2020 Central Reserve Cotton Wheel-out Implementation Rules
In accordance with the spirit of Announcement No. 1 of 2020 jointly issued by the State Administration of Grain and Material Reserves and the Ministry of Finance, China Grain Reserves Management Group Co., Ltd. has formulated the detailed rules for the 2020 central reserve cotton rotation.
I. Quantity, structure and warehouse arrangement of reserve cotton to be rotated
The reserve cotton to be rotated this year is the 2011-2013 reserve cotton. The specific structure and warehouse points of the reserve cotton to be rotated will be arranged according to the out-of-warehouse notarized inspection, while also taking into account the needs of reserve cotton safety management.
II. Sales and delivery process of reserve cotton
(I) Sales method of reserve cotton. In 2020, the rotation of reserve cotton will be sold through open bidding and listing on the National Cotton Exchange (hereinafter referred to as the "Exchange").
(II) In accordance with the regulations of relevant national departments, during the rotation period, when the domestic market cotton spot price index is below 11500 yuan/ton, trading will be suspended from the next working day; when the domestic market cotton spot price index exceeds 11500 yuan/ton for three consecutive working days, trading will be restarted on the next working day.
China Reserve Cotton Management Co., Ltd. (hereinafter referred to as China Reserve Cotton Company) will, together with the relevant units of the Exchange, track the domestic market cotton spot price index and will uniformly announce the domestic market cotton spot price index to the public every working day at 17:00 through China Cotton Network and China Cotton Information Network. If trading needs to be suspended or resumed, China Reserve Cotton Company will, together with the Exchange, promptly issue announcements to the public through China Cotton Network and China Cotton Information Network respectively.
(III) Data release and transmission. The out-of-warehouse points of reserve cotton and relevant inspection data of reserve cotton will be released by China Reserve Cotton Company, China Fiber Quality Monitoring Center, and the National Cotton Exchange. Transaction data will be provided by China Reserve Cotton Company to the Exchange one day before the transaction. After the closing of the transaction, the Exchange will promptly transmit the transaction results to China Reserve Cotton Company.
(IV) Contract signing. The "Central Reserve Cotton Purchase and Sale Contract" (see Appendix 1) shall take effect upon the conclusion of the bidding transaction. Within 3 working days from the next day after the conclusion of the transaction, the buyer shall complete the stamping and signing procedures through electronic seal, fax, etc., and witness by the Exchange in the form of a complete contract; otherwise, it shall be deemed as a breach of contract by the buyer.
(V) Payment settlement. The buyer shall remit the transaction payment to the "Reserve Cotton Settlement Special Account" of China Reserve Cotton Company within 5 working days from the next day after the conclusion of the transaction. Account number:
Payment Unit: China Reserve Cotton Management Co., Ltd.
Bank: Head Office Business Department, Agricultural Bank of China
Bank Code: 203100000027
Account Number: 20399990010100000242801
China Reserve Cotton Company does not accept acceptance bills and payment on behalf of others. Failure to receive payment within 5 working days shall be deemed as a breach of contract by the buyer, and China Reserve Cotton Company shall notify the Exchange to deduct the corresponding margin. In order to speed up the settlement process and reduce the time funds are in transit, the buyer shall remit the payment according to the contract amount and mark the transaction contract number in the remittance remarks column.
