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Membership Update – December 2023

Welcome new members!

We are pleased to announce that between December 1st and 31st, 2023, the DRC welcomed the following 13 new members:

15293707 CANADA INC. | AB, Canada
ALMOCAN MÉDITERRANÉEN INC. | QC, Canada
BILL’S FRUIT MARKET INC. | ON, Canada
COMMERCE DRIM INC. | QC Canada
FRUTELLA FOR FOOD INDUSTRY S.A.E. | Giza, Egypt
GLOBAL BIO INC. | QC, Canada
IMPORTATION AVOCAN INC. (Faisant également affaire sous Avocan) | QC, Canada
INDIAN DELIBITES INC. | ON, Canada
KARIM SAGHI | QC, Canada
ONLY THE REALEST SERVICES INC. | ON, Canada
RENNIE BROS INC. | PE, Canada
TRANSPORT JUSTINT IMPORT-EXPORT INC. | QC, Canada
YOUDESSE ALIMENTS (Faisant également affaire sous 9300-3580 Québec Inc.) | QC, Canada

To view a complete list of active members, click here.

DRC Membership: change in status

As of December 31, 2023, the following organizations no longer hold a DRC membership:

AMCO PRODUCE INC. | ON, Canada
J. F. PRODUCE INC. | ON,  Canada
LAKESIDE PRODUCE INC. | ON, Canada
NATURIPE FARMS IMPORTS INC. | FL, United States
SOCIEDAD AGRICOLA SATURNO S.A. | Lima, Peru
VISION IMPORT GROUP, LLC | NJ, United States

To view a complete list of inactive members, click here.

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

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The 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 accepted by the regulations. Today, the DRC has members in 16 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, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation and arbitration services along with the 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, the DRC has resolved claims in excess of $105 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.

For more information about memberships, click here or contact our Helpdesk.

 

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Stay Connected with the DRC on Social Media!

Did you know the DRC actively engages with the fresh fruit and vegetable industry on three social media platforms? We have a presence on LinkedIn, Facebook, and X (Twitter), and we have been increasing our outreach to share industry news, upcoming events, and access to insightful articles.

We strive to keep the industry informed and educated through press releases, reports on grade standards, updates to import and export regulations, case studies, B2B best practice tips, member updates, and so much more. We’ve found that social media is an excellent resource for connecting with a larger audience that goes beyond borders. The DRC appreciates the opportunity to engage with industry members and share insightful information while building relationships.

If you have not already, join us on social media. We’d love to hear from you.

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For media inquiries, please contact: 

Nicole MacDonald
Communications & Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Telephone: 613-234-0982
Email: [email protected]

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Using a truck or trailer as warehousing? Learn the key responsibilities of carriers and receivers.

Occasionally, we receive inquiries regarding the responsibility of cargo when a carrier drops the trailer in a receiver’s yard for later unloading. There may be several reasons for the drop, which should be understood and agreed to by both parties and documented if timelines exceed those set out in the DRC Transportation Standards, ARRIVAL AT DESTINATION, Section 9.3.f.

“… The truck is not to be used as a warehouse except by consent of the carrier and then only upon payment of warehousing charges as agreed to. Under the terms of the Corporation’s Trading Standards, the buyer’s responsibility to the seller requires that the buyer accept the produce within a reasonable time (8 hours after tender of delivery for trucks…”

Sometimes, when there are a lot of trailers to be unloaded or when the trailer arrives outside of business hours, buyers and receivers can come to an agreement with the carrier to leave the trailer at the receiver’s yard to be unloaded later.

It is important that carriers and receivers have a written agreement when they decide to leave a trailer at the receiver’s yard. This agreement should clarify the responsibilities of each party during the period when the trailer is left at the yard, including who is accountable for checking the trailer’s reefer unit to ensure it is working properly. A written agreement can help avoid misunderstandings and ensure that both parties are aware of their obligations.

