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Membership Updates for October 15, 2022

Welcome New Members

 

From September 15 until October 15, 2022, DRC welcomed the following new members:

 

A & P FRUIT GROWERS LTD.

BC

Canada

DRK IMPEX INC. (Also d/b/a DRK Impex)

ON

Canada

HOOVU CANADA INC.

AB

Canada

KAPI KAPI GROWERS INC.

FL

United States

PULPAAMERICA (Faisant également affaire sous 9338-4097 Québec Inc.)

QC

Canada

SICAR FARMS LTD. CO. (Also d/b/a Limex Sicar Ltd. Co.)

TX

United States

 

DRC Membership: change in status

 

As of October 15, 2022, the following organizations no longer hold a DRC membership:

 

B&M FRESH S.A. DE C.V. (También haciendo negocios como B&M Fresh Avocados)

Michoacan

Mexico

FRUTOS GUADALAJARA S. DE R.L. DE C.V.

Jalisco

Mexico

FUDI FOOD CORP. (Also d/b/a Thx! Dreams)

ON

Canada

TRUCKIT (A d/b/a of 10656330 Canada Inc.)

NS

Canada

 

 

For details regarding a change in status, please contact the office.

 

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

 

 

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

 

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

 

To date, DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

 

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.

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Meeting of the minds and burden of proof

When engaging in a business deal in the produce industry, we understand that most of the time this is done over the phone, where important details of the transaction such as the terms of the contract (FOB, Delivered, CIF, Fixed price, consignment, P.A.S., etc.) and the product description (e.g., quality grade, no grade-Good Delivery/Good Arrival, size, quantity, etc.) are discussed.

Verbal communications are contractually binding if both parties agree on and understand the terms discussed. However, when there is a disagreement, or there is no meeting of the minds as to what was discussed verbally, the documents related to the transaction will determine the contract between the parties.

When the documents of the transaction are silent regarding one or more terms, each party has the burden of proof for their respective statements. That is why keeping written records of your communications is essential. This means making sure that for any items or issues discussed verbally during a transaction, a follow up email or text message is sent to confirm what was discussed.

DRC Good Arrival Guidelines indicate that in the absence of an agreement on the terms of the transaction, the transaction defaults to an FOB No Grade Good Arrival Guidelines contract.

The DRC Trading Standards and the DRC Transportation Standards act as default rules when parties cannot agree on the terms of the sale.

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Meet us at Fruit Attraction and The Global Produce & Floral Show!

DRC representatives will be at Fruit Attraction in Madrid, Spain on October 4-6, 2022 and at The Global Produce & Floral Show in Orlando, Florida on October 27-29, 2022. This will be DRC’s fourth visit to Fruit Attraction and a comeback to what was formerly known as PMA’s Fresh Summit Convention.

 

With members located in 16 countries1, DRC is gaining increasing recognition as a global solutions provider when it comes to private, commercial business-to-business dispute resolution and trading assistance for produce entering the North American market.

 

Expanding international outreach through events such as Fruit Attraction, and others, is a strategic initiative intended to expand membership and assist trading partners with a range of matters such as:

  • quality and condition problems
  • contracts of sale and issues related to breach of contract by either party
  • transportation disputes
  • slow pay, partial pay and no pay disputes

Ÿ trade terms (INCOTERMS vs North American Terms)

 

DRC’s Trading Assistance professionals have achieved a high level of dispute resolution expertise over the past 20 years and are also able to assist exporters with understanding and navigating various import requirements. A comprehensive Frequently Asked Questions guideline has been developed specifically for companies located outside of Canada and is available HERE.

 

Luc Mougeot, Kevin Smith, Jaime Bustamante, Dafne Palomino and Iryna Romanenko will be attending  the trade shows and if you or your trading partners would like to meet with either of them, please reach out to confirm your interest and schedule a time to meet.

