Author: DRC

Top 10 Inquiries You Need to Know

Post author By DRC
Post date September 5, 2023
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Unlimited access to our Help Desk is one of the many benefits of having a DRC membership.

Our Help Desk is a single source with answers to your trading questions and issues you may be experiencing. Expertise is available to respond to your questions and, in essence, provide informal consultations.

By providing essential tools and support, we help you succeed with every trade and avoid potential issues. If problems do arise, we can work together to find a resolution. Your success is our success.

The top 10 most frequent and common inquiries pertain to:

Government Inspections such as CFIA and USDA
Does the product meet or fail grade specifications?
Transportation-related matters
DRC member standing (i.e., Are they a member in good standing?)
Disagreement over an account of sales or liquidation reports
DRC Good Arrival Guidelines Tolerances
The clarification of trade terms
Non-payment, slow or partial payment
Exporting to Canada FAQ
Understanding Incoterms

Our customer service is available Monday through Friday from 8:30 a.m. to 5:00 p.m. Eastern Standard Time in English, French, and Spanish. For information, give us a call at 1.613.234.0982 or fill out our Contact Us form.

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DRC Welcomes 14 New Members in August 2023!

Post author By DRC
Post date September 5, 2023
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We are pleased to announce that between August 1 to August 31, 2023, the DRC welcomed a total of 14 new members:

DRC Membership: Change in Status

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

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. The DRC acts 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 from 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, 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, 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.

To learn more, reach out to our Help Desk at [email protected] or (+1) 613-234-0982 or peruse the membership section of our website.

Tags DRC Membership

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Membership Updates for July 31st, 2023

Post author By DRC
Post date July 31, 2023
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Welcome New Members!

From July 1 until July 31, 2023, the Fruit and Vegetable Dispute Resolution Corporation (DRC) welcomed the following five new members:

BLOOMSTAR (A d/b/a of 3856011 Canada Inc.), ON, Canada
JALARAM PRODUCE INC., AB, Canada
K&D TRADING INTERNATIONAL INC. (Also d/b/a KD Trading), BC, Canada
MAINLAND FRUITS INC., BC, Canada
PRODUCTORA AGRICOLA YAREXI SPR DE RL, Nayarit, Mexico

DRC Membership Change in Status

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

AGRICOLA SAN GALLAN S.A.C., Lima, Peru
ALRAHMA IMPORT LTD. (Also d/b/a Alrahma Import), AB, Canada
COMERCIAL GREENVIC S.A., Región Metropolitana, Chile
EPICUREAN PRODUCE (A d/b/a of Endri Demeti), ON, Canada
FOMACOP SARL (Also d/b/a Fomacop), Chichaoua, Morocco
HNH INTERNATIONAL INC., ON ,Canada
JADU DISTRIBUTION INC., QC, Canada
NATURES PRODUCE AND SEAFOOD (A d/b/a of 13860922 Canada Inc.), ON, Canada
RED ISLAND ORGANICS INC., PE, Canada
TAMARIN-GOUTT INC., QC, Canada
VIVO DE CAMPO INC., ON, Canada

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

About the 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 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.

To date, 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.

To request more information, reach out to our Help Desk at [email protected] or call at (+1) 613-234-0982.

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Incoterms® in Maritime Transportation Transactions and the DRC

Post author By DRC
Post date July 19, 2023
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When it comes to the global trade network, there are plenty of opportunities for things to go wrong. Due to different languages and cultural barriers, buyers (importers) and sellers (exporters) can easily misunderstand one another. Unfortunately, these misunderstandings can lead to disputes.

In the past few months, the Fruit and Vegetable Dispute Resolution Corporation (DRC) has come across importers who were either unfamiliar with Incoterms® or how to use them correctly, especially first-time importers.

What are Incoterms, and why are they important for international trade?

International commercial terms (Incoterms) provide a universal set of rules and guidelines that help facilitate a successful trade. The International Chamber of Commerce (ICC) created and published Incoterms to set clear-cut rules that outline how sellers and buyers should conduct themselves during the exporting/importing process.

Incoterms are used in many ways to facilitate a smooth and easy trade. Of primary importance, each term clarifies the tasks, costs, and risks to be borne by buyers and sellers in these transactions. Among the things that Incoterms brings is the clarification of each party’s financial and legal responsibilities, an essential advantage during international trade.

