepercentagemateriallossisdependent on a rangeoffactorsandwillvarybetweengins.Therangeofturnoutratiosallowedper country is determinedbyBCIinadvanceofginaccount creation ontheBTS.9 It is optional for ginnerstocleandowntheginbeforehand.Ifthe 100 % Better Cottonbalesareproducedfollowingacleandown,theginnermaywishtorecord this in case potentialbuyersare interested inknowingthisinformation.




5.7 outsourcing5.7.1 Ifaginner,wishingtobuyseedBetterCottonorselllintBetterCotton,outsources

activities to a subcontractor or independent organisation (e.g. middlemen orconsolidatorsforthepurchaseofseedcottoninSouthAsia)thentheginnerensuresthat the subcontractor or independent organisation complies with the intent andrequirementsoftheBetter Cotton CoC Guidelines.

5.7.2 In the case of the use of third parties, all reporting on theBTS regardingBetterCottonpurchasesandsalesistheresponsibilityoftheginnerwhohasoutsourcedtheactivity.

5.7.3 TheginnerensuresthatthesubcontractororindependentorganisationiswillingtoprovideunrestrictedaccesstotheiroperationsandsystemsinlinewiththeGinner Monitoring Guidelines.

5.7.4 The ginner records the names and details of all subcontractors or independentorganisationsthattheginneroutsourcesworkto.

5.7.5 BetterCottonclaimsmayonlybeusedbyBCImembers.PartiestowhomworkmaybeoutsourceddonothavetherighttouseBetterCottonclaims.

5.8 Penalties5.8.1 Ginnersaresubject to the followingpenaltiesshould theypurposefullymisuseor

breachtherulesoftheBetterCottonTraceabilitySystemandtheBetter Cotton CoC Guidelines.

5.8.2 Thesepenaltiesaredefined inaddition to the conditionsof theBCI Membership Code of Practice and the Ginner Monitoring Guidelines.WheretheactorinquestionisaBCImember,allthreedocumentsapply.

5.8.3 Penaltiesforginners(definedingreaterdetailintheGinner Monitoring Guidelines)include –

»Firstmisuse–TemporarysuspensionofaccesstoBTSaccounts.

»Secondmisuse–TemporarysuspensionofaccesstoBTSaccountsandformalwarningstotheginandtocustomers.

»Repeated misuse (more than two or gross as defined in Ginner Monitoring Guidelines)–

• PermanentclosureoftheBTSaccountandformalnoticetocustomers.

• PermanentcancellationofparticipationasaBetterCottonginner.

• Withdrawalofmembership(wheretheginnerhappenstobeamember).

5.8.4 Ginnersmayrefer totheBCIGrievanceProcedure incaseofanydisagreementswithapplicationofpenalties.

5.9 Claims5.9.1 GinnersonlymakeclaimsincompliancewiththeBetter Cotton Claims Framework.





6.0 traders (cotton lint/ bales only)6.1 Documentedprocedures,trainingandresponsibilities

6.1.1 The tradermaintainswritten procedures covering the requirements of theBetter Cotton CoC Guidelines.10

6.1.2 The trader keepsa copyof theBetter Cotton CoC Guidelines and Better Cotton Traceability System User Manual (BetterCottonTracer)oneachof thepremisesfromwhichBetterCottonistraded(asoftcopyisacceptable).

6.1.3 Thetraderidentifiesthepersonsresponsibleforimplementingeachprocedureandensuresthattheyhaveadequatetraining11andthequalificationstoimplementtheprocedure.

6.1.4 ThetraderappointsamanagementrepresentativewithoverallresponsibilityfortheimplementationoftheBetterCottonCoCandrecordingofrelevantdataontheBetterCottonTracer12.

6.2 records6.2.1 Thetraderimplementsarecordkeepingsystem(CoCSystem)tomaintaincomplete


6.2.2 Recordsmustberetainedforatleastfive(5)yearsandopenforverificationbyBCIinlinewiththeBCI Membership Code of Practice(softcopyisacceptable).

6.3 material input records6.3.1 The traderensures thatanOutput Declaration containingall relevant information

accompaniesthelintBetterCotton(receivedfromginners).Thisshouldinclude–



»Volumeoflintcotton(netweightinkilos)

»Numberofbales

»Correspondinglocalidentificationnumbers(e.g.lotnumbers)

»Adescriptionoftheproductdelivered(qualityparameters13)

»OriginoflintBetterCotton(gincodeandcountry)

»Typeofcotton(BetterCottonorCottonmadeinAfrica)

6.3.2 The trader checks that theOutput Declaration received from gins is accurate tothebestofhis/herknowledgebeforeenteringthisinformationontheBetterCottonTracer.

6.3.3 ThetraderensuresthatthedocumentationsuppliedaccuratelyreflectsthequantityoflintBetterCottonreceived.ThisisdonepriortorecordingontheBetterCottonTracer.

