Licensing and Arbitration Regulations
SOR/84-432
CANADA AGRICULTURAL PRODUCTS ACT
Registration 1984-06-01
Regulation Respecting the Licensing of Dealers in Agricultural Products and the Arbitration of Complaints Pertaining to Agricultural Products
P.C. 1984-1950 1984-06-01
His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and the Treasury Board, pursuant to section 6.7Footnote * of the Canada Agricultural Products Standards Act, is pleased hereby to revoke the Produce Licensing Regulations, C.R.C., c. 292 and to make the annexed Regulations respecting the licensing of dealers in agricultural products and the arbitration of complaints pertaining to agricultural products, effective July 3, 1984.
Return to footnote *S.C. 1980-81-82-83, c. 133, s. 1
Short Title
1 These Regulations may be cited as the Licensing and Arbitration Regulations.
Interpretation
2 In these Regulations,
- Act
Act means the Canada Agricultural Products Act; (Loi)
- Agency
Agency means the Canadian Food Inspection Agency established by section 3 of the Canadian Food Inspection Agency Act; (Agence)
- agricultural product
agricultural product means a product referred to in section 8; (produit agricole)
- appellant
appellant[Repealed, SOR/99-450, s. 1]
- applicant
applicant means a dealer who applies for a licence under section 3; (requérant)
- Board
Board[Repealed, SOR/90-7, s. 1]
- bond
bond means a bond referred to in subsection 9(1); (cautionnement)
- claimant
claimant[Repealed, SOR/2000-307, s. 1]
- complaint
complaint means a complaint filed pursuant to section 9 of the Act; (plainte)
- confirmation of sale form
confirmation of sale form means a form containing the same information as set out in the form in Part II of Schedule IV; (formule de confirmation de vente)
- counsel
counsel[Repealed, SOR/2000-307, s. 1]
- dealer
dealer includes an applicant; (marchand)
- defendant
defendant[Repealed, SOR/2000-307, s. 1]
- Department
Department[Repealed, SOR/2000-184, s. 36]
- Director
Director means the person designated by the President as the Director; (directeur)
- dumped
dumped means destroyed or irretrievably discarded; (rejeté)
- inspection
inspection[Repealed, SOR/2011-11, s. 3]
- licence
licence means a licence issued pursuant to section 3; (permis)
- President
President means the President of the Agency; (président)
- respondent
respondent[Repealed, SOR/99-450, s. 1]
- secretary
secretary[Repealed, SOR/2000-307, s. 1]
- summary
summary[Repealed, SOR/2000-307, s. 1]
- Tribunal
Tribunal[Repealed, SOR/90-7, s. 1]
- SOR/90-7, s. 1
- SOR/94-411, s. 1
- SOR/96-363, s. 1
- SOR/97-292, s. 18
- SOR/98-132, s. 1
- SOR/99-450, s. 1
- SOR/2000-184, s. 36
- SOR/2000-307, s. 1
- SOR/2006-221, s. 10
- SOR/2011-11, s. 3
2.01 [Repealed, SOR/2006-150, s. 1]
PART ILicences
Issue
2.1 (1) Subject to subsection (2), no dealer shall market in import, export or interprovincial trade any agricultural product prescribed by section 8 unless a licence has been issued to the dealer therefor.
(2) Subsection (1) does not apply in the case of
(a) dealers who market only agricultural products that they grow themselves;
(b) dealers who market only agricultural products purchased within the province where their business is located;
(c) dealers who market agricultural products directly to consumers if the total invoice value of the products during the current calendar year is less than $230,000;
(d) agricultural products that are donated to any organization that is a registered charity as defined in subsection 248(1) of the Income Tax Act or is a club, society or association described in paragraph 149(1)(l) of that Act;
(e) dealers who are members of the Fruit and Vegetable Dispute Resolution Corporation — a corporation incorporated under Part II of the Canada Corporations Act, being chapter C-32 of the Revised Statutes of Canada, 1970 — in accordance with the by-laws of that Corporation; and
(f) agricultural products that are imported from the United States onto the Akwesasne Reserve for use by an individual who has established permanent residence on the Akwesasne Reserve.
(3) [Repealed, SOR/2006-150, s. 2]
- SOR/88-382, s. 1
- SOR/92-11, s. 1
- SOR/2006-150, s. 2
3 (1) Subject to subsection (2) and section 7, if an applicant submits to the Minister an application in the form provided by the Agency that includes the information referred to in subsections (3) to (6), as the case may be, along with the applicable fee fixed by the Canadian Food Inspection Agency Fees Notice, the Minister shall issue a licence authorizing the applicant to engage in one of the following types of business activities, at any place in Canada that is specified in the licence:
(a) purchasing or selling agricultural products; or
(b) negotiating the purchase or sale of agricultural products for or on behalf of a purchaser or seller.
(2) When considering an application, the Minister may request from the applicant
(a) information relating to the contents of the application and the financial position and past business history of any person referred to in paragraph (3)(n); and
(b) copies of the applicant’s articles of incorporation or provincial registration, if any.
(3) An application referred to in subsection (1) shall include the following information:
(a) disclosure of whether the applicant is a sole proprietorship, corporation, partnership or growers’ cooperative association;
(b) where the applicant is a sole proprietorship, the applicant’s name, home address and business address, including postal codes, telephone numbers and facsimile numbers, if any;
(c) where the applicant is a corporation,
(i) the applicant’s name, business address, including the postal code, telephone number and facsimile number, if any,
(ii) the name, title and home address, including the postal code, of each officer and each director of the corporation,
(iii) the name and home address, including the postal code, of each person holding more than 10 per cent of the outstanding stock of the corporation, and
(iv) the name of each officer, director or shareholder of the corporation who is an officer, director or shareholder of another licensed dealer or who occupies a decision-making position with another licensed dealer or who receives remuneration, as an employee, independent contractor or otherwise, from another licensed dealer, and the number of that other dealer’s licence;
(d) where the applicant is a partnership,
(i) the applicant’s name, business address, including the postal code, telephone number and facsimile number, if any, and
(ii) the name and home address, including the postal code, of each partner;
(e) where the applicant is a growers’ cooperative association,
(i) the applicant’s name, business address, including the postal code, telephone number and facsimile number, if any, and
(ii) the name and home address, including the postal code, of each member of the growers’ cooperative association;
(f) where the applicant is a sole proprietorship, partnership or growers’ cooperative association, disclosure of whether the proprietor or any partner or member, as the case may be, is an officer, director or shareholder of another licensed dealer or occupies a decision-making position with such a licensed dealer or receives remuneration, as an employee, independent contractor or otherwise, from such a licensed dealer, and the number of that dealer’s licence;
(g) where the applicant is a sole proprietorship, partnership or growers’ cooperative association, disclosure of whether the proprietor or any partner or member, as the case may be, is under the age of majority in the province in which the applicant intends to carry on business as a licensed dealer or in the province in which the proprietor, partner or member resides;
(h) where the applicant is a corporation, disclosure of whether any officer or director of the corporation is under the age of majority in the province in which the applicant intends to carry on business as a licensed dealer or in the province in which the officer or director resides;
(i) indication as to which of the following is to be the applicant’s primary type of business activity, namely,
(i) purchasing or selling agricultural products, or
(ii) negotiating the purchase or sale of agricultural products for or on behalf of a purchaser or seller;
(j) where the applicant intends to engage in the business of purchasing or selling agricultural products, indication as to which one or more of the following the applicant intends to engage principally in, namely,
(i) production,
(ii) shipping,
(iii) trucking,
(iv) wholesaling,
(v) retailing, or
(vi) processing;
(k) a description of the kinds of agricultural products to be marketed by the applicant;
(l) [Repealed, SOR/2003-6, s. 71]
(m) indication as to whether the applicant intends to market in import, export or interprovincial trade; and
(n) disclosure of whether, in the 10 years preceding the day on which the application is submitted, any of the following persons, namely, the applicant or, to the best of the applicant’s knowledge, any individual named in the application or any employee of the applicant, or any corporation of which the applicant, the individual or the employee is or has been a director or officer, or any partner of a partnership of which the applicant, the individual or the employee is or has been a partner, or any member of a growers’ cooperative association of which the applicant, the individual or the employee is or has been a member, has, as the case may be,
(i) failed to comply with an order of the Board or the Tribunal,
(ii) had a licence that was cancelled or suspended under these Regulations,
(iii) had a licence that was issued under the Perishable Agricultural Commodities Act, 1930 of the United States and was cancelled or suspended under that Act,
(iv) made an assignment of his or her property for the benefit of a creditor or been the subject of a receiving order made under the Bankruptcy and Insolvency Act,
(v) had any of his or her property taken possession of or taken control of by a receiver or receiver-manager,
(vi) entered into an arrangement with a creditor under any Act of Parliament or of the legislature of a province,
(vii) been convicted of an offence under the Criminal Code for which pardon has not been granted or for which pardon was granted but subsequently revoked, where the offence is an offence referred to in any of clauses 7(1)(a)(iv)(A) to (X) of these Regulations,
(viii) had a criminal record outside Canada as a result of an offence that, if committed in Canada, would have been an offence referred to in any of clauses 7(1)(a)(iv)(A) to (X), or
(ix) been named in an outstanding federal or provincial court order regarding matters related to the operation of any business.
