Canada Grain Regulations (C.R.C., c. 889)

General Conditions of Licensing

16 It is a condition of every licence to operate an elevator that the licensee shall

• (a) store all grain received in an elevator building described in the application for the licence;

• (b) notify the Commission in writing of any functional alteration to the elevator building described in the application or any functional alteration respecting grain flows or sampling or control mechanisms, and of any addition to any equipment associated with the elevator, within 15 days after plans for the alteration or addition become available;

• (c) without delay notify the Commission in writing of any damage to, or destruction of, any elevator building described in the application, or damage to, or destruction or removal of, any equipment required by the Commission to be installed in the elevator building;

• (d) without delay notify the Commission in writing of any damage to, or the destruction of, any grain stored in any elevator building described in the application;

• (e) keep each elevator building and all associated equipment in good repair and in good working order;

• (e.1) keep sampling and weighing equipment and areas surrounding the equipment clean and accessible; and

• (f) keep the licence posted in a conspicuous place in the elevator.

Security

17 The period prescribed for the purpose of paragraph 49(3)(a) of the Act is

• (a) if an elevator receipt or grain receipt is issued on delivery of the grain, 90 days; and

• (b) if a cash purchase ticket or other bill of exchange is issued on delivery of the grain or is later issued on surrender of an elevator receipt or grain receipt in respect of the grain, the lesser of

  • (i) 90 days, and

  • (ii) the period that ends 30 days after the day on which the cash purchase ticket or other bill of exchange is issued.

18 Security is not required from an applicant for a licence or from a licensee if the applicant or licensee is an agent of Her Majesty in right of Canada.

19 For the purposes of subsection 49(5) of the Act, the prescribed percentage of security realized or enforced is 100%.

Records to Be Kept by Licensees

20 Each licensee shall keep, for at least six years, all documents that relate to grain that was delivered to, stored by, shipped or otherwise disposed of by the licensee and that specify whether the grain was purchased, received for storage or received for sale on commission.

20.1 [Repealed, SOR/2000-213, s. 2]

Application for Licence

• 21 (1) Each applicant for a licence shall submit to the Commission, no later than the 15th day of the month prior to the commencement date of the licence period, specimens of all tickets, receipts, reports of sales and any other forms to be used by the licensee under its licence.

• (2) [Repealed, SOR/2004-198, s. 10]

• (3) Each applicant for a licence shall submit to the Commission, no later than the 15th day of the month prior to the commencement date of the licence period, the licence fee set out in Schedule 1 and the security fixed by the Commission under section 45 of the Act.

22 [Repealed, SOR/2001-273, s. 11]

Obligation and Security Reports

23 No later than the 15th day of every month, each licensed grain dealer, primary elevator operator and process elevator operator shall submit to the Commission, on the appropriate form supplied by the Commission or in an electronic format acceptable to it, a report respecting the licensee’s outstanding obligations for the payment of money or the delivery of grain to holders of elevator receipts, grain receipts and cash purchase tickets and the security amount available to meet those obligations at the end of the preceding month.

Licensed Grain Dealer Reports

24 Every month, each licensed grain dealer shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the grain dealer’s operations during the preceding month.

24.1 [Repealed, SOR/2000-213, s. 2]

Process Elevator Reports

25 Every week, each process elevator licensee shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the licensee’s operations during the preceding week.

25.1 [Repealed, SOR/2000-213, s. 2]

Primary Elevator Reports

26 Each primary elevator licensee shall submit to the Commission

• (a) every week, in a form and manner that is accepted by the Commission, a report respecting the licensee’s operations during the preceding week; and

• (b) no later than October 15 in each crop year, in a form and manner that is accepted by the Commission, a report respecting the licensee’s operations during the preceding crop year for each primary elevator operated by the licensee.

Terminal Elevator Reports

27 Every day, the operator of a terminal elevator shall submit to the Commission, in a form and manner that is accepted by the Commission, a report respecting the elevator’s operations during the preceding day.

28 [Repealed, SOR/2005-361, s. 6]

PART 4Charges

Storage Charges if Licensee Unable to Deliver Grain

29 With respect to a period referred to in subsection 53(2) of the Act, the special maximum storage charge at an elevator is

• (a) if the period has lasted seven days, for the next seven days of the period, 75% of the storage charge that could otherwise be made by the operator of the elevator for that type of storage; and

• (b) if the period has lasted 14 days, for the remainder of the period, 50% of the storage charge that could otherwise be made by the operator of the elevator for that type of storage.

Public Notices

29.1 Each licensee who operates an elevator shall keep posted in a conspicuous place in the elevator the schedule of the current charges filed with the Commission under subsection 50(1) of the Act.

PART 4.1Grain Delivery Contracts

29.2 In this Part, delivery period means, in relation to a contract for the purchase of grain, the period specified in the contract during which grain is to be delivered by the producer to the licensee. (période de livraison)

• 29.3 (1) Any contract between a producer and a licensee for the purchase of grain within a delivery period must include a provision stating that, in the event that delivery of the kind and grade of grain indicated in the contract is not accepted by the licensee during the delivery period, a penalty is to be paid by the licensee to the producer.

