Author: DRC

Welcome New Members

From April 15 until May 17, 2021, DRC welcomed the following new members:

A1 IMPORTS INC.	QC	Canada
AGROINDUSTRIAL SAN GERMAN SPA (También haciendo negocios como San German SPA)	Elqui	Chile
ALIMSUR INC.	QC	Canada
ANYE PRODUCE INC.	CA	United States
BENITO PRODUCE CORP.	ON	Canada
BOUCHERIE EL IHCÈNE	QC	Canada
CITRUS CONNECTION (A d/b/a of 1884430 Ontario Inc.)	ON	Canada
COMMERCE O’MALLEY QUÉBEC (Faisant également affaire sous Coulibaly Firmin)	QC	Canada
DESIGNITY EXPRESS INC. (Also d/b/a South Asian Food Essentia	ON	Canada
EL TORREON EXPORT LIMITADA	Punilla	Chile
FRESHSTONE BRANDS INC.	ON	Canada
LINKGLOBAL FOOD INC.	ON	Canada
MANGOLICIOUS BY MM (A d/b/a of Mona Mehta)	ON	Canada
MARITIME FRUIT AND VEGETABLE PACKERS INC.	ON	Canada
NATURAL FOREST, INC	Florida	United States
PROSPERA PRODUCE LTD.	BC	Canada
SOCRITIQUE TECHNOLOGIES INC.	ON	Canada
SUN RICH FOODS CANADA INC. (Also d/b/a Sun Rich)	BC	Canada
SUSTAINABLE PRODUCE URBAN DELIVERY INC. (Also d/b/a Spud.ca)	BC	Canada
THE GREENGEN INCORPORATED	ON	Canada
VARSTAR ALLIANCE INC.	MI	United States
VIVO DE CAMPO INC.	ON	Canada
ZYTHAS DYNAMIC INC.	AB	Canada

 

DRC Membership: change in status

As of May 17,2021, the following organizations no longer hold a DRC membership:

2478339 ONTARIO INC	ON	Canada
2755281 ONTARIO INC.	ON	Canada
9382-9729 QUEBEC INC.	QC	Canada
AGRICOLA LA VENTA S.A.  (También haciendo negocios como Agricola La Venta)	Lima	Peru
AGRICOLA TEJAS VERDES LIMITADA		Chile
AGROINVERSIONES VALLE Y PAMPA S.A.	Lima	Peru
ALWAYS GREEN CORPORATION	CA	United States
BAUZA EXPORT LTDA	Santiago	Chile
BRANDPORT TRADING INTERNATIONAL INC. (Also d/b/a Brandport)	QC	Canada
BUDA JUICE CANADA (A d/b/a of 2469447 Ontario Limited)	ON	Canada
CHENFIELD LIMITED	Kowloon	Hong Kong
CHINESE UNIVERSAL ENTERPRISES INC.	MB	Canada
COMERCIAL GREENVIC S.A.	Metropolitana	Chile
FEDAL CONSULTING CORP.	AB	Canada
GEORGE DESLAURIERS (1976) INC.	QC	Canada
GRANATIONAL INC.	ON	Canada
HAKIM ENTERPRISES (A d/b/a of Thabit Hakim Andrawus)	ON	Canada
LB INTERNATIONAL TRADING IMPORT/EXPORT INC.	QC	Canada
LES MARCHANDS DUFRAIS (Faisant également affaire sous 9124-3105 Quebec Inc.)	QC	Canada
LT FARM, INC.	CA	United States
MAKOLA TROPICAL FOODS	ON	Canada
MAYRAND LIMITÉE (Faisant également affaire sous Resto Dépot Mayrand)	QC	Canada
MUSANGKING TRADE COMPANY LIMITED	ON	Canada
NATIONAL COLD CHAIN INC.	ON	Canada
NFI IPD, LLC (Also d/b/a NFI Canada)	ON	Canada
PAPALOTE FRESH LLC	TX	United States
PRODUCTOS AGROPECUARIOS SAN CARLOS S.P.R. de R.L. (También haciendo negocios como San Carlos)	Nayarit	Mexico
READY PAC PRODUCE, INC.	CA	United States
S & A IMPORT AND EXPORT, SRL		Dominican Republic
SAN DIEGO FARMS LLC (Also d/b/a Fresh Origins)	CA	United States
SANDEL FOODS INC.	BC	Canada
SIMILIEN PRODUITS FRAIS INC.	QC	Canada
SLIM PROFESSIONNELS SERVICES INC.	QC	Canada
SUNFLOWER KITCHEN INC.	ON	Canada
SUTHA IMPORTS & EXPORTS LTD.	ON	Canada
TAYLOR & FULTON PACKING, LLC	FL	United States
TJPEPPERS LTD.	ON	Canada
TOP STAR INTERNATIONAL TRADING (A d/b/a of 10612952 Canada Limited)	ON	Canada

