Annual billing

A friendly reminder that annual invoices will be mailed to most members on November 15th.

If your company information has changed in the past 12 months, including your responsibly connected individuals, please download the  Membership Records Update Form and submit it to DRC prior to November 1st, 2018.

Please note some members may have a different invoicing date depending on when they joined DRC. A quick check of your records by phone or email will confirm your invoice anniversary date.

For more information call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

New “Dispute Resolution Rules”

In last month’s edition of Solutions we informed readers of our upcoming “Dispute Resolution Rules”.  As noted in the article, please be reminded that:

  • All Statements of Claim received prior to the coming into force date of November 01, 2018 will follow the Mediation and Arbitration Rules.
  • All Statements of Claim submitted after November 01, 2018 will be subject to the new Dispute Resolution Rules.

We recommend that you become familiar with these rules and contact our Trading Assistance team if you have any questions.

DISPUTE RESOLUTION RULES  

SFCR Impact on Suppliers to Canada

 

Effective January 15, 2019

Canadians who buy and sell

fresh fruit and vegetables must

be members of the

Dispute Resolution Corporation (DRC)

 

Important Considerations for Suppliers to Canada

The following points are key considerations for persons selling produce to Canada:

  • The consignee is subject to the Safe Food for Canadians Regulations (SFCR) and must be a DRC member. In other words, all buyers in Canada must be a DRC member. The DRC member list available online is updated weekly
  • If your buyer is not a DRC member, the buyer is not operating in conformance with the SFCR and your load will be refused entry at the border.
  • The loss of DRC membership impacts a Canadian buyer in the same manner the loss of a PACA licence impacts a US buyer.
  • Canada, like the US, has a government inspection services. Use of that service is the default requirement under DRC Good Inspection Guidelines to determine product quality and condition upon arrival. A number of private inspection firms are operating in Canada. Should you agree to use one of these private companies, you should be aware of the potential challenges and implications of that choice.
  • All DRC members agree to meet their obligations as they come due; all suppliers may come to DRC for assistance to resolve slow pay or no pay shipments.
  • If the buyer is able to show evidence of a valid dispute (inspection, credit memo, etc.) the DRC only has jurisdiction to help resolve the dispute if both parties were members of the DRC at the time the dispute arises.
  • A Canadian Food Inspection Agency (CFIA) food safety licence is not proof of a DRC membership (always check the list of members on our website).
  • CFIA SFCR food safety/traceability requirements (i.e.: Food Safety licence) and trade/commerce requirements (i.e.: DRC membership) are separate and distinct requirements within the SFCR. Persons must determine if they are subject to either one of, or both of the regulatory requirements.

DRC Good Arrival Guidelines and INCOTERMS

In May 2017, DRC’s Solutions Blog included an article identifying the differences between North American Trade Terms and International Commercial Terms (INCOTERMS). In this edition, we will review how DRC Good Arrival Guidelines (Good Arrival) and INCOTERMS are connected.

Good Arrival is a combination of PACA 5 Day FOB Good Delivery Guidelines, CFIA Canadian Destination Tolerances and Suitable Shipping Condition Guidelines which establish the maximum percentage of defects allowed at destination for FOB shipping point transactions. Good Arrival assumes sales are FOB shipping point with regard to risk, regardless of how freight is billed.

Section 20, Trade Terms of the DRC Trading Standards states that INCOTERMS such as CPT, CIP, CFR, and CIF are all deemed to be the same as FOB except that the seller assumes the costs associated with the named INCOTERM. However, the risk of transit remains with the buyer.

Therefore, unless there is an agreement for a specific and defined grade standard, such as US #1, Canada #1, or Class I (also known as CAT I in the Spanish and French versions of the CODEX Standards), all transactions between DRC members will default to FOB No Grade Good Arrival. This means that the third or fourth column of DRC Good Arrival Guidelines containing the maximum percentage of defects per commodity will apply.

Dear Members: Consents and Agreement Notice

The Safe Food for Canadians Regulations require that Canadians who buy and sell fresh fruits and vegetables be members of the DRC. This is effective January 15, 2019.

As we transition to this role, updates to the “Agreements and Consents” clauses of the DRC member application as well as the DRC Privacy Policy are being implemented available here https://fvdrc.com/by-laws-and-operating-rules/

To ensure all members are aware of and agree to the new “Consent to Disclosure of Agreement and other Information”, every member will be required to complete their Membership Information Update Form. Members are encouraged to download the form and submit it to DRC at their earliest convenience. Please ensure the individual signing the consent is a responsibly connected individual, as defined on the form.

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