What is the difference between BCI Chain of Custody (CoC) | v1.4 and v1.0?

The Better Cotton Chain of Custody (CoC) guideline v1.4 has been renamed as the Better Cotton Chain of Custody (CoC) standard v1.0 and was launched in May 2023. This revision represents a significant development in the CoC guidelines.

In addition to adding a new physical chain of custody model, the following key changeshave been made:

1. Introduce new management system requirements and strengthen existing ones to enhance the implementation of overall supply chain standards.

2. Consistent requirements related to documentation, procurement, material receipt, and sales have been established in all four chain of custody models. This will allow the useof multiple chain of custody models (including inventory balance) at the same location.

3. This standard has been simplified to only focus on chain of custody requirements. Separate documents will be developed regarding guidance and implementation, monitoring, retailer and brand member statements, as well as the Better Cotton Platform (BCP) user manual.

The main differences between the two versions are shown in the following figure:

The chain of custody standard v1.0 came into effect in October. It should be noted that regardless of which chain of custody model enterprises adopt, they must comply with this v1.0 by May 2025 at the latest. So good cotton is currently in a transitional period, so the editor has compiled some common questions during the transitional period for everyone to answer.

01. Can the enterprise continue to follow v1.4 at present?

Yes. During the transition period from October 2023 to May 2025, both Chain of Custody v1.0 and v1.4 will remain effective. Enterprises that choose to continue adopting the balance of purchase, sales, and inventory model can continue to follow v1.4 without making any changes until May 2025.

However, starting from May 2025, all enterprises participating in better cotton projects should comply with the new chain of custody standard v1.0. Failure to comply will result in the loss of eligibility to join the project.

02. If the enterprise is already using the Better Cotton Platform (BCP), what impact will the v1.0 standard have on it?

If the enterprise only adopts the balance of purchase, sales, and inventory model and hopes to continue to follow v1.4 before May 2025, there will be no changes and will not be immediately affected by the new regulatory chain standard v1.0.

However, starting from May 2025, the new chain of custody standard v1.0 will apply to all enterprises that are already using BCP and those seeking to join the project. If your organization is interested in complying with the new standards and trading/purchasing physical better cotton, you need to register your intention, and Better Cotton will contact you to provide the latest information and guidance for the next steps.

03.Can good physical cotton be blended with other types of cotton? What should enterprises do?

The Chain of Custody Standard v1.0 allows better cotton to be mixed with traditional (or non better cotton) materials through a blended chain of custody mode during the processing phase.

The mixed spinning chain of supervision model can only be used in future manufacturing or processing activities of the spinning factory. It cannot be used for the trading and/or distribution of Better Cotton products, nor can it be used for transactions without physical possession of products.

04.Can enterprises implement different chain of supervision models within the organization?

The new chain of custody standard v1.0 aims to allow enterprises to adopt different models based on their operational methods and customer needs:

1. Cotton fields and ginning factories: 100% physical better cotton (single source country) model must be used.

2. Cotton merchant: Can use 100% physical better cotton (single source country) and a balance model of purchase, sales, and inventory.

3. For the rest of the supply chain, one or more regulatory chain models can be adopted, including the balance of purchase, sales, and inventory model.

4. Better cotton retailers and brand members can purchase all orders in the chain of custody mode.

It should be noted that any enterprise that wishes to adopt multiple chain of custody models needs to operate according to the new chain of custody standard v1.0.