(VI) Issuance of delivery order. Within 2 working days after confirming the receipt of funds, China Reserve Cotton Company shall issue the "Reserve Cotton Out-of-Warehouse Order", which will be handled uniformly by the China Reserve Cotton Company Customer Service Center. Address and contact information of China Reserve Cotton Company Customer Service Center:
Address: 15th Floor, Building B, Jiahao International Center, No. 116 Zizhuyuan Road, Haidian District, Beijing
Postcode: 100097
Tel: 010-58931136
Fax: 010-58931123
(VII) Delivery requirements. The buyer shall handle the delivery procedures with the corresponding storage unit with the original "Reserve Cotton Out-of-Warehouse Order" or electronic verification code. The buyer shall deliver the goods within 10 working days (inclusive) from the date of issuance of the "Reserve Cotton Out-of-Warehouse Order"; if the goods are not delivered within 10 working days (exclusive), the storage unit must treat them as commercial cotton for storage and move them out of the reserve cotton storage area. The buyer shall promptly sign a commercial cotton storage contract with the storage unit, clearly defining the relevant responsibilities and fee standards for storage and insurance, and the relevant fees shall be borne by the buyer. After being converted into commercial cotton, China Reserve Cotton Company shall not be responsible for any problems related to the storage and delivery of the cotton.
At the buyer's request, the storage unit shall provide necessary assistance in agency transportation, application for railway car plans, unloading, loading, etc. The reserve cotton out-of-warehouse fee shall be implemented in accordance with the unified regulations of relevant national departments. Unless otherwise agreed in advance by both parties, the reserve cotton storage unit shall not charge any additional fees and shall not forcibly require the buyer to use designated transportation tools. In case of broken or burst packages in a delivery batch, the buyer and the storage unit shall resolve the issue on site. The legality and validity of all invoices in the reserve cotton delivery process shall be the responsibility of the provider.
(VIII) Release of transaction margin. After issuing the "Reserve Cotton Out-of-Warehouse Order" or providing the electronic verification code, China Reserve Cotton Company shall notify the Exchange to release the buyer's transaction margin. If the buyer breaches the contract after the margin has been released, China Reserve Cotton Company shall deduct the breach of contract penalty from the buyer's payment.
(IX) Issuance of VAT special invoice. The buyer can apply to China Reserve Cotton Company for a VAT special invoice only after the delivery is completed and the acceptance is correct. The buyer shall submit the application for issuing a VAT special invoice online through the "Invoice Application" module of the Reserve Cotton Out-of-Warehouse (Self-Service) Service Information System. China Reserve Cotton Company does not accept paper "Invoice Applications".
In order to improve the speed of invoice issuance and ensure that the relevant information provided for invoice issuance is accurate and error-free, the buyer shall fill in the "Basic Information Registration Form for Reserve Cotton Bidding Enterprises" (see Appendix 2) online through the Reserve Cotton Out-of-Warehouse (Self-Service) Service Information System and fax the stamped copy to the China Reserve Cotton Company Customer Service Center.
Reserve Cotton Out-of-Warehouse (Self-Service) Service Information System Website: http://paochu.emiancang.com/.
(X) Transaction handling fee. China Reserve Cotton Company shall pay the transaction handling fee according to the final sales out-of-warehouse quantity in accordance with relevant regulations.
III. Notarized inspection and quality dispute handling
(I) Notarized inspection of reserve cotton out-of-warehouse
The reserve cotton out-of-warehouse this year shall be subject to notarized inspection in accordance with relevant national regulations. The quality and weight differences within the allowable range shall be sold according to the results of the rotation notarized inspection. The quality and weight of the out-of-warehouse reserve cotton shall be based on the notarized inspection certificate issued by the relevant institution.
The out-of-warehouse notarized inspection shall be organized and implemented by the China Fiber Quality Monitoring Center, and the relevant detailed rules shall be implemented in accordance with the "Implementation Measures for the Notarized Inspection of National Reserve Cotton Rotation in 2015/2016" (in the Measures, "National Reserve Cotton" refers to Central Reserve Cotton, hereinafter the same). The relevant storage units shall fully cooperate with the notarized inspection work to ensure the smooth progress of the reserve cotton out-of-warehouse task.
(II) Handling of Quality and Weight Disputes
Quality and weight disputes are handled through a re-inspection mechanism. The buyer shall submit an application to the trading market in accordance with the relevant provisions on re-inspection in the "Implementation Measures for Public Notary Inspection of the National Reserve Cotton Rotation" (2015/2016). After preliminary review by the trading market, the application will be submitted to the China Fiber Quality Monitoring Center for re-inspection.