(4) Where an applicant applies for a licence for the first time, the applicant shall submit with the application
(a) in respect of the five years preceding the day on which the application is submitted, particulars, to the best of the applicant’s knowledge, of the business history of
(i) the applicant, where the applicant is a sole proprietorship,
(ii) its officers and directors, where the applicant is a corporation,
(iii) the partners, where the applicant is a partnership, or
(iv) its members, where the applicant is a growers’ cooperative association;
(b) a letter of reference from a financial institution with which the applicant has recently done business; and
(c) the name, address, including the postal code, and telephone number of at least one credit reference other than the financial institution referred to in paragraph (b).
(5) Where the applicant discloses that an event described in paragraph (3)(n) has occurred in respect of any person referred to in that paragraph, the applicant shall include with the application
(a) particulars of the event;
(b) a letter of reference from a financial institution with which the person has recently done business; and
(c) the name, address, including the postal code, and telephone number of at least one credit reference in respect of the person, other than the financial institution referred to in paragraph (b).
(6) [Repealed, SOR/2003-6, s. 71]
(7) An applicant who intends to carry on business as a dealer at more than one place shall submit a separate application in respect of each such place.
(8) An application for a licence shall be signed by
(a) the applicant, where the applicant is a sole proprietorship;
(b) an officer or director of the applicant, where the applicant is a corporation;
(c) a partner of the applicant, on behalf of the partnership, where the applicant is a partnership; or
(d) a member of the applicant, on behalf of the growers’ cooperative association, where the applicant is a growers’ cooperative association.
(9) The Minister shall, before issuing a licence for a period of less than 12 months, consider any violations of the Act or these Regulations by any person referred to in paragraph (3)(n), any complaints received about such person’s failure to conduct business in a manner consistent with fair and orderly business practices, and all other pertinent information in respect of the business activities of the applicant, including information as to the ability of the applicant to meet all debts as they come due and to conduct business in a manner consistent with fair and orderly business practices.
- SOR/94-411, s. 2
- SOR/96-363, s. 2
- SOR/97-292, s. 19
- SOR/2000-183, s. 25
- SOR/2003-6, s. 71
- SOR/2012-286, s. 40
4 [Repealed, SOR/96-363, s. 3]
5 (1) Subject to subsection 19(1), a licence remains in force until the expiration date stated on the licence.
(2) Subject to section 7, the Minister may extend the expiration date of any licence that has been issued for a period of less than 12 months, to a date that is not more than 12 months after its original date of issuance, where the licensed dealer applies for an extension by submitting an application in accordance with section 3.
(3) The Minister shall, before extending the expiration date of a licence as described in subsection (2), consider the information referred to in subsection 3(9).
(4) No fee is payable in respect of an extension applied for under subsection (2).
- SOR/96-363, s. 3
6 A licence issued in respect of a partnership shall be issued to the applicant and may bear the name in which the partnership carries on business.
7 (1) The Minister shall not issue a licence or extend the expiration date of a licence where
(a) a person referred to in paragraph 3(3)(n) has, in the 10 years preceding the day on which the application is submitted, and unless the person provides the bond or security referred to in section 9,
(i) failed to comply with an order of the Board or the Tribunal,
(ii) a licence that was cancelled or suspended under these Regulations,
(iii) a licence that was issued under the Perishable Agricultural Commodities Act, 1930 of the United States and was cancelled or suspended under that Act,
(iv) been convicted of an offence for which pardon has not been granted or for which pardon was granted but subsequently revoked, where the offence is one of the following offences under the Criminal Code, namely,
(A) an offence described in any of sections 119 to 121, in relation to the bribery of public officers or fraud on the government,
(B) an offence described in any of sections 131, 132 and 134 to 143, in relation to misleading justice,
(C) to (K) [Repealed, SOR/2006-221, s. 11]
(L) an offence described in any of sections 322, 324, 328, 330 to 332, 341 and 342.1, in relation to theft or an offence resembling theft,
(M) an offence described in any of sections 343, 345 and 346, in relation to robbery or extortion,
(N) [Repealed, SOR/2006-221, s. 11]
(O) an offence described in section 354, in relation to possession of property obtained by crime,
(P) an offence described in sections 362 and 363, in relation to false pretences,
(Q) an offence described in any of sections 366, 368 to 376 and 378, in relation to forgery or an offence resembling forgery,
(R) an offence described in any of sections 380 to 393, in relation to fraud,
(S) an offence described in any of sections 397 to 402, in relation to falsification of books and documents,
(T) an offence described in any of sections 406 to 411 and 413, in relation to forgery of trade-marks and trade descriptions,
(U) to (W) [Repealed, SOR/2006-221, s. 11]
(X) an offence described in section 463 in relation to an attempt to commit, or being an accessory after the fact to the commission of, an offence referred to in any of clauses (A) to (T), or
(v) had a criminal record outside Canada as a result of an offence that, if committed in Canada, would have been an offence referred to in any of clauses (iv)(A) to (X); or
(b) the applicant, the proprietor, or any officer, director, partner or member, as the case may be,
(i) is under the age of majority in the province in which he or she resides,
(ii) [Repealed, SOR/2000-183, s. 26]
(iii) has, in the 10 years preceding the day on which the application is submitted, been named in an outstanding federal or provincial court order regarding matters related to the operation of any business, unless the person provides the bond or security referred to in section 9,
(iv) has, in the 10 years preceding the day on which the application is submitted, made an assignment of his or her property for the benefit of a creditor or been the subject of a receiving order made under the Bankruptcy and Insolvency Act, unless the person provides the bond or security referred to in section 9,
(v) has failed to provide a satisfactory reply to a request for information referred to in subsection 3(2),
(vi) has consistently failed to meet debts as they come due or has conducted business in a manner inconsistent with fair and orderly business practices, or
(vii) has failed or refuses to provide, maintain or adjust any bond or other security required by the Minister under section 9 or 10.