6.3.4 Thetraderensuresthatthereisamechanismforhandlingnon-conformingmaterial/documents.Inaninstancewherenon-conformityisidentified,BCIwilltakeappropriateaction in linewith theBCI Membership Code of Practice including application ofpenaltiesandassociateddisputeresolutionmechanisms.

10Thedetailintheproceduresmayvaryinaccordancewiththesizeandcomplexityoftheorganisation.11Thelevelandstructure of thetrainingwilldependonthesizeandcomplexityoftheorganisation.Trainingmayinclude BCI trainingprovidedtoRegisteredsupplier and manufacturermembers.BCIwilltrainamaximumofthreerepresentativespercompany.Any additional staffsrequiringtrainingaretheresponsibilityoftheorganisationinquestion. 12 All user details(threepercompany)captured on the Better Cotton TracercanbeeditedbytheBCIonrequeste.g.changeinstaffduetoturnover,additional trained staff etc. 13Informationon quality is not compulsoryandBetter Cotton can berecognisedas such in the absenceofthisinformationaslongasallotherrequirementsarefulfilled.




6.4 material output records6.4.1 The trader ensures that lint cotton with allocated Better Cotton Claim Units is

accompaniedbyanOutput DeclarationgeneratedviatheBetterCottonTracer.Thisshould include –



»Volumelintcotton(weightinkilos)

»VolumeofBetterCottonreplaced(weightinkilos)14

»Numberofbales

»Descriptionoftheproduct(qualityparameters)

»OriginoflintBetterCotton(countryoflint)


6.4.2 The trader also provides any additional relevant transport documentation to thespinner.

6.5 Better Cotton traceability System (Better Cotton tracer) 6.5.1 TheBetterCottonTracergeneratesauniquetradercodeforeachtrader.

6.5.2 Inthecaseoftraderswhoarealsoginners,twoseparateaccountsaremaintainedon theBetterCottonTracer and theBTSwith different functionalities as per therequirementsoftheBetter Cotton CoC Guidelines.

6.5.3 ThetraderensuresthatthequantityofBetterCottoninputsandoutputs(byweight)ismonitoredandupdatedonareal-timebasis.

6.5.4 ThetraderenterstherequiredinformationontheBetterCottonTracerinrealtime.

6.5.5 LintBetterCottonvolumesarevalidfromthetimeatwhichtheyareenteredontheBetterCottonTracer.Thesevolumesremainvaliduntiltheyareclaimedbybuyersordeclaredassoldbytraders.

6.6 Physical Better Cotton6.6.1 The trader may substitute physical Better Cotton bales with conventional cotton

balesaslongastheconventionalcottonbalesoriginatefromthesamecountrye.g.atraderwhohasprocured1,000kilosBetterCottonfromBrazilandsolditwithoutaBetterCottonclaim,mayatalaterstageapplythe1,000BCCUsto1,000kilosofconventionalcottonfromBrazilONLYandsomeetthedemandforBetterCotton.

6.6.2 TradersarenotrequiredtoidentifyindividualBetterCottonbaleswithanyparticularinformation.However, theymustprovideanOutputDeclarationgeneratedvia theBetterCottonTracerpershipment.

6.6.3 Traders also have the option of providing anOutput Declaration summary form,generatedby theBetterCottonTracer, electronically,which summarisesa set oftransactionspercustomerbetweenadefinedrangeofdates.

6.6.4 OnlyBCIRegisteredMembertradershavetherighttousetheBCIlogotoidentifyBetterCottonbales.TraderswhoarenotRegisteredMembersofBCIdonothavetherighttousetheBCIlogotoidentifyBetterCottonbales.

14AspertheMBaCoC,traderscanreplace Better Cottonbaleswithconventionalcottonbalesaslongastheyoriginatefromthesamecountry.Thisfieldshouldbeused to indicate thevolumeofBetter Cotton that hasbeenreplacedwithconventionalcotton.




6.7 outsourcing6.7.1 If a trader, wishing to buy or sell lint Better Cotton, outsources activities to a

subcontractor or independent organisation (e.g. subcontractors for transport andstorage)thenthetraderensuresthatthesubcontractororindependentorganisationcomplieswiththeintentandrequirementsoftheBetter Cotton CoC Guidelines.

6.7.2 In the case of the use of third parties, all reporting on the Better Cotton TracerregardingBetterCottonpurchasesandsalesaretheresponsibilityoftheginnerwhohasoutsourcedtheactivity.

6.7.3 Thetraderensuresthatthesubcontractororindependentorganisationiswillingtoprovideunrestrictedaccesstotheiroperationsandsystems.

6.7.4 The trader records the names and details of all subcontractors or independentorganisationsthatthetraderoutsourcesworkto.

6.7.5 PartiestowhomworkmaybeoutsourceddonothavetherighttouseBetterCottonClaimUnits.Theseclaimsareonlyallowedforusebytheactorwhohasoutsourcedtheactivity.

6.8 Penalties6.8.1 Tradersaresubject to the followingpenaltiesshould theypurposefullymisuseor


6.8.2 Thesepenaltiesaredefined inaddition to the conditionsof theBCI Membership Code of Practice.Where theactor inquestion isaBCImember,bothdocumentsapply.