If no agreement is met between the parties regarding when the responsibility for cargo is transferred over from the carrier to the buyer, DRC members should be aware of DRC’s Transportation Standards such as:

  • Section 9.1. would set the tender of delivery: …“Tender of delivery” is said to have occurred when the carrier arrives at the receiver’s location at a reasonable or instructed hour to be unloaded and, when necessary, the carrier gives the receiver notice of the arrival. When the receiver is advised of arrival and instructs the operator to hold the load at a place commonly used for carriers whose unloading may be temporarily delayed, tender has taken place. The buyer’s timely complaints to the shipper and the computation of allowable unloading time are related to when “tender of delivery” has occurred.”
  • Section 9.2. provides for the receiver’s right of inspection: “Upon tender of delivery, the receiver has a right of inspection of the load. This right cannot properly be denied nor abridged by the carrier. Inspection is not conditional upon the prior payment of the freight charges.
    Should the receiver or carrier deem it advisable to secure an official inspection of the load, the cost of inspection is to be borne by whoever orders inspection. The inspector should be asked to note the pulp temperatures of the commodity inspected.”
  • Section 9.3. provides for unloading: “The normal transportation contract does not provide for the unloading of the truck. Lacking a specific agreement, it is the receiver’s responsibility to unload the conveyance. Unloading services are negotiable and the parties to the transportation contract can make alternative arrangements. The most common arrangement is with contractors commonly referred to as “lumpers”. A lumper is an entity that provides the physical loading and unloading of shipments at origin and destination with the use of people and equipment. The loading is from the facility of the consignor into the carrier equipment transporting the shipment from consignor’s premises and the unloading is from the carrier’s equipment into the receiving facility for a shipment at destination. Usually, a lumper is an independent contractor from the consignor or consignee or carrier.”.

Finally, if the truck or trailer is intended to be used as a temporary storage facility to hold the product and the parties disagree on a price per day for warehousing services, DRC Transportation Standards – Appendix VI can be used as a guideline to determine the charges.

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For media inquiries, please contact:

Nicole MacDonald
Communications & Marketing Specialist
Fruit & Vegetable Dispute Resolution Corporation
Telephone: 613-234-0982
Email: [email protected]

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The DRC welcomes 14 new members in November 2023!

Welcome new members!

We are pleased to announce that between November 1st and 30th, 2023, the DRC welcomed a total of 14 new members:

15275474 CANADA INC. | ON, Canada
9481-8697 QUEBEC INC. | QC, Canada
ADEF IMPORT EXPORT (Faisant également affaire sous 9431-1289 Quebec Inc.) | QC, Canada
BY SOLUTIONS S.E.N.C. (Faisant également affaire sous By Solutions) | QC, Canada
CENTRAL FOODS AND TRADING COMPANY LIMITED | ON, Canada
ELIAS DAHER (Faisant également affaire sous Era Fruits et Legumes) | QC, Canada
FRUITS ET LEGUMES VEGIBO INC. | QC, Canada
HOFUD TRADING LTD. | ON, Canada
IEL CANADA BROKERAGE ULC (Also d/b/a Integrity Express Logistics) | ON, Canada
LES PRODUCTIONS HORTICOLES DEMERS INC. (Faisant également affaire sous Demers) | QC, Canada
PGF ORGANICS LIMITED | MB, Canada
THE INTERNATIONAL COMPANY FOR PACKING AND REFRIGERATION | El Beheira, Egypt
USINE DE CONGÉLATION DE ST-BRUNO INC. | QC, Canada
WINLAND FOODS CANADA INC. | ON, Canada

To view a complete list of active members, click here

DRC Membership Change in Status Update

As of November 30th, 2023, the following organizations no longer hold a DRC membership:

9964894 CANADA INC. | QC, Canada
AVOCAST S.P.R. DE R.L. | Nayarit, Mexico
BC PROSPERA PRODUCE LTD. | BC, Canada
COVIC INTERNATIONAL TRADING INC. | BC, Canada
CPS FRUITS & VEGETABLES INC. | QC, Canada
FRESH & CLASSY PRODUCTS INC. | ON, Canada
FRESHPACK EXPORT SALES LTD. | BC, Canada
LES FRUITS BLEUS INC. | QC, Canada
LONGFE INTERNATIONAL TRADE COMPANY OF CANADA LIMITED | ON, Canada
M. & M. PRE-PAK SALES LTD. | NL, Canada
QUALICIOUS FOODS INC. | BC, Canada
SUNNYVILLE IMPORT LLC. | NY,  United States
TRIDGE TRADE CANADA INC. | BC, Canada

To view a complete list of inactive members, click here

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

About the DRC

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The 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 accepted by the regulations. Today, the DRC has members in 16 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, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation and arbitration services along with the 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, the DRC has resolved claims in excess of $105 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.

