In the spring of 1957, a joint committee from ATMI, the predecessor organization of the NCTO, and ACSA was charged with developing a set of rules to govern sales of American-Egyptian cotton. The 1958 Joint Meeting approved six American-Egyptian Rules, which were referred to the two organizations for ratification. In 1959, they were included in the Southern Mill Rules booklet as a separate section.

On July 1, 1970, the U.S. Department of Agriculture changed the official designation of “American-Egyptian” to “American Pima.” The 1971 Joint Meeting agreed to make this change in the rules. Revised American Pima Rules were included in the 1971 Southern Mill Rule booklet.


1. The following rules shall be known and designated as the American Pima Section of the Southern Mills Rules, and where Southern Mill Rules are referred to in any contracts for the sale of American Pima cotton, it shall be conclusively presumed that the rules referred to are those set forth in this Section together with those provisions of the regular Southern Mill Rules, which are not in conflict with the spirit of the rules contained in this Section.

2. All contracts for the purchase and sale of American Pima cotton shall be based on the Official Cotton Standards of the United States of America for American Pima cotton, unless bought or sold on actual samples or types. No cotton below the grade specified may be delivered.

3. In the event the buyer buys in cotton in the open market in accordance with the provisions of Southern Mill Rules 16 or 42, or in the event seller sells cotton in the open market in accordance with the provisions of Southern Mill Rule 23, the liquidating damages shall be one-half cent per pound.

4. All contracts for immediate or prompt ship­ment must contemplate the shipment of the cotton of the running weight in the territory of origin. Contracts for forward delivery shall be based on a net weight of 500 pounds per bale at destination, with privilege of a variation of one-half of one percent either way adjusted on each month’s delivery and, if necessary to bring the actual weight of cotton delivered within the total weight of contract thus calculated, the seller shall deliver more or less bales than the number stated in the contract as the case may require. No bales of cotton under 325 pounds net weight shall be delivered under any contract. Dissatisfaction with weights delivered to buyer must be reported by buyer to seller or his agent within fifteen business days from receipt of shipment. The seller must furnish the buyer with invoice and detailed weight sheet showing weight of each bale of cotton shipped.

5. The sale of American Pima cotton will be on the basis of net weights. The actual tare shall be deducted. The invoice allowance, where actual tare is not available, shall be twenty-two (22) pounds per bale.

6. All claims and controversies between the seller and buyer relative to the quality of cotton delivered under contracts for American Pima cotton shall, on request of either party to the contract, be determined by mutual arbitration pursuant to the procedures utilized for upland cotton