6.8.3 Traders are required to use the Better Cotton Tracer in order to make a claimregardingtheirBetterCottonprocurement.Assuch,specificpenaltiesapplytothiscategoryofsupplychainactor.Penaltiesinclude–

»Firstmisuse–TemporarysuspensionofaccesstoBetterCottonTraceraccount.

»Secondmisuse–Temporarysuspensionofaccess toBetterCottonTracerandformalwarningstothetraderandtocustomers.

»Repeatedmisuse(morethantwoorgross)–

• PermanentclosureoftheBetterCottonTraceraccountandformalnotice tocustomers.

• Withdrawalofmembershipandallassociatedprivileges(uptoamaximum of2yearsorpermanentlydependingofseverityofmisconduct).

6.8.4 Supply chain actors may refer to the BCI Grievance Procedure in case of anydisagreementswithapplicationofpenalties.

6.9 Claims6.9.1 TradersonlymakeclaimsincompliancewiththeBetter Cotton Claims Framework.




7.0 Spinners7.1 Documented procedures, training and responsibilities7.1.1 Thespinnermaintainswrittenprocedurescoveringtherequirementsof theBetter


7.1.2 ThespinnerkeepsacopyoftheBetter Cotton CoC Guidelines and Better Cotton Traceability System User Manual (BetterCottonTracer)oneachofthepremisesfromwhichBetterCottonproductsareproduced/tradedfrom(asoftcopyisacceptable).

7.1.3 Thespinneridentifiesthepersonsresponsibleforimplementingeachprocedureandensuresthattheyhaveadequatetraining16andthequalificationstoimplementtheprocedure.

7.1.4 ThespinnerappointsamanagementrepresentativewithoverallresponsibilityfortheimplementationoftheBetterCottonCoCandrecordingofallrelevantdataontheBetterCottonTracer17.

7.2 records7.2.1 Thespinnerimplementsarecordkeepingsystem(CoCSystem)tomaintaincomplete


7.2.2 Recordsmustberetainedforatleastfive(5)yearsandopenforverificationbyBCIinlinewiththeBCI Membership Code of Practice(softcopyisacceptable).

7.3 material input records7.3.1 ThespinnerensuresthatanOutput Declarationcontainingallrelevantinformation

accompaniesthelintBetterCottonwhenreceivedfromginners/traders.

7.3.2 Thisshouldinclude–



»Volumelintcotton(netweightinkilos)

»Numberofbales


»OriginoflintBetterCotton(tradercodeandcountryoflint)


»VolumeofBetterCottonsubstituted18

7.3.3 ThespinnerchecksthattheOutputDeclarationreceivedfromgins/tradersisaccuratetothebestofhis/herknowledgebeforeenteringthisinformationontheBetterCottonTracer.

7.3.4 ThespinnerensuresthatthequantityoflintBetterCottonreceivedisincompliancewiththesupplieddocumentationbeforeitisrecordedontheBetterCottonTracer.

7.3.5 The spinner ensures that there is a mechanism for handling non-conformingmaterial/documents. In an instance where non-conformity is identified, BCI willtakeappropriateactioninlinewiththeBCI Membership Code of Practiceincludingapplicationofpenaltiesandassociateddisputeresolutionmechanisms.

15Thedetailintheproceduresmayvaryinaccordancewiththesizeandcomplexityoftheorganisation16Thelevelandstructure of thetrainingwilldepend upon thesizeandcomplexityoftheorganisation.Trainingmayinclude BCI trainingprovidedforRegisteredsupplier and manufacturermembers.17 All user details(threepercompany)captured on the Better Cotton TracercanbeeditedbytheBCIonrequeste.g.changeinstaffduetoturnover,additional trained staff etc. 18AspertheMBaCoC,traderscansubstituteBetterCottonbaleswithconventionalcottonbalesaslongastheyoriginatefromthesamecountry.Thisfieldshouldbeused to indicate thevolumeofBetter Cotton thathasbeensubstitutedwithconventionalcotton.




7.4 material output records7.4.1 ThespinnerensuresthatyarnwithallocatedBetterCottonClaimUnitsisaccompanied

byanOutputDeclarationgeneratedviatheBetterCottonTracer.Thisshouldinclude–



»Volumeoflintcotton(consumedtomaketheyarn,netweightinkilos)

»Volumeofyarn(netweightinkilos)


»Countryoforiginofyarn(spinnercodeandcountryofsitelocation)

»Countriesoforiginofphysicalcotton19

7.4.2 Ifaspinner ismakingsalesofcotton lint, theOutputDeclaration requirements insection 6.4.1 apply.

7.4.3 Incaseofblendingwithnon-cottonfibre,orwhenwastematerial isusedonlytheBetterCottondataallocatedtotheyarnshouldbedeclarede.g.ifaspinnerisspinningyarnwhichis50kiloscottonand50kilosviscosethenthespinnershouldonlyuse50BetterCottonClaimUnitstowardsthatparticularyarnshipment.Similarlyincaseaspinnerisspinningayarnwith40kiloswaste(combrenoiletc.)and60kilosvirgincottonthenthespinnershoulduseonly60BetterCottonClaimUnitstowardsthatparticularyarnshipment.

