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How to Keep Your Membership in Good Standing

Post author By DRC
Post date October 10, 2023
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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:

Membership dues must be paid within 60 days of their due date.
Where and when required, members must provide and maintain financial security.
Must meet the conditions stated in the DRC by-laws regarding insolvency, which includes not having gone bankrupt or suspending the payment of debts.
They must only have suspended business operations after fully meeting their financial obligations to the trade.
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

Post author By DRC
Post date October 10, 2023
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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

Tags No Commercial Value, Solutions Newsletter

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The DRC welcomes ten new members in September 2023!

Post author By DRC
Post date October 10, 2023
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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:

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]

Tags DRC Membership

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A little Due Diligence and Helpful Tips from The DRC

Post author By DRC
Post date September 5, 2023
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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:

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.
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.
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.
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.
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.
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.
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!
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.
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.

Tags due diligence, know your customer

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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.

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