 

For details regarding a change in status, please contact the office.

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 14 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

To date, DRC has resolved claims in excess of $83 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.

 

This is the third in a series of articles summarizing past DRC arbitration decisions. We believe this will help members to better understand how the DRC Dispute Rules (R&R) and Regulations apply in the event of a dispute. DRC Dispute R&R state that all DRC arbitrations are private and confidential. As such, the names of all parties, including arbitrators and companies are not included. A reminder that DRC’s sole role is as administrator of the arbitration process; DRC does not participate in any hearings. Therefore, this summary is based solely on the arbitrator’s written decision and may not reflect important information shared with the arbitrator through written briefs or verbal testimony.

 Case: DRC File #10954 – Parties Domiciled – USA and Canada

Facts

• The Claimant shipped to the Respondent 4032 boxes of size 12 Kent variety mangoes on August 7, 2001. According to the invoice, the product was sold at $2.60/box F.O.B. The Respondent received the shipment in Canada either late on August 11, 2001 or in the early hours of August 12, 2001.
• A CFIA inspection was requested on Monday, August 13, 2001 and was performed the following morning on August 14, 2001. Respondent alleges that the mangoes failed to make good arrival and sold the mangos for the Claimant’s account which returned approximately $.40 per box to the Claimant.
• On August 14, 2001, Claimant sent a letter to Respondent’s broker advising that they would not allow the mangoes to be sold for their account. Thereafter, Respondent wrote to the broker asking for instructions on how to handle the load.
• Claimant made numerous requests to the Respondent to be provided with the CFIA inspection. This inspection was not provided to the Claimant until February 12, 2002.
• Claimant agreed to allow a $1.00 per box adjustment due to quality problems, and now seeks payment of $4,838.40.

Issue

Whether the Respondent failed to provide in a timely manner a copy of the inspection certificate to the Claimant.

Arbitrator’s Analysis/Reasoning

The arbitrator found that Respondent failed to provide, in a timely manner, a copy of the inspection certificate to Claimant herein in violation of Section 10 (2)(b)(ii) of the Trading Standards which require a copy of the inspection certificate to be provided to the shipper within twenty-four (24) hours of receipt by the Respondent. Therefore, the arbitrator found that Respondent violated its duties under the DRC Trading Standards.

Additionally, Respondent raised as an issue as to whether the Notice of Dispute herein was properly filed because a representative of the DRC requested such notice be filed by November 13, 2001 and it was not filed until November 30, 2001. The Arbitrator found that, pursuant to Rule 4 of the DRC Dispute Resolution Rules, the Claimant filed the Notice of Dispute within the nine (9) month limitation period.

Arbitrator’s Decision

The Respondent failed to provide in a timely manner a copy of the inspection certificate to Claimant, therefore, Claimant is owed the invoice price of $10,506.70 less payment in the amount of $1,636.30, less a credit in the amount of $4,032.00, for a total invoice price owed of $4,838.30 plus commencement fees of $525.00 plus interest of 9.5% (U.S. prime rate plus 1%) from the ten (10) days following receipt of the goods by Respondent herein or August 22, 2001, through the date of this decision, or $273.48 for a total of $5,636.88 funds to be paid by the Respondent to Claimant no later than thirty days from the date of this decision.