Except for the following situations, reserve cotton that has already been sold will not be returned.
1. Adulteration or fraud has been confirmed by the China Fiber Quality Monitoring Center.
2. Re-inspection conducted by the China Fiber Quality Monitoring Center shows inconsistencies in quality or weight.
3. There is serious contamination or mildew inside the cotton bale.
Given that reserve cotton is sold in bundles, in the event of a return due to the above circumstances, only the return of entire bundles of cotton will be accepted. The buyer is responsible for returning the cotton to the designated storage unit. The return will only be processed after successful inspection.
The fees for cooperation in public inspection and warehousing associated with in-warehouse re-inspection and returns shall be implemented according to national standards. Returned cotton must maintain its original packaging. If repackaging and sorting are required, the buyer will bear the costs.
IV. Information Release and Reporting
The China Reserve Cotton Company releases daily listing data and related announcements through the China Cotton Network and the China Cotton Information Network. Weekly summaries of outbound shipments and existing problems are reported to the relevant departments.
V. Other Matters
(I) The reserve cotton in this shipment is sold in bundles, and the specific details of each bundle of cotton shall be based on the listing data published on the China Cotton Network, the trading market website, and the China Cotton Information Network.
(II) The buyer must provide a letter of authorization authorizing the designated agent to handle procedures such as the "Reserve Cotton Outbound Form" and VAT special invoices.
(III) China Reserve Cotton Company entrusts China Reserve Cotton Information Center Co., Ltd. (hereinafter referred to as the Information Center) to provide free electronic authentication for the "Reserve Cotton Outbound Form". Buyers can use the verification code SMS on the "Reserve Cotton Outbound Form" to handle the goods collection procedures at the relevant storage warehouses, or they can use the original paper copy of the "Reserve Cotton Outbound Form" issued by China Reserve Cotton Company to handle the goods collection procedures at the relevant warehouses. For details on using the "Reserve Cotton Outbound Form Electronic Authentication Service", please refer to the "Announcement on Matters Related to the Electronic Authentication Service of the " released by the Information Center.
(IV) The reserve cotton outbound fee is ¥45/ton (¥60/ton on national statutory holidays). Because the reserve cotton underwent outbound public notary inspection in advance this year, most of the reserve cotton is stacked in batches, and it needs to be restacked when loading and shipping. The restacking fee shall not exceed ¥40/ton. The above costs shall be borne by the buyer themselves and settled with the relevant storage units before collecting goods. Storage units are strictly prohibited from overcharging.
(V) All storage units need to further improve the outbound process. Upon receiving the outbound instructions from China Reserve Cotton Company, contact the buyer promptly, arrange outbound time reasonably, and shall not delay outbound for any reason. If the buyer files a complaint or lawsuit, the storage enterprise that deliberately delays the collection of goods shall bear the corresponding responsibility.
(VI) After the buyer breaches the contract, the trading market will regularly transfer the breach of contract penalties to the account of China Reserve Cotton Company. After the reserve cotton auction is completed, China Reserve Cotton Company will uniformly remit the funds to the Ministry of Finance.
(VII) China Reserve Cotton Company complaint telephone: 400-660-2856, fax: 010-58931123. Buyer enterprises can also log in to the Reserve Cotton Outbound (Self-service) Service Information System "Online Complaint and Evaluation" module to file complaints and submit online evaluations.
China Reserve Grain Administration Group Co., Ltd.
Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.
Tongzhou Cotton Market Brief, Week 1 of March 2025
1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.
In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.
On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.
Henan Tongzhou Cotton Industry Co., Ltd.
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Henan Tongzhou Cotton Industry Co., Ltd.
Address: 10th Floor, Henan Nongxin Building, No. 19 Commercial Outer Ring Road, Zhengdong New District,Zhengzhou, China
Tel：86037165836206
Email：tongzhou@tongzhoucotton.com
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