“Bad” Arrival

#9 – Misinterpreting language on a USDA inspection certificate that reads “Fails to grade US #1 account condition”

It’s important to remember that when an inspector determines product does not make grade, he/she is not saying the product failed to meet contract specifications.  Product sold on a U.S. #1 f.o.b. basis is not required to grade U.S. #1 after a cross-country trip; rather, the product is required to be U.S. #1 at shipping point and to arrive at contract destination without abnormal deterioration, per the warranty of suitable shipping condition.  Abnormal deterioration is determined with reference to PACA (or DRC) good arrival guidelines, and is not specifically commented on by inspectors on either USDA or CFIA inspection certificates. 

#10 – Failing to document a missing temperature recorder on the delivery receipt

When a receiver signs a delivery receipt from a carrier “clean,” it represents that all the items shown on the receipt (usually a copy of the bill of lading) have been received.  Consequently, when a receiver fails to note a missing recorder, it is assumed the receiver took possession of the recorder.  This presumption potentially undermines a receiver’s claim against either the seller or the carrier.  Specifically, the receiver will have a difficult time showing temperatures were “normal” in support of a claim against the seller, and will have difficulty showing temperatures were “abnormal” in support of any carrier claim it may wish to bring.  Receivers who habitually note missing recorders on their delivery receipts avoid these problems.