Cotton Standardization Ordinance, 2002

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THE COTTON STANDARDIZATION ORDINANCE, 2002 
 
 
 
 
     CONTENTS 
_________ 
SECTIONS 
1.  Short title, extent and commencement. 
2.  Definitions. 
3.  Establishment of the Institute. 
4. Management. 
5.  Constitution of the Board. 
6. Meetings. 
7. Power of Board to associate other persons. 
8.  Executive Committee. 
9. Appointment of officers and staff. 
10. Officers and staff etc. to be public servants. 
11. Audit of Accounts. 
12. Functions of the Institute. 
13. Placement of Classers. 
14. Duties of a Classers. 
15. Standardization fee. 
16. Pakistan Cotton Standards Institute Fund. 
17. Power of the Institute to borrow money. 
 
Updated till 31.8.2022

 
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18. Budget. 
19. Delegation. 
20. Power to make rules. 
21. Savings. 
 
 
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THE COTTON STANDARDIZATION ORDINANCE, 2002 
 
ORDINANCE No .  LXIV OF 2002 
[4th October, 2002] 
 
An Ordinance to provide for the establishment of the Pakistan Cotton Standards Institute and 
to promote quality control of cotton 
 
WHEREAS it  is  expedient to provide for  the  establishment  of  the  Pakistan  Cotton 
Standards Institute and to promote quality control of cotton and to provide for matters connected 
therewith or incidental thereto; 
 
AND WHEREAS the President is satisfied that circumstances exist which render it necessary 
to take immediate action; 
 
NOW,  THEREFORE, in  pursuance  of  the  Proclamation  of  Emergency  of  the fourteenth 
day of October, 1999, and the Provisional Constitution Order No.l of  1999, read  with  the  
Provisional  Constitution  (Amendment)  Order  No.9  of  1999,  and  in exercise  of  all  powers  
enabling  him  in  that  behalf,  the  President  of  the  Islamic Republic of Pakistan is pleased to 
make and promulgate the following Ordinance, namely:⸺ 
 
 
1. Short title, extent and commencement. --(1) This Ordinance may be called the  
Cotton Standardization Ordinance, 2002.  
 
(2) It extends to the whole of Pakistan. 
 
(3) It shall come into force at once. 
 
2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or 
context,⸺ 
 
(a)  “arbitration” means settlement of disputes between buyer and seller of 
cotton; 
 
(b) “bale” means any pressed package of lint cotton with standard average net 
weight of one hundred and seventy kilograms with variation of three percent 
plus or minus at eight and half percent moisture content; 
 
(c) “Board” means the Board of Dir ectors of the  Institute constituted under 
section 5; 
 
(d)  “Chairman” means the Chairman of' the Board; 
 
(e)  “Classer” means a person trained in cotton assessing and having obtained the 
prescribed certificate by the Institute; 
 
(f) “cotton” means the post-harvest seed cotton and lint cotton; 
 
(g)  “contamination” means all materials other than cotton; 
 
 
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(h)  “cotton standards” means the official cotton standards prescribed by the 
Institute; 
 
(i) “Fund” means the  Pakistan  Cotton Standards Institute Fund established  
under section 16; 
 
(j) “ginner” means  any natural or legal p erson r esponsible for managing a 
ginning factory; 
 
(k)  “grade” means a grade of cotton established under this Ordinance; 
 
(l)  “Inspector” means an Inspector appointed by a Provincial Government 
under  the Provincial Cotton Control Ordinance, 1966, (W.P.Ordinance XX    
of   1966); 
 
(m) “Institute” means the Pakistan Cotton Standards Institute established under 
section 3; 
 
(n)  “member” means member of the Board; 
 
(o)  “prescribed” means prescribed   by   rules   made   under   this Ordinance;and 
 
(p) “private inspection company” means a company or person so authorized 
by the Institute to  grade and classify seed cotton and li nt cotton for 
detection of contamination level therein. 
 
3. Establishment of the Institute.⎯(1) There shall be established an institute to be known 
as the Pakistan Cotton Standards Institute which shall be a body corporate having perpetual 
succession and a common seal and may acquire, hold and dispose of its property: 
 
Provided that the immovable  property  of the Institute shall  be disposed of after approval 
of the Federal Government. 
 
(2). The Head Office of the Institute shall be at Karachi, with sub-offices one each in the 
Punjab at Multan and in Sindh at Sukkur. The Board may, with the approval of the Federal 
Government, set up such additional sub-offices at other places as and when required. 
 
(3). The Institute shall  be headed by a Director who shall be its chief executive officer. 
 
4. Management.⎯() The general direction and administration of the Institute shall vest in 
the Board which may exercise all powers and do all acts which may be exercised or done by the 
Institute under this Ordinance. 
 
(2)  The Board shall in discharge of its functions, act on sound principles of standardization, 
testing and quality control and shall be guided on matters of policy by such directives which the 
Federal Government may issue from time to time and if question arises as to whether any matter 
is a matter of policy or not, the decision of the Federal Government shall be final. 
 
