Direct hit shipments

Background

The Canadian Grain Commission has allowed direct hit shipments since the early 1980s with formal Direct Hit Program requirements in place since 1990. The 2002 Direct Hit Program included requirements related to official Canadian Grain Commission inspection and weighing, storage space, monitoring, equipment, certification, fees, and alternatives for meeting the general requirements.

Amendments to the Canada Grain Act (CGA) in August 2013 eliminated official Canadian Grain Commission inward inspection and weighing services at licensed terminal elevators. As a result, the Canadian Grain Commission does not provide inspection or weighing services on receipt of grain, including producer cars, into licensed terminal elevators. The responsibility for inward inspection and inward weighing requirements at licensed terminal elevators rests with the private sector.

In August 2013, Section 47 (Direct Hit Shipments) of the Canada Grain Regulations (CGR) was amended as follows:

47. The operator of a licensed terminal elevator may receive grain without causing it to be inspected and weighed and without issuing an elevator receipt for it if the grain is transferred directly from a railway car or other conveyance to a ship and is officially inspected and weighed on transfer to the ship.

Paragraphs 47(a) and 47(b) are repealed.

Although the legislation still allows licensed terminal elevators to handle grain consistent with the 2002 Direct Hit Program requirements, these types of shipments are negotiated and carried out under commercial handling agreements.

Licensed terminal elevators undertaking a direct hit grain shipment must meet the following requirements:

• Reporting: Canadian Grain Commission Licensed Terminal Elevator Reporting Requirements (May 9, 2013), under the authority of paragraphs 116(l) and (p) of the CGA and section 27 of the CGR, must be met for data pertaining to terminal elevator receipts, shipments, and stocks in store for both individual railcar receipts and vessel loadings.
• Sampling: There is no right to request an official reinspection on individual railcar samples/grades as there are no single railcar samples. Direct hit shipment commercial handling agreements should include this stipulation.
• Weighing: Canadian Grain Commission Weighing Oversight and Certification Program (WOCP) requirements must be met, including when inward weigh scales are used for outward weighing to an export vessel.

Sampling and weighing systems used for direct hit shipments must meet all Canadian Grain Commission requirements and be certified by the Canadian Grain Commission.

Direct export shipments to destinations other than to the United States require official outward inspection performed by the Canadian Grain Commission and weighing conducted in accordance with Canadian Grain Commission WOCP requirements.

Derek Bunkowsky
Chief Grain Inspector for Canada
Industry Services
800-303 Main Street
Winnipeg MB  R3C 3G8

Chris Foster
Chief of Grain Weighing Services for Canada
Industry Services
333 Seymour Street
Vancouver BC  V6B 5A6