Category: Uncategorized

DRC Trading Assistance staff continue to see the use of private inspections to demonstrate that a commodity fails to meet contract terms or DRC Good Arrival Guidelines. There is nothing wrong with sellers and buyers agreeing to have a private survey performed, but we would like to remind DRC members that, in the US and Canada, a federal inspection must be requested, unless otherwise agreed. DRC Good Inspection Guidelines specify that these federal inspection services are to be used unless they are not available, or CFIA/USDA cannot perform the service.

 

If a private inspection is requested and the applicant fails to prove that it was discussed, understood, and agreed to, the private survey report may be of no value.  

 

DRC Trading Standards require that receivers request an inspection within eight (8) hours after the product arrives by land and within 24 working hours after the receiver is given notice of arrival by boat and rail. Even when the product arrives on a weekend or a holiday, buyers/receivers can proceed to request a federal inspection.

 

The inspections that carry the most weight are those performed by the CFIA (Canadian Food Inspection Agency) and the USDA (United States Department of Agriculture) government inspection agencies.

 

The DRC will accept inspections performed by independent private commercial inspection services or individuals if these services were agreed upon. Nevertheless, these services can be challenged if the private inspection report fails to conform with DRC Inspection Standards and Elements. The burden of proving that the private inspections report meets DRC Inspection Standards and Elements rests with the party requesting the private inspection.

 

Unless otherwise agreed to, we cannot stress enough the importance of requesting a federal inspection if you have received product in deteriorated condition. Contrary to private inspection services, the DRC will accept inspection certificates issued by the USDA and the CFIA at face value and a true image of the condition of the product upon arrival.

Welcome New Members

 

From January 15 until February 15, 2023, DRC welcomed the following new members:

 

ALGCAN IMPORT INC.	QC	Canada
BEST FRESH PRODUCE INC.	BC	Canada
CALGARY WHOLESALE CASH AND CARRY INC.	AB	Canada
CAMPAÑA  AGRICULTORES S. DE R.L. DE C.V. (También haciendo negocios como Agricola Campaña)	Sinaloa	Mexico
DALEY FARM FRESH PRODUCE INC. (Also d/b/a Daley’s Trucking)	ON	Canada
G. VISSER & SONS INC. (Also d/b/a G.W.R. Visser Farms)	PE	Canada
HOUSE OF AVOCADO INC.	ON	Canada
LADY B	Rabat	Morocco
LANGE LOGISTICS INC.	MO	United States
LASSER PRODUCE LTD.	BC	Canada
LOTUS TRADE INC. / COMMERCE TRADE INC.	QC	Canada
PHENIX MV INC. (Also d/b/a JOVI Fresh Inc.)	TX	United States
SUN FRESH CITRUS LLC	CA	United States
ZAD PLANET INTERNATIONAL TRADE INC.	ON	Canada

 

DRC Membership: change in status

 

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

 

9311-3652 QUEBEC INC.	QC	Canada
ALIMENTS TALA INC.	QC	Canada
BEZANSON AND CHASE CRANBERRY COMPANY INC.	NS	Canada
BIOFRUITS (Faisant également affaire sous 9386-4536 Québec Inc.)	QC	Canada
BIO-SAVEUR INC.	QC	Canada
COASTAL PRODUCE INTERNATIONAL LTD. (Also d/b/a Coastal Fruit Company)	BC	Canada
COLOMBIAN FRUITS AND VEGETABLES (A d/b/a of Paulo Cesar Gaviria)	MB	Canada
CONNIE’S AFRICAN CARIBBEAN GROCERY (A d/b/a of 9970991 Canada Inc.)	ON	Canada
CONTINENT AFRICAIN INC.	QC	Canada
DAVID OPPENHEIMER AND ASSOCIATES GENERAL PARTNERSHIP	AB	Canada
DAVID OPPENHEIMER AND ASSOCIATES GENERAL PARTNERSHIP	ON	Canada
EXOTICA FRUITS & VEGETABLES (A d/b/a of 9329-1680 Quebec Inc.)	QC	Canada
FRUTA DE AUTOR SL	Valencia	Spain
G.S.P.M. DISTRIBUTION INC.	QC	Canada
GERRIT VISSER & SONS 1991 INC.	PE	Canada
GROWERS EXPRESS, LLC	CA	United States
HELLOFRESH CANADA / CHEFS PLATE (A d/b/a of GDE Grocery Delivery E-Services Canada Inc.)	ON	Canada
JEFFRIES BROS. VEGETABLE GROWERS INC.	MB	Canada
JJD PRODUCE, LLC	CA	United States
LA POMME ROUGE (A d/b/a of  9427-9734 Quebec Inc.)	QC	Canada
LINKLETTER FARMS LTD.	PE	Canada
MODE AURORA INC.	QC	Canada
PACIFIC TOMATO GROWERS, LTD.	FL	United States
RAMIREZ DISTRIBUTION LTD.	BC	Canada
RJM ENTERPRISE (A d/b/a/ of Rajeshkumar Mistry)	ON	Canada
ROUTE D’ENVOI CANADIENNE INC. / CANADIAN SEND ROUTE INC.	QC	Canada
SAM’S IMPORTING & DISTRIBUTING CO., LTD.	ON	Canada
SHENG FENG TRADING (A d/b/a of 2382365 Ontario Inc.)	ON	Canada
SUREXPORT LEVANTE SLU (También haciendo negocios como Surexport)	Valencia	Spain
VANCO FARMS LTD.	PE	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 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, 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 visit us at www.fvdrc.com.

