Month: May 2017

Another reminder to be sure to mark your calendar for DRC’s Board and Annual General Meeting that is being held June 7-9, 2017 in Ottawa, Ontario. DRC will be reporting to members and the Board on key DRC priorities including DRC’s role under the Safe Food for Canadians Act, Membership, and Trading Assistance.  The Board will also receive and review financial statements and previous meeting minutes.

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

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

Curbing theft is an industry-wide responsibility. The best way to put a stop to stolen loads is to shine a light on the issue. The two most important things you can do in the event of a stolen load are:

1. Call the authorities and report the load stolen
2. Call your local and national trade associations and report the theft

Be sure to ask the authorities to release the details so that information about the incident may be shared.  It is not unusual in our industry for a load to be rejected for a multitude of reasons. Frequently, you may see someone else’s name on a bill of lading.  Do your part to help curb theft and take a moment to call the shipper to confirm the authenticity of the load. It only takes a brief phone call to the shipper to help head off a stolen load. Stolen loads do not help anyone in our industry. A shippers label on a stolen load may harm reputations, do your part and ensure the legitimacy of the load.

Jaime Bustamante, and Paola Gonzalez were on hand to represent DRC at the Viva Fresh Produce Expo April 20-22^nd in Austin, Texas. The expo was heavily focused on networking and education. It also included field and farm tours, a dietician’s symposium, a spotlight on merchandising and an in-depth education program focused on issues impacting the industry. Some of the topics covered included: how technology and marketing drive growth; knowing your GMO’s; nutrition, preventative medicine and healthy eating; and the impact and future of NAFTA.

If you are interested in DRC representation at an event or speaking engagement, please reach out to the DRC Help Desk at:

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

Q. We are a Canadian company who recently started to import citrus from Spain and South Africa. We’ve asked our suppliers to ship the goods on delivered basis because we don’t want to be responsible for any transportation issues. Looking at the terms of sale printed on the different Bills of Lading from various suppliers, we’ve seen CFR or CIF. How does this affect us in the event of a transportation claim?

A. (Answer provided by Trading Assistance Staff) 

You may have heard about or seen International Commercial Terms or INCOTERMS such as FOB, EXW, CFR, CIF. While you may be familiar with some of them, it is important to understand what they mean. The INCOTERMS were developed to avoid costly misunderstandings by clarifying the tasks, costs and risks in the International delivery of goods from sellers to buyers. According to the latest publication from the International Chamber of Commerce (ICC), these three-letter trade terms include:

Rules for any mode of transport:

EXW: Ex Works – Risk of transit is on the buyer when product is at the disposal of the buyer.

FCA: Free Carrier – Risk of transit is on the buyer when the product has been delivered to the carrier.

CPT: Carriage Paid To – Risk of transit is on the buyer when the product has been delivered to the carrier.

CIP: Carriage and Insurance Paid to – Risk of transit is on the buyer when product has been delivered to the carrier.

DAT: Delivered at Terminal – Risk of transit is on the seller when product is placed at the disposal of the buyer at the place of named destination.

DAP: Delivered at Place – Risk of transit is on the seller when product is placed at the disposal of the buyer at the place of named destination.

DDP: Delivered Duty Paid – Risk of transit is on the seller when product is placed at the disposal of the buyer at the place of named destination but also has to pay any duty for both export and import and customs.

Rules for sea and inland waterway transport:

FAS: Free Alongside Ship – Risk of transit is on the buyer when the product is delivered to the named port of shipment.

FOB: Free on Board – Risk of transit is on the buyer when the product is (delivered to the named port of shipment.)

CFR: Cost and Freight – Risk of transit is on the buyer when the product has been delivered to the carrier but the seller is responsible to arrange and pay for costs and freight to the named port of destination.

CIF: Cost, Insurance & Freight – Risk of transit is on the buyer when the product has been delivered to the carrier but the seller is responsible to arrange and pay for costs, insurance and freight to the named port of destination.

The INCOTERMS are used in international commercial transactions to move product from point “A” to point “B”. They are not however consistently used in the produce business within North America. Instead, “F.O.B.” and the term “Delivered” and some variances of these terms have been adopted as the terms most commonly used for inland transportation within North America. These North American variations of the trade terms can be found in Section 20 of DRC’s Trading Standards found at www.fvdrc.com should you wish to compare terms used in North America to the INCOTERMS found at iccwbo.org.

To answer your question, in the absence of an agreement on the terms of the transaction, the official documents of the transaction and DRC’s default rules will be used to establish the contract. In the event of a transportation problem, the information on the Bill of Lading is considered the contract between the transportation company and whoever is responsible for the risk in transit. In your case, CFR (Cost and Freight) and CIF (Cost, Insurance and Freight) indicate the risk of transit is on the buyer. Technically, if you continue using these terms, in the event of a transportation dispute, you would be responsible for paying the shipper/seller in full and filing the claim with the transportation firm. We strongly suggest that when dealing with product shipped by maritime transportation that you make sure that you and your supplier are in agreement regarding the risk of transit. Successfully resolving any claim requires that everyone work together. Transparency and agreement are essential in establishing rights and responsibilities of all parties. Lack of agreement and confusion over terms may not only cost you money, but valuable trading partners as well.

DRC will once again be participating in this year’s CPMA Convention & Trade Show to be held in Toronto May 9^th-11^th.  The DRC team will be on hand at their booth 1209 on the trade show floor to meet with members and potential members.

“The CPMA trade show is a great opportunity to continue the education process on the proposed changes to the Safe Food for Canadians Regulations impacting industry and how they will impact DRC members,” said Fred Webber. “It’s a wonderful event that allows us to interact directly with members and potential members and provide education on preventing disputes as well as to provide information on issues that matter to our members.”

The team will be present at the booth throughout the trade show and is available for meetings.  Should you have a trade partner who is not currently a member, please encourage them to stop by the booth to discuss the benefits of membership.

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

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

Be sure to mark your calendar for DRC’s Board and Annual Meeting that is being held June 7-9, 2017 in Ottawa, Ontario. DRC members will be receiving invitations in the coming weeks to participate in the upcoming meetings. DRC staff will be reporting to the Board on key DRC priorities including DRC’s role under the Safe Food for Canadians Act, Membership, and Trading Assistance.  The Board will also review financial statements and previous meeting minutes.

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

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