 

 

1 Source: DRC Membership statistics September 1, 2022

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A PACA-like Trust for Canada; Bill C-280 – the Financial Protection for Fresh Fruit and Vegetable Farmers Act

Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, was introduced by Member of Parliament Scot Davidson in the House of Commons back in June. This important piece of legislation would establish a critical financial protection mechanism for fresh produce sellers in Canada in the case of buyer bankruptcy, which would also open the door for the United States to reinstate preferential access for Canadian sellers to protection under the U.S. Perishable Agricultural Commodities Act (PACA).

 

This Bill which would amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to establish a deemed trust for fresh produce sellers, ensuring that they have priority access to an insolvent buyer’s assets related to the sale of fresh produce, will be up for debate in the House of Commons this fall. FVGC and CPMA have been busy preparing advocacy documents for all fresh produce industry members so that they are equipped to reach out to their Members of Parliament and urge them to support this important legislation. Visit the dedicated site: protectproducesales.ca to see how you can help!

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Is it possible for a receiver/buyer to reject a portion of a distressed shipment?

Although a receiver/buyer decides whether to accept or reject a load that allegedly fails to comply with the sales agreement, buyers should be forewarned against accepting some portions of a shipment while rejecting others unless the parties agree otherwise specifically in writing.

The Perishable Agricultural Commodities Act (PACA) gives straightforward guidance and defines ‘Commercial Unit’ as “a single shipment of one or more perishable agricultural commodities for delivery on a single contract, such commercial unit must be accepted or rejected in its entirety”.

The items or commodities listed in a Bill of Lading are considered one commercial unit.

While PACA does not govern transactions outside of the US, it is referenced in the DRC rules as supportive.   We also note other choices of law such as the CISG have specific parameters regarding a buyers duties when non conforming goods are received.   In our experience partial rejections should only be done by agreement. 

When considering rejecting a load, the receiver/buyer must remember that the entire “commercial unit” must be rejected. Receivers/buyers may not unilaterally accept some pallets and reject others since accepting any portion of a lot constitutes acceptance of the entire lot.

It is possible to reject a portion of the load if a receiver/buyer has two transactions transported in one truck. In other words, where there are two contracts of sale or two Bills of Lading in the same truck, the items or commodities included in one of the Bills of Lading can be rejected provided an act of acceptance has not been committed and proper procedures to reject a load are followed.

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Membership Updates for September 15, 2022

Welcome New Members

 

From August 15 until September 15, 2022, DRC welcomed the following new members:

 

ALEXINGREDIENTS INC.

QC

Canada

AVOCAST S.P.R. DE R.L.

Nayarit

Mexico

F.A. INTERNATIONAL INC.

ON

Canada

FOROS FRESH PRODUCE CORP.

FL

United States

FRESH PRODUCE WHOLESALE (A d/b/a of 12038366 Canada Inc.)

ON

Canada

GD PRODUCE (A d/b/a of 2424871 Alberta Ltd.)

AB

Canada

GHARZAI GLOBAL IMPORT EXPORT INC.

ON

Canada

GLEN ECHO FRESH PRODUCE (A d/b/a of ASL Global Supply Chain Solutions Inc.)

ON

Canada

LIDL WHOLESALE LTD.

BC

Canada

PATATES DANIEL BLAIN LTÉE

QC

Canada

SICAR FARMS LTD. CO. (Also d/b/a Limex Sicar Ltd. Co.)

TX

United States

SUNNY SWEET IMPORTERS LTD.

BC

Canada

TAIBAH GROUP INC. (Also d/b/a Chakula Tamu)

ON

Canada

TEMAK INC. (Also d/b/a Temak Trading)

ON

Canada

TRIPLE K DISTRIBUTOR LTD.

SK

Canada

 

DRC Membership: change in status

 

As of September 15, 2022, the following organizations no longer hold a DRC membership:

 

CROWN ORCHARD COMPANY, LLC

VA

United States

HENNY PENNY’S FARM MARKET (A d/b/a of 3278669 Nova Scotia Limited)

NS

Canada

INTEGRADORA DE PRODUCTORES DEL VALLE DE APATZINGAN S.A.P.I.

