Rule 11.08. Obligations of the Receiver and Deliverer

(3) Settlements:
(a) [Where-final tt]. ti ve destinati ight d-test: > Del+ halt f: 4, he

Wh th tismad hipping-weights-and-tests,] Deliverer shall furnish:

(i) Full set of clean on-board bills of lading drawn to order or order of shipper and endorsed in
negotiable form.

(ii) Commercial invoice for one hundred percent (100%) of the value of the sugar, basis actual
polarization at the notice price.

(iii) Unless otherwise mutually agreed, Weight and Test Certificates issued by the Deliverer’s
appointed supervisor in accordance with the terms of Rule 11.07(d).

(iv) Certificate of origin.

({e]b) Upon presentation by Deliverer in New York of the required documents for all of a cargo
loaded on-board Receiver's vessel by such Deliverer, Receiver shall pay for the sugar at the invoice price
as provided in (a)(ii) [er-6}4¥)], without any setoff or deduction whatsoever, between the hours of 10:00
A.M. and 3:00 P.M., within two (2) hours after presentation by the Deliverer which shall be no later than
1:00 P.M. Unless otherwise mutually agreed, payment shall be made by wire transfer in same day funds.

([d]e)[(i)] At the time Deliverer furnishes bills of lading pursuant to paragraph (a)(i) [er-6}¢9] of this
Rule, the Deliverer shall so notify the Clearing Organization in writing, with a copy of such notice
concurrently furnished to the Receiver, and the net amount of variation Margin, if any, collected by the
Receiver in respect of the contracts pursuant to which Deliverer has made delivery from the time the
Multiple Delivery Notice for such contracts was issued shall be collected from Receiver by the Clearing
Organization and paid to the Deliverer on the second (2TM) Business Day following receipt of such notice
by the Clearing Organization, unless the Receiver notifies the Clearing Organization that the bills of
lading have not been so furnished by Deliverer. Any such notice shall be in writing, with a copy
concurrently furnished to the Deliverer, and shall be issued within twenty-four (24) hours of receipt of the
Deliverer’s notice referred to in the preceding sentence.

* * *

(4) The original bills of lading shall be presented by Deliverer in New York on a full banking day
(whether or not an Exchange Holiday) together with the other necessary documents pursuant to


destinati + forth: h-(a)-0f this Rule b: sort vete-ofthe Beard-0£G. J
‘paragrapa {a} ry F

(a) Final settlement shall be based-upon shipper's weights and tests determined at loading port at the
time of loading. Deliverer is to pay all expenses of the weighing, sampling, and testing at port of loading
which shall be supervised by an internationally recognized and independent supervision company selected
by the Deliverer. Deliverer shall provide written notification of the chosen supervision company to the
Receiver at least six (6) days prior to the commencement of loading, and in the event of any change to the
chosen company shall promptly provide written notification of such change to the Receiver. Receiver
shall have the right to appoint at his own expense an internationally recognized and independent
supervision company to observe the weighing, sampling, and testing procedures utilized by the
Deliverer's representative at the port of loading.

b) At loading the Deliverer shall provide satisfactory facilities for weighing which shall be done at
the time the sugar is being loaded onto the vessel (or onto barge(s) if loading is at anchorage). Facilities
used for weighing shall have a maximum tolerance of 1/10" of one percent (0.10%), and the Deliverer’s
supervisor shall satisfy himself that such facilities are tested by means of certified check weights at least
once in every twenty-four (24) hours. In the event that weighbridges are used, the Deliverer’s supervisor
shall satisfy himself that such weighbridges are frequently tested to assure accuracy; they shall also be
tested with certified check weights at least once every year.

(c)(i) At loading the Deliverer shall provide satisfactory facilities for sampling, which shall be done at
the time of weighing. During the progress of sampling, the sugar drawn shall be kept in containers
approved by, and shall remain under the control of, the Deliverer’s supervisor.