DRC Comments

As a receiver/buyer, failing to provide the supporting documents of a claim in a timely manner, can result an unsuccessful claim. In this case, the respondent appears to have given timely notice of a problem upon arrival, requested a CFIA inspection in a timely manner, and informed the shipper they would handle the product for the shipper’s account. The only responsibility the receiver failed to meet was not providing the CFIA inspection in a timely manner. However, this is a very important step in the process of making a claim. The results of the CFIA inspection allow the shipper to determine if the product met or failed contract terms or DRC Good Arrival Guidelines. A shipper who does not receive a copy of an inspection report in a timely manner has not been provided with sufficient evidence that the product arrived in deteriorated condition. This often compromises the shipper’s ability to pass any claim on to his supplier, insurance, freight provider or others who may have contributed to a claim. 

DRC members have 9 months from the date the dispute arose or when the claimant ought reasonably to have known of its existence to file their Notice of Dispute. We are not sure why the respondent was under the impression that the Notice of Dispute should have been submitted on or before November 13, 2001 but if the product was received on August 12, 2001, and we start counting from this date, the claimant would have had until May 12, 2002 to file their notice of dispute.

For more information regarding the sections of DRC Trading Standards applied to this dispute, refer to the following sections:

 DRC Trading Standards:

• Receiver Duties (Fruit and Vegetable Dispute Resolution Corporation Trading Standards s.10 (2)(b)(ii))
• Reasonable Time (Fruit and Vegetable Dispute Resolution Corporation Trading Standards s.19 ss. 18)
• Limitation of Claims (Operating Rules – Dispute Resolution Rules Part 1 Art. 4

Over the last few months DRC has experienced a surge of new members. This is positive and demonstrates that, even during these challenging times, the entrepreneurial spirit remains strong.

We are receiving all types of applications, which include applicants with little experience in the produce industry or lack of knowledge of rules and regulations that apply to produce transactions. We want to assure those who are completely new to the industry that DRC is more than just a regulatory requirement for Canadians, we are a key resource for information with tools to help businesses succeed in a tough but extremely rewarding industry. Before taking on your first fresh produce import make sure you can answer the following basic questions:

• Can the product enter Canada? You should be visiting the Automated Import Reference System to find out.
• What are the payment terms and contracted shipping terms such as INCOTERMS?  Make sure both parties understand their rights, responsibilities and risks of using these terms.
• How do I clear Canadian customs and have the product released to me? You may want to have a Custom Broker to help you with this process. Visit Canada Border Services Agency for a list of licensed custom brokers.
• What do I do if my Canadian buyer does not want my product? Understand the process of a claim or a rejection by reviewing DRC’s Trading Standards.
• What if my product arrives with damage? A request for a government inspection should be the first action.

These are the types of questions we receive daily at DRC and we have professional and dedicated staff available to assist you. So, if you need help with some of these basic questions or any others, please call or email us and we will get you the answers you need with total confidentiality.

Just as the DRC Trading Standards set out the rights and responsibilities of buyers, brokers and sellers of fresh produce, the DRC Transportation Standards set out the fresh produce specific rights and responsibilities of trucks, transportation intermediaries, shippers, and receivers.

For some time, the DRC Transportation Standards have been viewed as more of a “suggestion” than as a vital part of product movement along the supply chain. Those days are over.  Food Safety and Preventative Control Plans (PCP) have focused attention on the supply chain, including the loading and unloading of produce.

Section 7 addresses loading the conveyance.  For years the driver and the shipper had responsibilities for loading the conveyance. Documentation of pulp temperatures, reefer set points and condition of the conveyance should now be part of a shipper’s PCP.

Similarly, Section 9 addresses the documentation of temperatures and the condition of the load.  These requirements should also be reflected in the receiver’s PCP.  That plan should include procedures to address and correct those issues.

Placing seals or locks on trailer doors is nothing new and is discussed in Section 7.   Not that many years ago a seal’s primary use was protecting against theft, or that other unapproved cargo was not placed on board. Breaking that seal without authorization could result in rejection and give rise to contamination concerns. Today, breaking a seal may raise Food Safety concerns which could lead to a dispute.

