Better Cotton CoC Guidelines V1.4 Final July 2020
Better Cotton CoC Guidelines V1.4 Final July 2020
Better Cotton CoC Guidelines V1.4 Final July 2020
Custody Guidelines
Version 1.4
Implementation is applicable from the beginning of the harvest
season that begins on 1 August 2020, as defined by the
International Cotton Advisory Committee (ICAC)
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Table of Contents
1.0 Introduction and Chain of Custody requirements ......................................................... 4
1.1 Applicability ...................................................................................................................... 4
1.2 Better Cotton Chain of Custody (CoC) model requirements........................................... 4
1.3 Scope of CoC implementation......................................................................................... 5
1.4 BCI membership .............................................................................................................. 5
1.5 Use of the Better Cotton Platform ................................................................................... 5
1.6 Chain of Custody documents .......................................................................................... 6
2.0 Chain of Custody for Ginners .......................................................................................... 7
2.1 Responsibilities, training and record-keeping ................................................................. 7
2.2 Purchasing of Better Cotton ............................................................................................ 8
2.3 Segregation and identification of Better Cotton .............................................................. 9
2.4 Use of the Better Cotton Platform (BCP) ........................................................................ 9
2.5 Subcontractors .............................................................................................................. 10
3.0 Chain of Custody for Other Supply Chain Organisations .......................................... 11
3.1 Responsibilities, training, and record-keeping .............................................................. 11
3.2 Use of the Better Cotton Platform (BCP) ...................................................................... 12
3.3 Better Cotton claims ...................................................................................................... 14
3.4 Subcontractors .............................................................................................................. 14
4.0 Rules for Retailers and Brands...................................................................................... 16
4.1 Use of the Better Cotton Platform ................................................................................. 16
4.2 Annual reconciliation for Retailers/ Brands ................................................................... 16
4.3 Better Cotton claims ...................................................................................................... 16
5.0 Requirements related to compliance monitoring and audits ..................................... 17
5.1 Monitoring and Audit Procedures .................................................................................. 17
5.2 Appeals .......................................................................................................................... 19
Annex A: Terminology and Definitions .................................................................................... 20
Annex B: Chain of Custody for Implementing Partners ......................................................... 24
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Versions updated
Responsibility for the Better Cotton Chain of Custody (CoC) Guidelines is held by the Better Cotton
Initiative (BCI). Readers shall use the latest copy of this (and other related documents). The definitive
version of the requirements is maintained on BCI’s website at www.bettercotton.org
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1.0 Introduction and Chain of Custody requirements
The Better Cotton Initiative (BCI), a global not-for-profit organisation, is the largest cotton sustainability
programme in the world. BCI is a joint effort, working together with organisations from farms to
suppliers, manufacturers, and brands, in order to transform cotton production worldwide by developing
Better Cotton as a sustainable mainstream commodity.
The Better Cotton Principles & Criteria (P&C)1 provide a global definition of Better Cotton and include
social and environmental criteria that are applicable to farmers around the world.
The Better Cotton Chain of Custody (CoC) Guidelines set out requirements for organisations in the
supply chain that are buying or selling Better Cotton or cotton-containing products as BCI Orders.
Between the farm and gin level, this includes cotton produced by licensed BCI Farmers in accordance
with the Better Cotton P&C (i.e. 100% seed Better Cotton or 100% Better Cotton bales) which must be
kept segregated from conventional cotton. After the ginner level, BCI Orders are bought or sold
together with ‘Better Cotton’ claims.
The CoC Guidelines is the key framework that connects demand with supply of Better Cotton and helps
to support and incentivise farmers to adopt more sustainable practices.
1.1 Applicability
The Better Cotton CoC Guidelines are applicable for all supply chain organisations that are buying or
selling Better Cotton or BCI Orders. These include ginners, traders/merchants, mills with spinning
capabilities, suppliers without spinning capabilities (including fabric mills, dying mills, yarn and/or fabric
traders, vertical mills), end-product manufacturers, sourcing agents, retailers and brands.
The Guidelines are divided into four additional sections: Chain of Custody for Ginners, Chain of
Custody for Other Supply Chain Organisations, Rules for Retailers and Brands, and Requirements for
monitoring compliance. Additional mandatory requirements are outlined in the Annex for Implementing
Partners.
1 https://bettercotton.org/better-cotton-standard-system/production-principles-and-criteria/
2 Additional guidance on conversion rates can be found at https://bettercotton.org/better-cotton-standard-system/chain-of-
custody/
3 https://bettercotton.org/better-cotton-standard-system/claims-framework/
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1.3 Scope of CoC implementation
The CoC Guidelines specify the requirements which apply to all registered BCI organisations operating
in the Better Cotton supply chain. The supply chain begins at the licensed BCI farm where CoC
requirements are covered in the Better Cotton P&C. These guidelines begin with the next link in the
supply chain (i.e. ginners or middlemen).