7.4.4 Thespinneralsoprovidesanyadditional relevant transportdocumentation to thenext supply chain actor.

7.5 Better Cotton traceability System (Better Cotton tracer)7.5.1 TheBetterCottonTracergeneratesauniquespinnercodeforeachspinner.

7.5.2 Inthecaseofspinnerswhoarealsotraders,twoseparateaccountsaremaintainedontheBetterCottonTracerwithdifferentfunctionalitiesaspertherequirementsofthe Better Cotton CoC Guidelines.

7.5.3 ThespinnerensuresthatthequantityofBetterCottoninputsandoutputs(byweight)ismonitoredandupdatedonareal-timebasis.

7.5.4 The spinner ensures that the percentage loss during processing is accuratelycalculated,documentedandrecordedinthespinner’sdatamanagementsystem.

7.5.5 ThespinnerenterstherequiredinformationontheBetterCottonTracerinrealtime.

7.5.6 LintBetterCottonvolumesarevalidfromthetimeatwhichtheyareenteredintotheBetterCottonTracer.Thesevolumesremainvaliduntiltheyareclaimedbybuyersordeclaredassoldbyspinners.

7.6 Physical Better Cotton7.6.1 SpinnersmaysubstitutephysicalBetterCottonlintwithanyconventionalcottonlint

e.g.aspinnerthathasprocuredtenkilosBetterCottonlintfromgins/tradersandsoldthemwithoutmakingaBetterCottonclaim,mayatalaterdateapplythetenBCCUtoANYyarnandmeetthedemandforBetterCottonproducts.

7.6.2 SpinnersmayreceivecottonlintthathasBCCUsallocatedtoit(e.g.substitutedbalesfromtraders)butcontainsnoBetterCotton.Theymaypassonthecorrespondinglintequivalentclaime.g.aspinnerwhohasprocuredtenkiloslint(replacedbyatraderwithconventional)mayapplythetenBCCUstoANYyarnandmeetthedemandforBetter Cotton products.

19 As per the administrativeMBaCoCGuidelines,the spinner is notobligedtouse physical Better Cotton in the production of Better Cotton products. Therefore,theindication of actual cottonoriginrelates to physical volumesusedi.e. if a spinner procurestenkilosof physical Better CottonfromMali,andusestenkilosofconventionalcottonfromtheUStomeetcustomerdemand,thenthetenMaliBetterCottonClaimUnitsmaybeallocatedto the products containingtheUScotton. But the use of US cotton mustbeindicatedon the Output Declaration.



7.6.3 SpinnersarerequiredtoidentifyshipmentsofBetterCottonproducts(withallocatedBCCUs,notnecessarilyphysicalcontent)withanOutputDeclarationgeneratedviatheBetterCottonTracerpershipment.

7.6.4 Spinnersalsohave theoptionofprovidinganOutputDeclarationsummary form,generatedby theBetterCottonTracer, electronically,which summarisesa set oftransactionspercustomerbetweenadefinedrangeofdates.

7.6.5 Spinner members may make use of the BCI logo to identify any Better Cottonproducts(withallocatedBCCUs,notnecessarilyphysicalcontent) in linewith theBetter Cotton Claims Framework.

7.6.6 Non-members may not make use of the BCI logo to identify any Better Cottonproducts(withallocatedBCCUs,notnecessarilyphysicalcontent)

7.7 outsourcing7.7.1 Ifaspinner,wishingtobuylintBetterCottonorsellBetterCottonproducts,outsources

activities to a subcontractor or independent organisation (e.g. subcontractors fortransportandstorage)thenthespinnerensuresthatthesubcontractororindependentorganisationcomplieswith the intentand requirementsof theBetter Cotton CoC Guidelines.

7.7.2 In the case of the use of third parties, all reporting on the Better Cotton TracerregardingBetterCottonpurchasesandsalesistheresponsibilityoftheginnerwhohasoutsourcedtheactivity.

7.7.3 Thespinnerensuresthatthesubcontractororindependentorganisationiswillingtoprovideunrestrictedaccesstotheiroperationsandsystems.

7.7.4 The spinner records the names and details of all subcontractors or independentorganisationsthatthespinneroutsourcesworkto.

7.7.5 PartiestowhomworkmaybeoutsourceddonothavetherighttouseBetterCottonClaimUnits.Theseclaimsareonlyallowedforusebytheactorwhohasoutsourcedtheactivity.

7.8 Penalties7.8.1 Spinnersaresubjecttothefollowingpenaltiesshouldtheypurposefullymisuseor






7.8.3 Spinners are required to use the Better CottonTracer in order tomake a claimregardingtheirBetterCottonprocurement.Assuch,specificpenaltiesapplytothiscategoryofsupplychainactor.Penaltiesinclude–


»Secondmisuse–Temporarysuspensionofaccess toBetterCottonTracerandformalwarningstothespinnerandtocustomers.


