Let’s assume that you received product in a deteriorated condition, you requested a federal inspection and the results of the inspection report support a breach of contract. You sell what you can after the product continues to deteriorate quickly but unfortunately there are some cartons left that cannot longer be sold. If you still have more than 5% of the product left, in accordance with section 9 of the DRC Trading Standards before dumping or donating, make sure you take the following steps:
- Communicate with your trading partner. Find out if he requires evidence that the product left has no commercial value or if they just need a dumping certificate. If you had a phone conversation with your trading partner, make sure you send a quick email confirming the details of the conversation.
- If you are not able to reach your trading partner it is your responsibility to show that the product that you will be dumping or donating has no commercial value. Your next step would be to call for a follow-up government inspection which would show the advanced deterioration of the product which would make it no longer marketable. The results of the follow-up government inspection should show that the product no longer has any commercial value.
- Request a dump/disposal/donation inspection. The CFIA and the USDA inspection services can provide a Notice or Inspection Certificate showing the amount of product dumped or donated in their presence. This document does not confirm the product has no commercial value.
Following the above steps will help avoid a dispute over dumping product received in deteriorated condition and in the event that you are involved in a dispute, these steps will provide the necessary supporting documents for your actions.
Please remember we are here to support and assist our members. Contact the DRC Help Desk with any questions or concerns at:
DRC Help Desk | 613-234-0982 | [email protected]