Some things the buyer or seller might be responsible for based on the Incoterms they use include are:
• Insurance
• Proper documentation
• Customs clearance
• Shipping costs
• Risk of Transit

Familiarity with Incoterms will help improve smoother transactions by clearly defining who is responsible for what in each step of the transaction.

The Incoterms Insurance and the DRC

While it is important to understand that the Incoterms are part of the contract, the Incoterms are not in themselves a contract of sale. Incoterms do not deal with whether the other conditions of the contract are met or not or the law of dispute resolution in the event of a breach of contract.

Unless otherwise agreed, DRC members must follow DRC’s Trading Standards, Transportation Standards, and other guidelines. Therefore, a DRC member, regardless of their Incoterms insurance obligations, must first prove a breach of contract following DRC’s Operating Rules or the written contract prior to the application of the insurance.

For example, when using the Cost Insurance and Freight (CIF) Incoterms, the seller is required to buy cargo insurance with the buyer as the beneficiary and share that policy with the buyer. In the event of a maritime transportation claim, since the risk of transit under this term falls with the buyer, it is up to the buyer to invoke the insurance to make the proper claim against the shipping line. If the insurance bought by the seller does not have the buyer as the beneficiary, the payment of the transaction may be jeopardized.

We strongly recommend that when negotiating a transaction with product shipped by maritime transportation, both parties dedicate some time to discuss the Incoterms to ensure that the buyer and their supplier understand what the right Incoterms are for them. Transparency and agreement are essential in establishing the rights and responsibilities of all parties. Lack of agreement and confusion over terms may not only cost you money, but valuable trading partners as well.

Tags Incoterms

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Changes to the Canadian Grade Compendium: Volume 2 – Fresh Fruit or Vegetables

Post author By DRC
Post date July 18, 2023
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On July 7, 2023, the Canadian Food Inspection Agency (CFIA) published a notice informing the fresh produce industry of changes to the Canadian Grade Compendium: Volume 2 – Fresh Fruit or Vegetables.

These changes reflect feedback received from industry, trading partners, and stakeholders, during the consultation period covering:

• A new standard for greenhouse miniature seedless cucumbers.
• Updates to the grades and requirements for greenhouse long seedless cucumbers, including changes to size requirements and clarifications to terminology for defects and tolerances.

The modified and new standards are found in the following:
• Part 2 Grade Requirements for Fresh Vegetables.
• Grades and Requirements for Greenhouse Long Seedless Cucumbers, paragraphs 148-154.
• Grades and Requirements for Greenhouse Miniature Seedless Cucumbers, paragraphs 200-206.

The CFIA is committed to providing industry with sufficient time to adjust product grading and labels. The transition period begins July 7, 2023, when this change came into force, and ends on January 6, 2024.

As of January 7, 2024, the previous grade requirements will cease to apply, and all regulated parties must comply with the new requirements.

Consult the notice to industry to learn more.

Questions or concerns can be sent to [email protected].

The DRC extends its thanks and appreciation to members of the fresh produce industry review team and other industry stakeholders who contributed to reviewing the existing grade standard and the development of the new grade standard for mini cucumbers. Publication of an updated standard for greenhouse tomatoes is expected in the coming months.

Tags Canadian Grade Compendium, CFIA

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Membership Updates for June 30th, 2023

Post author By DRC
Post date July 5, 2023
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Welcome new members!

From May 16 until June 30, 2023, the DRC welcomed the following 36 new members:

