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European

Cotton Rules

What is the mission of AFCOT ?

Its principal objective is to represent and to defend the interests of cotton professionals, whatever the size of the company, its sector of activity, or its geographical location.

The purpose of the European Cotton Rules (E.C.R) which appeared in 1877 under the name ‘Règlement Général du Havre’ is to define the meaning of clauses incorporated in a contract which has been concluded on the basis of European Cotton Rules (E.C.R) and to clearly indicate what are the rights and obligations to which the seller and the buyer are subject.

The European Cotton Rules (E.C.R) is an essential tool at the disposal of both buyers and sellers.

Security

The legal security offered to users is the primary goal of any rule book.

Equity

The E.C.R is a fair and balanced tool for the defense of sellers and buyers. It is aimed at all players in the cotton trade, producers, merchants, spinners.

Modernity

The European Cotton Rules (E.C.R) a dynamic tool adaptive to today’s business practices.

The European
Cotton Rules,
the code of the road
of the cotton actors

As trading carries inherent risks for the Seller or the Buyer, contracts have to be negotiated with trust between parties

The European Cotton Rules (E.C.R) :

  • An easy tool to use
  • Corresponds to the cotton market reality
  • A legal frame, a written law
  • With the European Cotton Rules (ECR) the commercial relationship is fully and clearly exercised
  • The ECR enumerates all types of situations which can eventually arise during the life of a contract.
  • With the ECR, everything is defined and known in advance

Find the versions of the RGE of February 2015 and June 2016 as well as the latest version adopted in June 2019 by the French Cotton Association.

We also would like to reiterate that the use of arbitration requires the consent of both parties. This consent can be expressed either in a contract clause stating :

“RGE/ECR AFCOT – LE HAVRE ARBITRATION”

The change is explained in detail on the front page of the Regulation. If you want more information, please contact the AFCOT secretariat.

To load the document, please click on the link below :

Find the seven specific rules in Appendix VI of the RGE AFCOT.

  • Rule 1 : Invoicing back
  • Rule 2 : Force majeure
  • Rule 3 : Arbitration rules for claims exceeding 100.000 euros
  • Rule 3.1 : Arbitration rules for claims not exceeding 100.000 euros
  • Rule 4 : Dispute on quality of cotton (manual classing)
  • Rule 4-1 : Dispute on quality of cotton (Instrument classing)
  • Rule 5 : Confidentiality of arbitration

For AFCOT, arbitration is the ultimate solution in an extreme case.

AFCOT intervenes only in the form of advice, at the request of its members. The AFCOT Executive Committee proposes a non-exhaustive list of commercial arbitrators.

This list is available to any party for the appointment of his arbitrator. It is neither limiting nor exhaustive, since it in no way limits the total freedom of choice of the parties to the dispute.

AFCOT having opted to rely on a support judge in the event of difficulties encountered in the constitution of the arbitral tribunal, this list was sent to the president of the Le Havre tribunal of commerce.

See the 2019 commercial arbitrators’ directory

Arbitrators operating in disputes over cotton quality

As part of the procedure provided for in Appendix VI – Rule 4 of the EGM, the AFCOT Executive Committee approved on March 11, 2019, the following list of quality arbitrators :

  • Mr Paul-Henri AHOUSSOU (ECOM)
  • Mr Curt ARBENZ (Paul REINHART)
  • Mr Pascal DESMET (ED. T Robertson & Son)
  • Mr Jean Pierre HERREMAN (DEVCOT)
  • Mr Thierry LENORMAND (SOSEA)
  • Mr Loïc PELFRESNE (Société Imporation & de Commission)
  • Mr Juan PEREZ (Cotton Distributors)

View quality arbitrators fees effective September 9, 2015

View commercial arbitrators fees

Arbitrators fees

Experience shows that there are sometimes difficulties between sellers and buyers about executing contracts, when these are not written with the utmost care and precision. That’s why we want to draw the parties’ attention to the importance of ensuring that their contract :

  • Contain all the clauses necessary for the proper execution
  • Repeat all the general clauses, and especially those retained at the conclusion of the contract
  • Be written in such a way that the interpretation of the clauses can not be open to discussion
  • Be subject to ECR AFCOT

This section is yours. We publish the most frequently asked questions about the EGR and arbitration.
Don’t hesitate to send us your questions.

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