 

Most disputes between members are resolved with the help of DRC Trading Assistance Staff during the informal mediation process. Some disputes, however, end up in the arbitration, where an arbitrator is appointed to make a final and binding decision.

 

An arbitrator reaches a determination based on the information presented to them by the parties. The decision summarizes the arbitrator’s review of the statements and evidence provided by the parties. The arbitrator’s award deals with payment of the claim/counterclaim, or dismissal of the claim/counterclaim.   

 

90% of DRC arbitration awards are paid without any conflicts but, there are circumstances where the losing party refuses to pay. The importance of paying an arbitration award is critical. Failure to pay an arbitration award could lead to disciplinary actions against the DRC member in default as well as court enforcement. This could have important implications on your business.

 

When a binding decision is rendered, the DRC monitors for compliance. If the losing party fails to pay the arbitration award within the provided time, their DRC membership will be automatically terminated, and all DRC members are informed of this event.

Under the Safe Food for Canadians Regulations (SFCR), when the DRC membership of a Canadian corporation is terminated, the company no longer has the authority to buy, sell, import, or export fresh fruits and vegetables inter-provincially and internationally unless otherwise exempted from the regulations. For companies outside Canada, this means that their transactions no longer are covered by DRC.

 

For a party who has an arbitration award in their favor, if DRC disciplinary measures are not enough to make the loosing party pay the award, this does not mean that there is no further recourse. The next step is to have the arbitration decision and award enforced in the appropriate court of law.

 

Although DRC will assist the winning party of an arbitration award to gather the necessary information and documents to proceed to enforce the arbitration decision and award, the services of a lawyer are needed to start this process in court. DRC can also provide a list of attorneys that can help with this process.

We recently came across an article from attorney Dylan S. Fisher at Pallett Valo LLP, who has experience dealing with enforcing of arbitration awards in Ontario:

https://link.edgepilot.com/s/1cd14d5d/fjcIfp0cJE_wJk01ZknujQ?u=https://www.pallettvalo.com/whats-trending/you-have-just-won-an-arbitration-now-what-a-brief-guide-to-arbitration-enforcement-in-ontario/

We thought that this article may help to better understand the process of enforcing an arbitration award in court.

The Canadian Food Inspection Agency has (CFIA) updated the Automated Shipment Inspection Status Search Tool (ASSIST) with an enhanced tool called the CFIA Shipment Tracker for Food, Plant and Animal products.

Starting December 15, 2022, this tool will allow importers to check the status of any food, plant or animal import declared electronically in real-time. The CFIA has completed additional testing on the tool since it was first announced in the spring of 2022, including consultation with industry stakeholders.

What’s New?

The CFIA Shipment Tracker for Food, Plant and Animal products means that importers will no longer have to call into the National Import Service Centre (NISC) to request the status of their shipment. They can simply visit the webpage anytime and anywhere, to quickly receive a status update.

The CFIA strives to be agile and flexible to respond and adapt to an ever changing environment. We are constantly working to equip and enable both employees and stakeholders with improved access to information sharing and self-service through digital tools so stakeholders can make informed choices and comply with regulatory requirements.

The CFIA continues to expand the services it offers digitally so that businesses can remain competitive at home and abroad.

How does it work?

The CFIA Shipment tracker will share the status of any electronically declared import transaction received by the Agency. To check the status of their import, importers require their Canada Border Services Agency (CBSA) 14 digit transaction number. For meat shipments, importers can continue to use an Official Meat Inspection Certificate number, as well as their 14 digit transaction number.

The United States, Australia and New Zealand, can also use the tool to determine the inspection and transaction status for meat shipments. They can use their Official Meat Inspection Certificate number to verify the inspection status once they have received a Release Notification System (RNS) notice advising them that CBSA has reviewed and released the shipment. Other countries will need to have a CBSA 14 digit transaction number to verify the status of their import using the tool.