Suppliers/ manufacturers shall implement the mass balance CoC model at site level. The CoC
requirements and data will be maintained at each site owned by a supplier/ manufacturer. For example:
if a spinner buys Brazilian Better Cotton, then the claim from this purchase may be allocated to an
equal quantity of conventional cotton from any country of origin, provided it is owned by the spinner
and located at the same site.
In some instances, there are regional differences between implementation of a CoC model. Cotton
traders, which implement the mass balance CoC model, shall do so at the country level – this means
they can substitute equivalent amounts of conventional and physical Better Cotton, but only provided
those products have the same country of origin. For example: if a trader buys Brazilian Better Cotton,
the claim associated with this purchase may be allocated to any conventional cotton from Brazil, as
long as it is owned by the trader. The trader cannot allocate claims from Brazilian Better Cotton to
cotton from a different country of origin (e.g. Mali).
Ginning factories and Other Supply Chain Organisations without Spinning Capabilities:
Ginners and all other supply chain organisations, such as fabric mills (buying yarns and selling fabrics),
end-product manufacturers, sourcing agents, are eligible for BCI Membership but it is not obligatory.
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1.6 Chain of Custody documents
The following documents form a suite of tools to support organisations in implementing the Better
Cotton CoC. These include:
• Better Cotton Chain of Custody Guidelines v1.4
• BCI Ginner Agreement (for ginners only)
• Better Cotton Platform – Training modules (available to BCI Members and registered non-
member BCP suppliers)
• Better Cotton Claims Framework
• BCI Member Code of Practice (applicable to BCI Members only)
• Additional guidance and FAQs available on the BCI website5
Figure 1: Better Cotton Chain of Custody (CoC) models in the supply chain
5 https://bettercotton.org/better-cotton-standard-system/chain-of-custody/#
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2.0 Chain of Custody for Ginners
This section sets out requirements for ginners buying and ginning seed Better Cotton and selling lint
Better Cotton.
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Guidance: The record retention requirement extends outside of the ginner to include any
subcontractors (currently active or inactive) that were used during this time.
2.1.5 The ginner shall communicate any changes in primary contact names, procurement
processes, or outsourcing arrangements to BCI via email within 15 calendar days of the
change occurring.
Guidance: Other changes may include: gin activity or inactivity. Please contact the BCI supply
chain team in your country to communicate any changes.
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2.3 Segregation and identification of Better Cotton
2.3.1 The ginner shall have a system in place to ensure that Better Cotton is segregated from other
(conventional) cotton by physical separation and/ or temporal separation.
Guidance: If the ginner handles both Better Cotton and conventional cotton, it must have
systems in place to maintain segregation if both types of cotton are on site at the same time.
Examples: Temporal separation – where the gin processes seed Better Cotton for a distinct
period of time, e.g. two weeks. Physical separation – where the gin segregates Better Cotton
and conventional cotton bales in separate areas of the warehouse.
2.3.2 The ginner shall maintain visual identification of Better Cotton at every stage of purchase,
storage, processing, transport, and handling.
Guidance: Better Cotton cannot be mixed with conventional cotton at any point during storage,
processing, transport and handling by the gin. It is not required to clean down a gin prior to
commencing ginning of Better Cotton. Identification can be done through signs, labels, tags,
etc.
For example, clearly demarcated area/ platform on which Better Cotton will be heaped or bales
will be stocked. The designated areas for heaping or storage should be clearly identifiable
using sign boards or labels mentioning BCI in the case of Better Cotton bales. Staff/ workers
involved in physical handling of Better Cotton should be aware of the requirement of
separation. The gin should have clear lay down process mentioning how they maintain
segregation.
2.3.3 The ginner shall ensure that all Better Cotton bales sold is clearly physically identifiable as
Better Cotton and should be mentioned in invoices and shipping documents.
Guidance: The ginner must have a system in place so that 100% Better Cotton bales can be
identified as such. This can be done through lot numbers, labelling on invoices and delivery
notes, and/or visual identification on the bales (such as labels or colour-coded tape). Visual
identification must be attached well.
2.4.2 The ginner shall identify a designated representative for recording relevant data on the Better
Cotton Platform (BCP). The ginner shall not give access to the BCP to other third parties under
any circumstances (e.g. including Implementing Partners or consultants hired by the ginner).
2.4.3 The ginner shall enter all purchases, lint production and sale of Better Cotton into the BCP, in
a timely manner indicated as follows:
• Better Cotton purchases are entered within 30 calendar days of receiving seed Better
Cotton.
• Lint productions are entered within 30 calendar days of lint Better Cotton being produced.
• Sales of lint Better Cotton are entered within 30 calendar days of shipment date.
Guidance: In the case of ginners who are also traders, two BCP accounts with different
functionalities shall be maintained.
