Month: May 2018

This is the final article in our three-part series “How to Read a CFIA Inspection Certificate”.

This time we will provide a description of the remarks and the certification section.

Generally, the first thing you will notice on the remarks section will be if there were any digital pictures taken or attached to the inspection report, followed by a description of the containers and packaging. It will also indicate what Canadian or US Grade Standard has been used as a reference standard to inspect the load. Different from a USDA inspection report, CFIA inspectors will not indicate if the product fails to meet a grade standard. A CFIA inspector will proceed to detain a load if it fails to meet the minimum Canadian Grade Standard on account of permanent/quality defects.

Next, the inspector will include the applicant’s purchase order (PO) or the invoice number, the lot numbers if available, and any other remarks requested by the applicant. Finally, if a temperature inspection is requested and performed at the same time as a condition inspection, the inspector will use the remarks section to provide details of the load’s pulp temperatures. As mentioned in our first article of this series, transportation information, if available, may be found here.

The last part of the certificate is the “Certification” where you will find if the inspection has been requested for temperature, weight, size, condition, condition and grade, count, or any other type of request from the applicant.

It is very important the applicant requests the proper inspection. Make sure you fill out the request for an inspection form in detail, specifying what you would like the inspector to address in the inspection report.  Communication between the seller and buyer prior to requesting the inspection is recommended.

We hope this series has been informative and useful for you and your team.  If you have any questions, please do not hesitate to contact our DRC Help Desk by email or by phone:

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

Members have nine months from when the dispute arose to file a notice of dispute with us.  Unfortunately, it is not uncommon to receive calls about claims that are beyond the nine-month deadline or are quickly approaching it. Having dealt with thousands of calls over the years, we get it, sometimes things can get away from us, especially if we get busy and most other business is going well.

However, the nine-month limitation of claims must be taken seriously as it prevents you to use any other recourse outside of DRC to resolve your dispute.  DRC Mediation and Arbitration Rules, Article 4,  states, “…the Claim is notified to the Corporation by way of a Notice of Dispute within nine (9) months of when the Claim arose or within nine (9) months of when the claimant ought reasonably to have known of its existence.”

The wording “ought reasonably to have known” is intended to address indirect situations where notice of a problem was not explicitly communicated by one party to another.  An example would be when a cheque is returned for not sufficient funds.

Keep in mind that according to our rules, “Failure to file the claim with the Corporation (DRC) within this time shall be deemed and abandonment of the Claim and prevent recovery against another member.” In other words, you may have lost an opportunity to potentially recover some funds.

Our advice is to flag these accounts at the 6 month mark (or sooner) to prevent you from accidentally getting close to the 9 month deadline.  Give our Help Desk a call, and check the DRC website to verify your buyers and suppliers are active members. To help make it easier for our members to monitor the DRC standing of their trading partners, in the coming months DRC will be publishing changes to membership statuses.

We have written many articles about inspection services and DRC’s Good Inspection Guidelines.  We believe we have been able to relay why a government inspection, such as a CFIA inspection or a USDA inspection, has more weight than a private survey. Nevertheless, we understand that sometimes a private survey may be necessary. Here are some instances where a private survey would help a buyer/receiver claim damages:

• Where government inspection services are not available. To our knowledge, Canada and the USA are the only countries that provide this service.
• Where government inspection services are available but cannot be performed in a timely manner. When a request for a government inspection is submitted you can ask for an estimated time of performance of the inspection. If inspectors are not available within 24 hours, you should talk to your supplier/seller about it and discuss the possibility of requesting a private survey. Do not cancel the request for a government inspection unless you have secured a written agreement with your vendor for a private survey.
• When there is a written agreement between buyer and seller to have a private survey performed. We understand the fast pace of our industry and that many deals are done over the phone. However, a verbal agreement is only valid when both parties still have the same recollection of what was discussed and agreed upon, therefore, it is crucial to confirm it in writing.

We would also like to remind you that government inspections are considered “prima facie” evidence. In other words, a government inspection is sufficient to prove damages or the lack thereof. A private survey can always be challenged when the survey report fails to address all of the twelve elements stated in DRC’s Good Inspection Guidelines.

For more information see DRC’s Inspection Guidelines. https://fvdrc.com/by-laws-and-operating-rules/inspection-guidelines/. You can also call our office and request this document be emailed to you.

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