5. Constitution of the Board.⸺(1) The Board shall consist of the following, namely:⸺  
 
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(2) The Secretary, Ministry of 2 [Textile Industry] shall be the Chairman and the Director, 
Pakistan Cotton Standards Institute shall be ex officio Secretary of the Board.  
(3) The Federal Government shall, from the Ministry of Commerce, Government of 
Pakistan, appoint a member to be the Vice-Chairman of the Board. 
(4) The appointment of the Chairman, Vice-Chairman and members shall be notified in the 
official Gazette. 
 
6. Meetings.⎯ (1) The meetings of the Board shall be convened by the Chairman for an 
identified agenda on such date and at such time and place as may be specified by him: 
 
Provided that  not more than a period of six months shall intervene between two meetings 
of the Board and at least two meetings of the Board shall be held each year. 
 
1Ins. by the Cotton Standardization (Amdt.) Act, 2009 (II of 2009), s. 2. 
2Subs by the Cotton Standardization (Amdt) Act, 2009 (II of 2009), s.2 for “Food, Agriculture and Livestock".
(a)  The Chairman;  
(b)  one representative each of the 1[Ministry of  Textile Industry,]  
Ministry   of Food, Agriculture and   Livestock,   Ministry   of 
Commerce and Ministry of Finance, Government of Pakistan; 
Members. 
(c)  one   representative   each   of   the   Agriculture Departments 
of the Punjab, Sindh, NWFP and Balochistan; 
Members. 
(d) one r epresentative each of the Pakistan Central Cotton 
Committee (PCCC), Trading Corporation of Pakistan (TCP), 
Karachi Cotton Association (KCA), All Pakistan Textile Mill's 
Association (APTMA), Pakistan Cotton Gin ner's Association 
(PCGA) and Textile Commissioner’s Organization (TCO); 
Members. 
(e)  one grower each to be nominated far a tern of two years by 
the Provincial Agriculture Departments of Punjab, Sindh, NWFP 
and Balochistan; 
Members. 
(f)  such  other  growers  not  exceeding  three, to  be 
nominated by the Federal Government for a terns of two 
years; and 
Members. 
(g)   Director,   Pakistan   Cotton   Standards   Institute 
(PCSI). 
 
Member. 
 
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(2) On a written requisition of at least seven members, the Chairman shall, within a period 
of fifteen days from receipt of such requisition, summon a meeting of the Board. 
 
(3)  Seven members of the Board shall constitute a quorum for a meeting of the Board. 
 
(4) All decisions of the Board shall be taken by majority vote and, in the event of 
equality of votes, the Chairman shall have the casting vote. 
 
(5) The Board may, with the approval of the Federal Government, make rules for conduct 
of its business. 
 
7. Power of Board to associate other persons. The Board may, in such manner and on 
such terms as it may deem fit, seek the advice or assistance of any person in carrying out the 
purposes of this Ordinance and invite any person to take part in discussions during any of its meeting 
without the right to vote. 
 
8. Executive Committee.⎯ (1) There shall be an Executive Committee which shall 
consist of the following members, namely:⎯ 
 
(a)   the Vice-Chairman; 
 
(b)   three members of the Board of whom two members from the public sector and 
one member from the private sector, to be nominated by the Board; and 
 
(c)   the Director, Pakistan Cotton Standards Institute. 
 
(2) Subject to the directions and delegation of powers by the Board, the Executive 
Committee shall be the principal administrative body of the Institute. 
 
9. Appointment of officers and staff.⸺ (1) The Board may appoint such officers and 
employees as it may consider necessary for the efficient performance of its functions on such terms 
and conditions as may be prescribed with the prior approval of the Federal Government. 
 
(2) All appointments under  sub-section (1) shall be made in accordance with  the prescribed 
educational, technical  or professional qualifications , experience  and age limits and after 
advertisement of the vacancies in the prominent newspapers. 
 
10. Officers and staff etc. to be public servants. The officers and staff of the Institute 
shall be deemed to be public servants within the meaning of section 21 of the Pakistan Penal 
Code (Act XLV of 1860). 
 
11. A udit of Accounts. The annual accounts of the Institute shall be audited by the 
Auditor General of Pakistan. 
 
12. Functions of the institute.⎯ The following shall be the functions of the Institute, 
 
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namely:⸺ 
 
(a)   to introduce standardization of cotton; 
 
(b)   to establish cotton s tandards and recommend measures to Provincial 
Governments for producing contamination-free cotton; 
 
(c)  to devise quality control measures for export and domestic use of cotton and   
the   handling   procedures   for   contamination-free   cotton   in   ginning 
factories; 
 
(d)  to conduct grading of seed cotton and classification of lint cotton through its 
Classers  or the approved private inspection companies; 
 
(e)  to pre-qualify the private inspection companies for certifying the quality of 
cotton; 
 
(f)  to conduct training and examination in  cotton  grading  and  cotton  classing for 
growers, ginners, spinners, exporters and other persons of public and private 
sectors and awarding the certificate; 
 
(g)  to develop arbitration procedures to settle disputes relating to classification, 
grading and contamination amongst sellers and buyers of seed cotton and lint 
cotton; 
 
(h)  to liaison with the national and international cotton related institutions; and 
 
(i)   to lay down the policy and programme and its implementation   for training 
in arbitration, cotton classification and cotton fibre testing. 
 
