Commercial Settlement
Contractual adjustments resolve financial differences arising from variations in fiber water weight between the shipping point and the receiving mill. Through systematic calculation, moisture content reconciliation determines the commercial weight of the imported flax based on a standardized moisture allowance of twelve percent. This settlement protects both the Chinese spinning mill and the European merchant from paying for excess water or losing money due to fiber drying during ocean transit.
The final commercial invoice is adjusted according to the dry-weight certificate issued by an independent testing laboratory at the port of entry. It is this certificate that provides the definitive moisture figure for the final invoice audit, ensuring that no further recalculations are needed before payment release.
Discrepancy Resolution
Laboratory ovens dry the randomly drawn fiber samples to a state of zero moisture to find the exact dry mass of the shipment. This dry mass is then multiplied by the official commercial regain factor to calculate the theoretical invoice weight. When this calculated weight differs from the bill of lading weight, moisture content reconciliation aligns the billing figures to reflect the true fiber weight.
This correction process avoids disputes and provides a solid basis for customs declaration.
Billing Correction
Financial notes are issued to adjust the final payment to the supplier based on the reconciled weight data. This ensures that the buyer only pays for actual flax fiber rather than water absorbed during storage. The debit or credit note refers directly to the joint inspection report signed by both the mill representative and the shipping agent.
This document completes the raw material acquisition phase of the linen production cycle.
