Frequently Asked Questions

Anyone who grows, buys, sells, brokers or provides transportation services for produce should consider becoming a DRC member in order to protect their business. Unlike trade associations and other industry groups offering help, DRC members are obligated to follow DRC Rules and participate in the dispute resolution process. Any member who fails to comply will be disciplined, which can include termination, and in some cases, loss of the ability to import products.

Membership is open to businesses in a country adhering as a contracting state within the New York Convention of 1958. Having a DRC membership demonstrates your commitment to fair and ethical trade.

DRC Membership is an excellent risk management tool that allows members to focus on their business while we help them resolve their disputes. For less than the cost of most loads, you have year-round peace of mind.

• You will have access to the member directory, which allows you to connect with other members and expand your business network.
• Recognition as a preferred buyer or vendor which can help you stand out from the competition.
• Greater commercial assurance, thanks to our commitment to fair and ethical business practices.
• One-on-one professional and confidential consultation with our experts, who can help you address any business challenges you may be facing.
• Access to our Help Desk, customized seminars, webinars, print checklists for staff, our publications, and other resources.
• Fulfill the regulatory requirement for those subject to the Safe Food for Canadians Regulations (SFCR).
• Assistance in filing complaints through other dispute resolution mechanisms such as the Perishable Agricultural Commodities Act (PACA) or Blue Book.
• Members have access to the DRC web portal, which includes detailed membership-related information, access to billing, and access to trading assistance information.

There is no need for changes if the practices have been agreed to by all parties (e.g., a contractual agreement) or are consistent with DRC’s rules. If your contract of sale is vague or ambiguous, or you do not have one, DRC’s established Trading Standards and Transportation Standards are the default.

Blue Book is a for-profit organization offering credit, marketing information and trading assistance for transactions in the produce industry whose jurisdiction is the United States.

The DRC is a not-for-profit organization whose primary focus is dispute resolution. Its jurisdiction includes members whose companies are located in countries identified as contracting states adhering to the New York Convention of 1958. Having a DRC membership demonstrates your commitment to fair and ethical trade.

Like the DRC, the USDA Perishable Agricultural Commodities Act (PACA) enforces a code of fair business practices and helps companies resolve business disputes.

The difference is that PACA’s jurisdictional boundaries are within the United States. In contrast, the DRC has jurisdiction over members whose companies are located within the contracting states that adhere to the New York Convention. Besides the jurisdictional difference, DRC’s Operating Rules are similar to PACA’s Statute.

The DRC is no longer limited to disputes arising from transactions that have entered commerce in North America.

The DRC has jurisdiction over disputes between its members in countries where foreign arbitration awards can be court-enforceable. Therefore, these members would reside in countries that adhere to the New York Convention of 1958. As a result, the DRC does not need to offer regulatory support for enforcement. However, it does offer guidance on how to enforce an award.

With respect to member discipline, if a member does not act by DRC’s By-laws and Operating Rules, the member may face disciplinary actions that can lead to the termination or expulsion of their membership. For Canadian buyers, membership termination limits one’s ability to buy from outside the country or between provinces.

Any member who fails to follow its membership obligations, including fulfilling their financial obligations or paying an arbitration award, will lose their membership, and members are notified of this sanction.

Under the Safe Food for Canadians Regulations, a DRC membership is a regulatory requirement for Canadian firms that buy, sell, import, or export fresh fruits and vegetables unless exempt.

Recognizing the importance of global supply chains, the DRC offers international services to facilitate fair and ethical trade.

A DRC membership is optional for a company outside Canada unless you are a US non-resident importer (NRI). However, it is a legal requirement for a Canadian buyer to be a DRC member. If you sell fresh fruits or vegetables to a company in Canada, you must be a DRC member to access DRC’s dispute resolution services. If a problem arises and you are not a DRC member during the transaction, you will not have access to these services, and your only recourse will be the lengthy and expensive court process.

A DRC membership can help you reduce risk and minimize losses through education, common trading standards and the availability of affordable and timely dispute resolution. Before doing business with a new company, contact DRC to determine if additional information is available to assist you to make informed decisions. If you are experiencing a recurring problem or have a question, DRC can provide in-house seminars or webinars to address your specific needs. As a DRC member, should a dispute arise we can help you avoid the lengthy and costly court process. DRC trading assistance staff and a roster of arbitrators are efficient and knowledgeable about the unique nature of the produce industry. Most disputes are resolved informally and do not escalate to arbitration.

The membership fee for companies within Canada is $1,274 CAD plus tax if applicable. For companies outside of Canada, it is $903 USD plus tax if applicable. The fee (as listed on January 1st, 2025) covers a 12-month period and is paid annually. It may increase nominally each year to offset inflation. Complete details are outlined on the application form.

To begin, fill out the membership application, which you can download by clicking here. You may also contact DRC’s Help Desk for assistance.

After completing the application, please include your payment when you return it to the DRC office.

Once your completed application and payment are received, a member services representative will contact you to start the review process. It’s important to note that the review can only begin once the application and payment are submitted.

If your application is not approved or returned for any reason, you will not be charged a fee if paid by credit card. If you paid by cheque or wire transfer, you would receive a full refund.

The process of approving and issuing a DRC membership generally takes one (1) week to thirty (30) days. We recommend considering this timeline when applying for membership.

You may join at any time; however, DRC only has jurisdiction over transactions that occur following the approval of your membership application. If you were not a DRC member at the time of a transaction under dispute, DRC’s ability to assist you is more limited than if you had been a member.