• PermanentclosureoftheBetterCottonTraceraccountandformalnotice tocustomers.

• Withdrawalofmembershipandallassociatedprivileges(uptoamaximum of2yearsorpermanently,dependingontheseverityofthemisconduct.)

7.8.4 SpinnersmayrefertotheBCIGrievanceProcedureincaseofanydisagreementswiththeapplicationofpenalties.

7.9 Claims7.9.1 SpinnersonlymakeclaimsincompliancewiththeBetter Cotton Claims Framework.




8.0 All other supply chain actors (between spinner and retailer)

8.1 Documented procedures, training and responsibilities8.1.1 Thesupplychainactormaintainswrittenprocedurescoveringtherequirementsof

the Better Cotton CoC Guidelines.20

8.1.2 ThesupplychainactorkeepsacopyoftheBetter Cotton CoC Guidelines on each of thepremisesfromwhichBetterCottonproductsareproduced/traded(asoftcopyisacceptable).

8.1.3 The supply chain actor identifies the persons responsible for implementing eachprocedureandensuresthattheyhaveadequatetraining21andthequalificationstoimplementtheprocedure.

8.1.4 The supply chain actor appoints a management representative with overallresponsibilityfortheimplementationoftheBetterCottonCoC.

8.2 records8.2.1 Thesupplychainactorimplementsarecordkeepingsystemtomaintaincomplete


8.2.2 Recordsmustberetainedforatleastfive(5)yearsandopenforverificationbyBCI(softcopyisacceptable).

8.3 material input records8.3.1 The supply chain actor ensures that the yarn with allocated BCCUs received is

accompaniedbyanOutput Declaration.Thisshouldinclude–



»Volumeoflintcotton(consumedtomaketheyarn,netweightinkilos)

»Volumeofyarn(netweightinkilos)


»Originofcotton(spinnercodeandcountryofsitelocation)

»Originofphysicalcotton22

8.3.2 ThesupplychainactorchecksthattheOutputDeclarationreceivedfromspinners/othersupplychainactorisaccuratetothebestofhis/herknowledge.

8.3.3 Thesupplychainactorensuresthatthequantityofyarnreceivedisincompliancewiththesupplieddocumentation.

8.3.4 The supply chain actor ensures that there is a mechanism for handling non-conformingmaterial/documents.Inaninstancewherenon-conformityisidentified,BCIwilltakeappropriateactioninlinewiththeBCI Membership Code of Practice includingapplicationofpenaltiesandassociateddisputeresolutionmechanisms.

8.3.5 Non-members are not liable under the BCI Membership Code of Practice. Any liabilityarisingfromfalsedeclarationswillbetheresponsibilityofthesupplychainactorinvolved.

20Thedetailintheproceduresmayvaryinaccordancewiththesizeandcomplexityoftheorganisation.21Thelevelandstructure of thetrainingwilldepend upon thesizeandcomplexityoftheorganisation.Trainingmayinclude BCI trainingprovidedforRegisteredsupplier and manufacturermembers.22 As per the administrativeMass-BalanceGuidelines,thesupply chain actor isnotobligedto use physical Better Cotton in the production of Better Cotton products. Therefore,theindication of actual cottonoriginrelates to physical volumesusedi.e. if a spinner procurestenkilosof physical Better CottonfromMali,andsubstitutestenkilosofconventionalcottonfromtheUStomeetcustomerdemand,thenthetenMaliBetterCottonClaimUnitsmaybeallocatedto the products containingtheUScotton. But the use of US cotton mustbeindicatedin the Output Declaration.




8.4 material output records8.4.1 ThesupplychainactorensuresthatallBetterCottonproductswithallocatedBetter

CottonClaimUnitsareaccompaniedbyanOutputDeclaration.Thisshouldinclude–



»Volumeoflintcotton(netweightinkilos)

» Description of the product

»Spinnercode(fromspinnerOutputDeclaration)

8.4.2 Thesupplychainactorconcernedalsoprovidesanyadditional relevant transportdocumentationtothenextsupplychainactor.

8.5 BCI traceability System 8.5.1 SupplychainactorsbetweenspinnerandretailerarenotrequiredtousetheBetter

CottonTraceabilitySystem.

8.6 Physical Better Cotton8.6.1 Supplychainactorsmay receiveproducts (yarn, fabricetc.) thatareallocated to

Better Cotton Claim Units but contain no Better Cotton. They may pass on thecorrespondinglintequivalentclaime.g.afabricmanufacturerthathasprocuredyarnusingtenBCCUsandsubstituteditforanon-BetterCottonorder,mayatalaterdateapplythetenBCCUstoANYfabricandmeetthedemandforBetterCottonproducts.