The volume of seed Better Cotton in the ginner’s BCP account will remain valid until the ginner
enters production of lint cotton into the BCP or BCI zeros all seed Better Cotton inventories at
the end of the current cotton season. Lint cotton inventories in the BCP will remain valid until
the corresponding lint quantity is claimed by or transferred to a spinner or a merchant account
on the BCP or zeroed out by BCI at the end of the season.
2.4.4 Requests of transaction cancellations should be submitted within 30 calendar days of the sale
being entered in the BCP.
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Guidance: Under exceptional and justified circumstances, BCI may process a cancellation
request received after 30 days of the sale being entered in the BCP. A transaction entered into
the BCP with a status “awaiting acknowledgement” can be withdrawn within 30 days of entering
it into the BCP. Transactions with a status “acknowledged” can be cancelled within 30 days
after the date of acknowledgement.
In order to cancel a transaction with "acknowledged" status, the supplier needs to write an
email to the BCI team with transaction details, copy this mail to their buyer/seller and ask the
buyer/seller to provide no objection on cancellation. Only after receiving confirmation from the
buyer/seller of no objection will BCI cancel the transaction.
2.4.5 The ginner shall ensure that all data entered into the BCP is genuine and can be verified
against corresponding documentation (i.e. purchase receipt, invoice, production records):
a) For each purchase of Better Cotton, the ginner shall enter the corresponding purchase
date or date range, and transaction reference (such as gate pass number, purchase
vouchers/ receipts or any unique document number) into the BCP.
b) For each sale of Better Cotton, the ginner shall enter a valid transaction reference
number(s) corresponding to the contract, invoice or shipping document that corresponds
to each sale entered in the BCP. If one entry in the BCP relates to multiple sales, a
reference number or range must be entered for each separate sale.
2.4.6 If requested to provide an average ginner turnout ratio, the ginner shall ensure that this ratio
(volume of lint produced for a given volume of seed cotton processed, expressed in
percentage) is accurately calculated and can be verified through documentation.6
2.5 Subcontractors
2.5.1 If the ginner subcontracts any handling of Better Cotton (excluding transportation) to a
subcontractor, the ginner shall:
a) Document the nature of the subcontracting agreement, including the name, address, and
contact details of the subcontractor, and share with BCI in writing prior to outsourcing.
b) Ensure that only the ginner (not subcontractors) have access to the Better Cotton Platform
and are responsible for entering data into the system.
c) Require all subcontractors buying, selling, or handling Better Cotton to sign a declaration
agreeing to comply with relevant Better Cotton CoC requirements and to provide access
to their premises and records for any BCI staff or third-party auditors.
d) Ensure that all subcontractors are trained and competent to comply with relevant Better
Cotton CoC requirements.
6
In some countries, gins are asked to declare their average gin turnout at the time of setting up an account in the Better
Cotton Platform; in other cases, an average turnout ratio may be used by BCI for all gins in a given country or region.
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3.0 Chain of Custody for Other Supply Chain Organisations
This section applies to all supply chain organisations after ginners who are buying or selling cotton or
cotton-containing products to fulfil BCI Orders. This includes cotton traders/ merchants, mills with
spinning capabilities, organisations without spinning capabilities (including fabric mills, dying mills, yarn
and/or fabric traders and vertical mills), sourcing agents, and end-product manufacturers.
Note that the term BCI Orders refers to any cotton or cotton-containing product (after ginner level)
which is bought or sold with Better Cotton Claim Units (BCCUs) and for which BCCUs are transferred
between two parties via the Better Cotton Platform (BCP).
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Better Cotton products. In these cases, the organisation must verify the legitimate status of the
transactions with the supplier/ customer directly before accepting the BCCUs.
3.2.3 Supply chain organisations who are buying or selling BCI Orders are required to enter or
acknowledge all purchases and sales in the BCP. Organisations who are lint traders as well
as carrying out other core activities (i.e. trader and spinner) shall maintain two separate
accounts on the BCP, one for trader activities specifically.
Guidance: Sourcing agents and garment manufacturers may be exempt from using the BCP
in specific situations where the end buyer (Retailers/Brands) accepts BCCUs from indirect
fabric suppliers.
3.2.4 Organisations shall only enter transactions and transfer BCCUs via the BCP to either the
invoicing/billing organisation or consignee organisation (recipient of a shipment) mentioned on
the sale invoice, with the exception of cases stated in 3.2.3.
3.2.5 Organisations using the BCP shall acknowledge purchase transactions and enter sale
transactions in a timely manner as follows:
a) Purchase transactions shall be acknowledged within 60 calendar days of data being
entered into BCP.
b) Sale transactions shall be entered within 60 calendar days of the shipment date.
Guidance: Organisations can enter sale transactions after final order confirmation (i.e. when
they know the final order quantity) until 60 days after the shipment date.