A DRC membership is only granted to a single legal entity. A membership may not be shared.

If you are an active DRC member you satisfy the CFIA’s membership requirements under the Safe Food for Canadians Regulations.

• Prevention Measures
  training, seminars and other informational and educational tools are the foundation of our system
• Unassisted Problem Solving
  the parties try to resolve the dispute either on their own or with limited assistance from the DRC Help Desk
• Consulting & Coaching
  parties who need additional support may call DRC for specific, confidential guidance
• Informal Mediation
  an informal exchange of documentation between DRC and the other parties involved; deadlines are imposed to ensure rapid resolution
• Formal Mediation
  when informal mediation has not resulted in a resolution, parties may agree to use an assigned mediator to help facilitate a voluntary settlement for a nominal fee
• Expedited Arbitration
  less than $50,000 USD or by agreement of the parties – a mutually selected third party determines a binding settlement for a nominal fee
• Formal Arbitration
  greater than $50,000 USD – a mutually selected neutral third party determines a binding settlement following an oral hearing; fees are applicable

The DRC can help resolve disputes related to the sale of fresh fruits and vegetables, from shipping point to upon arrival, including transportation, as well as cases of short or non-payment.

Yes. The DRC can resolve domestic and international disputes provided the buyers and sellers are members, have included a DRC arbitration clause in their contract, or mutually agree to use the DRC to resolve their dispute. Companies must reside within the contracting states of the New York Convention of 1958.

Yes. Outstanding arbitration awards can be registered and enforced in the appropriate court of law or appropriate legal proceedings. 172 countries are contracting states to the New York Convention of 1958, which provides for the recognition and enforcement of foreign arbitral awards through the courts. Furthermore, failure to honour an arbitration award will result in expulsion from DRC.

DRC members are obligated to have an informal mediation prior to initiating an arbitration process at no additional cost. Our highly skilled and experienced DRC staff are adept at managing the informal exchange of information between the parties. After discussing the case’s strengths and weaknesses, efforts are made to reach an amicable and informal settlement.

Over 80% of the cases presented to the DRC are resolved during the informal mediation process. Should this informal process not result in a settlement, the parties have the right to initiate the arbitration process where they participate in selecting a neutral arbitrator from the DRC approved list. These individuals are not DRC employees. While DRC staff administer the formal process, the independent arbitrators reach their decision without any influence from DRC staff or access to the informal file.

Contact the DRC through our online form or call +1 (613) 234-0982. DRC’s Trading Assistance staff will advise you of the best course of action for your issue. Our services are available in three languages: English, French and Spanish.

The DRC is dedicated to assisting its members, regardless of whether the dispute is with another DRC member or not. Non-members can also access DRC’s dispute resolution services as long as the member voluntarily agrees to sign an arbitration agreement (or vice-versa), or a DRC arbitration clause is included in their contract. The non-member must pay a non-member fee to access the dispute resolution process, or they have the option of joining DRC. However, it’s important to note that DRC’s recourse is limited when dealing with a non-member.

Therefore, we strongly recommend that you encourage your trading partners to join the DRC. This is a reliable way to ensure that you receive options and are not left without a remedy.

Disputes must be submitted to the DRC within nine (9) months from the date on which the dispute arose. Unresolved disputes that exceed nine months will be considered abandoned.

With your DRC membership, you benefit from consultations and informal mediation at no additional cost. However, you may proceed to formal mediation or arbitration if your dispute remains unresolved. Please note that fees apply to formal mediation or arbitration but are based on a sliding scale to ensure affordability. Less than 20% of all disputes brought to the DRC proceed to this step. For arbitration procedures where the claim is less than USD 15,000, a fixed filing fee of USD 600 is in place. For claims over USD 15,000, please get in touch with the DRC office for a copy of the fee schedule.

Consultations, coaching, informal mediation and expedited arbitrations under $15,000 can be conducted over the phone, via e-mail, or virtually. All information can be exchanged electronically. During a formal arbitration, the parties will likely need to travel to a hearing unless they agree to have it virtually. When a presence hearing is needed, the DRC aims to choose a location that is easily accessible for all involved. Disputes very rarely escalate to formal arbitration.

Education: DRC provides dispute prevention education to our members via seminars, fact sheets, our Solutions e-newsletter and more.

Mediation & Consultation: Members can access the DRC Help Desk for confidential consultation. If the parties request, we also offer formal mediation that provides a set timeframe to try and reach a voluntary settlement with the help of a mediator.

Arbitration: Where a voluntary settlement has not been reached, the parties assign an arbitrator to render a binding decision.

The DRC does not offer destination inspection services nor accredit any service or policy, as noted below. Assuming there is domestic capacity within a member’s country, the available options for inspection delivery are prioritized as follows:

• United States Department of Agriculture (USDA) and Canadian Food Inspection Agency (CFIA) government inspections
• USDA/CFIA accredited inspection services
• Private inspections mutually agreed upon by both parties involved in the dispute.

The service that carries the most weight is a government inspection (i.e. a CFIA or USDA inspection). The next best option is a destination inspection service which is accredited by CFIA or USDA, however, at the present time there are none.

In the event of a dispute where a non-government survey or inspection is being submitted as evidence, the burden of proof regarding the agreement, the credibility, and the impartiality of that inspection will rest with the party submitting the inspection. When using a non-government service, it is imperative to demonstrate that the parties discussed, understood and agreed to the use of a non-government survey.

Both the CFIA and the USDA are actively engaged with DRC in an advisory capacity and a representative from each body maintains an ex-officio advisory position on the DRC Board of Directors