DRC Trading Standards – Section 15 – 18


Continuing with our efforts to summarize DRC’s Trading Standards and make these standards more understandable for our members, in this issue, we address the following sections:

Section 15. Conversion of Funds

While the title of this section may be confusing, this section clarifies the requirements for prompt and accurate passing of funds directly from buyer to seller, or from buyer to broker/seller to shipper, or any other person having a financial interest. In other words, intermediaries (brokers, grower’s agents, consignees, etc.) cannot hold payment of funds that do not belong to them without reasonable cause.

Section 16. Grade and Condition Standards for Commodities

Regarding the grade and condition of product, the parties may agree to any specific standards prior to shipments if such standards comply with any applicable minimum grade and condition standards that have been established by the importing or exporting country.  In addition, the parties may establish their own average percentage of defects for all commodities if it is agreed upon. In the absence of an agreement on grade or average percentage of defects, no grade will be assumed, but the calculation of conformance to the contract will default to the DRC’s Good Arrival Guidelines.

Section 17. Inspection Policy

Members need to know that unless there is an agreement for an in-house quality report or to request a private survey, a government inspection is the only inspection considered prima facie evidence and therefore carries more weight than any other survey report.  Private surveys or in-house inspections need to comply with the standards and elements indicated in DRC’s Inspection Policy. For complete information about DRC’s Inspection Policy, visit our website.

Section 18. Membership Declaration

All members must declare their membership number when requested to do so by any Canadian, United States of America or Mexican government department or agency. It is specifically important for Canadian importers and Non-Resident importers to declare their DRC membership number to Canadian Border Services Agency (CBSA) to be able to let the product into Canada.