Declarations Respecting Grain - Requirement to Make and Provide

Order number 2021-30

Introduction:

  1. Section 83.1 of the Canada Grain Act (“the Act”), which came into effect on July 1, 2020, requires every licensee and every person who sells grain to a licensee to, in accordance with the regulations, make and provide a declaration respecting the grain to a prescribed person.
  2. The Canadian Grain Commission (“the Commission”) has authority under subsection 117(b) of the Act to make orders exempting particular elevators or grain handling operations from licensing or any other requirements of the Act, where control over that elevator or operation is not essential for maintaining the quality, safekeeping and orderly and efficient handling of grain in Canada.
  3. In the Eastern Division, terminal elevators are required to be licenced under the Act and have not widely employed a contractual system for declarations respecting grain to be provided on sales of grain to those terminal elevators. As such, inland grain elevators and handling operations who sell to these terminals have not historically been contractually required to make declarations or require them from producers when they buy grain.
  4. Operational restrictions during the COVID-19 pandemic limit the ability of affected elevators and grain handling operations to adjust business practices needed to make and provide a declaration respecting grain.
  5. Through order 2020-43 the Commission provided for exemptions from section 83.1 of the Act to elevators and grain handling operations in the Eastern Division from July 1, 2020 to June 30, 2021. The Commission is satisfied that grain elevators and grain handling operations selling grain to licensees in the Eastern Division require an additional transition period for providing the Declarations Respecting Grain that are required under the Act, and the Commission is satisfied that control over those elevators and grain handling operations is not essential for maintaining the quality, safekeeping and orderly and efficient handling of grain in Canada during an additional transition period.
  6. Prior to the making of this Order the Commission consulted with stakeholders in the Eastern Division.
  7. The decision in respect of this order was made at a meeting of quorum of the Commission on April 30, 2021. Two of three Commissioners constitutes a quorum of the Commission.

The Commission makes the following order:

  1. Pursuant to subsection 117(b) of the Act, the Commission hereby exempts grain elevators and grain handling operations in the Eastern Division, which sell grain to a licensee in the Eastern Division, from the requirements of s. 83.1 of the Act, as follows:
    1. This exemption applies only to elevators and grain handling operations which have submitted a request to the Commission, which satisfies the requirements set out below, and received acknowledgement and approval from the Commission that the request is complete;
    2. Any grain elevators or grain handling operations not meeting the requirements of this Order must make a separate request to the Commission for an exemption;
    3. This exemption applies only to sales of the grains identified in section 5(1) of the Canada Grain Regulations, where those grains are grown in or delivered into the Eastern Division;
    4. A Declaration Respecting Grain continues to be required in accordance with the Act for all sales of Western Grain, or sales of Eastern Grain to licensees in the Western Division.
  2. Elevators or grain handling operations which were not previously exempted and wish to be exempted under the provisions of this Order, must submit to the Commission a request containing the following:
    1. Date of request;
    2. Name of the elevator or grain handling operation;
    3. Address of the elevator or grain handling operation for delivery of notifications, and the physical address of the elevator or grain handling operation if it is different;
    4. Name of a contact individual for the elevator or grain handling operation, along with a telephone number and email address; and
    5. Consent to release of such further or other information as may be requested by the Commission for purposes of review of this Order.
  3. Any grain elevator or grain handling operation which previously requested and received an exemption for the period of July 1, 2020 to June 30, 2021, and wishes to be exempted under the provisions of this Order, must so indicate to the Commission in accordance with such procedure as the Commission may determine.
  4. This order will be in effect for the crop year commencing July 1, 2021 and continuing until June 30, 2022, unless revoked earlier, after which no exemption will apply under this Order.
  5. This exemption provided under this Order may be withdrawn by further Order, in respect of any grain elevator or grain handling operation which does not, in the opinion of the Commission, satisfy the conditions of this Order.

Doug Chorney
Chief Commissioner

Patty Rosher
Assistant Chief Commissioner

Lonny McKague
Commissioner

Signed on: May 3, 2021

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