(2) Where the application mentions a person referred to in subparagraph 3(3)(n)(v) or (vi), or subsequent inquiry by the Minister reveals the presence of such a person, the Minister shall refuse to issue a licence or extend the expiration date of a licence unless the applicant furnishes a bond or other security in accordance with subsection 9(1).
(3) Where an applicant who intends to engage in the business of purchasing or selling agricultural products does not have suitable facilities for the handling and preservation of those agricultural products, the Minister shall refuse to issue a licence or extend the expiration date of a licence.
(4) The Minister shall refuse to issue a licence in a name if use of that name would be likely to deceive.
- SOR/96-363, s. 4
- SOR/2000-183, s. 26
- SOR/2006-221, s. 11
Agricultural Products
8 For the purposes of section 2.1, all fresh fruits and vegetables and edible fungi are agricultural products except
(a) potatoes in respect of which a certificate has been issued pursuant to the Seeds Regulations and that are sold as seed potatoes;
(b) nuts and wild fungi;
(c) wild fruits for which no grades are established; and
(d) wild vegetables for which no grades are established.
- SOR/90-7, s. 2
Bond or Other Security
9 (1) The Minister shall require a dealer to post a bond, or to provide other security satisfactory to the Minister, as a guarantee that the dealer will comply with the terms and conditions of a licence issued pursuant to these Regulations, where a person referred to in paragraph 3(3)(n)
(a) is described in any of subparagraphs 3(3)(n)(i) to (ix); or
(b) has a history of slow payment of financial obligations.
(2) Where the bond or other security posted or provided by a dealer is forfeited under section 11 or cancelled by the bonding company, the dealer’s licence is cancelled as of the date of that forfeiture or cancellation.
(3) A dealer whose licence has been cancelled under subsection (2) is not entitled to a new licence until he or she posts another bond or provides other security in accordance with subsection (1).
- SOR/96-363, s. 5
10 (1) Where the Minister determines that a bond or other security is no longer satisfactory, the Minister shall, by notice in writing, require the dealer to post a new bond or provide new security in accordance with subsection 9(1).
(2) Where a dealer fails, within the 21 days after receiving a notice referred to in subsection (1), to post a new bond or provide new security, the dealer’s licence shall be suspended until the bond is posted or the security is provided.
- SOR/96-363, s. 5
Forfeiture of a Bond or Other Security
11 Where a dealer fails to comply with a term or condition of the dealer’s licence, the Minister shall require the bond or security that was posted or provided in accordance with section 9 or 10 to be forfeited in whole or in part.
- SOR/96-363, s. 5
Terms and Conditions of a Licence
12 A licensed dealer shall not carry on business under a name other than the name specified in his licence.
13 A licensed dealer shall, within 30 days of the occurrence of any of the following events, notify the Minister in writing
(a) of any change in the ownership or management of his business that involves a transfer of responsibility from the previous management or the employment of a person in a position of responsibility or management;
(b) of any assignment for the benefit of his creditors under the Bankruptcy and Insolvency Act;
(c) of any receiving order made against him under the Bankruptcy and Insolvency Act;
(d) where a receiver or receiver-manager takes possession or control of any of the licensed dealer’s property; or
(e) of any arrangement or compromise that he enters into with his creditors under any Act of Parliament or the legislature of a province.
- 1992, c. 27, s. 90
- SOR/96-363, s. 6
13.1 Every licensed dealer who engages in the business of purchasing or selling agricultural products shall maintain facilities that are suitable for the handling and storage of those agricultural products.
- SOR/96-363, s. 7
14 Every licensed dealer shall notify the Minister in writing and apply for an appropriate amendment to his licence at least 15 days before he
(a) commences carrying on business in another name;
(b) changes the address of his business; or
(c) changes the primary type of business he conducts.
15 (1) Subject to subsection (2), a licensed dealer may engage in a transaction that is not within the dealer’s primary type of business activity as indicated on the licence, if the dealer provides to all parties involved in the transaction a written statement of the dealer’s primary type of business activity and the fact that the transaction is not within that type.
(2) No licensed dealer shall engage in both types of business activities referred to in paragraphs 3(1)(a) and (b) in the course of a single transaction.
- SOR/96-363, s. 8
16 (1) Every licensed dealer shall comply with
(a) the standards listed in Schedule II;
(b) any request by the Minister to forward to the Minister such documents pertaining to any changes in the nature or volume of the licensed dealer’s business as the Minister specifies;
(c) an order or decision of the Board or Tribunal within the time specified by the Board or Tribunal, as the case may be;
(d) the Fresh Fruit and Vegetable Regulations; and
(e) the Canadian Food Inspection Agency Fees Notice.
(2) A licensed dealer referred to in subsection 18(2) shall
(a) present or forward the confirmation of sale form referred to in that subsection to the seller and purchaser referred
(b) in circumstances where he cannot reasonably meet the requirements of paragraph (a), forward to the seller and purchaser a telex confirmation, or similar printed communication, of the terms of the sale.
- SOR/96-363, s. 9
- SOR/2000-183, s. 27
- SOR/2011-11, s. 4
17 No licensed dealer shall
(a) interfere in any manner with the normal or scheduled delivery of a shipment of an agricultural product; or
(b) where a thorough inspection was not carried out, fail to notify the appropriate seller or the seller’s local representative in writing within 24 hours after receipt of notice of the arrival of an agricultural product of the conditions that prevented a thorough inspection.
Records Retention
18 (1) Every licensed dealer shall
(a) keep the documents and records referred to in Schedule IV for a period of two years;
(b) keep books and records that show for the previous two years
(i) the details of the transactions carried out under the authority of his licence, and
(ii) the names and addresses of the owners of his business; and
(c) [Repealed, SOR/2000-184, s. 37]
(2) Every licensed dealer who negotiates sales or purchases of an agricultural product for or on behalf of a seller or purchaser shall
(a) prepare in triplicate a confirmation of sale form; and
(b) retain a copy of that form after it has been executed.
- SOR/2000-184, s. 37
Licence Cancellation and Suspension
19 (1) The Minister shall, after giving a licensed dealer an opportunity to be heard, either suspend the licence for a period of not more than 90 days or cancel the licence, where
(a) any situation set out in subsection 7(1), (2) or (4) occurs after the licence has been issued; or
(b) the licensed dealer
(i) after the licence was issued, failed to comply with the requirements of the Act or these Regulations,
(ii) after the license was issued, was convicted of an offence for which pardon has not been granted or for which pardon was granted but subsequently revoked, where the offence is an offence referred to in any of clauses 7(1)(a)(iv)(A) to (X),
(iii) made a false or misleading statement in the application or in any information submitted pursuant to subsection 3(2),
(iv) after the license was issued, made an assignment of his or her property for the benefit of any creditor under the Bankruptcy and Insolvency Act or was petitioned into bankruptcy,
(v) after the license was issued, failed to maintain facilities that are suitable for the handling and storage of the agricultural products that the licensed dealer purchases or sells, or
(vi) after the license was issued, falsely made, issued, altered, forged or counterfeited, or caused or procured to be falsely made, issued, altered, forged or counterfeited, or willingly aided, caused, procured or assisted in or was a party to falsifying, issuing, altering, forging or counterfeiting, any government document issued under the Act or these Regulations or under the Fresh Fruit and Vegetable Regulations.
