Quality, testing & documents

Umpire analysis

Analysis of the retained sealed sample by an independent laboratory agreed in advance, used when the seller’s and buyer’s results differ by more than the splitting limit set in the contract. It is common in ore and concentrate trade; the umpire result is usually binding, or is averaged with whichever party’s result is closer. The cost is normally borne by the party whose result is further from the umpire’s.

Related terms

Sampling (representative sample)

Taking samples so that they represent the whole lot, following standard methods – e.g. ISO 24333 for grain, ISO 3082 for ores, ASTM D4057 for liquids. In bulk loading, increments taken at intervals are combined and divided, and usually three or four identical samples are sealed: one for the seller, one for the buyer and one retained for umpire analysis. At the quotation stage, small type samples are tested for suitability; the contract should commit that the shipment will match the approved sample.

Certificate of analysis (COA)

A document in which the producer or an independent laboratory reports the test results for a specific lot together with the specification limits. It shows the product name, lot number, production date, test method (e.g. ASTM, ISO), measured value and acceptance range. A TDS gives a product’s typical properties; a COA gives the actual values of the lot delivered. Under a letter of credit the COA must be issued by the party and with the content the credit requires.

Arbitration (international commercial arbitration)

Resolution of a dispute by arbitrators chosen by the parties instead of state courts, in a confidential and final procedure. Institutions such as ICC, LCIA, SIAC or ISTAC, or the rules of commodity associations (GAFTA, FOSFA, LME), are commonly used. Thanks to the New York Convention, awards can be recognised and enforced in more than 170 countries, which usually makes arbitration more effective than litigation between parties in different countries. The clause should name the institution, seat, language and number of arbitrators.

Explained in the trade handbook

Trade handbook