13. Pla cement of Classers.⎯(1) The Institute shall assign a Classer to one or more 
ginning factories for supervision of the-standardization of cotton. 
 
(2) The assignment of a Classer under sub-section (1) shall not prevent the Institute from 
exercising itself or any private inspection company from exercising the duties of a Classer. 
 
14.  Duties of a Clas ser.⎯(1) The Classer shall supervise the standardization procedures   
and   technical   requirements   by   a   ginning   factory   with   which   his assignment has been made 
under sub-section (1) of section 13. 
 
(2)  In order to carry out his duties under sub-section (1), the Classer shall be empowered to 
visit the assigned ginning factory and he may examine any cotton being ginned and take samples 
thereof for classification. 
 
(3)  If a Classer has reasons to b elieve th at the st andardization procedures and technical 
requirements are not complied with by a ginning factory, the Classer shall inform the Inspector by 
a written memorandum with copy to the Institute. 
 
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15. Standardization fee.⸺ (1) The Institute may charge standardization fee as charges of 
standardization of the cotton at such rate as the Federal Government may, from time to time, fix by 
notification in the official Gazette. 
 
(2) The Institute shall have the authority to utili ze the standardization fee to meet its 
establishment and operational expenses. 
 
(3)  The institute shall , however, continue  to receive such  annual grants from the Federal 
Government to meet its establishment and operational expenses till it becomes self- financing. 
 
 
16. Pakistan Cotton Standards Institute Fund.⎯ (1) There shall be established a Fund to 
be known as the Pakistan Cotton Standards Institute Fund to meet expenses in connection with the 
functions of the Institute under this Ordinance including the payment of salaries and other 
remunerations of the officers and staff of the Institute. 
 
(2) The Fund shall consist of⸺ 
 
(a)   grants made by the Federal Government ; 
 
(b)  loans obtained from the Federal Government ; 
 
(c)  loans obtained from, and grants made by foreign agencies with the prior 
sanction of the Federal Government ; 
 
(d)  standardization fee charged under section 15; and 
 
(e)  all other funds and sums including donations received by the Institute. 
 
(3) The Fund shall be kept in the Personal Ledger Account of the Institute with the National 
Bank of Pakistan, or  with  such  other  banks  as  may  be  approved  by  the Federal Government. 
 
17. Power of the Institute to borrow money.⸺ For the purpose of borrowing money, the 
Institute shall be deemed to be a local authority under the Local Authorities Loans Act, 1914 (IX of 
1914). 
 
18. Budget. The Institute shall prepare its annual budget estimates for every ensuing year, 
and submit it for approval to the Board. 
 
19.  Delegation.⎯ (1)  The  Federal  Government  may,  by  notification  in the  official 
Gazette, and subject to such conditions as may be specified in the notification, direct that all or 
any of its powers under this Ordinance or rules made thereunder shall also be exercisable by a 
Provincial Government or any authority subordinate to it. 
 
(2) The Board may delegate all or any of its powers under this Ordinance to the 
Chairman, a member or any officer of the Institute.  
 
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20. Power to make rules.⎯ (1) The Institute may, with the approval of the Federal 
Government, make rules for carrying out the purpose of this Ordinance. 
 
(2) In particular and without prejudice to the generality of the foregoing powers, such rules 
may provide for all or any of the following matters, namely:⸺ 
(a)   to regulate appointments to and conditions of service of officers and employees 
of the Institute; 
(b)  standardization of cotton and devise measures for application of 
standards;  
(c) seed cotton grading and lint cotton classification; 
(d)  specifying nature and levels of contamination  and measures for quality 
control of cotton and for producing contamination-free cotton; 
(e) selection and control of approved private inspection companies for certifying 
the cotton quality; 
(f)  regulating the composition and the functions of technical and administrative 
departments, and other offices of the Institute; 
(g) levying of fees and charges in respect of grading, classing, quality control, 
fibre testing and other services provided by the Institute; 
(h) settlement of disputes between buyer and seller of cotton; 
(i)  laying down the qualifications and duties of the employees of the Institute; 
and 
(j)  courses of study for training in cotton  grading, classification, standards, 
detection and eradication of contamination in cotton and fibre testing by 
modern machines and HVI. 
 
21. Savings. All rules made and in force immediately before the commencement of this 
Ordinance shall, in so for as they are not inconsistent with the provisions of this Ordinance having 
regard to various matters which by  this Ordin ance h ave to be regulated or  prescribed by  rules, 
continue to be in force, until they are repealed, replaced, rescinded or modified in accordance with 
the provisions of this Ordinance. 
 
 
 
 
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