(2) The Minister may publish a notice in the Canada Gazette respecting the cancellation or suspension of a licence.
- SOR/96-363, s. 10
20 Where a dealer’s licence is suspended or cancelled, the Minister shall suspend or cancel
(a) any other licence issued under the Act to that dealer; and
(b) the licence of any other dealer who
(i) is an officer, director or shareholder of the dealer whose licence was suspended or cancelled, or
(ii) employs anyone who is an officer, director or shareholder of the licensed dealer whose licence was suspended or cancelled.
- SOR/96-363, s. 11
PART I.1Complaints Filed with the Board
20.1 The time within which a complaint may be filed with the Board under subsection 9(1) of the Act for an alleged failure to comply with a regulation is nine months after the date of the alleged failure to comply.
- SOR/96-363, s. 12
- SOR/2000-305, s. 1
20.2 (1) The fee that is payable for the filing of a complaint with the Board under subsection 9(1) of the Act is $400.
(2) The fee that is payable for a hearing if a party or counsel for a party appears in person before the Board is $800.
- SOR/2000-305, s. 1
PART II
[Repealed, SOR/2000-307, s. 2]
PART III
38. and 39 [Repealed, SOR/99-450, s. 2]
40 (1) [Repealed, SOR/99-450, s. 3]
(a) [Repealed, SOR/99-450, s. 3]
(b) [Repealed, SOR/2000-305, s. 3]
(2) to (4) [Repealed, SOR/99-450, s. 3]
41. to 44 [Repealed, SOR/99-450, s. 4]
PART IVTransitional
45 For the purposes of these Regulations a licence issued pursuant to the Produce Licensing Regulations shall continue to be valid until its expiry date and shall be considered to have been issued pursuant to these Regulations.
SCHEDULE I
SCHEDULE II(Section 16)
PART IQuality Standards
1 The quality standards for an agricultural product set out in column I of an item of the following table shall be the standards reflected in column II of that item.
Column I Column II PROVINCE OF USE Item Product BC ALTA SASK MAN ONT QUE NB NS PEI NFLD 1 Anise, Sweet AFootnote for * A A A A A A A A A 2 Apples CFootnote for ** C C C C C C C C C 3 Apricots C C C C C C C C C C 4 Artichokes, Globe A A A A A A A A A A 5 Asparagus C C C C C C C C C C 6 Avocados, Florida A A A A A A A A A A 7 Beans, Lima A A A A A A A A A A 8 Beans, Snap A A A A A A A A A A 9 Beets C C C C C C C C C C 10 Blueberries C C C C C C C C C C 11 Broccoli, Bunched Italian Sprouting A A A A A A A A A A 12 Brussels Sprouts C C C C C C C C C C 13 Cabbage C C C C C C C C C C 14 Cantaloupes C C C C C C C C C C 15 Carrots, Bunched A A A A A A A A A A 16 Carrots, Topped C C C C C C C C C C 17 Cauliflower C C C C C C C C C C 18 Celery C C C C C C C C C C 19 Cherries C C C C C C C C C C 20 Corn, Sweet C C C C C C C C C C 21 Crabapples C C C C C C C C C C 22 Cranberries C C C C C C C C C C 23 Cucumbers, Field C C C C C C C C C C 24 Cucumbers, Greenhouse C C C C C C C C C C 25 Dewberries and Blackberries A A A A A A A A A A 26 Eggplant A A A A A A A A A A 27 Endive, Escarole or Chicory A A A A A A A A A A 28 Garlic A A A A A A A A A A 29 Grapefruit (California and Arizona) A A A A A A A A A A 30 Grapefruit (Florida) A A A A A A A A A A 31 Grapefruit (Texas and States other than Florida, California and Arizona) A A A A A A A A A A 32 Grapes C C C C C C C C C C 33 Greens, Beet A A A A A A A A A A 34 Greens, Collard or Broccoli A A A A A A A A A A 35 Greens, Dandelion A A A A A A A A A A 36 Greens, Mustard and Turnip A A A A A A A A A A 37 Honey Dew and Honey Ball Type Melons A A A A A A A A A A 38 Horseradish Roots A A A A A A A A A A 39 Kale A A A A A A A A A A 40 Kiwifruit A A A A A A A A A A 41 Lemons A A A A A A A A A A 42 Lettuce, Head Greenhouse Leaf A A A A A A A A A A 43 Lettuce, Head (Iceberg Type) C C C C C C C C C C 44 Limes, Persian (Tahiti) A A A A A A A A A A 45 Mushrooms A A A A A A A A A A 46 Nectarines A A A A A A A A A A 47 Okra A A A A A A A A A A 48 Onions C C C C C C C C C C 49 Onions, Common Green A A A A A A A A A A 50 Oranges (California and Arizona) A A A A A A A A A A 51 Oranges and Tangelos (Florida) A A A A A A A A A A 52 Oranges (Texas and States other than Florida, California and Arizona) A A A A A A A A A A 53 Parsley A A A A A A A A A A 54 Parsnips C C C C C C C C C C 55 Peaches C C C C C C C C C C 56 Pears C C C C C C C C C C 57 Peas, Fresh A A A A A A A A A A 58 Peas, Sothern A A A A A A A A A A 59 Peppers, Sweet (a) imported A A A A A A A A A A (b) exported A A A A OFootnote for *** A A A A A 60 Pineapples A A A A A A A A A A 61 Plums & Prunes C C C C C C C C C C 62 Potatoes C C C C C C C C C C 63 Radishes A A A A A A A A A A 64 Raspberries (a) imported A A A A A A A A A A (b) exported A A A A O A A A A A 65 Rhubarb, Field C C C C C C C C C C 66 Rhubarb, Forced O 67 Romaine A A A A A A A A A A 68 Rutabagas C C C C C C C C C C 69 Shallots, Bunched A A A A A A A A A A 70 Spinach Leaves (Fresh) A A A A A A A A A A 71 Squash, Fall and Winter Type A A A A A A A A A A 72 Squash, Summer A A A A A A A A A A 73 Strawberries C C C C C C C C C C 74 Sweet Potatoes A A A A A A A A A A 75 Tangerines A A A A A A A A A A 76 Tangerines (Florida) A A A A A A A A A A 77 Tomatoes, Field C C C C C C C C C C 78 Tomatoes, Greenhouse C C C C C C C C C C 79 Watermelons A A A A A A A A A A Return to footnote *A — Code of Federal Regulations; Title 7 — Agriculture; Chapter 1, Agricultural Marketing Service, Part 51
Return to footnote **C — Fresh Fruit and Vegetable Regulations, Schedule I
Return to footnote ***O — Regulations made under the Farm Products Grades and Sales Act; Part VII-O. Reg. 788/80 (Ontario)
PART IIStandards Respecting the Preservation of the Condition of an Agricultural Product
1 Where an agricultural product is in a damaged or deteriorated condition on arrival at its destination, the licensed dealer at that destination shall obtain certificates or a notice of dumping or other disposition in respect of that agricultural product in accordance with the procedures set out in sections 2 to 4.