8.6.2 Supply chain actors are required to identify shipments of BetterCotton products(withallocatedBetterCottonClaimUnits,notnecessarilyphysicalcontent)withanOutput Declaration.

8.6.3 Asupplychainactorwho isamemberofBCImaymakeuseof theBCI logo toidentify productswith allocatedBetterCottonClaimUnits, in linewith theBetter Cotton Claims Framework.

8.6.4 Non-members may not make use of the BCI logo to identify any Better Cottonproducts.

8.7 outsourcing8.7.1 Ifasupplychainactor,wishing tobuyorsellBetterCottonproducts,outsources

activities to a subcontractor or independent organisation (e.g. subcontractors fortransportandstorage)thentheactorensuresthatthesubcontractororindependentorganisationcomplieswith the intentand requirementsof theBetter Cotton CoC Guidelines.

8.7.2 All reporting regarding Better Cotton claim allocation in the case of use of thirdpartiesistheresponsibilityofthesupplychainactoroutsourcingtheactivity.

8.7.3 Thesupplychainactorensuresthatthesubcontractororindependentorganisationiswillingtoprovideunrestrictedaccesstotheiroperationsandsystems.

8.7.4 The supply chain actor records the names and details of all subcontractors orindependentorganisationsthatthesupplychainactoroutsourcesworkto.

8.7.5 PartiestowhomworkmaybeoutsourceddonothavetherighttouseBetterCottonClaimUnits.Theseclaimsareforusebythecustomeroutsourcingactivitiesonly.





8.8 Penalties8.8.1 All supply chain actors between spinner and retailer are subject to the following

penaltiesshouldtheypurposefullymisuseorbreachtherulesoftheBetterCottonTraceabilitySystemandtheBetter Cotton CoC Guidelines.


8.8.3 Allothersupplychainactorsarestronglyencouragedto,butnotrequiredtosignupforBCImembershiporusetheBetterCottonTraceabilitySysteminordertomakeaclaimregardingtheirBetterCottonprocurement.Assuch,limitedpenaltiesapplytothiscategoryofsupplychainactor.Penaltiesinclude–

»Formalwarningstothesupplychainactorandtocustomers(especiallyretailers).

»Restrictiononjoiningmembershipandaccessassociatedprivileges(fixednumberofyears).

8.8.4 Supply chain actors may refer to the BCI Grievance Procedure in case of anydisagreementswiththeapplicationofpenalties.

8.9 Claims8.9.1 SupplychainactorsonlymakeclaimsincompliancewiththeBetter Cotton Claims

Framework.





9.0 retailers and brands

9.1 Documented procedures, training and responsibilities9.1.1 The retailermaintainswrittenprocedurescovering the requirementsof theBetter


9.1.2 Theretailerkeepsacopyof theBetter Cotton CoC Guidelines and Better Cotton Traceability System User Manual (BetterCottonTracer)andisresponsibleformakingitavailabletoanyoftheiroffices/premisesonrequest(asoftcopyisacceptable).

9.1.3 Theretaileridentifiesthepersonsresponsibleforimplementingeachprocedureandensuresthattheyhaveadequatetraining24andthequalificationstoimplementtheprocedure.

9.1.4 TheretailerappointsamanagementrepresentativewithoverallresponsibilityfortheimplementationoftheBetterCottonCoC.

9.2 records9.2.1 Theretailerimplementsarecordkeepingsystem(CoCSystem)tomaintaincomplete


9.2.2 Records must be retained by the entity (retailers/brands, holding company etc.)makingdeclarationsontheBetterCottonTracer,foratleastfiveyearsrollingfromdateofdocument(inanydesiredformatexaminablebyBCIifrequired).

9.3 material input records9.3.1 TheretailerensuresthattheBetterCottonproductreceivedisaccompaniedbyall

relevantOutput Declarationforms.Thisshouldinclude–


»Dateofshipment

»VolumeoflintBetterCottonconsumed(netweightinkilos)

»Adescriptionoftheproductdelivered(e.g.yarntype,PO/lotnumber)

» Spinner ID

9.3.2 The retailer verifies that the Output Declaration received from spinners/ othersupplychainactorisaccuratetothebestofhis/herknowledgebeforeenteringthisinformationontheBetterCottonTracer.

9.3.3 TheretailerensuresthatthequantityofBCCUsreceivedisincompliancewiththesupplieddocumentation.

9.3.4 The retailer ensures that there is a mechanism for handling non-conformingmaterial/documents. In an instance where non-conformity is identified, BCI willtakeappropriateactioninlinewiththeBCI Membership Code of Practiceincludingapplicationofpenaltiesandassociateddisputeresolutionmechanisms.

9.4 Better Cotton traceability System (Better Cotton tracer) 9.4.1 TheBetterCottonTracergeneratesauniqueretailercodeforeachretailer.

9.4.2 The retailer enters the required information into the Better Cotton Tracer on aquarterlybasis.

23Thedetailintheproceduresmayvaryinaccordancewiththesizeandcomplexityoftheorganisation24Theleveland structure of thetrainingwilldepend upon thesizeandcomplexityoftheorganisation.BCIwilltrainamaximumof3nominatedrepresentativesof each retailer. A record of trained personnel per retailer is maintainedbyBCI.