1022358 BC LTD.	BC	Canada
14953134 CANADA INC.	ON	Canada
2823899 Ontario Inc	ON	Canada
9468-9247 QUEBEC INC.	QC	Canada
AFROCAN DIRECT IMPORT INC.	ON	Canada
AGRIKO TRADING LIMITED	BC	Canada
ANUSAYA FRESH CANADA LTD.	BC	Canada
AWR GLOBAL (Also d/b/a 8499055 Canada Inc.)	ON	Canada
BAROHUP (Also d/b/a Love April)	CA	United States
BERRY PEOPLE LLC	CA	United States
BISKRA-DZ LTD.	ON	Canada
CATAB IMPORT INC. (Also d/b/a Catab)	BC	Canada
CQR LOGISTICS (A d/b/a of 9089365 CANADA INC.)	ON	Canada
EAST COAST GROWERS FAMILY OF FARMS, INC.	FL	United States
EXPORTADORA CRUZ BAUTISTA SRL	La Vega	Dominican Republic
FARM GIRL CANADA INC.	ON	Canada
FEXINCO INC.	ON	Canada
FRESH VER SAPI DE CV (También haciendo negocios como Fresh V)	Veracruz	Mexico
GEORGE REDIES	BC	Canada
GLEZ FRESH (A d/b/a of 14111648 Canada Inc.)	AB	Canada
GWILLIMDALE PRODUCE LTD.	ON	Canada
KONOL INDUSTRIES LTD.	BC	Canada
LE SOLEIL INTERNATIONAL INC.	ON	Canada
LEGEND PRODUCE LLC (Also d/b/a Legend Produce / Sweet Legend)	AZ	United States
MITTAL IMPEX (A d/b/a of 10517232 Canada Inc.)	ON	Canada
NEW CARROT FARMS, LLC	CA	United States
PATTERSON PRODUCE INC.	QC	Canada
RENSO TECHNOLOGY (CANADA) CORPORATION	BC	Canada
S. S FOOD TRADING (Also d/b/a 1129977 B.C. Ltd.)	BC	Canada
SANTIS PRODUCE LLC.	TX	United States
SCARLA FRUIT (A d/b/a of 9492-9122 Québec Inc.)	QC	Canada
VALLEY FIELD FOODS (A d/b/a of 9386-4171 Quebec Inc.)	QC	Canada
VERKA FOOD INTERNATIONAL LIMITED (Also d/b/a Verka)	BC	Canada
VIETNCA TRADING LTD. VIETNCA TRADING LTD. (Also d/b/a Viet S)	BC	Canada
VPCUPE INC.	ON	Canada
ZOL GLOBAL TRADING (A d/b/a of 1000257126 Ontario Corp.)	ON	Canada

DRC Membership: change in status

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

AGUACATES CORREY SA DE CV (También haciendo negocios como Aguacates Correy)	Michoacan	Mexico
BDF INTERNATIONAL LTD.	BC	Canada
CDMG BUSINESS LTD.	BC	Canada
FRUITS ET LÉGUMES ALIOUNE INC.	QC	Canada
GREEN VISION PRODUCE DISTRIBUTORS INC.	ON	Canada
ILYANA WHOLE FOODS (A d/b/a of 11148311 Canada Inc.)	ON	Canada
LES ALIMENTS FAIGNON INTERNATIONAL (Faisant également sous Faignon Putchu)	QC	Canada
MARCHE JUNAID (A d/b/a of Tariq Mahmood)	ON	Canada
MILL CREEK FARM (A d/b/a of 2202558 Ontario Limited)	ON	Canada
NOON & NOOR (A d/b/a of Noon & Noor Trading Limited)	BC	Canada
PELSA AGROPECUARIA S.A. De C.V.	Jalisco	Mexico
ROYALHALO PRODUCE LTD. (Also d/b/a Royalhalo)	BC	Canada
SAGHI KARIM	QC	Canada
SAIRAJ ENTERPRISE CORPORATION	BC	Canada
SUN-RYPE PRODUCTS (A Division of A. Lassonde Inc.)	BC	Canada
TAYLORS CONTINENTAL FOODS	ON	Canada
THE GLOBAL GROCERS INC.	ON	Canada
TOP STAR INTERNATIONAL TRADING (A d/b/a of 10612952 Canada Limited)	ON	Canada
UNITED WORLD CARGO LIMITED	BC	Canada
VAN CHEONG TEA INC.	BC	Canada
VISION IMPORT EXPORT TRADE INC.	ON	Canada

For details regarding a change in status, please contact the office (see details below).

About DRC

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 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 learn more, reach out to our Help Desk at [email protected] or (+1) 613.234.0982.

Tags DRC Membership

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What Triggers the Fruit & Vegetable Dispute Resolution Corporation’s (DRC’s) Bonding Policy?

Post author By DRC
Post date June 27, 2023
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Any membership applicant, current member, or a Responsibly Connected Person, who fail to meet the conditions outlined in the DRC’s Operating Rules may be subject to the DRC’s bonding policy.

The DRC bonding policy requires that bonds or other forms of financial security be provided as an assurance to the membership that the entity posting the security will conduct under the DRC’s By-laws & Operating Rules. Depending on the circumstances, a bond may be posted by an applicant, a member, a responsibly connected person in respect of a member, or an employee of a member.

