Month: August 2018

DRC has developed and released Exporting to Canada: frequently asked questions from companies outside of Canada. The Q&A document, logo and visual presentation were launched at the recent CPMA convention and trade show in Vancouver, BC.

The information offers an overview of the DRC and its services, its jurisdiction in domestic and international disputes as well as the dispute resolution process and enforcement of arbitration awards. The brochure is available in English, French and Spanish and while the target audience may be those looking to export to Canada, the information is also of interest and value to anyone trading in the fresh produce business who is not familiar with or a member of the DRC.

For Canadians, the anticipated coming into force of the Safe Food for Canadians Regulations is important as it includes a regulatory requirement for those who buy, sell, import or export fresh fruits and vegetables to be a DRC member unless exempt. A key message for those looking to export to Canada is “do not sell to or buy from a person in Canada who is not a DRC member”.

“Packaging the information in this format is timely given the increase in inquiries from companies interested in knowing more about doing business in Canada as well as our targeted outreach to a number of embassies and trade facilitation offices” notes DRC President & CEO, Fred Webber.

The document is available in the following link: https://t8t979.p3cdn2.secureserver.net/wp-content/uploads/2018/08/QAs-Non-Canadian-to-Canada-ENG-FINAL.pdf

In the July edition of Solutions, Jennifer Morris, President of Two Roads Logistics, wrote an informative piece about the ELD mandate in North America [link to article].  This article is a follow-up specifically addressing the “ag-exemption.”

49 CFR section 395.1(k) provides an exemption for Hours of Service (HOS) rules for agricultural commodities (including livestock, bees, horses, and other commodities defined as “agricultural commodity” under section 395.2) during planting and harvesting periods, to be determined by each State.

HOS rules do not apply to the transportation of these commodities moving within a 150 air-mile radius (or 172.5 statute miles) from the source.  Working hours and driving hours are not limited in this situation.  The driver is not required to use an electronic logging device (ELD) or keep paper logs.  The time a driver spends working within the 150-mile radius does not count towards their daily or weekly limits; he/she is considered off-duty.  Outside of the 150 air-mile zone, HOS regulations apply; the driver’s work and drive hours must be within the limitations of the HOS rules.

To use an example, if a driver was delivering a load of fresh vegetables from the source to a location five hours away (assuming the 150 air miles accounted for 3 hours of driving time), the first three hours of the five-hour trip would not count towards their HOS.  If the driver unloaded and returned empty to the source, once the driver re-entered the 150-air mile zone, they would once again be considered off duty.  As a result, in this scenario, a driver could be on the road for ten hours, and only four of those ten hours would count towards their hours of service.  Similarly, a driver could never leave the 150-air mile zone travelling back and forth from source to location multiple times a day and not be subject to HOS rules at all.

Another ELD exemption of note (applicable to all commercial motor vehicles, not exclusively to those hauling agricultural commodities) pertains to the year of the engine.  If a driver is using a vehicle manufactured before the model year 2000, they are exempt from having to install ELDs, provided they maintain paper logs.

For more detailed information please visit: https://www.fmcsa.dot.gov/hours-service/elds/agricultural-commodity

About the Author:

Jennifer has 15 years experience in the produce and transportation industries.  Two Roads Logistics specializes in produce, food and helping unique start-ups with their transportation needs. Jennifer is also a member of the Education Committee for the CPMA and a columnist for the Grower. 

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 https://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.