Example 1: a supplier can enter sale transactions and transfer BCCUs when the purchase
order is being confirmed by the buyer. Example 2: a supplier can enter a sale transaction on 3
May 2020 for a shipment of a BCI order dated 12 March 2020.
3.2.6 Requests of transaction cancellations should be submitted within 30 calendar days of sale
being entered in the BCP.
Guidance: Under exceptional and justified circumstances, BCI may process a cancellation
request received after 30 days of the sale being entered in the BCP. A transaction entered into
the BCP with a status “awaiting acknowledgement” can be withdrawn within 30 days of entering
it into the BCP. Transactions with a status “acknowledged” can be cancelled within 30 days
after the date of acknowledgement.
In order to cancel transaction with "acknowledged" status, the supplier needs to write an email
to BCI with transaction details, copy this email to their buyer/seller and ask the buyer/seller to
provide no objection on cancellation. Only after receiving confirmation from the buyer/seller
of no objection will BCI cancel the transaction.
3.2.7 Lint traders shall only enter sale transactions and transfer BCCUs with the correct country of
origin, corresponding to purchase of Better Cotton bales. Lint traders shall not substitute Better
Cotton bales and their associated BCCUs with conventional cotton bales from different
countries.
3.2.8 The organisation shall ensure that all data entered into the BCP is genuine and can be verified
against corresponding documentation (i.e. purchase receipt, invoice, production records),
including:
a) Purchase and sale volumes
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b) Weight of raw materials used to make the BCI Order (e.g. total net weight of carded yarn
used to make a specific fabric)
c) Type of raw materials used
Guidance: The organisation should ensure that purchase and sale of BCI Orders are clearly
indicated as such through contracts, purchase orders, invoices and/or delivery notes. It is
recommended to use net weights of cotton-containing yarn weight and yarn cotton percentage
when entering sales transactions into the BCP for fabric suppliers and vertical mills.
3.2.9 The organisation shall enter a unique transaction reference number (e.g. purchase order,
contract, invoice or delivery slip number) into the BCP for each individual purchase or sale of
the BCI Order. If one BCP entry relates to multiple purchases or sales, a reference number or
range shall be entered for each separate purchase or sale.
Guidance: A unique reference number can be a number indicated in contracts, purchase
orders, invoices, delivery slips, shipping documents, file name of data management system
like ERP, Oracle or internal Excel systems. Based on the transaction reference number, both
buyer and seller can verify the authenticity of transaction and accuracy of the number of
BCCUs, providing all documents (contracts, invoices, delivery slips, production records for
auditors or BCI verification).
3.2.10 If a fabric mill or end-product manufacturer needs to transfer BCCUs directly to its indirect
client—the end buyer, retailer or brand – at the retailer and brand’s request, the organisation
shall ensure that it includes the name and contract number of the direct customer in the
transaction reference and other unique transaction reference requested by the retailer and
brand.
a) If a fabric mill fulfils a BCI Order from an end-product manufacturer, the names of the end-
product manufacturer/ direct buyer shall be entered into the transaction reference box in
the BCP. A unique document reference requested by the retailer/ brand (e.g. purchase
order, contract or invoice number) for the shipment shall also be included in the entry.
b) If an end-product manufacturer fulfils a BCI Order from a sourcing agent, the names of the
sourcing agent/ direct buyer shall be entered into the transaction reference box in the BCP.
A unique document reference requested by the retailer/ brand (e.g. purchase order,
contract or invoice number) for the shipment shall also be included in the entry.
3.2.11 In case of blended products
a) The spinners shall use the total weight of yarn, percentage of cotton in the yarn, and the
percentage of Better Cotton indicated in the order as the basis for declaring their purchase
and sales entries in the BCP.
Guidance example: A spinner sells 100 Kgs of 50% cotton 50% viscose yarn. The total net
weight of the yarn sold is 100 Kgs. For a 100% BCI order, the percentage of Better Cotton
allocated to the yarn is 50%. For a 30% BCI order, the percentage of Better Cotton allocated
to the yarn is 15%. The ‘percentage of Better Cotton allocated to the yarn’ as indicated in BCP
equals to the yarn cotton percentage multiplied by the percentage of Better Cotton indicated
in the order by the buyer.
b) The fabric mill or vertically integrated mill shall use the total weight of yarn used to make
fabric, percentage of cotton in the yarn used, and the percentage of Better Cotton indicated
in the order as the basis for declaring their purchase and sales entries in the BCP.
Example 1: A fabric mill sells 900 Kgs Cotton/Elastane knitted fabric made from 950 Kgs of
100% cotton-combed yarn and 50 Kgs Elastane. The total net weight of the cotton-containing
combed yarn used is 950 KGs and the percentage of cotton in the yarn used is 100%. For a
100% BCI order, the percentage of Better Cotton allocated to the fabric is 100%. For a 30%
BCI order, the percentage of Better Cotton allocated to the fabric is 30%.