For more information about memberships, click here or contact our Helpdesk.

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Romaine Lettuce from the United States

Navigating Regulatory Import Requirements and Contractual Obligations

Romaine lettuce from the United States (U.S.) is in full swing. It is important to remind the industry to be informed of Canadian regulatory import requirements and aware of contract expectations for this commodity.

Multiple cases of E. coli O157:H7 illnesses in Canada have been linked back to romaine lettuce from specific areas of California in the past. Therefore, adhering to regulatory import requirements is essential. On July 20, 2023, the Canadian Food Inspection Agency (CFIA) issued a notification outlining Temporary Import Requirements for Romaine Lettuce from the United States.

These Canadian requirements affect any romaine lettuce and/or salad mixes containing romaine lettuce from a recurring geographical area associated with the U.S. outbreaks. This area encompasses the California Salinas Valley counties of Santa Cruz, Santa Clara, San Benito, and Monterey.

When importing romaine lettuce and/or salad mixes containing romaine lettuce into Canada, Canadians are required to do the following:

  1. Provide proof that the product does not originate from the counties mentioned above.
  2. If the shipment originated from the counties mentioned above, an attestation form and Certificates of Analysis for each shipment must demonstrate that the romaine lettuce does not contain detectable levels of E. coli O157:H7.

It is common knowledge that U.S. growers/shippers include exclusionary language in their invoices. For example, “bruising and/or discoloration following bruising” would be inserted. This is an essential aspect that buyers need to be aware of. While buyers in the U.S. are familiar with this exclusion, it doesn’t necessarily automatically apply to other jurisdictions like Canada (unless it can be proved that this exclusion was agreed).

It is imperative to look closely and double-check all documents you are receiving, including all contract terms that were agreed upon. If you notice a wording or term you are unfamiliar with or did not agree to, immediately bring it to your supplier’s attention, preferably in writing.

In the event of a dispute, the burden is on the parties to prove that all terms were discussed, Understood, and Agreed Upon (DUA). If you buy romaine lettuce from the U.S., you must be aware of any exclusionary language used and double-check all documentation. As best practice, verifying documentation to ensure contract terms are as agreed should not be limited to romaine lettuce only. Take the necessary precautions and avoid potential disputes by reading and understanding all documentation accurately.

If you have any questions regarding the article, or you have media enquiries, contact: 

Nicole MacDonald
Communications & Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
[email protected]
1-613-234-0982

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The DRC welcomes sixteen new members in October 2023!

We are pleased to announce that between October 1st and 31st, 2023, the DRC welcomed a total of 16 new members:

ATOB TRADE COMPANY INC. (Also d/b/a Unborder) | CA, United States
CAN-ON IMPORTERS INC. | ON, Canada
DECAS CRANBERRY PRODUCTS, INC. | MA, United States
DELFLAND INC. (Faisant également affaire sous Delfland / Au gré des Vents) | QC, Canada
DZ FOOD DISTRIBUTION (Faisant également affaire sous 9490-2210 Québec Inc.) | QC, Canada
EXP GROUP LLC. | NJ, United States
HELLOFRESH CANADA, CHEFS PLATE and FACTOR MEALS/ REPAS FACTO | ON, Canada
MAMA EARTH ORGANICS INC. (Also d/b/a Mama Earth) | ON | Canada
MARCHÉ CASTEL (Faisant également affaire sous 9246-1144 Québec Inc.) | QC, Canada
MMK GROUP INC. | ON, Canada
NAJA IMPORT & EXPORT COMPANY INC. | ON, Canada
NEW CARROT FARMS CANADA CO. | NS, Canada
OBEID FARMS 2014 INC. | ON, Canada
PEAK PRODUCE SALES LIMITED | BC, Canada
PRODUCTION SEMBEC INC. | QC, Canada
SIMPLE PRODUCE SERVICES INC. | ON, Canada

DRC Membership Change in Status Update 

As of October 31st, 2023, the following 3 organizations no longer hold a DRC membership:

PATATES DANIEL BLAIN LTÉE | QC, Canada
TEMAK INC. (Also d/b/a Temak Trading) | ON, Canada
UBOX TRADING LTD. | BC, Canada

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

About the DRC

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The 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 accepted by the regulations. Today, the DRC has members in 16 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, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation and arbitration services along with the 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, the DRC has resolved claims in excess of $105 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.