More Information

For more information, or if the CFIA Shipment Tracker for Food, Plant and Animal products is unavailable, contact the NISC at [email protected].

Welcome New Members

 

From December 15 until January 15, 2023, DRC welcomed the following new members:

 

9361-0954 QUÉBEC INC.	QC	Canada
AGRE FRESH INC.	QC	Canada
ALBORZ VIEW INC.	ON	Canada
ARROW INTERNATIONAL COMMERCE INC.	ON	Canada
BETTER WORLD IMPORT EXPORT AND DISTRIBUTION INC.	BC	Canada
COOPERATIVE AGRICOLE COPAG	Taroudant	Morocco
DEMILLE’S FARM MARKET (A d/b/a/of 0750530 B.C. Ltd.)	BC	Canada
IMAN-DZ LTEE. (Also d/b/a Dattes HN)	QC	Canada
INTERNATIONAL FRESH FOODS SUPERMARKET LTD.	AB	Canada
MARAND COMPANY S.A.C.	Lima	Peru
PATTISON FOOD GROUP LIMITED.	BC	Canada
PRO PRIM	Inezgane	Morocco
PROVIDENCE VERTE	Morocco	Morocco
S.IM.EX INC.	QC	Canada
SILVA FARMS LLC.	CA	United States
SRI INTERNATIONAL INC.	QC	Canada

 

DRC Membership: change in status

 

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

 

H & K DISTRIBUTION (A d/b/a of 9351-2473 Quebec Inc.)	QC	Canada
13022757 CANADA INC.	ON	Canada
13383831 CANADA INC.	ON	Canada
9280-6827 QUEBEC INC. (Faisant également affaire sous Arthago Import Export / Import Export Errouissi)	QC	Canada
AZIN FOODS (A d/b/a of Daniel Azin)	ON	Canada
B & P PRODUCE INCORPORATED	AB	Canada
DE SIMONE FARMS LTD.	BC	Canada
DON LIMON AMERICA, INC.	FL	United States
E FOODS, INC.	FL	United States
EWA-BIS CANADA LTD.	ON	Canada
FRUITS FRAIS GALDIN INC./GALDIN FRESH FRUITS INC.	QC	Canada
GALAXY TRANSPORT, INC.	ON	Canada
GESSAM INC.	QC	Canada
HARKER’S ORGANICS RUSTIC ROOTS WINERY LTD.	BC	Canada
INTIFRESH DEL SUR SAC  (También haciendo negocios como Intifresh)	Lima	Peru
MACLEAN FARMS LTD.	PE	Canada
MANDARIN FRESH INC.	ON	Canada
MARCHE JAI JALARAM INC. (Also d/b/a Singh Farm)	QC	Canada
NATASHA ENTERPRISES (A d/b/a of 643182 Alberta Inc.)	AB	Canada
NIAGARA SEASONAL SALES INC.	ON	Canada
PRODUCE KING INC.	ON	Canada
QUALITY FOODS LTD. (Also d/b/a Quality Foods)	BC	Canada
RIVER VALLEY POTATOES INC.	NB	Canada
SJ FREIGHT PROVIDERS INC.	ON	Canada
SUN PACIFIC MARKETING COOPERATIVE, INC.	CA	United States
TOTAL QUALITY LOGISTICS, LLC (Also d/b/a TQL)	OH	United States
TROPPY FOODS LTD.	BC	Canada
VAN-WHOLE PRODUCE LTD.	BC	Canada
WESTCOAST PRODUCE / ASSOCIATED GROCERS / BUY-LOW FOODS (A d/b/a of Buy-Low Foods LP)	BC	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 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, 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 visit us at www.fvdrc.com.

 

As DRC expands its jurisdiction beyond North America, it is important to include terms and definitions that DRC Members, DRC Trading Assistance Staff and Arbitrators can use as reference.

Adding the “Commercial Unit” term and definition to our Trading Standards allows DRC Members, Trading Assistance Staff and Arbitrators to look no further than our Trading Standards for guidance.

We consulted with different authorities and found that adding the “Commercial Unit” term and definition does not conflict with DRC Trading Standards, CISG (Contracts for the International Sales of Goods), and UCC (Uniform Commercial Code).

Therefore, the following “Commercial Unit” will be added to DRC Operating Rules – Part 4 – Trading Standards and Related Guidelines Glossary of Terms:

“Commercial Unit – means a single shipment of one or more perishable agricultural commodities tendered for delivery on a single contract. Such commercial unit must be accepted or rejected in its entirety. Acceptance of a commercial unit does not change the parties’ existing contractual rights and responsibilities.”

This addition enters in effect on January 25, 2023.