DRC’s Transportation Standards are designed to be the default standards between members, and they are compatible with today’s business practices.  Parties are free to agree on other transportation terms and we are cognisant that sovereign laws may come into effect in international transactions. When making other arrangements be prepared for DRC to ask if the terms were “DUA” (discussed, understood, and agreed).

Welcome New Members

From March 15 until April 15, 2021, DRC welcomed the following new members:

12618109 CANADA INC.	AB	Canada
BDF INTERNATIONAL LTD.	BC	Canada
CITY PRODUCE	ON	Canada
CSM FRESH IMPORTS INC. (Also d/b/a CSM Fresh)	ON	Canada
DALEY FARM FRESH PRODUCE INC. (Also d/b/a Daley’s Trucking)	ON	Canada
EPSILON-IT EPSILON-INTEGRA-TRADE LTD. (Also d/b/a Epsilon In	BC	Canada
ESS ESS DISTRIBUTORS INC.	ON	Canada
EVERFRESH GREENHOUSE (A d/b/a of 1269461 Ontario Inc.)	ON	Canada
EXOCAN GROUP INC..	QC	Canada
GREATRATE FOODS LTD.	BC	Canada
GUJARAT FOODS AND SPICES INC.	ON	Canada
IMPORTATION GLNA INC. (Faisant également affaire sous Audall	QC	Canada
JUS LOOP INC. (Faisant également affaire sous LOOP Mission)	QC	Canada
LITAI CANADA TRADING LTD.	ON	Canada
LOKESH JAIN ENTERPRISE (A d/b/a of Lokesh Jain)	ON	Canada
MAMA’S GREENHOUSE (A d/b/a of 963358 Ltd.)	AB	Canada
MARTINEZ & SONS PRODUCE INC.	CA	United States
MATOOKE SHOP EAST AFRICAN FRESH FOODS INC.	ON	Canada
NAVS GROCERY ( A d/b/a of 2726265 Ontario Inc.)	ON	Canada
NOURIMPEX (A d/b/a of 9347-9426 Quebec Inc.)	QC	Canada

 

DRC Membership: change in status

As of April 15, 2021, the following organizations no longer hold a DRC membership:

A & Z TRUCKING INC.	NY	United States
A2Z IMPORT “N” EXPORT CANADA INC.	ON	Canada
ABIDJAN SERVICES ALIMENTAIRES INC.	QC	Canada
AFRICAN CHOICE MARKET LTD.	AB	Canada
ALBERT’S ORGANICS, INC.	NJ	United States
ALPINE FRESH, INC.	FL	United States
APACHE PRODUCE IMPORTS LLC	AZ	United States
BRAD FOOTE & SON PRODUCE LIMITED (Also d/b/a Footes Farm Mar	NS	Canada
CLEAR COAST ALLIANCE LTD.	BC	Canada
DOUBLE STAR FARMS INC.	CA	United States
FILLMORE-PIRU CITRUS ASSOCIATION	CA	United States
FRESHPACK OKANAGAN FRUIT LTD.	BC	Canada
HA IMPEX INC	AB	Canada
HARI AGRO PRODUCTS CANADA (A d/b/a of Hari Prasath Udayakuma	BC	Canada
J.B.M. ENTERPRISES LTD.	BC	Canada
LES ALIMENTS KOUBA INC.	QC	Canada
NATURE BLUE ENTERPRISES INC.	BC	Canada
NEW ERA PRODUCE LLC	FL	United States
PACIFIC RIM INTERNATIONAL BROKERAGE INC.	BC	Canada
SYSCO NASYS (A Division of Sysco Canada, Inc.)	NB	Canada
THREE DOLPHINS WHOLESALE LTD.	BC	Canada
TIGERGOOD MARKETS LTD.	BC	Canada
VICTORY MEAT MARKETS YAKIMA FRESH, LLC	NB WA	Canada United States

 

For details regarding a change in status, please contact the office.

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

About DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 14 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

To date, DRC has resolved claims in excess of $83 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.

Did you know that while most of the information posted on DRC Member Portal is reserved for members only, you don’t have to be a member to use some of the features the portal has to offer?

To start you’ll need to go to Member Login section and register a new account. Once logged in, as a non-member, you will have basic access to the portal where you will be able to:

• Have limited access to the membership directory where you can search for companies by location and type of business
• Verify if the company is either a DRC active or inactive member
• Apply for a full membership
• Send an inquiry for DRC Trading Assistance or any other help

We are encouraging everyone to visit our redesigned website and discover the refreshed Member Portal as a valuable resource for the produce industry.

Let’s start with the easy part, a DRC membership. According to the Safe Food for Canadians Regulations (SFCR), Canadian exporters are required to have a DRC membership unless excepted, mainly because you ship produce you have grown yourself or are shipping less than one metric ton a day. There are a couple of other exceptions, but there are probably not many small retailers or charities exporting produce from Canada. In other words, if you are selling from Canada make sure you and your foreign buyer are DRC members. It’s not just good business, it’s the law for Canadian fresh produce exporters.

Now the more complicated question, do you need a SFCR licence from CFIA to export produce from Canada? You need a licence to export food if you would like to receive an export certificate, or another export permission such as being on an export eligibility list, from the CFIA. 

You do not need a SFCR licence to export food:

• if your sole activity is export and you do not need an export certificate, or another export permission, from the CFIA, or 
• if your sole activity is an export custom broker or freight forwarder.

If export is not your sole food related activity, we strongly urge you to visit the CFIA website (inspection.gc.ca) and use some of their self-assessment tools to see if you need a licence.

There is little question COVID-19 has stressed and complicated business models. Some people are really hurting and there is no way around it. If you are one of those folks, I encourage you to have a conversation with your suppliers now! We are seeing many relationships coming to amicable terms when timely conversation has taken place.
Understandably, the relationship is not so amicable when the cash flow conversation does not take place until the invoice is past due, the reminder is ignored and phone calls have not been answered. And horror of horrors ………… you said, “the check is in the mail” and it is not. In my 35 years working on problems, I have seen many relationships blossom following honest and forthright communication. I have seen zero relationships recover when someone says the check was sent and it was not.
When you are the supplier, let’s face it, you have a choice to make: whether to work with your customer or play tough while knowing that your customer may or may not survive without your help.
There are some definite boundaries you should respect when electing to accept payment beyond the original terms.
Both DRC and PACA require that complaints be filed within 9 months of when payment was due. In my experience that means the original due date. If your arrangement is going to be longer than that, you should include in the conversation that a DRC or PACA complaint will be filed. You will have control of when you choose to move forward for a decision, but the informal filing must be done within the prescribed time frame.
If you are utilizing the protections offered by the PACA Trust do not forget that you must put the customer on notice of the trust within 30 days of when payment was due and payment terms longer than 30 days are not recognized.
If you have decided to ride it out with your customer, get a firm commitment for them to pay something on a regular basis. That will signal they have some income and that if they miss a payment it will tell you their plan is not working.
Some things change and some don’t. What has not changed is that honesty and integrity apply equally in good times and bad. When your trading partner forgets that, it is time to take action and file a claim for yourself and for your industry.

Fred C. Webber

Commencing this year, we will publish a summary series of arbitration decisions which will help members better understand how DRC Rules and Regulations apply in the event of a dispute. DRC Dispute Resolution Rules state that all DRC arbitrations are private and confidential. We have omitted the names of people, including arbitrators, as well as companies. DRC only acted as the administrator of the arbitration process, and did not participate during any hearings (if applicable), therefore this summary is based solely on the arbitrator’s written decision and may not reflect important information shared with the arbitrator through written briefs or verbal testimony.

Case: DRC File #19617 –Parties Domiciled- Spain and Canada

Facts:

• The Claimant shipped to the Respondent 1,820 cartons of mandarins CAT#1 quality on February 26, 2016. The product origin was Spain and according to the invoice, it was sold F.O.B. at $22,200.01. The Respondent received the shipment in Canada on March 10, 2016, and a private inspection was performed. The private inspection showed defects ranging from 8-11%, with decay ranging 2-4%.
• Upon receiving a copy of the private inspection on March 12, 2016, the Claimant requested that a CFIA inspection be performed. The CFIA inspection was performed on March 15, 2016 but, only on1,152 cartons. The results of the inspection indicate the mandarins were affected by 7% decay and 1% skin breakdown. The Respondent forwarded the inspection to the Claimant, arguing that the load was out of grade as it did not meet good arrival.
• After the Respondent claimed damages, a $14,938.01payment was submitted to the Claimant. The Respondent supports the alleged damages with a detailed account of sales. 

Issue:

Whether the inspection certificates show that the fruit failed to meet contract terms.

Arbitrator’s Analysis/Reasoning:

There was no disagreement between the parties that the mandarins in question were sold as CAT#1. They disagreed, however, as to whether the inspection certificates show that the fruit failed to comply with this grade.

The Claimant’s invoice indicates that the mandarins were sold FOB. The risk of loss would have passed to the Respondent once the Claimant loaded the product (or container) onto the ship. The Claimant was required to meet the agreed-upon CAT#1 standard at shipping point on or about February 26, 2016 (the date the ship departed), which was two weeks before the product was inspected by a private company in Canada (and two and one-half weeks before the CFIA inspected the load).

With respect to the relevant grade standard, the question that arises is, do the inspections taken in Canada show that the product was out of grade when loaded at the Port of Spain? In view of the two-week voyage from Spain, the inspections taken in Canada are simply too remote (in time and place) to establish that the mandarins were out of grade on or about February 26, 2016, when the product, and the risk of loss, passed from the Claimant to the Respondent. The decay reported in Canada may very well have developed in transit and/or while awaiting inspection. 

DRC’s Good Arrival Guidelines provide that tangerines (i.e. mandarins), upon arrival at contract destination, may be affected by no more than 15% average condition defects, 8% very serious defects, and 5% decay.  If a timely inspection shows that any of these percentages are exceeded, the product in question may be deemed to be abnormally deteriorated in breach of the shipper’s warranty of suitable shipping condition which is applicable in FOB sales.

The private inspection does not show that the mandarins exceeded the relevant good arrival guidelines upon arrival in Montreal. (As an aside, it is worth noting that private inspection are not typically given the same weight as government inspections unless it is clear that both parties agreed to the use of a private inspection; therefore, it should not be assumed that the private inspection certificate would have been sufficient to establish a breach even if the percentage of defects reported were greater).

Irrespective of the cause of the delay in obtaining the inspection, establishing that the fruit was affected by 7% decay on March 15, 2016, does little to prove that this product was affected by more than 5% decay on March 10, 2016, when the product arrived. Furthermore, it is important to note that only 1,152 of the 1,820 cartons shipped were available for the CFIA inspection.  Given the timing of this inspection, and the fact that a significant portion of the product was not inspected, the CFIA inspection, does not establish that the mandarins in question failed to make good arrival in breach of the sales agreement.

Arbitrator’s Decision:

The Respondent failed to prove that the mandarins in question failed to comply with the sales agreement; therefore, Claimant is owed the balance of its invoice price, or $7,261.99, plus arbitration fees of $2,200.00, for a total amount due from the Respondent to the Claimant of $9,461.99 (U.S.).

DRC Comments:

There are several points in this decision that DRC members must take into consideration in their transactions:

• When a Grade Standard is discussed between parties, make sure both parties understand what grade standard is referred to, and if the product must meet the grade standard at shipping point or at destination.
• For DRC members, in the absence of an agreement on a grade standard, under DRC Good Arrival Guidelines, the transaction defaults to FOB no grade contract and Good Arrival applies.
• In the absence of an agreement on a private inspection/survey, DRC members must request a CFIA inspection.
• To prove the product arrived in deteriorated condition, the request for an inspection must be done in a timely manner. A buyer who requests a private inspection/survey first without a prior agreement in place, may find that it is too late to request a government inspection if the seller does not accept the private inspection/survey.
• The results of a government inspection are representative of the full load when a minimum of 75% of the load is available for inspection and satisfactory reason exists for limited sales prior to inspection.

For more information regarding what sections of DRC Trading Standards applied to this dispute, you can review the following sections:

DRC Trading Standards:

• DRC Good Inspection Guidelines (https://fvdrc.com/wp-content/uploads/2016/10/good_inspection_guidelines.pdf )
• O.B (Fruit and Vegetable Dispute Resolution Corporation Trading Standards s. 20 ss. 5)
• Reasonable Time (Fruit and Vegetable Dispute Resolution Corporation Trading Standards s.19 ss. 18)
• Suitable shipping condition(Fruit and Vegetable Dispute Resolution Corporation Trading Standards s. 19 ss. 24 & Glossary

Welcome New Members
From January 1 until February 15, 2021, DRC welcomed the following new members:
AM PRODUCE INC. ON Canada
CHADI IMPORT-EXPORT INC. (Faisant également affaire sous Cha QC Canada
CHAROEN POKPHAND FOODS CANADA INC. (Also d/b/a CPF Canada) ON Canada
COUFFIN BIO CDN INC. QC Canada
EXCEPTIONAL FUTURE LLC. (Also d/b/a Exceptional Future) CA United States
GIRAFFE FOODS INC. (Also d/b/a Giraffe Foods) ON Canada
IQBAL HALAL FOODS INC. ON Canada
IRIGOYEN FARMS, INC. CA United States
JARDINS ST-LÉON GARDENS INC. (Also d/b/a St-Léon Gardens) MB Canada
JOHNSON PRODUCE LTD. ON Canada
LE PALMIER D’OR / MARCHÉ ARDIS (Faisant également affaire so QC Canada
LEVEL HOLDINGS LTD. BC Canada
MAHDI ET SALAH IMPORT (Faisant également affaire sous 9433-6 QC Canada
MARINA EXPORT & IMPORT INC. ON Canada
MISSION NATURALS INC. BC Canada
PERUVIANO FOODS CANADA (A d/b/a of 2726390 Ontario Inc.) ON Canada
STRONACH & SONS (2020) INC. ON Canada
SUN FRESH CITRUS LLC. CA United States
WEN HO OF CANADA LTD. (Also d/b/a Wen Ho) ON Canada
YASHICA INTERNATIONAL INC. ON Canada

DRC Membership: change in status
As of February 15, 2021, the following organizations no longer hold a DRC membership:
ACCU FOODS LTD. AB Canada
AGRO YOSTOS (A d/b/a of 916403 Alberta Ltd.) AB Canada
AMALFI FINE FOODS INC. ON Canada
BERKANE IMPEX (Faisant également affaire sous Abdelhak (Abe) ON Canada
CANAMEX-CARBRA TRANSPORTATION SERVICES INC. ON Canada
CULTIVA FRUIT DISTRIBUTION LTD. BC Canada
DANDRICK’S PRODUCE (Faisant également affaire sous 9404-5093 QC Canada
DI VAIN ENTERPRISES (A d/b/a of Quetzal Silva Torres) BC Canada
EASYBUY TRADING LTD. ON Canada
EGYCAN IMPORT AND EXPORT INC (A d/b/a of 9381-8540 Quebec In QC Canada
FALCONCREST PRODUCE CO. LTD. ON Canada
FRESH QUEST MELONS LLC FL United States
FRUITIS LTD. Israel Israel
FRUTERA EUROAMERICA S.A. Region Metropolitana Chile
GOLDEN WEST VEG, INC. CA United States
IMPORTATION MATILDA INC. / MATILDA IMPORT INC. QC Canada
KORALTA AGRI-BUSINESS INC. (Also d/b/a Koralta Agri) AB Canada
LIRODE (Faisant également affaire sous 9062-0642 QUÉBEC INC QC Canada
MULTISOL INC. MB Canada
NEWTON P. G. FARMS INC. PE Canada
OYSTER & KING (A d/b/a of 1088115 B.C. Ltd.) BC Canada
ROYAUME DES DATTES (Faisant également affaire sous Sofiane A QC Canada
VIDA FRESH (A d/b/a of Vida Fresh Inc.) CA United States

For details regarding a change in status, please contact the office.

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

About DRC
DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e.: buy, sell, import, export) unless excepted from the regulations. Today, DRC has members in 14 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes, including education, mediation and arbitration. DRC has ability to impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

To date, DRC has resolved claims in excess of $83 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or visit us at www.fvdrc.com.