For more information about memberships, click here or contact our Helpdesk

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How to Keep Your Membership in Good Standing

By providing standards, procedures, and education, the DRC helps its members avoid commercial disputes through consultation, mediation, and arbitration services. For the benefit of the produce trade, DRC members agree to conform to the articles, by-laws, and operating rules of the DRC. Each member must agree to submit disputes to arbitration in accordance with the DRC operating rules.

The DRC monitors the produce trade and takes action on any complaints received. All DRC members are required to meet their financial obligations on time. If a member fails to fulfill their financial obligations, the DRC reaches out to them to confirm their capability to meet them.

Per the DRC by-laws, members must respond promptly to all DRC communications and provide any requested information.

In addition to meeting financial obligations, members must continue to meet the following requirements to maintain their DRC membership:

  1. Membership dues must be paid within 60 days of their due date.
  2. Where and when required, members must provide and maintain financial security.
  3. Must meet the conditions stated in the DRC by-laws regarding insolvency, which includes not having gone bankrupt or suspending the payment of debts.
  4. They must only have suspended business operations after fully meeting their financial obligations to the trade.
  5. Must not have failed to comply with any other order or direction of an arbitration or with a mediated and/or arbitration award.

For the protection of its members, the DRC may terminate a member for failing to comply with the above membership requirements.

The DRC has the authority to expel members for a range of reasons. These reasons include members violating DRC articles, by-laws and operating rules or taking other actions that are deemed inappropriate. For instance, if a member is convicted of a criminal act, violates a court order, or refuses to participate in mediation or arbitration with another member, they may be expelled.

If you are unsure about DRC’s operating rules or how your actions may affect your membership, don’t hesitate to contact DRC’s Help Desk.

For more information or for media inquiries, contact: 

Nicole MacDonald
Communications & Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Email: [email protected]
Phone: 1.613.234.0982

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Disposing of a Shipment with No Commercial Value

There is considerable uncertainty surrounding the responsibilities of a buyer or receiver in cases where they need to dispose of a portion or the entirety of a shipment that no longer holds any commercial value upon receipt. Section 9 of the Fruit and Vegetable Dispute Resolution Corporation (DRC) Trading Standards clarifies:

“Reasonable cause for destroying or disposing of any produce exists when the commodity has no commercial value … The term “commercial value” means any value that a commodity may have for any purpose that can be ascertained by the exercise of due diligence without unreasonable expense or loss of time. When produce is being handled for or on behalf of another person, proof as to the quantities of produce destroyed or discarded in excess of five percent of the shipment shall be provided by procuring an official certificate regarding the actual disposition of the discarded produce…”

An “official certificate” is a federal inspection indicating a very high percentage of condition defects demonstrating no commercial value. It can now be discarded.

For instance, a buyer receives 4,000 cartons of mangoes in poor condition. An inspection by the Canadian Food Inspection Agency is requested and performed in a timely manner, showing 2% decay, 12% bruises and 5% shrivelling. Since the mangoes have more than 15% total defects, it means the shipment does not comply with DRC’s Good Arrival Guidelines. In this case, the buyer can choose to renegotiate the contract or claim damages.

After salvaging the product, the buyer submits an account of sales showing each lot sale less expenses. In the sales section of the liquidation report, 700 cartons were reported as discarded.

Should the buyer have requested an inspection showing the mangoes’ condition before discarding them?

The answer to this question is “Yes”. The buyer discarded 700 of the 4,000 cartons received. In other words, 17% of the entire load was disposed of, which exceeds the 5% threshold.

It is important to note that when disposing or destroying more than 5% of a load, an official certificate is required to demonstrate that the product has no commercial value. A dump certificate alone is not sufficient evidence, as it only indicates the amount of product disposed of or destroyed. Therefore, a government inspection is necessary to comply with regulations.

For more information or media inquiries, please contact: 

Nicole MacDonald
Communications & Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
[email protected]
1-613-234-0982

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The DRC welcomes ten new members in September 2023!