Membership renewal invoices to cover the period January 1, 2023, to December 31, 2023, were emailed out on November 16, 2022 to most of our members.

Please note some members may have a different anniversary date depending on when they joined the DRC.  A quick check of your records online at the DRC’s members portal will confirm your anniversary date.

If your company information has changed in the past 12 months, including your responsibly connected individuals, please log in into DRC’s members portal at your earliest convenience and update your records.

Thank you to all our members who have already renewed their membership!

For more information call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

WISHING YOU ALL THE BEST THIS HOLIDAY SEASON

 

The DRC office will be closed Monday December 25 to Wednesday December 28, 2022, inclusively.  Our office will also be closed Monday January 02, 2023.  

 

The DRC Help Desk will remain available Thursday December 29^th, and Friday December 30^th at:

 

DRC Help Desk | 613-234-0982 | [email protected]

Welcome New Members

 

From October 15 until November 15, 2022, DRC welcomed the following new members:

 

ALIMENTS ZAYNAB INC.	QC	Canada
BOVA FRESH LLC.	FL	Canada
FRESH MAKERS LTD.	BC	Canada
HUI DRAGON TRADE LTD. (Also d/b/a Huidragon Logistics)	ON	Canada
LLERO’S TRADING LTD.	ON	Canada
MOONSHINE MAMA’S KITCHENS LTD. (Also d/b/a Moonshine Mama’s)	BC	Canada
RED CROWN VENTURES LTD. (Also d/b/a Red Crown Pomegranate Juice)	BC	Canada
SANLLO CANADA INC. (Also d/b/a Sanllo)	ON	Canada
SANLLO EXPORT, S. L. (Also d/b/a Sanllo)	Valencia	Spain
SOCONUSCO PRODUCE LLC.	TX	United States
SOUTHERN PRIME PRODUCE CORP.	BC	Canada
ZYADCO GROUP CANADA INC.	ON	Canada

 

DRC Membership: change in status

 

As of November 15, 2022, the following organizations no longer hold a DRC membership:

 

BABITH IMPORT AND EXPORT INC.	ON	Canada
CANCAREX FOODS LIMITED	ON	Canada
IMPORT EXPORT ST-EUGÈNE (Faisant également affaire sous 9452-6779 Québec Inc.)	QC	Canada
LA COMPAGNIE DE TISSUS DECORATIFS ARCO LTEE / ARCO DECORATIV	QC	Canada
MAPLE FRESH PRODUCE WHOLESALE (A d/b/a of Arshdeep Sharma)	AB	Canada
NANUM FOODS INC.	AB	Canada
RED CARROTS FARM MARKET LTD.	BC	Canada
SIDAGOOE GLOBAL LIMITED	ON	Canada
SUTHA IMPORTS & EXPORTS LTD.	ON	Canada
VENTURE PRODUCE INC.	PE	Canada

 

Automatic Terminations

On November 1, 2022, KK AGRO FARM INC. was expelled from DRC for failure to meet their financial obligations and failure to provide requested information in violation of section 1.5 of the DRC Trading Standards and section 3.03 of the DRC By-laws. At the time of expulsion, Karunaharan (Kan) Kanthasamy       (Director) was the only responsibly connected persons to this organization.

 

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 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, 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 visit us at www.fvdrc.com.

Broker is the term often used by fruit and vegetable dealers to describe a person or entity that conducts a variety of commercial activities. A true broker’s (see definition below) DRC role is to facilitate good faith negotiations between parties which leads to a valid and binding contract.

 

After the broker has helped the buyer and the seller negotiate a valid and binding contract, the broker is expected to issue a written or electronic confirmation, normally known as a Confirmation of Sale. This confirmation must detail the identity of both seller and buyer as well as each of the contract terms that the buyer and seller have agreed to. A copy of the confirmation must be delivered to both the seller and buyer. It is important to recognize that, unless otherwise agreed, a broker does not guarantee the performance of either of the contracting parties.

 

Whenever a valid and binding contract is established and the proper confirmation or memorandum of sale is issued, the broker is entitled to prompt payment of the brokerage fees.

 

Brokerage fees may be charged to only one of the parties -the party who engaged the broker. However, what happens if the confirmation or memorandum of sale does not identify the party who engaged the broker to negotiate the transaction? In that case, the broker will be assumed to have been engaged by the buyer. Unless, by prior agreement, the parties have agreed to split the brokerage fee, the fee will be deemed to be payable in full by the buyer.

 

 

Note: A Broker is defined as any person engaged in the business of negotiating sales and purchases of produce for or on behalf of the vendor or purchaser, respectively. (Definitions 19.4, Operating Rules, Part 4, Trading Standards and Related Guidelines)