Contractual Model
Industrial textile tolling arrangements transfer customer-owned greige fabric to a specialized wet processing mill for chemical treatment and dyeing without passing ownership of the substrate. Under commission finishing, the processor charges a fixed fee per linear metre or kilogram while the converter retains all title to the goods throughout production. The finishing mill commits only to processing parameters, color matching tolerances, and physical performance thresholds agreed upon in technical specification sheets.
This legal boundary separates asset-light converters from capital-intensive dyehouses equipped with stenters, continuous bleaching ranges, and pressure jet dyeing vessels.
Conversion Custody
Greige inventory verification requires inspection against gross width, pick count, and incoming defect allowances before wet treatment begins. The commission finisher assumes operational custody upon formal dock receipt and becomes liable for fabric loss exceeding contracted shrinkage allowances or standard process scrap rates. Loss calculations distinguish between unavoidable process length shrinkage during scouring and mechanical damage caused by pin-plate tears or tension stretching on stenter frames.
Quality Verification
Technical approval hinges on strict conformance protocols executed at the output end of the continuous finishing line. Color consistency across bulk yardage must satisfy commercial standards under standard illuminants with spectrophotometer readings falling within agreed delta E boundaries. The commission finishing contract mandates certified laboratory tests for dimensional stability to laundering, pilling resistance, tear strength, and water repellency prior to release.
Processors verify residual chemical levels like formaldehyde or fluorochemical finishes to guarantee compliance with regional chemical inventory regulations and consumer safety limits.
Commercial Settlement
Settlement claims arise when bulk production deviates from the agreed physical standard or exhibits unacceptable shade variations. When commission finishing produces side-to-center shading, crease marks, or unacceptable tensile loss from aggressive resin curing, the processor typically forfeits conversion charges and faces debit notes for damaged greige goods. Deductions do not cover lost commercial margin unless explicitly stipulated in the overarching toll processing agreement.
Commission finishing liability terminates upon buyer acceptance of mill inspection cuts and subsequent fabric cutting by the garment factory.