Mlchoacan de Ocampo

Mexico

MECA – MARCHAND ETHNIQUE CANADIEN INC.

QC

Canada

MIRZA TRADING INTERNATIONAL (A d/b/a of 12218674 Canada Inc.)

ON

Canada

NAVEED AHMED

AB

Canada

PRODUCTORA AGRICOLA YAREXI SPR DE RL

Nayarit

Mexico

T.I.H. TRADING CORP.

ON

Canada

 

For details regarding a change in status, please contact the office.

 

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

 

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

 

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

 

To date, DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

 

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.

 

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Conditions for Maintaining DRC Membership

The DRC by-laws and operating rules contribute to confidence in the fresh fruit and vegetable trading environment. DRC members subscribe to a common set of trading and transportation standards, and membership responsibilities that promote fair and ethical trading of produce.

There are certain requirements that DRC members must meet to maintain membership in the DRC. These conditions for the maintaining of membership are found in the DRC by-laws and operating rules. The DRC works with its members where difficulties are encountered.

To ensure the viability of the DRC, members must pay their membership fees within sixty (60) days of their due date.

In some cases, members must post or provide financial security to maintain their membership. Failing to provide financial security when required to do so could lead to the termination of that member.

A member must not have become bankrupt, suspended the payment of debts generally, been declared insolvent, or made an arrangement under the Companies Creditors Arrangement Act or made a proposal under the Bankruptcy and Insolvency Act. Members must not have made similar arrangements or proposals or sought similar protection under any equivalent statute in the United States, Mexico or another country, province or state.

Suspending the operations of the business without fully meeting its financial obligations or failing to comply with a mediation agreement or arbitration award could also result in termination of membership.

While the DRC works closely with its members to help them trade with confidence, the DRC Board of Directors has the authority to expel any member from the corporation for various reasons. These reasons include violating any provisions of the articles, by-laws, policies or operating rules, carrying out any conduct detrimental to the corporation, neglecting or refusing to submit to mediation and/or arbitration, being convicted of a criminal act for which a pardon has not been granted, or being named in an outstanding court order. Responsibly connected persons and members failing to meet membership qualifications may also be expelled. Members who make false or misleading statements or providing false and misleading information risk expulsion.

These conditions for maintaining membership contributes towards fair trade and confidence in your trading relationships with other DRC members. DRC members encountering any type of difficulties are encouraged to contact the DRC.

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Membership Updates for August 15, 2022

Welcome New Members

 

From July 15 until August 15, 2022, DRC welcomed the following new members:

 

2735795 ONTARIO INC.

ON

Canada

DAILY SEAFOOD INC.

ON

Canada

DANEX FOODS (A d/b/a of 10117374 Canada Inc.)

QC

Canada

F.A. INTERNATIONAL INC.

ON

Canada

FRESH & CLASSY PRODUCTS INC.

ON

Canada

GREEN MEADOW ACRES INC.

PE

Canada

HARRIS’ ISLAND GROWERS COMPANY/ ISLAND GROWERS CO (A d/b/a of Jennifer Harris)

PE

Canada

HEALTHY CHOICE WHOLESALE FOODS INC.

BC

Canada

KIM GROUPE IMPORT/EXPORT INC.

QC

Canada

MANDEEP GREWAL, HARDEV GREWAL

BC

Canada

MEGA PRODUCE, LLC

TX

United States

MUSANGKING TRADE COMPANY LIMITED

ON

Canada

NORTH KEE TRADING (A d/b/a of 2713406 Ontario Limited)

ON

Canada

QUALICIOUS FOODS INC.

BC

Canada

RAVINE MUSHROOM FARM LIMITED

ON

Canada

THIS AND THAT HOLDINGS CORPORATION

BC

Canada

WORLD FRESH PRODUCE CANADA INC.

QC

Canada

 

DRC Membership: change in status

 

As of August July 15, 2022, the following organizations no longer hold a DRC membership:

 

DESIGNITY EXPRESS INC. (Also d/b/a South Asian Food Essential (S.A.F.E) Supplies)

ON

Canada

INTEGRADORA DE PRODUCTORES DEL VALLE DE APATZINGAN S.A.P.I.

