Applying for a Canadian Grain Commission licence

Mode of operations questionnaire

In order to determine whether or not you require a Canadian Grain Commission licence as a grain dealer or an operator of a grain elevator, you must first complete a Mode of operations questionnaire.

If it has been determined that, under the Canada Grain Act, you require a Canadian Grain Commission licence,you will be notified. You must then provide the Canadian Grain Commission with:

• Information about your company
• Your intended scope of operations
• Your legal and financial status
• Your ability to carry on business under the requirements outlined in the Canada Grain Act
• Official documents verifying that you have complied with specific conditions necessary for the issuance of your licence

Completing the licensing forms

Remember to make a copy of your completed forms to keep on file for future reference. 

Please submit the forms as you complete them, instead of sending them all together.

Application form

Begin by completing the application form appropriate to the class of licence you require. There are two different forms: Application for Elevator Licence and Application for Grain Dealer's Licence under Application and reporting forms for licensees.

Provide accurate and complete information on the application form. For example, the name of applicant requested on the first page should be exactly the same as the company name used in any Articles of Incorporation. Making note of these details will help ensure your licence issuance goes smoothly.

Once you have completed the form, sign the Declaration section on the back page.

Authorization-specimen signatures

• Include the names, titles and signatures of all officials authorized to make submissions to the CGC on the Authorization-Specimen Signatures form under Application and reporting forms for licensees.
• Clearly print or type the name and title of officials in the left hand column.
• Include signatures, in dark blue or black ink, of the officials in the right hand column directly adjacent to their names and titles.
• To verify the authenticity of the signatures, include the signature of the principal of the operation and the date.

Security

Security must be tendered after the Canadian Grain Commission establishes the amount of security required. Do not tender security until the Canadian Grain Commission notifies you of the required amount and term of coverage. There are three different forms of security that may be provided:

1. Bond
   If you are tendering a bond, issued by an acceptable bonding company, as security:
   • Send in a completed Bond form (CS720) under Application and reporting forms for licensees.
   • Include two signatures and corporate seals as directed.
   • Security must be tendered in Canadian funds.
   The Treasury Board of Canada Secretariat provides a list of acceptable bonding companies (Treasury Board of Canada Secretariat). These are the only insurance companies whose bonds are acceptable as security for a Canadian Grain Commission licensee.
2. Irrevocable standby letter of credit or guarantee
   If you are tendering a Letter of Credit as security:
   • Provide an Irrevocable Standby Letter of Credit or Guarantee issued by a Canadian chartered bank, caisse populaire, Canadian credit union, provincial government or provincial government agency.
   • Security is to be tendered in Canadian funds.
   • Letters of Credit or Guarantee must cover a period of 18 months from your annual licence renewal date.
     Example:
     If your annual renewal date is May 1, 2006, letter of credit coverage for that renewal expires on October 31, 2007. There is a six-month discovery period to cover deliveries of grain during the annual term of the licence, but security is realized after the licence expires.
3. Payables insurance
   International insurance broker, AON Reed Stenhouse and the CGC have developed a payables insurance policy that replaces the bond, letter of credit or guarantee that licensees are required to post with the CGC. Zurich Insurance Canada underwrites the payables insurance to cover licensees not meeting their payment obligations to producers. The policy has been written to be consistent with all aspects of the current security program. To participate, a licensee must provide financial information as part of the application and qualification process.
4. Cash deposit

Providing supporting documents

Articles of incorporation

• Include copies of your Letters Patent Incorporating or Articles of Incorporation.
• Include copies of any supplementary Letters Patent, Articles of Continuation, Articles of Amalgamation, Articles and Amendment.

Year-end financial statements

• Include a bound, original set of your most recent audited year-end financial statements.
• Include the signature of a company director on the statements.

Certified copy of insurance policy for terminal, transfer or primary elevators

• Include a certified copy of the complete and current insurance policy, including the required Fully Insured Clause, Loss Payable Clause and Trackage Clause, with your application.

Sample receipts and tickets

The Canadian Grain Commission reviews and authorizes grain receipts and elevator receipts and cash purchase tickets that licensees issue for grain received.

Include drafts of your receipts and tickets as follows:

• Primary elevators-combined primary elevator receipt; cash purchase ticket
• Process elevators-grain receipt; cash purchase ticket
• Grain dealers-grain receipt; cash purchase ticket

This requirement is not applicable to terminal and transfer elevators.

Elevator scale verification

• If you are applying for an elevator licence, include a copy of the Device Inspection Certificate(s) issued by Measurement Canada for your elevator's shipping/receiving weigh scales.

Sending the annual licence fee, application form and documentation

Include a cheque, in Canadian funds, payable to the Receiver General for Canada for the annual licence fee.

Use the Application checklist to check to see if you have gathered and compiled all the necessary information.

If you have any further questions about your application, contact the Canadian Grain Commission at 1-800-853-6705.

Any information provided by you to the Canadian Grain Commission is maintained in the strictest confidence subject to the Access to Information Act (Department of Justice Canada).