• (2) The contract must also include provisions stating that the penalty

  • (a) is agreed on by the producer and the licensee in the contract;

  • (b) applies to the remaining undelivered portion of grain that was contracted for but that was not accepted by the licensee during the delivery period; and

  • (c) is payable either at the time that the delivery of grain is completed by the producer or on another day otherwise agreed on by the producer and the licensee.

• (3) If the penalty agreed on by the producer and the licensee is based on a daily amount, the penalty is payable for each day during the period beginning on the first day after the day on which the delivery period expires and ending on the day on which the total amount of grain specified in the contract is accepted and received by the licensee, or on another day otherwise agreed on by the producer and the licensee.

PART 5Elevators, Grain Dealers and Grain Handling

Shrinkage Allowance

30 The maximum shrinkage allowance that may be made on the delivery of grain to any licensed elevator is zero.

31 and 32 [Repealed, SOR/2004-198, s. 13]

Receipt of Grain into a Licensed Primary Elevator

• 33 (1) Every cash purchase ticket or primary elevator receipt issued by the operator of a licensed primary elevator shall be set out in accordance with the document entitled Cash Purchase Ticket or Combined Primary Elevator Receipt, as appropriate, published by the Commission, as amended from time to time.

• (2) If grain is purchased by the operator of a licensed primary elevator, the operator shall issue a cash purchase ticket without delay after the grain is unloaded.

• (3) If grain is received for storage at a licensed primary elevator, the operator of the elevator shall issue a primary elevator receipt without delay after the grain is unloaded.

Sampling on Delivery

• 34 (1) For the purposes of sections 35 and 36, on the delivery of grain to a licensed primary elevator, a portion of at least 1 kg from a sample of the grain that is considered by the elevator operator and the person delivering the grain to be representative of the grain shall be taken from each load and retained either at the elevator or in accordance with any other instructions agreed to by the operator and the producer.

• (2) The sample shall be retained for the shortest of the following periods:

  • (a) the period that ends seven days after the day on which the elevator operator issues the primary elevator receipt;

  • (b) the period that ends when an agreement on grade and dockage is made between the elevator operator and the producer and an appropriate primary elevator receipt or cash purchase ticket has been issued; and

  • (c) the period that ends when the representative portion of the sample is forwarded in accordance with paragraph 36(1)(d).

Dockage Determination on Receipt at Licensed Primary Elevator

• 35 (1) The operator of a licensed primary elevator shall make an accurate determination of dockage in grain delivered at the elevator by

  • (a) taking a representative portion of at least 1 kg from the sample referred to in section 34;

  • (b) testing the sample with equipment of a type authorized by the Commission and hand-picking, if necessary, any portion that is not separable by that equipment; and

  • (c) computing the dockage to the nearest 0.1%.

• (2) If the person delivering grain to a licensed primary elevator so requests, the test to determine the dockage in the grain shall be made in that person’s presence.

35.1 [Repealed, SOR/95-386, s. 6]

Final Quality Determination

• 36 (1) If the operator of a licensed primary elevator and the producer do not agree on the grade of the grain or the dockage in the grain delivered and an interim primary elevator receipt is issued, the operator shall take a representative portion of at least 1 kg from the sample referred to in section 34 and shall

  • (a) put the representative portion in a container that is supplied by the operator or the person delivering the grain and that the operator and that person agree will maintain the integrity of the sample;

  • (b) identify the container with the name of the owner of the grain and with the interim primary elevator receipt number;

  • (c) mark the container “For Final Quality Determination”; and

  • (d) forward the container to the nearest regional inspection office of the Commission, with all shipping charges prepaid, accompanied by a written request from the operator or the owner of the grain that an inspector examine the representative portion and report to the persons named in the request what grade and dockage the inspector would assign to the grain if the examination were an official inspection.

• (1.1) After the applicable period referred to in 34(2) has expired in respect of a sample, the operator or the owner of the grain may not make a written request under paragraph (1)(d) in relation to the sample.

• (1.2) The operator of the elevator shall take the representative portion in the presence of the person delivering the grain, if the producer so requires.

• (2) On receipt of the representative portion, an inspector at the regional inspection office of the Commission shall examine it, determine its grade and dockage and transmit a copy of the determination to each person named in the request.

• (3) Any person who has an interest in the grain and who is dissatisfied with the determination of the inspector may, within 15 days after the date of the examination, request the chief grain inspector for Canada to re-examine the representative portion.

• (4) On receipt of the representative portion, the chief grain inspector for Canada shall examine it, determine its grade and dockage and transmit a copy of the determination to each person named in the request.

• (5) The determination of the chief grain inspector for Canada is final.

• (6) On receipt of the final determination, the operator of the elevator shall exchange the interim primary elevator receipt for the appropriate primary elevator receipt or cash purchase ticket indicating the grade and dockage assigned to the representative portion in accordance with this section.

• (7) For greater certainty, in this section, “grade” includes the tough, damp, moist and wet grades established in the Off Grades of Grain and Grades of Screenings Order.