Mlchoacan de Ocampo

Mexico

JSMT INTERNATIONAL TRADE GROUP INC. (Also d/b/a JSMT International Trade Group Inc. Fresh Produce Division)

ON

Canada

LINKGLOBAL FOOD INC.

ON

Canada

POMO FRUIT IMPORTS (A d/b/a of Rhuturaje Yadav)

BC

Canada

PROMART IMPORT, INC. (Also d/b/a Promart Import)

AB

Canada

RAVINE MUSHROOM FARMS INC.

ON

Canada

READY PAC PRODUCE, INC.

CA

United States

SEZZON PRODUCE INC.

ON

Canada

SOCRITIQUE TECHNOLOGIES INC.

ON

Canada

SUNNY FRESH NORTH AMERICA TRADING COMPANY (A d/b/a of 1999201 Ontario Corp.)

ON

Canada

TERRAFRESH ORGANICS, LLC

CA

United States

WORLD FRESH SEAFOOD LTD.

BC

Canada

 

 

For details regarding a change in status, please contact the office.

 

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

 

 

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

 

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

 

To date, DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

 

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.

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DRC Help Desk: your go to resource

DRC’s Help Desk, with services in English, French and Spanish, is your “go to” resource for timely and informed assistance on a wide range of produce trade-related matters.

The most frequent and common inquiries pertain to:

  • Government Inspections (CFIA or USDA)
  • DRC Good Arrival Guidelines Tolerances
  • Does product meet or fail grade?
  • Non-payment
  • Disagreement over an account of sales or liquidation reports
  • Clarification over trade terms
  • DRC Member Standing (i.e.: Member, Member in Good Standing, etc.)
  • Transportation-related issues

Your membership includes access to the Help Desk, one-on-one professional and confidential consultation, customized seminars, webinars, printable checklists for staff, DRC publications, and much more.

Our website includes a number of tips, including an FAQ document outlining a number of questions and answers that provide information on a variety of subjects related to education, mediation, arbitration and networking for the fresh fruit and vegetable industry. Topics include fair and ethical trade for the produce and transportation industries, import and export of produce, steps to resolve disputes, government guidelines and more (helpful https://www.fvdrc.com/about/faqs/).

For personal assistance contact us at (+1) 613 234 0982 (ext. 224) between 8:30 am – 5:00 pm (EST) or by email at [email protected]

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Membership Updates for July 15, 2022

Welcome New Members

 

From June 15 until July 15, 2022, DRC welcomed the following new members:

 

 

2398769 ONTARIO INC.

ON

Canada

B.C. HARVEST FOODS INC. (Also d/b/a BC Harvest Foods)

BC

Canada

F&G TRANSPORTATION AND TRADING INC.

BC

Canada

HOMMAN ORGANIC INC.

BC

Canada

KIKAPO TROPICAL FOODS INC.

AB

Canada

LORD TRADING INC.

ON

Canada

MNH TRADERS INC.

ON

Canada

RED WAGON GROVES, INC. (Also d/b/a Red Wagon Groves)

TX

United States

 

DRC Membership: change in status

 

As of July 15, 2022, the following organizations no longer hold a DRC membership:

 

AGROINDUSTRIAL SAN GERMAN SPA (También haciendo negocios como San German SPA)

Elqui

Chile

BOUCHERIE EL IHCÈNE

QC

Canada

COLOMBIAEXOTIC (A d/b/a of Carolina Velez)

ON

Canada

MAFHH CONSULTANCY INC.

ON

Canada

REAL TRANSPORT (A d/b/a of 3235149 Canada Inc.)

QC

Canada

STELLAR IMPEX INC.

QC

Canada

YIJIE HOLDINGS INC.

BC

Canada

ZYTHAS DYNAMIC INC.

AB

Canada

 

 

For details regarding a change in status, please contact the office.

 

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

 

 

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

 

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

 

To date, DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

 

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.