2 Where a licensed dealer has
(a) purchased an agricultural product that is damaged or in a deteriorated condition, or
(b) offered to handle an agricultural product on consignment that is damaged or in a deteriorated condition,
he shall
(c) within 24 hours, exclusive of Sundays and holidays, after receipt of notice of arrival of the agricultural product advise the seller of the agricultural product by wire or the seller’s local representative in writing that he rejects the agricultural product,
(d) within 24 hours, exclusive of Sundays and holidays, after receipt of notice of arrival of the agricultural product request an inspection and, within three hours after receipt of an oral or a written report of the result of the inspection, the licensed dealer shall advise the seller of the product or the seller’s local representative in writing that the licensed dealer rejects the agricultural product,
(e) within 24 hours or the receipt by him of a certificate in respect of the inspection forward a copy thereof to the shipper of the agricultural product,
(f) where any portion of the shipment is marketable make every reasonable effort to market that product as soon as is practicable in the circumstances,
(g) where the licensed dealer has dumped or donated to a charitable organization more than 5% of any lot of agricultural product belonging to another person, forward a notice of dumping or other disposition to that person showing the quantity of the product that was dumped or donated to a charitable organization and retain a copy of that notice, and
(h) advise the seller of the agricultural product or his agent before the agricultural product is shipped or while it is in transit that he will not accept the product and give the reason for his failure to accept it,
3 (1) The report referred to in paragraph 2(d) or the certificate referred to in paragraph 2(e) may be issued only by
(a) an inspector; or
(b) any commercial agency or service that makes inspections for the agricultural products industry and that is agreed upon by the seller and the licensed dealer.
(2) A report referred to in paragraph 2(d) and a certificate referred to in paragraph 2(e) shall include the information described under the heading “Inspection Elements” in the Good Inspection Guidelines published by the Fruit and Vegetable Dispute Resolution Corporation (DRC), as amended from time to time.
(3) The notice of dumping or other disposition referred to in paragraph 2(g) may be issued only by
(a) an inspector;
(b) any commercial agency or service that makes inspections for the agricultural products industry and that is agreed upon by the seller and the licensed dealer;
(c) any health officer or food inspector of any province, county, parish, city or municipality; or
(d) if no person referred to in any of paragraphs (a) to (c) is available, any two persons who
(i) have no financial interest in relation to the agricultural product involved or to the business of any person who has a financial interest in the agricultural product,
(ii) have no personal interest that could influence, or reasonably appear to influence, the exercise of their duties, and
(iii) have been engaged for a period of at least one year immediately before the time of the dumping or other disposition in the preparation of the same kind or class of agricultural product as the agricultural product being dumped or otherwise disposed of.
(4) The two persons who issue a notice of dumping or other disposition under paragraph (3)(d) shall, in respect of that notice,
(a) include a statement that each of them satisfies the criteria set out in that paragraph;
(b) identify the agricultural product by indicating, if applicable,
(i) the commodity,
(ii) the lot number,
(iii) the brand or principal identifying marks on the containers, and
(iv) the quantity that was dumped or donated to a charitable organization;
(c) identify the place where the agricultural product was dumped or the name and address of the charitable organization to which it was donated;
(d) indicate the name and address of the seller;
(e) indicate the name and address of the licensed dealer;
(f) indicate the name and address of the person by whom it was dumped or donated;
(g) indicate the time and date of dumping or donation; and
(h) indicate the number on the notice, if any.
4 Where the temperature is sufficiently below freezing to make a complete inspection dangerous to an agricultural product, the licensed dealer shall, on receipt of notice of arrival, request that a preliminary inspection of the agricultural product be made as soon as possible to determine whether freezing damage during transit is present and any further inspection may be deferred until the temperature and weather conditions permit the inspection to be made without endangering the agricultural product.
5 A licensed dealer referred to in subsection 18(2) of the Regulations shall advise a purchaser or seller, as the case may be, referred to in that subsection of
(a) any objection to the agricultural product or the terms of sale if such an agreement exists;
(b) any request for an inspection of the agricultural product; and
(c) the results of any inspection that has been made of the agricultural product.
6 At time of the leading of a package that contains an agricultural product the package shall be placed in such a manner as to
(a) take advantage of its design strength;
(b) permit adequate bracing to hold the load in alignment under normal transportation service and conditions; and
(c) provide for sufficient air circulation around the load when temperature control or ventilation is required.
7 An agricultural product shall be precooled, gassed, iced or otherwise prepared by any other prescribed process for the maintenance of suitable product condition under normal transportation service and conditions to the destination specified.
8 The air and surface temperatures inside the vehicle at the time of loading and shipment shall be within a range appropriate for the agricultural product being shipped.
9 When different agricultural products are shipped together, they shall be suitably compatible so that there will be no adverse effects on any one of them during normal transportation service and conditions.
10 At the time of loading in the case of direct shipments, and at the time of sale in all other cases, an agricultural product shall be in a condition so that it will arrive at its destination without abnormal deterioration.
11 (1) Subject to subsection (3), no dealer shall, for the purposes of marketing, import or convey from one province to another an agricultural product unless the shipment is accompanied by evidence that the dealer purchased the agricultural product or had an agreement to purchase the product.
(2) The evidence referred to in subsection (1) shall be made available to the Minister on the request of the Minister.
(3) Subsection (1) does not apply to a dealer who conveys agricultural products from one province to another in a shipment that is subsequent to the shipment of those products to the province of first destination.
(3.1) [Repealed, SOR/93-329, s. 2]
(4) For the purposes of this section,
- agreement to purchase
agreement to purchase, in respect of an agricultural product, means an enforceable contractual obligation between the purchaser and the vendor for the purchase and sale of the agricultural product for a predetermined price; (convention d’achat)
- point of production
point of production[Repealed, SOR/93-329, s. 2]
PART IIIPackaging Standards
1 Every package containing an agricultural product shall
(a) be of sufficient strength to withstand normal handling and transportation; and
(b) provide for adequate ventilation when required.
2 Where an agricultural product is packed in a container,
(a) the product shall be packed in a manner that is not likely to result in damage to the product or the container during handling or transport;
(b) the container shall contain not less than the net quantity of product declared on the label;
(c) the container shall not be stained, soiled, warped, broken or otherwise damaged in such a manner as to affect the shipping quality or saleability of the agricultural product; and
(d) if the container is a closed container, it shall be securely closed in a manner appropriate for the type of container and the kind of agricultural product.
3 [Repealed, SOR/93-329, s. 3]
PART IVStorage Standards
1 Storage facilities for an agricultural product shall be
(a) suitable to maintain the product in saleable condition; and
(b) maintained within a temperature range to maintain the condition of the product in a suitable condition.
PART VTransportation Standards
1 An agricultural product shall be
(a) transported in a vehicle suitable for that product; and
(b) maintained within a recommended temperature range such that under normal transportation and conditions, the product is maintained in a suitable condition.