9.4.3 LintBetterCottonvolumesarevalidfromthetimethatpurchaseordersplacedbyretailersarecompletedbysuppliersandshippedtothem.

9.4.4 ThesevolumesarethenenteredontheBetterCottonTracer.ThevolumesremainvaliduntilsuchtimeastheyareverifiedbyBCIandinvoiced.

9.4.5 InvoicesbasedonlintBetterCottonvolumesaregeneratedannuallyattheendofJanuaryandAugust.

9.5 outsourcing9.5.1 Ifa retailer,wishing tobuyorsellBetterCottonproducts,outsourcesactivities to

asubcontractororindependentorganisation(e.g.subcontractorsfortransportandstorage)thentheretailerensuresthatthesubcontractororindependentorganisationcomplieswiththeintentandrequirementsoftheBetter Cotton CoC Guidelines

9.5.2 Theretailerensuresthatthesubcontractororindependentorganisationiswillingtoprovideunrestrictedaccesstotheiroperationsandsystems.

9.5.3 PartiestowhomworkmaybeoutsourceddonothavetherighttouseBetterCottonClaimUnits.Theseclaimsareonlyforusebytheactoroutsourcingtheactivities.

9.6 Penalties9.6.1 Retailersaresubjecttothefollowingpenaltiesshouldtheypurposefullymisuseor


9.6.2 Thesepenaltiesaredefined inaddition to the conditionsof theBCI Membership Code of Practice.BothdocumentsareapplicabletoallBCIretailermembers.

9.6.3 Retailers are required to use the Better CottonTracer in order tomake a claimregardingtheirBetterCottonprocurement.Assuch,specificpenaltiesapplytothiscategoryofsupplychainactor.Penaltiesinclude–


»Secondmisuse–Temporarysuspensionofaccess toBetterCottonTracerandformalwarning.


• PermanentclosureoftheBetterCottonTraceraccount.

• Withdrawalofmembershipandallassociatedprivileges(uptoamaximum of2yearsorpermanentlydependingofseverityofmisconduct).

9.6.4 RetailersmayrefertotheBCIGrievanceProcedureincaseofanydisagreementswiththeapplicationofpenalties.

9.7 Claims9.7.1 The retailer only makes claims in compliance with the Better Cotton Claims

Framework.





annex 1 – Segregation & administrative Mass-Balance Segregation Chain of Custody:

» BetterCottonandconventionalcottonmustbekeptsegregatedatalltimes.BCIappliesthisCoCsystemonlytoginnersanddomestictraders.

» Theclaimsabout,andactualphysicalvolumesoutmustmatchthevolumeofBetterCottonpurchasedbytheginnertakingintoaccounttheturnoutratio.

» AllbalesofBetterCottonmustbe100%BetterCottonincomposition.» Thisisasystemofphysicaltraceability.ActualamountsofphysicalBetterCotton

mustaccompanyanyuseclaim. administrative Mass-Balance Chain of Custody:

» BetterCottonandconventionalcottonmaybesubstitutedwitheachother.BCI

appliesthisCoCsystemtoallactorsafterginneranduptoandincludingretailers.» TheclaimsaboutvolumesoutmustmatchthevolumeofBetterCottonclaim/data

orphysicalproductpurchasedbythesupplychainactor.» ThisbalancewillbecalculatedcontinuouslyinthecaseofBetterCotton,butmay

becalculatedoveraperiodoftimee.g.1yearforothercommodities25.» Thisisasystemofadministrativetraceability.AnactualamountofphysicalBetter

CottonneednotaccompanyBetterCottonuseclaims.

25Thisimpliesthatinothercommodityschemes,supplychain actors maydeliverMBaproductsfromnegativeinventoriesonagivendayaslongasinandoutvolumesmatchoveraperiodof1year.ForBetterCotton,supplychainactorsmaynotdeliveranyMBaproductsfromanegativeinventory.



Annex 2 – Output declaration SAMPLES

InDIvIDUal tRanSaCtIon oUtPUt DeClaRatIon (trader or spinner lint example)

Seller BuyerNameAddressCountry

BCIIDNumber<IDnumber>

NameAddress Country

BCIIDnumber<IDnumber>

Important - Please noteThetransactionlistedinthisdeclarationis<transactionstatus>

declarationAsthesellerIdeclarethatthetransactiondetailsprovidedbelowareaccuratetothebestofmyknowledge.Thisdatacorrespondstoactualtransactionsofphysicalcottonmadebetweenthesellerandthebuyernamedabove,andisincompliancewiththeBetter Cotton Chain of Custody Guidelines.

Anymisrepresentationoranomaliesindatafollowingconfirmationofthetransactionarethesoleresponsibilityoftheseller.Thebuyerdoesnotassumeanyliabilityforfalsedeclarations.