(ii) Samples shall represent each lot of two thousand (2,000) tons of Deliverer’s sugar loaded onto
Receiver’s vessel. All samples representing two thousand (2,000) tons of Deliverer’s sugar_shall be
carefully mixed together by the Deliverer’s supervisor so_as to represent _as true _an average as
possible. Samples shall be of a sufficient quantity to fill at least four (4) sealed containers. One (1)
such container shall be given to the Deliverer and one (1) to the Receiver; two (2) shall be retained by
the Deliverer’s supervisor. All samples shall be retained for at least two (2) months after the date the
commercial invoice is presented by the Deliverer in accordance with Rule 11.08(3)(a). If the Receiver
has appointed a separate supervisor to observe loading in accordance with paragraph (a) above, both
the Deliverer and Receiver may separately analyze his sample using a recognized and competent
laboratory with a proven record of performing acceptable sugar analysis in the international sugar
trade, and, where the polarizations of the Receiver and Deliverer differ by less than point one five
(0.15) of a degree, then the mean of the two (2) shall be taken as the invoice basis. Where the
polarizations differ by point one five (0.15) of a degree or more, a third sample shall be polarized by
an independent recognized chemist with a proven record of performing acceptable sugar analysis in
the international sugar trade as appointed by both the Deliverer’s and Receiver’s supervisors, the cost
of which polarization shall be shared equally by the Deliverer and Receiver. In the event that the
Deliverer’s and Receiver’s supervisors fail to mutually agree on such chemist, the Sugar Delivery
Committee will nominate such chemist. The mean of the two (2) nearest polarizations shall be taken
as the invoice basis, but where the middle polarization is equidistant from the other two (2) it shall be
taken as the invoice basis.



subparagraph{s] 3(a) [@ad—(s)] promptly but in no event later than twenty (20) days after vessel's
clearance of loading port. Deliverer shall be responsible for proven damages to Receiver resulting from
failure to present such documents as herein provided.

[REMAINDER OF RULE UNCHANGED]


Gin) NEW YORK

BOARD OF TRADE*
World Financial Center
One North End Avenue

New York, New York 10282

BY ELECTRONIC TRANSMISSION

07-8 .

February 7, 2007. 2 >
Ms. Eileen A. Donovan _ :
Acting Secretary of the Commission a 5 2
Office of the Secretariat mY
Commodity Futures Trading Commission os”
Three Lafayette Centre oo 2
1155 21" Street, NW me
Washington, DC 20581 ea Oo

Su

Re: Amendments to Sugar No. 11 Rules 11.07 and 11.08 -
Submission Pursuant to Section 5c(c)(1) of the Act and Regulation 40.6

Dear Ms. Donovan:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended, and
Commission Regulation 40.6, the Board of Trade of the City of New York, Inc. (“Exchange”)
submits, by written certification, amendments to Sugar No. 11 Rules 11.07 and 11.08, attached
as Exhibit A.

Rule 11.07 provides the procedures for determining the final weight and testing of sugar
being delivered under the Sugar No. 11 futures contract. Currently, the procedures to be
followed are based upon where the sugar will be shipped. The amendments to Rule 11.07
simplify the procedures by providing that in all cases the final weights and sampling shall be
based upon shipping weights and tests done at the port of loading. In addition, the amendments
also clarify the rights and obligations of the Deliverer and Receiver regarding the appointment of
supervisors who will observe the final weighing and testing. The amendments to Rule 11.08(3)
delete the provisions regarding final settlement based on landed weights and tests since this
procedure will no longer be used. The revised procedures will improve the efficiency of the
Exchange delivery process by providing for a single method of final weights and tests that is
consistent with the “fob” nature of the contract.

The Exchange certifies that the amendments comply with the requirements of the
Commodity Exchange Act and the rules and regulations promulgated thereunder.

The Exchange’s Board of Directors adopted the amendments at its meeting on February
7, 2007. The amendments will be implemented with the listing of the March 2009 Sugar No. 11


2-

futures contract. No substantive opposing views were expressed by members or others with
respect to the amendments.

If you have any questions or need further information, please contact me at
jfassler@nybot.com or 212-748-4084.

Sincerely,

Jill S. Fassler
Vice President
Associate General Counsel

ce: Riva Adriance
Thomas Leahy
CFTC, Division of Market Oversight
Allen Cooper
CFTC, New York Regional Office


(In the text of the amendments below, additions are underlined and deletions are bracketed and
lined out.)

Rule 11.07. Final [w]Weights and [t]Tests [are-to-be-determined-as follows:

L-at-destinati wt,Deli: hall intuveich vl plers-te-determi: ishts-and-d:

EXHIBIT A