Better Cotton Chain of Custody Standard Registry FAQ

As global stakeholders seek a clearer understanding of the social and environmental challenges associated with the cotton supply chain, policymakers are demanding that businesses demonstrate higher transparency and a growing demand for traceability of "good cotton". To join Better Cotton, companies need to submit a Better Cotton Chain of Custody Standard Registry. Better Cotton will review the company's information and assign a category (A, B, or C) to each company to determine the monitoring and evaluation required to comply with the Chain of Custody standards. Therefore, the editor has compiled a few related Q&A on the regulatory chain standard registry for everyone, let's take a look together.

Q: What kind of enterprise needs to be registered?

A: All business premises that have Better Cotton product ownership and transfer ownership with other enterprises are required to register in order to operate traceable Better Cotton orders.

Q: Traders place orders with factories, and factories buy fabrics to make finished products. Both factories and traders need to fill out registration forms and have BCP accounts, right?

A: If a trader buys fabrics, subcontracts them to a factory for production, and then sells finished products in the name of the trader, the trader only needs to fill out the registration form. The factory is a subcontractor, and the trader has an obligation to manage thesubcontractor for the factory.

Q: Is it necessary to fill out a registration form for different subsidiaries to purchase cotton yarn, produce fabrics, and sell fabrics?

A: Yes. This basis is based on the perspective of which actual business premises have ownership of goods. If there is a transfer of ownership of goods between these subsidiaries, separate registration forms need to be filled out.

Q: Do trading companies and manufacturers need to register if they purchase ready to wear clothing from garment factories and then sell it to retailers? Or is it enough to upload information for registering a trading company?

A: Both trading companies and garment factories need to register because there is a transfer of ownership involved between the two parties. Traceable Better Cotton orders are not allowed to skip any party and switch to physical good cotton equivalent quantities to ensure supply chain transparency.

Q: Is there a registry risk assessment checklist that allows suppliers to assess their own risk levels?

A: No, but the two core criteria for risk level assessment are: management system and separation system. If these two factors are well done, the risk level will be relatively low. This can be verified by uploading some supporting documents or the company's management process.

Q: Why is it recommended to choose all three physical chain of custody modes when filling out the registration form?

A: The management system requirements applicable to the three physical chain of custody modes, as well as the requirements for procurement, storage, production, and sales, are standardized and unified. Choosing the three physical chain of custody modes can provide enterprises with more potential opportunities to secure good physical cotton orders. When viewing the physical chain of custody models that you can do, the brand may place more traceable orders using different chain of custody models.

But it is necessary to evaluate the needs and capabilities of the enterprise itself to see if it can truly operate.

Q: When will we start working after submitting the registration form?

A: After obtaining the risk level classification results, the enterprise can use the E-learning online training module to see the functional module for operating physical good cotton on the BCP platform. At the same time, Better Cotton will publish a list of suppliers who are ready to operate traceable good cotton orders on Good Cotton's official website, and share it with the brand.

Q: Is it possible to submit the registry at any time?

A: Before the end of May 2025, it can be submitted at any time to meet the needs of the enterprise. If there are recent orders for physical Better Cotton or if you want to enter the physical Better Cotton project first, you can fill them out and submit them as soon as possible based on actual needs.

Around April 2025,Better Cotton will remind all enterprises that only operate inventory balance orders to fill out the regulatory chain standard registration form and operate inventory balance orders according to the regulatory chain standard version 1.0.

Q: Does not submitting the registration form mean that the inventory balance mode can only be used to operate in May 2025?

A: Not submitting the registration form before April 2025 means that the supply chain supervision principle version 1.4 can still be followed and operated using the inventory balance mode. Around April 2025, Better Cotton will remind all enterprises that only operate inventory balance orders to fill out the Chain of Custody Standard Registry and operate inventory balance orders according to the Chain of Custody Standard 1.0 version. If the registry is not filled out at that time, it will be assumed that the enterprise will not operate any Better Cotton orders, including inventory balance orders.

The benefits of achieving traceability for the cotton textile industry

Cotton farmers

By having the ability to verify the quality and origin of cotton, fair product prices can beobtained.

Continuously entering the increasingly regulated international market.

Suppliers&Finished Product Manufacturers

Ensure the quality and consistency of raw materials, and reduce the risk of supply chain disruptions or product recalls.

Identify production processes that can be simplified or optimized to improve efficiency and profitability.

Retailers&Brands

Enhance brand reputation, increase consumer trust and loyalty.

Obtain data on its supply chain for legislators to request soon.

Utilize supply chain data to enhance due diligence.

consumer

Obtain information about the origin of cotton, production methods, and enterprises involved in the supply chain.

Choose products that align with their values, such as those that are sustainably produced or purchased in accordance with ethical standards.

Government&non-governmental organizations

Supervise and enforce labor and environmental regulations to ensure sustainable and responsible cotton production.

Support the achievement of national and international development goals, such as Sustainable Development Goals (SDGs).