Date of declaration(dd-mm-yy)

Typeofcotton

Volumeoflint cotton sold(kg)*

Numberofbales

Country of origin

VolumeofBetter Cotton replaced(kg)*

03-02-13 BCI 98kg 200 USA 12kg

*Allvolumesareexpressedasnetweightinkg



SUMMaRY oUtPUt DeClaRatIon (trader or spinner lint example)



NameAddress Country



declarationAsthesellerIdeclarethatthetransactiondetailsprovidedbelowareaccuratetothebestofmyknowledge.Thisdatacorrespondstoactualtransactionsofphysicalcottonmadebetweenthesellerandthebuyernamedabove,andisincompliancewiththeBetter Cotton Chain of Custody Guidelines. Anymisrepresentationoranomaliesindatafollowingconfirmationofthetransactionarethesoleresponsibilityoftheseller.Thebuyerdoesnotassumeanyliabilityforfalsedeclarations.

Period from <start date> to <end date>TotalvolumeofBetterCottondeclared(netweightinKg)is<totalnetweight>kg


Typeofcotton

Volumeoflint cotton sold(kg)*

Numberofbales

Country of origin

VolumeofBetter Cotton replaced(kg)*

3-2-13 BCI 98kg 200 USA 67kg16-2-13 CMIA 112kg 54 Burkina

Faso100kg

20-3-13 BCI 12kg 4 India 0kg24-3-13 BCI 989kg 1074 Pakistan 566kg




IndIVIduAL TrAnSACTIOn OuTPuT deCLArATIOn (Spinner yarn example)



NameAddress Country






Typeofcotton

Volumeofyarn(kg)*

VolumeoflintBetter Cotton usedtomakeyarn/BCCUapplied(kg)*

Country of originofyarn

Country of originofphysical cotton used

3-2-13 BCI 250kg 98kg Turkey IndiaChinaTurkey




SUMMaRY oUtPUt DeClaRatIon (Spinner yarn example)



NameAddress Country





Period from <start date> to <end date>

TotalvolumeofBetterCottondeclared(netweightinKg)is<totalnetweight>kg


Typeofcotton

Volumeofyarn(kg)*

VolumeoflintBetter Cotton usedtomakeyarn/BCCUapplied(kg)*

Country of originofyarn


3-2-13 BCI 98kg 250kg Turkey IndiaChina

16-2-13 CMIA 112kg 540kg India USAAustraliaPakistan

20-3-13 BCI 12kg 44kg India India24-3-13 BCI 989kg 1074kg Pakistan China

USA




IndIVIduAL TrAnSACTIOn OuTPuT deCLArATIOn (everyone else example)


NameAddress Country


declarationAsthesellerIdeclarethatthetransactiondetailsprovidedbelowareaccuratetothebestofmyknowledge.Thisdatacorrespondstoactualtransactionsofphysicalcottonproductsmadebetweenthesellerandthebuyernamedabove,andisincompliancewiththe Better Cotton Chain of Custody Guidelines.


TypeofProduct Greyfabric,finishedfabric,denim,garments,t-shirts,etc…

Date of declaration (dd-mm-yy)

Typeofcotton

NetWeightofshipment(kg)

NetWeightof lint Better Cotton used in thisshipment/BCCU applied (kg)

Country of originofproducts


3-2-13 BCI 250kg 98kg Turkey IndiaChinaTurkey




SUMMaRY oUtPUt DeClaRatIon (everyone else example)


NameAddress Country

declarationAsthesellerIdeclarethatthetransactiondetailsprovidedbelowareaccuratetothebestofmyknowledge.Thisdatacorrespondstoactualtransactionsofphysicalcottonproductsmadebetweenthesellerandthebuyernamedabove,andisincompliancewiththe Better Cotton Chain of Custody Guidelines.


Period from <start date> to <end date>

TotalvolumeofBetterCottondeclared(netweightinKg)is<totalnetweight>kg


Typeofcotton

NetWeightofShipment(kg)*

VolumeoflintBetter Cotton used in this shipment/BCCU applied (kg)*

Country of originofproducts

Country of originofphysical cotton used in these products

3-2-13 BCI 98kg 250kg Turkey IndiaChina

16-2-13 CMIA 112kg 540kg India USAAustraliaPakistan

20-3-13 BCI 12kg 44kg India India24-3-13 BCI 989kg 1074kg Pakistan China

USA




IndIVIduAL TrAnSACTIOn OuTPuT deCLArATIOn (Retailer example)



NameAddress Country



declarationAsthebuyerIdeclarethatthetransactiondetailsprovidedbelowareaccuratetothebestofmyknowledge.Anymisrepresentationoranomaliesindataarethesoleresponsibilityofthebuyer.

Date of declaration

(dd-mm-yy)

VolumeofBetterCottondeclaredassourcedfromseller*

3-2-13 98kg


Documents

inal ersion 1.0 for use fro 1 uly 2013 Better Cotton Chain of Custody ...€¦ · from this purchase may be allocated to an equal quantity of conventional cotton from any country