- SOR/88-382, s. 2
- SOR/90-25, s. 1
- SOR/90-848, s. 1
- SOR/93-329, ss. 2, 3
- SOR/2000-184, s. 38
- SOR/2011-11, ss. 5 to 7
- SOR/2011-205, s. 37
SCHEDULE IIIBoard of Arbitration
Summons
M 
(name)
(no., street)
(city, province) (postal code)
You are hereby summoned to attend at a hearing conducted by the above-mentioned Board of Arbitration to give evidence concerning the matter relevant to the mandate of the Board and to bring with you and produce the following documents and
Please be present at the time and place indicated below and thereafter until the hearing is concluded or the Board otherwise orders.
19
(date) (time)
(place)
(no., street)
(city, province)
Signed at
(city)
on (date)19
on behalf of the Board.
Chairman or Secretary
SCHEDULE IV(Sections 18 and 23)
PART I
1 Confirmation of sale forms or other documents indicating the terms of sale.
2 Shipping documents including manifests and bills of lading.
3 Invoices (shipper’s, broker’s and freight).
4 Temperature recorder charts.
5 Inspection certificates.
6 Detentions and releases.
7 Arrival notices.
8 Cheque stubs, copies of cheques and cancelled cheques.
9 Account Sales and Sales Receipts Form as set out in Part IV of this Schedule.
10 Customs documents.
11 Documents pertaining to agricultural products respecting
(a) dumping;
(b) loading and unloading;
(c) conditioning (precooling, icing, gassing, etc.).
12 Special agreements.
13 Letters, telegrams and other Documents pertaining to transactions carried out under the authority of a licence.
PART II(Section 2)
STANDARD CONFIRMATION OF SALE
If the person completing this form, or the parties indicated, are engaging in business other than the business as indicated on their licence please check ( | |
Date ordered Date confirmed | Dealer Broker Commission Merchant |
| Check How Sold In Person Telephone Telegraph Letter | |
| The broker or salesman on receiving notice of the seller’s acceptance of the purchaser’s order shall fill out this Standard Confirmation of Sale in triplicate and present all three copies to the purchaser for authentication by his signature. The broker or salesman shall also sign the three copies on behalf of the seller and shall deliver one copy to the purchaser and one to the seller and shall retain the third for his file. The Standard Confirmation of Sale as authenticated by the purchaser and broker or salesman shall constitute the complete contract of sale and neither party shall have the right to rely on oral representations or promises of the other. All modifications must be in writing and authenticated in the manner provided above for this Standard Confirmation of Sale to which such modifications shall refer. Unless the seller makes immediate objection upon receipt of his copy of this Standard Confirmation of Sale, showing sale was made contrary to authority given the broker or salesman, he shall be conclusively presumed to agree that the terms of sale as set forth herein are fully and correctly stated. | |
| City Date 19 | |
| Sold to | |
| (Purchaser) | (P.O. Address) |
| Ship to Destination | |
| Advise | |
| Positive Routing | Delivery Prefer |
| Sold for account of | |
| (Seller) | (P.O. Address) |
| Shipment from | |
| (Shipping Station or District) | |
| Time of Shipment | |
| Rolling Car | |
| (If car sold while rolling state date of shipment and approximate location when possible, also routing) | |
| Vehicle Identification No. | |
| How shipped or to be shipped | |
| (Iced, Ventilated, Standard Ventilation, Shippers’ Protective Service, Standard Heating or Carrier’s Protective Service) | |
| Style of Equipment-Refrigerator Car Box Car Ventilated Car Stock Car | |
| Sale made (F.O.B. or delivered) | |
| Terms, How Payable | |
| Special Agreement, if any | |
(It is understood, unless otherwise stated herein, this sale is made in contemplation of and subject to the Standard Rules and Definitions of Trade Terms printed on the back hereof.) | |
| |
| QUANTITY | COMMODITY AND SPECIFICATIONS PRICE |
| |
| |
| |
| |
| |
Signed (Purchaser) | Signed (Seller) |
| Per | Per |
| The signer hereby certifies that he is authorized by the purchaser or the seller named above to sign and authenticate the same on his or their behalf. | |
PART IIIStandard Rules and Definitions of Trade Terms for the Fresh Fruit and Vegetable Industry
PREAMBLE: Nothing in these rules shall be construed to limit or affect existing agreements or contracts, setting forth terms and conditions of sale, or to preclude future agreements or contracts containing terms of sale different from those herein provided. Upon all sales defined in Rules 10 and 13 to 16 the contract price shall be payable at par shipping point.
No. 1. “Under Billing” shall be deemed to mean that the goods shall be under billing by the transportation company in time to be picked up by a transportation facility scheduled to move that day’s loadings from the first pick up point on the day specified. The seller shall immediately upon completion of the sale give necessary instructions to notify or advise the buyer and forward the carrier acknowledgement to the buyer that the produce shall be carrier billed.
No. 2. “Today’s Shipment” shall mean that the goods referred to shall be under billing by the transportation company the day the order is given.
No. 3. The term “Tomorrow’s Shipment” or “Immediate Shipment” shall be deemed to mean that the shipment referred to shall be under billing by the transportation company not more than 24 hours later than allowed under “Today’s Shipment”.
No. 4 The term “Quick Shipment” shall be deemed to mean that the conditions of the offer, order, or confirmation will be met if the shipment is under billing by the transportation company not more than 48 hours later than that allowed under “Today’s Shipment”.
No. 5. The term “Prompt Shipment” shall be deemed to mean that the conditions of the offer, order, or confirmation will be met if the shipment is under billing by the transportation company not more than 72 hours later than allowed under “Today’s Shipment”.
No. 6. The term “Shipment first part of week” or “Early part of week” shall be deemed to mean that the produce referred to shall be under billing by the transportation company Monday or Tuesday of the week specified.
No. 7. The term “Shipment middle of week” shall be deemed to mean that the produce referred to shall be under billing by the transportation company Wednesday or Thursday of the week specified.
No. 8. The term “Shipment last of week” or “latter part of week” shall be deemed to mean that the produce referred to shall be under billing by the transportation company Friday or Saturday of the week specified.
No. 9 The provisions “Shipment as soon as possible” or “as soon as carrier can be secured” shall be deemed to mean that the shipper is uncertain as to when the shipment can be made but expects to make it within a reasonable time and will make it as soon as possible. But in any case where these words are so used the buyer shall, at any time after 7 days from the date of order, have the right to cancel the order or contract of sale provided notice of his decision so to cancel shall have been received by the shipper before shipment has been made.
No. 10. The term “F.O.B.” (for example F.O.B. Simcoe, Ontario or even F.O.B. Ontario) shall be deemed to mean that the commodity quoted or sold is to be placed free on board transport at shipping point, in suitable shipping condition (see definitions of “suitable shipping condition” No. 11 and 12 of this Regulation) and that the buyer assumes all risks of damage and delay in transit not caused by the shipper, irrespective of how the shipment is billed. The buyer has the right of inspection at destination before the goods are paid for, but only for the purpose of determining that the produce shipped complied with the terms of the contract or order at time of shipment, subject to the provision covering suitable shipping condition. This right of inspection does not convey or imply any right of rejection by the buyer because of any loss, damage, deterioration, or change which has occurred in transit.
If the shipper consigns the goods to himself with instructions to notify the buyer, this billing being for the purpose of securing payment of the draft or other performance of the contract by the buyer, and there is no understanding between the parties as to when title shall pass, the produce is considered as shipped at the buyer’s risk as in the case of an F.O.B. shipment.