We are pleased to announce that between September 1st and September 30th, 2023, the DRC welcomed a total of 10 new members:

A-1 BAGS & SUPPLIES INC. (Also d/b/a A-1 Cash And Carry) | ON, Canada
BTRUST SUPERMARKET (A d/b/a of 2202693 Ontario Inc.) | ON, Canada
CITRUS MOGADOR SARL (Faisant également affaire sous Citrus M | Oulet Nemma, Morocco
DIAMANT COMPANY (A d/b/a of Peter Wambui) | ON, Canada
ENGEE AND JAYS LTD. (Also d/b/a Engee) | ON, Canada
MANGOSTEEN (A d/b/a of 12297825 Canada Inc.) | ON, Canada
MARCHÉ MOKOLO (Faisant également affaire sous 11540467 Canada Inc.) | QC, Canada
PRODUCE PACKAGING INC. | OH, United States
T. E. PRODUCE IMPORT AND EXPORT LTD. | BC, Canada
TASTE OF EGYPT (A d/b/a of Hager Abdelhamid) | ON, Canada

Membership Change In Status

As of September 30, 2023, the following organizations no longer hold a DRC membership:

2735795 ONTARIO INC. | ON, Canada
GHARZAI GLOBAL IMPORT EXPORT INC. | ON, Canada
KIM GROUPE IMPORT/EXPORT INC. | QC, Canada
NORTH KEE TRADING (A d/b/a of 2713406 Ontario Limited) | ON, Canada
NORTHERN TRADING INC. (Faisant également affaire sous Négoce du Nord) | QC, Canada
PROGEST 2001 INC. | QC, Canada
SIMILIEN PRODUITS FRAIS INC. | QC, Canada
TRANS-WEST LOGISTICS INC. | QC, Canada

For details regarding a change in status, please contact DRC’s Help Desk.

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 the DRC

DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The DRC acts as a referee between parties when a transaction does not go according to plan. Members adhere to a common set of trading standards and responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership with the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e., buy, sell, import, export) unless excepted by the regulations. Today, the DRC has members in 16 countries outside 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, the 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. The DRC can impose sanctions and disciplinary actions towards members who do not conduct business in accordance with the terms of their membership agreement.

To date, the DRC has resolved claims in excess of $105 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.

For more information about memberships, click here or contact our Help Desk.

For media inquiries, contact:

Nicole MacDonald
Communications and Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
+1.613.234.0982
[email protected]

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A little Due Diligence and Helpful Tips from The DRC

We talk about this every day here in the office. We question how our members get hooked on for so much money or find themselves in a complicated bind. The answer frequently follows the same pattern: our clients assume they know enough about their customers. With a DRC membership and a little due diligence, you can avoid putting your business at risk: 

  1. First of all, is your customer or prospect a DRC member? If you don’t know the answer to this question, take notice of the red flag waving in the air. We recommend you visit our website to find out if they are a member. If you are unable to find them in our public member list, contact our office, and we can help.
  2. If you discover your customer or prospect is a DRC member, contact our Trading Assistance Staff to find out if they are a member in good standing. Our Trading Assistance Staff can also provide additional information and guidance that you will find valuable.
  3. Have you ever requested references and checked on who those references are? Many firms find themselves with nonexistent references or later find out they have a bad reputation. References are only good if they are reputable.
  4. When someone contacts you on behalf of a company, ensure that the person is an employee or an actual company representative. We have often seen people believing they are dealing with the company receiving the goods when they are actually dealing with an intermediary.
  5. If your customer or prospect is in the United States, check out “The Perishable Agricultural Commodities Act,” also known as PACA. Here, you can find out the status of their PACA license.
  6. Is your trading partner in the Blue Book Services? If not, why not? If a firm is not listed, they are either not dealing with significant volume or could be a new business.
  7. Take the time to learn about the Blue Book Services’ rating system and credit scores. Being listed only means they are either members of the credit agency or they are conducting enough business to show up on “the radar screen.” A company listed without a rating does not mean their business status is “OK”; it could mean they are not ratable or the information on file is insufficient to establish a rating!
  8. Do the phone numbers, addresses, personnel, and EXACT company name match up with DRC’s records? If they don’t, this could be another red flag. 
  9. Are you doing business with companies that do not have a DRC membership? Or do they at least have a DRC arbitration agreement? If not, why not? You are exposing yourself to needless risk and expense should challenges arise.

Without fear of contradiction, many disputes could easily have been avoided by checking with the DRC and practicing some due diligence before the sale. Everybody “takes a chance” occasionally, but is it worth taking the risk? Consider a DRC membership as your risk mitigation tool.

Peruse the DRC website for more information. Should other questions arise, reach out to our Help Desk. We look forward to assisting you.

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