Cotton and Products: Updated Requirements for Commodity Specifications and Application Information

The U.S. Department of Agriculture's Foreign Agricultural Service today issued updated instructions to U.S. exporters who may apply for coverage on sales of U.S. cotton and products to be exported under the Commodity Credit Corporation's (CCC) Export Credit Guarantee Program (GSM-102), Intermediate Export Credit Guarantee Program (GSM-103) and the Supplier Credit Guarantee Program (SCGP).

Under CCC's Program Announcements reflecting country allocations for coverage on sales of U.S. cotton and products, such coverage is available on sales in any of the following forms: Upland or Pima cotton, bleached cotton, cotton motes, cotton linters, cotton linter pulp, or cotton sliver -- except where CCC may specifically announce exclusion of one or more of these forms.

This Notice is effective as of today's date and reflects CCC's interest in continuing to promote U.S. agricultural exports, changes in USDA's cotton classification procedures, and experience gained in performing price reviews required in connection with these transactions. This Notice replaces CCC's earlier Notice pertaining to cotton, i.e., Notice Number GSM FY 94-1, dated December 16, 1993. This notice clarifies information requirements for cotton motes, cotton linters, and cotton linter pulp, and adds information required for coverage of cotton sliver.

Application requirements set forth in the program regulations (7 CFR Parts 1493.40 and 1493.430) are still applicable regarding quantity, loading tolerance, price, port of export, etc. Specifically, for any sale:

  • Quantity should include total number of pounds,
  • Unit price (s) should be expressed in cents per pound as well as in other terms as contracted.

Also, the following additional information, as applicable, must be included in all applications for GSM102/103 and Supplier Credit Guarantee Program coverage on indicated sales:

Commodity Description (7 CFR 1493.40(a)(7) and 1493.430(a)(7))

For Pima or Upland cotton:

  • Growth: area in the U.S. where the cotton was grown
  • Grade: name (in terms of middling, low middling, etc.) or 3-digit code
  • Leaf grade
  • Staple: Staple length in inches or USDA Green Card Class
  • Micronaire: Index or current USDA Group Codes
  • Strength: Expressed in grams per tex

For bleached cotton:

  • Must confirm product is hygienic grade

For cotton motes:

  • Number and types of cleanings (note if uncleaned)
  • Approximate cotton fiber content

For cotton linters:

  • Type: mill run, first cut, second cut, or chemical
  • Cellulose content
  • Moisture content

For cotton linter pulp:

  • Grade: acetate, ethers, nitrates, viscose, or paper

For cotton sliver:

  • All types of cotton used to make the sliver according to USDA class for color and staple, and standard region of origin (California/Arizona, Orleans/Texas, or Memphis/Eastern).
  • Percentage each cotton type constitutes of total content

Price (7 CFR 1493.40 (a) (9) and 1493.430(a)(9))

  • Date(s) price fixed (may be same as date of sale)
  • Futures cover month: if other than futures contract immediately following shipping period
  • Contract basis points: if applicable to price review

Exporters should furnish information in response to each element according to the terms of the exporter sales contract. If one or more of the elements does not apply to the export contract in question, exporters should clearly indicate that fact, rather than merely omitting a response.

CCC might need, on occasion, to seek clarification or obtain information additional to that outlined in this notice. Such information will include, but may not be limited to, the permanent bale identification numbers for all bales included under an application for Pima or Upland cotton where a default has occurred.