No. 11. “Suitable shipping condition” in relation to direct shipments shall be deemed to mean that the commodity, at time of billing, shall be in a condition which, when shipment is handled under normal transportation service and conditions, will assure delivery without abnormal deterioration at the destination specified in contract of sale.
No. 12. “Suitable shipping condition” in connection with reconsigned or rolling cars shall be deemed to mean that the commodity, at time of sale, shall meet the requirements of the definitions of this phrase provided for application to direct shipments in No. 11 of this Regulation.
No. 13. The term “F.O.B. Acceptance” shall be deemed to mean the same as F.O.B. except that the buyer assumes full responsibility for the goods at shipping point, and has no right of rejection on arrival nor has he any recourse against the shipper because of any change in condition of the goods in transit, unless the goods when shipped were not in suitable shipping condition. (See definition Nos. 11 and 12 of this Regulation.) The buyer’s remedy under this method of purchase is by recovery of damages from the shipper and not by the rejection of the shipment. Suitable shipping condition does not apply under this trade term. The buyer does have a recourse for a material breach of contract, providing the shipment is not rejected.
No. 14. The term “F.O.B. Acceptance Final” shall be deemed to mean that the buyer accepts the commodity F.O.B. transport at shipping point without recourse.
No. 15. The term “F.O.B. Subject Inspection and Acceptance Arrival” shall be deemed to mean that the commodity quoted or sold is to be placed by the seller free on board at shipping point, the cost of transportation to be borne by the buyer, but the seller to assume all risks of loss and damage in transit not caused by the buyer who has the right to inspect the goods upon arrival and to reject them if upon such inspection they are found not to meet the specifications of the contract of sale at destination. The buyer may not reject without reasonable cause. Such a sale is F.O.B. only as to price and is on a delivered basis as to quality and condition.
No. 16. The term “F.O.B. Sale at Delivered Price” shall be deemed to mean the same as F.O.B. except that transportation charges from shipping point to destination shall be borne by the seller, that is, the sale is F.O.B. as to quality and delivered as to price.
No. 17. The term “F.A.S. Ship” shall be deemed to mean that the commodity bought or sold is to be delivered free along side the ship in accordance with the terms of the contract and that the buyer assumes all responsibility and risk of damage thereafter.
No. 18. The term “Delivered” or “Delivered Sale” shall be deemed to mean that the commodity quoted or sold is to be delivered by the seller on board transport, or on dock if delivered by ship at the market in which the buyer is located, or at such other market as agreed upon, free of any and all charges for transportation or protective service. The seller assumes all risks of loss and damage in transit not caused by the buyer. For example, a sale of Canada No. 1 potatoes delivered at Winnipeg means that the potatoes when tendered for delivery at Winnipeg shall meet all the destination requirements of the Canada No. 1 grade as to quality and condition.
No. 19. The terms “In transit”, “Roller” and “Rolling Car” shall be deemed to mean that the commodity referred to has been in possession of the transportation company and under movement from shipping point prior to the day on which the quotation is made, and that the car is moving over a route in line of haul between the point of origin and the market in which delivery is to be made. If a roller, or rolling car, or car in transit is sold F.O.B. shipping point, the buyer will be deemed to assume only the lowest authorized all rail freight charges applicable between the point of origin and the destination stated in the contract of purchase, together with car rental, refrigeration and heater charges, if any; provided that the kind and extent of the protective service required by the shipper’s instructions to the carriers are specified in the contract. But the buyer shall not be deemed to have assumed any demurrage, storage, detention, icing or heater charges, or diversion or reconsignment charges, that would not have accrued had the car been originally shipped direct to destination provided in the contract of purchase. If the carrier fails to accomplish diversion when properly notified, and such notification is duly acknowledged by the carrier, the contract of sale shall be deemed to have become null and void unless otherwise specifically provided.
No. 20. The terms “Tramp Car” or “Tramp Car Sale” shall mean that the commodity has left the shipping point under a bill of lading issued prior to the day on which the quotation is made and has moved or is moving over a route out of line haul with the market in which it is to be delivered or in which it is being offered or quoted. But if sold F.O.B. shipping point, the buyer assumes only the lowest authorized all rail freight charges applicable between the point of origin and the destination stated in the contract of purchase, together with car rental, refrigeration and heater charges, or diversion or reconsignment charges, that would not have accrued had the car been originally shipped direct to the destination provided in the contract of purchase.
If the carrier fails to accomplish diversion when properly notified, and such notification is duly acknowledged by the carrier, the contract of sale shall be deemed to have become null and void unless otherwise specifically provided.
No. 21. The term “Track Sale” or “Sale on Track” shall be deemed to mean that when a commodity is sold on track after arrival at destination, the buyer shall be considered to have waived any right to reject the commodity so purchased upon receipt by him or his duly authorized representative, from the seller or his duly authorized representative, of the bill of lading, delivery order, or other document enabling him to obtain the goods from the carrier.
The foregoing shall not be construed as depriving the buyer of a right to reparation when the unloading of the car shall demonstrate that a part of the lading which was not accessible to inspection was of a quality or condition much inferior to that portion which was accessible to inspection but notice of intention to file claim for reparation must be given to seller within twenty-four hours after receipt by buyer of delivery order or bill of lading.
If the seller gives the date of arrival when quoting price, and in the absence of any written memorandum of sale to the contrary, the buyer shall assume all charges that accrue on the shipment from the date of its arrival. If the seller fails to furnish the date of arrival when quoting price, and in the absence of any written memorandum of sale, which includes the date of arrival, or specific written statement, as to who shall assume such charges as have accrued after arrival, the buyer may assume that the shipment arrived at point of sale on the day and date upon which the purchase was made, and shall be liable only for such charges as would properly attach to a shipment arriving on date it was purchased.
No. 22. The abbreviations “C.A.F.”, “C.A.C.” and “C.I.F.” shall be deemed to mean “Cost and Freight”, “Cost and Charges” and “Cost Insurance and Freight”, respectively. When a sale is made C.A.F. it shall be deemed to mean the same as on an F.O.B. sale except that the selling price includes the correct freight charges to destination. C.A.C. sales shall be deemed to be the same as F.O.B. sales except that the selling price includes the correct freight and refrigeration or heater charges to destination. C.I.F. sales shall be deemed to be the same as F.O.B. sales except that the selling price includes insurance and the correct freight, refrigeration or heater charges to destination.
No. 23 A “Carload” or “Carlot” or “Car” when referred to in offers, quotations or sales in which the quantity is not more definitely specified, and in the absence of well established trade custom or standard as to size of a “carload”, “carlot” or “car” or the commodity in question, shall be deemed to mean not less than the lowest minimum quantity required by the carrier’s tariff applicable to the movement, and not more than 10% in excess of such lowest minimum tariff requirements, except that where carrier’s tariffs provide alternative rates and minima, the buyer shall state which tariff minimum must be observed and in event of failure so to do, the shipper may exercise his discretion, in no case, however, exceeding the higher tariff minimum quantity, except only such variations therefrom as are permitted in this paragraph.
No. 24 “Shipping Point Inspection” shall be deemed to mean that the seller is required to obtain Government inspection, or such private inspection as has been mutually agreed upon to show the compliance of the lot sold with quality and/or condition specifications of the contract and that the seller assumes the risk incident to incorrect certification.