Example 2: A fabric mill sells 900 Kgs of 50% cotton 50% polyester fabric made from 1000
Kgs of 50% cotton 50% polyester combed yarn. The total net weight of the combed yarn used
is 1000 KGs and the percentage of cotton in the yarn used is 50%. For a 100% BCI order, the
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fabric mill shall allocate 100% of Better Cotton to the fabric. For a 30% BCI order, the fabric
mill shall allocate 30% Better Cotton to the fabric.
3.2.12 All suppliers/ manufacturers that have negative inventory of BCCUs shall recover their ‘short
positions’ within 120 calendar days of when their account became negative.
Guidance: This option is available to traders, spinners, integrated spinners, fabric mills, non-
lint traders, and vertical mills only. The overdraft facility allows a company to fulfil BCI Orders
up to a maximum of 500,000 BCCUs, even if the organisation does not have sufficient BCCUs
in their BCP account inventory. When an organisation overdraws its BCP account, its inventory
will show a negative figure to reflect the volume by which its account is overdrawn by.
Organisations have up to 120 days to purchase cotton or cotton-containing products as BCI
Orders to cover their ‘short positions’ (negative inventory).
For example, your company just became a BCI member and gained access to the BCP. You
have outstanding BCI Orders from customers; however, you have not yet sourced any cotton-
containing products as BCI Orders. You can still fulfil BCI Orders that require the maximum
allocation of up to 500,000 BCCUs right away by entering these sales transactions into the
BCP. By doing so, you will have overdrawn your account. You will now have 120 days to
purchase cotton or cotton-containing products as BCI Orders to bring your account balance to
a positive balance.
3.4 Subcontractors
3.4.1 If an organisation subcontracts an activity (other than transport) related to the handling and/or
processing of BCI Orders, the organisation shall:
a) Maintain an up-to-date list of all subcontractors (excluding transport subcontractors),
including their contact details and the scope of their responsibilities related to the handling
and/ or processing of BCI Orders.
b) Ensure that all subcontractors comply with relevant Chain of Custody requirements.
c) Ensure that all subcontractors will provide BCI or designated third-party auditors with
access to their premises or documentation for the purposes of supply chain.
7 The cotton footprint for a specific order or a collection of product orders is the volume of total cotton lint consumed by the
spinner who made the yarns which were used to make the fabrics in an end-product. Cotton footprint always refers to a
volume (in KG) of cotton lint consumed by spinners.
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d) Maintain sole responsibility for entering all purchase and sale transactions on the Better
Cotton Platform.
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4.0 Rules for Retailers and Brands
4.1 Use of the Better Cotton Platform
4.1.1 Retailer/ brands shall review the accuracy of the transaction details and acknowledge sales
entered by suppliers within 30 calendar days of the sale being entered in the BCP.
Guidance: Retailer/ brands do not need to acknowledge transactions if they correspond to end
product sale by suppliers, e.g. from sourcing agents or end-product manufacturers. BCCUs
are directly transferred from their direct suppliers to the accounts of Retailer/ brands, with no
need for acknowledgement. Please note that Retailer/ brands are still required to check
transaction details, and if they are incorrect, request an amendment within 30 days of the sale
being entered in the BCP.
4.1.2 Requests of transaction cancellations should be submitted within 30 calendar days of the sale
being entered in the BCP.
Guidance: BCI may grant an exception for requests received later than 30 days from date of
sale entry.
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5.0 Requirements related to compliance monitoring and audits
Guidance: BCI carries out regular monitoring of Better Cotton supply chains, through a combination of
remote audits (e.g. document verification requests) and on-site verification through BCI second-party
monitoring visits, and third-party audits. These measures are designed to help ensure the overall
compliance of Better Cotton supply chains and to protect the credibility of Better Cotton claims made
by BCI stakeholders.
This section applies to all organisations implementing the Better Cotton Chain of Custody Guidelines,
including ginners and other supply chain organisations. Unless otherwise specified, requirements and
guidance are applicable to all organisations. Note the term organisation is used throughout this
section and includes both ginners and other supply chain organisations.
See the BCI website for information regarding BCI monitoring and third-party audit procedures.
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training and submit required documents, but access to BCP is provided only once evidence of
corrective action taken is provided.
Applicable to other supply chain organisations:
a) For Minor NCs: the supply chain organisation shall correct the NC within 12 months and
provide evidence to BCI or the third-party auditor demonstrating how the issue has been
addressed. If not addressed within 12 months, a Minor NC shall escalate to a Major NC.
b) For Major NCs: the supply chain organisation shall correct the NC within 30 calendar days
and provide evidence to BCI or the third-party auditor demonstrating how the issue has
been addressed. If not addressed within 30 calendar days, a Major NC shall lead to the
suspension of the Better Cotton Platform (BCP) account. The Duration of a suspension
period will be a minimum of 3 months, and is defined by BCI considering the NC's situation.
5.1.3 BCI retains the right to cancel the ginner agreement and/or suspend use of the BCP (for
ginners and other supply chain organisations) at any time due to the following cases:
a) A Major NC has not been corrected within the specified timeframe.
b) Multiple Major NCs were identified, suggesting a fundamental lack of compliance with the
Better Cotton CoC Guidelines.
c) BCI or a designated third-party auditor has evidence of a NC that was induced
purposefully, grossly negligent, systematic, and/or which imposes a severe reputational
risk to BCI stakeholders. The NC can be identified through second party monitoring visits,
third-party audits or any random checks.
d) No response to submit a Corrective Action Plan (CAP) within two weeks of receiving the
final audit report and CAP template.
Guidance: The minimum period of suspension for cases a)-c) above is 3 months, the maximum
is 12 months. In the case of c), or in the case of continued non-compliance, BCI membership
may also be suspended if the organisation is also a BCI member. Use of the BCP can also be
suspended due to non-payment of membership or system fees. For case d), BCI will re-activate
the account once CAP template is submitted.
5.1.4 If the ginner agreement is cancelled and/or use of the BCP is suspended (for ginners or other
supply chain organisations), the gin or other supply chain organisation shall not sell any cotton
as ‘Better Cotton’ or BCI Orders or enter any transactions into the BCP until it is reinstated.
Guidance: BCI will ensure that written notice is provided to the ginner and supply chain
organisation (including the terms of the suspension and any impacts on account inventories in
the BCP).
In the specific case that BCP access is suspended due to non-payment of membership or
system fees, the user’s account will be zeroed out before system use can be reinstated.
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If the user’s account inventory is negative, the negative inventory will be added if company
ever decides to reapply in the future.
Note for ginners: BCI retains the right to zero out existing account inventories (both seed and
lint) under the ginner’s account as a result of this suspension.
Note for other supply chain organisations: BCI retains the right to reduce the organisation’s
BCP account inventory as a result of the suspension.
5.1.5 If purchases or sales of Better Cotton and/or BCI Orders cannot be verified through supporting
documentation (or documents are not authentic or accurate), or if there is evidence of
fraudulent use of the BCP, BCI retains the right to reduce the organisation’s BCP account
inventory up to the total volume of unverified or fraudulent transactions.
Guidance: The ginner or supply chain organisation will be informed of the volume deduction in
writing. If the deduction exceeds the current quantity of BCCUs in the BCP account, the
inventory will become negative.
Note for ginners: BCP account inventory adjustments may be made to seed and/or lint
inventory, where applicable.
5.1.6 Upon notification of changes to gin activity, the use of the BCP may be deactivated.
Guidance: Notifications such as that a gin stops processing Better Cotton in the middle of the
season temporarily or permanently for the remainder of the cotton season and has leased out
the site to another ginner for processing conventional cotton, shall result in the deactivation of
the BCP.
5.1.7 If a supplier/manufacturer has a negative inventory of BCCUs for more than 120 calendar days,
BCI reserves the right to issue a major non-conformity or suspend their BCP account.
5.2 Appeals
5.2.1 If an organisation wishes to file an appeal against the outcome of a BCI or third-party
monitoring or audit process, the organisation shall send a full description of the appeal
(including supporting evidence) to [email protected] with the subject line clearly
marked ‘Appeal’. The appeal must be filed within 10 calendar days of receiving notice of the
outcome of the audit or monitoring process.
Guidance: Appeals will be reviewed and decided by BCI’s Membership and Supply Chain
Director. To be considered valid, appeals must include objective evidence supporting the
appeal, such as documentation, photo evidence, etc. The outcome of the appeal will be
provided in writing to the appellant within 30 days of receipt.
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Annex A: Terminology and Definitions
Term Definition
Annual Authorised The AAV code is a unique number generated by BCI for licensed
Volume (AAV) code Producers (Large Farms or Producer Units). AAV codes allow ginners
buying from licensed BCI Farmers to enter purchases of seed Better
Cotton into the Better Cotton Platform (BCP) and allocate the volumes
back to the corresponding Producer.
BCI Member A company that has applied for and been approved as a member of BCI.
A full list of members is available at: https://bettercotton.org/find-
members/ BCI requires membership of cotton traders, suppliers with
spinning capabilities, and retailers/brands. More details on membership
can be found at: https://bettercotton.org/get-involved/membership-offer/
BCI Order Any cotton or cotton-containing product (after ginner level) which is
bought or sold with a ‘Better Cotton’ claim and for which Better Cotton
Claim Units (BCCUs) are transferred between two parties via the Better
Cotton Platform (BCP).
Examples of cotton-containing products are yarn, fabric, etc.
Note 1: Under the mass balance CoC model used after ginner level in
the supply chain, BCI Orders may refer to a product that does not contain
any physical cotton from licensed BCI farmers.
Note 2: For example, a sale of yarn from a BCI Spinning Mill Member is
considered a BCI Order if it is sold with a Better Cotton claim (i.e. to fulfill
a BCI order), and if the sale is entered into the BCP and corresponding
BCCUs are allocated to the buyer.
Benchmarked Partner Other Cotton growing standards which are similar in nature and are
aligned with the Better Cotton Principles and Criteria. Farmers growing
cotton in accordance with these standards can sell their cotton as Better
Cotton.
Note: More detail on recognised equivalent standards can be found at
https://bettercotton.org/about-better-cotton/where-is-better-cotton-
grown/
Better Cotton Cotton produced by licensed BCI Farmers under the Better Cotton
Standard System or recognised equivalent standards.
Note 1: the term ‘Better Cotton’ refers to the production method (i.e. the
Producer must meet all relevant core indicators in the Better Cotton
Principles & Criteria); it does not refer to specifications or quality
parameters of the cotton itself.
Note 2: Better Cotton is required to be kept segregated from
conventional cotton at the farm and ginner level (e.g. 100% Better
Cotton bales).
Note 3: More detail on recognised equivalent standards can be found at
https://bettercotton.org/where-is-better-cotton-grown/
Better Cotton Chain of The chronological documentation, paper trail and electronic evidence
Custody that relates to the movement of Better Cotton and BCI Orders through
the supply chain, and which ensures the volume of Better Cotton
claimed by BCI Retailer and Brand Members does not exceed the
volume of Better Cotton produced by licensed BCI Farmers in any given
time period (accounting for relevant conversion rates).
Better Cotton Claim Unit The designated unit that corresponds to 1 KG of Better Cotton lint
(BCCU) produced from seed Better Cotton and procured from a participating BCI
ginner by a cotton merchant or a spinning mill.
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20 Be part of something Better
Term Definition
After the ginner level, any purchases or sales of BCI Orders must have
a corresponding transfer of BCCUs (from supplier to buyer/ recipient)
through the Better Cotton Platform (BCP). The allocation of BCCUs
enable supply chain organisations to report how much Better Cotton was
sourced as a result of customer BCI Orders.
Note 1: Once received by a supply chain organisation (any type of
supplier and manufacturer other than a ginner), BCCUs do not expire.
BCCUs are not attached to a specific crop season or calendar year.
Note 2: BCCUs cannot be purchased or sold as separate credit units
and can only be transferred in the BCP if they correspond to a genuine
physical sale or purchase of a BCI Order.
Note 3: BCCUs continue to be valid if the BCI Member and Non-Member
BCP Supplier continue to renew their BCP account access. If validity
expires and the company does not renew for more than 6 months past
the validity end date, then they need to apply for a new account and the
BCCUs will become invalid in the inactive account.
Better Cotton Platform BCI’s online system for tracking purchases/ sales of Better Cotton and
(BCP) associated BCCUs. The BCP is a trademarked online system used only
by BCI and registered supply chain organisations that are buying,
selling, or sourcing BCI Orders. It enables suppliers and manufacturers
to report to their customers how much Better Cotton lint was sourced
through the sale of a physical cotton-containing product.
Broker Persons or organisations involved in arranging deals between buyers
and sellers of BCI Orders, but do not take physical ownership of the
products. This definition excludes middlemen, who buy Better Cotton
from farmers and sell to ginners.
Conventional cotton Refers to any cotton that was not produced by licensed BCI Farmers in
compliance with the Better Cotton Principles and Criteria, or farmers in
compliance with benchmarked standards recognised by BCI.
Note 1: The Better Cotton CoC Guidelines require that Better Cotton
must be kept segregated from conventional cotton at the farm, during
transit from farm to gin and within the gin.
Note 2: As defined in the Better Cotton CoC, ‘conventional cotton’ can
include organic cotton or cotton certified under other sustainability
standards.
Cotton trader An organisation that takes legal and/or physical ownership of cotton lint
but does not undertake any product transformation (processing and
production for example). During transport between companies (e.g.
supplier, trader, mill), the cotton lint may cross international borders.
End-product Processors of textile fabrics and making them into end-products. End-
manufacturers/ product manufacturers buy fabric and sell end-products.
garment manufacturers
Fabric mills Processors of textile yarn and/or filaments and making them into fabric.
Fabric Mills buy yarn and sell fabric.
Gin turnout ratio Amount of lint produced on an average from 100 kgs of seed cotton
during the ginning process.
Note: a gin turnout rate may vary throughout the year based on the
quality parameters of cotton however it is fixed as a certain average in
the BCP for a whole year at the beginning of season when the gin
registers.
Ginner A company that buys seed cotton, gins it, and sells cotton lint bales.
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21 Be part of something Better
Term Definition
Implementing Partner An organisation responsible for the implementation of the Better Cotton
Standard System in their operational area, including a programme of
cotton production according to the Better Cotton Principles and Criteria.
Integrated Spinners Processors of textile fibres and/or filaments and making them into yarn,
fabric and end-product. Integrated spinners buy fibres and sell
yarn/fabric/end products.
Mass balance chain of A chain of custody model based on volume reconciliation, which allows
custody model mixing of cotton-containing products sourced as BCI orders and
conventional cotton, provided the total volumes are controlled and the
amount of certified outputs does not exceed inputs (accounting for
conversion rates). This allows suppliers and manufacturers to mix
equivalent amounts of conventional cotton and Better Cotton, as long as
the volumes are controlled and the total amount of cotton in products
sold with a Better Cotton claim is less than or equal to the amount
purchased (accounting for conversion rates).
Note 1: Under the Better Cotton CoC Guidelines, cotton traders are only
permitted to mix conventional and Better Cotton if the cotton comes from
the same country of origin.
Middlemen (seed cotton An individual or organisation buying seed cotton from farmers and
trader) selling it to ginners.
Non-conforming Non-conforming product means any BCCU transactions between two
products parties on the BCP which cannot fully comply with corresponding CoC
guidelines requirements.
Non-lint traders A company that buys and sells yarns and fabrics without further
processing or converting the materials.
Non-member BCP Organisations required to use the Better Cotton Platform (BCP) for
Suppliers purchase and sale of BCI Orders with BCCUs, such as fabric mills, non-
lint traders (yarn/ fabric traders), vertical mills, end-product
manufacturers, or souring agents, that are not members of the Better
Cotton Initiative. More information on membership can be found at:
https://bettercotton.org/better-cotton-platform/
Producer Unit A number of Learning Groups (LG) and/or large farm employers
(depending on their size) form a Producer Unit (PU). The size of a PU
will depend on local circumstances (e.g. farm size, the volume of Better
Cotton needed by the ginner for a gin run). For individual large farms,
the PU may be the national organisation representing producers. Ideally
the PU consists of 4000 farmers, but this may vary based on number of
LGs.
Retailers and Brands Any for-profit organisation selling goods or services directly to
consumers or, intended for direct use of consumers.
Segregation chain of A chain of custody model that requires physical segregation of Better
custody model Cotton and conventional cotton at ginner level and does not allow mixing
or substitution between Better Cotton and conventional cotton. In the
context of the Better Cotton CoC, product segregation is required
between the farm and the gin level – this means that Better Cotton from
licensed BCI farmers must be harvested, stored, transported, and
ginned separately from conventional cotton, and cannot be mixed or
substituted at any point.
Short Position The negative inventory or amount of BCCUs/ mass (Kgs) an
organisation has overdrawn by.
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22 Be part of something Better
Term Definition
Site A single functional unit of an organisation or a combination of units
situated at one locality, where a supply chain organisation carries out
production or processing. Organisation may have multiple sites. All sites
involved in the CoC for Better Cotton or BCI Orders shall be registered
with BCI.
Sourcing agent A company that buys finished products from end-product manufacturers
and sells these products to retailers and brands.
Spinners Processors of textile fibres and/or filaments and making them into yarn.
Spinners buy fibres and sell yarn.
Subcontracting The act of employing an outside company to complete internal business
activities or tasks.
Subcontractor An independent company contracted by an organisation for any
activities covered by the organisation’s Chain of Custody requirements.
Middlemen are not considered subcontractors.
Supplier/ manufacturer An organisation that processes or manufactures intermediary or finished
products. It excludes ginners, retailers, brands and cotton traders.
Vertical mills Processors of textile yarn and/or filaments and making them into fabric
and end-product. Vertical mills buy yarn and sell fabric/ end-products.
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23 Be part of something Better
Annex B: Chain of Custody for Implementing Partners
Guidance: This section outlines requirements for Implementing Partners (IPs) related to working with
farmers and ginners. The term Implementing Partner (IP) in this section can refer to either IP
representatives or staff (e.g. Producer Unit Manager), depending on how roles are divided within a
specific IP. Complete requirements for IPs are included in the IP Roles and Responsibilities and IP
agreement signed between the IP and BCI.
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24 Be part of something Better
ensure that ginners have an effective system in place to verify the authenticity of purchases of
seed Better Cotton.
B3.2 If the IP becomes aware of any potential misuse of AAV codes, it shall notify BCI within 3 days
of learning about the issue and shall support BCI in taking necessary action to ensure the
credible flow of Better Cotton between farm and ginner.
Guidance: IPs play a critical role in helping ensure that all Better Cotton entering the supply
chain can be traced back to licensed BCI Farmers. If IPs are informed about, or observe, a
misuse or potential misuse of AAV codes (e.g. an individual buying or selling AAV codes
without associated purchases of Better Cotton or entering purchases into the Better Cotton
Platform based on licensed volumes without purchase documentation), the IP must notify BCI
so that it can be further investigated.
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25 Be part of something Better