Confirmation of Sale

| DRC

We have fielded some questions lately regarding a broker’s confirmation of sale and the Canadian confirmation of sale form required to import. Are they the same? What are the differences? How do you know when to use which one? This article intends to answer those questions and more.

It is important not to confuse a broker’s Confirmation of Sale, as defined in Section 11 of the DRC Trading Standards http://fvdrc.com/by-laws-and-operating-rules with a Canadian Food Inspection Agency (CFIA) Confirmation of Sale Form (COS Form) required to accompany imports into Canada. Since January 11, 2016, importers had an option to either manually submit a COS Form at time of entry or submit the same information electronically, in advance, through eManifest, the Pre-arrival Review System (PARS) or EDI.  When the new Safe Food for Canadian Regulations come into force on January 15, 2019, the CFIA COS Form will no longer be an option by CFIA.

Conversely, a produce broker, which is not the same as a customs broker, is a person or firm which negotiates transactions between buyer and seller, but is not otherwise a party to the transaction. A true broker is required to issue written or electronic confirmations showing all the contract terms that the buyer and seller have agreed to, as well as the identity of both seller and buyer. This document is often referred to as a “Broker’s Confirmation of Sale”.  These are the main functions a broker must perform:

  • Help two or more parties form binding contracts through good faith negotiations;
  • Communicate all terms to the parties;
  • Create a confirmation of sale, including all essential details of the agreement; and,
  • Deliver the confirmation of sale to all parties promptly.

Unless otherwise agreed and confirmed, the broker will be entitled to payment of brokerage fees from the party who hired the broker.

A broker’s confirmation of sale will continue to be a requirement by DRC from members who act as true produce brokers.