No. 25. “Shipping Point Inspection Final” or the words “Inspection Final” following the name of the province or point as British Columbia inspection final shall be deemed to mean that the seller is required to obtain Government inspection, or such private inspection as has been mutually agreed upon, to show the compliance of the lot sold with the quality and/or condition specifications of the contract and that the buyer assumes the risk incident to incorrect certification.
No. 26 “Calendar dates” should be used, wherever practicable, to specify when shipments must be made, will be made or have been made.
Sundays and Legal Holidays should not be included in computation of time in connection with these rules and definitions, except in “Today’s Shipment”.
No. 27. “Oral Agreements”. In case any contract of sale or purchase or agreement of such nature is arranged or amended orally, in person or by telephone, the selling or buying broker, as he may be, should immediately confirm the arrangement to both buyer and seller in writing. If an amendment to a contract or an agreement has been made directly between the buyer and seller, each should confirm the same to the other in writing. If the mail advice will not reach the seller or the buyer prior to shipment, diversion or reconsignment of the goods in question or delivery of goods that are already at destination, the confirmation should be sent by wire or messenger.
No. 28. “Future Sales or Purchases”. Sales or purchases made for future shipment or delivery are made F.O.B. shipping point, usual terms, or subject to inspection and acceptance at place and time of shipment as specified in the order and contract of sale and all terms and conditions with respect to F.O.B. sales as far as applicable shall govern futures.
Future sales are made with the understanding and agreement that the sale is based on an estimate of an unharvested crop to be shipped by the grower, or from the district or station specified in the contract.
On all future sales, neither the seller nor his agents shall be liable for any damage or loss to the buyer from short, late or delayed shipment, or non-shipment or non-delivery, caused by delay or inability to harvest to fill the contract, failure or partial failure of crops, floods, droughts, weather conditions, embargoes, inability to secure cars, accidents, strikes, lockouts, acts of governmental, state or municipal authorities, legal process, shortage of labour or of shook or other packing material, providential or other causes, unavoidable or beyond the control of the seller or its agents.
Future sales are made with the understanding and agreement that the seller shall have the right to make other future sales against its estimate of unharvested crop from the grower, the district or station specified in the contract and if by reason of the causes above mentioned, or either or any of them such total sales exceed the total crop available for shipment by the seller from the grower, the district or station so specified, then and in any such events after shortage is ascertained, pro rata delivery shall be made by the seller from stocks then remaining unshipped, if any to all buyers without discrimination and such deliveries shall be accepted by the buyer. The seller or his agents reserves the right to cancel any future sales contract or any part thereof which cannot be filled by reason of any of said causes.
No. 29 “Delayed or Deferred Shipments and Deliveries”. Where, in a sale or contract of sale, the date for shipment or delivery is provided for either expressly or by means of the use of any of the terms herein defined and it is impossible for reasons beyond the control of the seller to make shipment or delivery as agreed the seller shall immediately advise the buyer by wire, stating the causes thereof and the earliest possible specific or approximate date on which shipment or delivery can be made and the buyer thereupon shall immediately advise the seller by wire as to whether or not he still desires to have his order filled. This paragraph is not intended to deprive the buyer of any rights to damage which he may have.
(NOTE) In cases where through error or misunderstanding, shipment may have been made at a date later than that contracted for, the buyer should on receipt of knowledge, either by wire or mail, of such shipping date, immediately notify the seller by wire if the shipping date is unsatisfactory. It is obvious that failure to do so is a violation of good business ethics and is a moral, if not a legal obligation.
No. 30. “A Quotation of Price” given by the seller to the buyer is not an offer to sell but only an invitation for an order or offer to buy even though the party quoting actually owns or has the goods and makes the quotation in person. The sale or contract of sale is not completed until the seller or his authorized agent has accepted the order. After acceptance of an order, neither party has the right to cancel without consent of the other party.
(NOTE 1) To avoid misunderstandings, it is essential that the language used in quoting prices or making offers be unequivocal. It is suggested that:
(a) When a seller desires to solicit orders by quoting prices, he use the words “we quote” and that;
(b) When he intends to make a definite offer to sell, he use the words “we will sell”;
(c) When quoting, selling or buying, the words “Standard Terms” should be included in the wire to indicate that the transaction is subject to these Standard Rules and Definitions of Trade Terms.
(NOTE 2) It is unnecessary, when quoting prices, as distinguished from offering to sell, to give notice that “all quotations are subject to change in market price and to the goods being unsold on receipt of order” or “Subject to confirmation” but the practice is recommended because it helps to make clear to prospective buyers that the quotations are not offers to sell but only invitations for offers to buy.
(NOTE 3) It should be borne in mind at all times that if the party to whom an offer is made does not accept it exactly as made to him, there is no contract and his modified acceptance amounts only to a counter offer. It should also be understood that to complete a contract a definite offer to buy or sell must be accepted within a reasonable time.
No. 31. “Equipment and Protective Service”. In shipping perishable commodities, where the contract is not specific as to equipment and protective service, the buyer should be consulted and if he remains silent, the shipper shall be governed by the exigencies of weather and temperature conditions and, further, shall issue such instruction to the carrier as will provide the requisite protection. The buyer shall not, in such case, dispute the wisdom or necessity for such protective measures or the attendant charges therefor.
No. 32 “Sales through brokers”. Both buyer and seller shall require brokers, on any sales made through brokers, to issue a confirmation of sale in duplicate, giving the buyer’s and seller’s names and addresses and the terms and conditions of the sale. The original sales ticket shall be given to the buyer and the duplicate to the seller.
No. 33. “Shipments Below Contract Requirements”. The shipper should not ship nor deliver goods which are not in accordance with the contract of sale. If he is unable to fulfill his contract, due to causes beyond his control, he shall notify the buyer, giving the reasons therefor, and propose such substitution as he may have to offer. The buyer shall have the option of accepting the substitution and shall advise the shipper promptly.
No. 34. “Arrival at Destination”. A shipment shall be deemed to have reached destination when notice of arrival has been given by the carrier to the consignee and shipment is placed where inspection is practicable or when car or cars are placed by the railroad on its recognized produce team track or on private unloading track at destination, in accordance with billed delivery (if any) or where shipment is held on consignee’s instructions awaiting his order for placement on such team or private track.
Provided proper advice of shipment, including routing and number and initials of car or cars in which shipment was originally made, has been given to the consignee by the consignor, the burden of locating a shipment after arrival at destination rests upon the consignee. Under such circumstances and unless the consignor has neglected to bill the shipment with proper instructions to the carrier to notify the consignee of arrival, failure of the carrier to do so will not release the consignee from his obligations to the consignor.
(NOTE) The term “consignee” when used in this rule shall be construed to include the “notify” or “advise” party in the case of shipments billed to order of the consignor or billed to the shipper.
PART IVAccount Sales and Sales Receipts Form
It is important that each lot be identified by a lot number and that each sales invoice show the lot number.
| Lot No. | Date |
| Shipper’s Name | Vehicle Identification No. |
| Reason for Accounting | Date of Arrival |
| SALES | |
| Date of saleQuantityContainerPrice Per UnitTotal Value | |
| Total Quantity | Total Sales $ |
Expenses
| |
| Total Expenses $ | |
| Residual Value $ | |
| (Sales less Expenses) | |
| |
- SOR/2011-11, s. 8
- Date modified: