Following our two previous articles (February and March) where we began analyzing DRC Trading Standards, this time we will examine Section 8: Returns, Rejections, or Credit Memorandums on Sales, and Section 9: Accounting for Discarded Produce.
Section 8: Returns, Rejections, or Credit Memorandums on Sales
This section does not refer to the action of returning, rejecting, or issuing a credit memorandum on sales. This section does outline the required information each of these documents must have, such as the buyer’s name, sales ticket number, lot number, date the allowance was granted, and amount of the credit or adjustment, including the reason or reasons these documents were issued. A notation must be made on the original sales ticket referring to the adjustment and showing where the credit memorandum is filed.
It is essential that these documents are approved by a duly authorized person. A duly authorized person does not have to be an owner or director of the company. Anyone within the company with the capacity to bind the organization, such as buyers or sellers, could be considered a duly authorized person.
Section 9: Accounting for Discarded Produce
There are several key elements to take away from this section. Such elements are:
- determining if the product has any commercial value,
- what you need to do when dumping more than 5% of the load,
- who can provide a certificate regarding the disposition of the discarded produce and,
- understanding the difference between witnessing the dumping of product versus getting a condition inspection confirming the product has no commercial value.
We recommend that you read this section of the Trading Standards carefully when you have an opportunity.