These are the most common circumstances that may trigger DRC to request financial security:

Membership applicants which:
• Have a CFIA Food safety license issued under the Safe Food for Canadians Regulations (SFCR) or a PACA license revoked or suspended within the last five years from the day a membership application is submitted.
• Have been terminated with cause or expelled from membership in the DRC within the last five years from the day a membership application is submitted.
• Have failed to comply with an arbitration award or a mediated agreement within the last five years from the day a membership application is submitted.
• Have filed for bankruptcy or suspended the payment of debts within the last five years from the day a membership application is submitted.
• Have suspended the operations of a business without fully meeting its financial obligations within the last ten years from the day a membership application is submitted.

Members which:
• Have failed to comply with an arbitration agreement or mediated agreement.
• Have failed to comply with DRC Trading Standards General Rules of Conduct.

If a member who has posted financial security violates a provision of DRC’s By-laws and Operating Rules during the bonding period, the DRC may distribute the funds, as provided in the Security Agreement between the member and the DRC.

For more information about the DRC’s Bonding Policy, call 1.613.234.0982 or submit an inquiry through our Help Desk General Inquiry form.

Tags CFIA, DRC Bonding Policy, DRC By-laws & Operating Rules, PACA, SFCR, Trading Standards

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Canada’s Fresh Fruit and Vegetable Grade Standards – Beyond the Obvious.

Post author By DRC
Post date June 23, 2023
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The DRC continues to work toward the modernization of Canadian Grade Compendium: Volume 2 – Fresh Fruit or Vegetables (Compendium) in collaboration with the Canadian Food Inspection Agency, and industry.

The grade standards are the lexicon, or recognized language, for describing fruit and vegetable commodities and associated defects. This common lexicon is necessary for federal inspectors, private inspection firms (i.e., insurance adjustors, marine surveyors), buyers, sellers, and others to communicate in a common language.

The Compendium establishes expectations for arrival condition given that fresh fruit and vegetables are generally purchased unseen. Grade standards are the basis for establishing a breach of contract and are an essential business-to-business tool. The Canadian and US fruit and vegetable grade standards are foundational to the DRC’s Good Arrival Guidelines and Trading Standards, which serve to establish evidence in the mediation and arbitration of trade disputes.

For vendors who have contracts with their respective buyers with specific acceptance requirements, it is important to keep in mind that the specifications outlined in those agreements generally far exceed the standards contained in the Compendium. The Compendium outlines the minimum requirements and are intended to serve the entire supply chain. Grade standards also provide a measure of consumer confidence.

Growers, shippers, and packers who may not have quality-related vendor contracts rely on the Compendium as their point of reference to meet grade. For small/medium/enterprises (SMEs) and new entrants to the produce industry in particular, the grade standards and associated CFIA quality inspection manuals are their sole guides. Private contracts and the Compendium are not in competition with each other.

Grade standards are important because they serve as Canada’s minimum import requirements for the fruit and vegetable grade standards found in Compendium. In other words, products subject to grade standards coming into Canada must meet those grade standards. In the absence of Canada’s grade standards, there would be no minimum import requirements. Under certain circumstances, this could present opportunities for various types of market disruption. When considering the importance of the grade standards, this trade-related aspect is generally not top of mind and must not be overlooked.

To learn more about the current Canadian Grade Compendium: Volume 2 – Fresh Fruit or Vegetables, click here.

For more information regarding the Proposed changes to the Canadian Grade Compendium: Volume 2 – Fresh Fruit or Vegetables, click here.

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Membership Updates for May 15, 2023

Post author By DRC
Post date May 29, 2023
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Welcome New Members

From April 15 until May 15, 2023, DRC welcomed the following new members:

14962532 CANADA INC.	ON	Canada
ADASS IMPORT EXPORT LLC.	TX	United States
ALL SEASON FOOD MARKET (A d/b/a of 2755591 Ontario Inc.)	ON	Canada
ANNAN ECOMMERCE INC.	BC	Canada
BIMAL PATEL (Also d/b/a SBimal Llc.)	CA	United States
BJS FARMS LTD.	BC	Canada
BLACK CHROME TRADING INC.	ON	Canada
DD ENTERPRISE (A d/b/a of Deepkumar Mistry)	ON	Canada
DISTRIBUTION & TRANSPORT RICARDO INC.	QC	Canada
DISTRIBUTIONS KHALED (A d/b/a of Khaled Aldweib)	QC	Canada
DRISCOLL’S CANADA OPERATIONS, INC. (Also d/b/a Driscoll’s of Canada)	BC	Canada
EMMCAR INTERNATIONAL CORPORATION	AB	Canada
GROCERIZZA INC.	ON	Canada
GRUPO AGUACATERO LOS CERRITOS S DE RL DE CV	Jalisco	Mexico
HAPPY FARMERS GLOBAL INC.	ON	Canada
JALSIN PRODUCE LLC.	AZ	United States
MADHURAM PHARMA COMPANY LTD.	BC	Canada
MAPLE TREE CANADA INC.	ON	Canada
PALMAS WHOLESALE CORP.	ON	Canada
PIERRE LOUIS IMPORT EXPORT (Faisant également affaire sous O	ON	Canada
SAM IMPEX INC.	QC	Canada
SDH IMPEX (A d/b/a of Simplified Tek Inc.)	ON	Canada
UGARIT MARKET (A d/b/a of 2713796 Ontario Inc.)	ON	Canada
VANZARO INC.	ON	Canada
VENUSCA GLOBAL CORPORATION	ON	Canada
VIANDES ET VOLAILLES OMEGA (A d/b/a of 9347-4179 Quebec Inc.)	QC	Canada
YETI REFRIGERATED TRANSPORT INC.	AB	Canada

DRC Membership: change in status

As of May 15, 2023, the following organizations no longer hold a DRC membership:

11583883 CANADA LTD.	ON	Canada
A1 IMPORTS INC.	QC	Canada
ABDELHAFID BETTA (Faisant également affaire sous AREFFAD FOODS)	ON	Canada
ALBERTO CALIFORNIA GRAPE JUICE (A/d/b/a of 1142951 Ontario Limited)	ON	Canada
AMBAKITI QUALITY PRODUCE INC.	ON	Canada
ASF IMPORT SERVICE (A d/b/a of 1070722 B.C. Ltd.)	BC	Canada
BERRY SUNNY INTERNATIONAL LLC	SD	United States
CHANG LONG TRADING LTD.	BC	Canada
CHARIS BROTHER CANADA TRADING (A d/b/a of Jinchul Kim)	BC	Canada
CHAROEN POKPHAND FOODS CANADA INC. (Also d/b/a CPF Canada)	ON	Canada
COMERCIALIZADORA Y EXPORTADORA ENTRE VALLES SpA	Coquimbo	Chile
DAILY VEGGIES (A d/b/a of 9900390 Canada inc.)	ON	Canada
EXPORTADORA CURICO LIMITADA	Maule	Chile
EXPORTADORA FRUTICOLA DEL SUR S.A.	Lima	Peru
GRD ENTERPRISES (A d/b/a of 2211223 Alberta Ltd.)	AB	Canada
HOMEGROWN HEAT INC.	ON	Canada
IMPERIAL LEGACY MANAGEMENT INC.	AB	Canada
KK BEE LTD.	ON	Canada
NATURE’S EMPORIUM LIMITED PARTNERSHIP	ON	Canada
OCEAN WAVE IMPORTS INC.	ON	Canada
PRESTON HARDWARE (1980) LIMITED	ON	Canada
QUAESTUS TRADING AND CONSULTING INC.	ON	Canada
VILLAMEX FARMS, LLC	TX	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

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

Tags DRC Membership

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AUTOMATED IMPORT REFERENCE SYSTEM

Post author By DRC
Post date May 29, 2023
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The Automated Import Reference System (AIRS) is a reference tool that shows the import requirements for Canadian Food Inspection Agency (CFIA) regulated commodities.

If you are planning on importing fresh fruits and vegetables into Canada or are an exporter intending to export fresh fruits and vegetables to Canada, CFIA-AIRS will provide you with the requirements that a Canadian company must comply with in order for that product or commodity to be able to enter Canada. A few of these requirements are:

• Dispute Resolution Corporation Membership, unless exempted
• CFIA Safe Food for Canadians License
• Electronic Date Interchange (EDI) – Integrated Import Declaration (IID) or Confirmation of Sale (COS) – Government form
• Labeling
• Phytosanitary if applicable

If you want to learn how to use CFIA-AIRS, click on the following link and follow the instructions:

CFIA Automated Import Reference System

If this would be your first-time using CFIA-AIRS, we recommend using the following tutorial link:

CFIA-AIRS Tutorial

If you have any questions about this tool, do not hesitate to contact us at DRC’s Help Desk.

Tags AIRS, CFIA