Direct Hit Shipments program update

Direct hit shipments are defined as shipments of Canadian grains, oilseeds and/or pulses which are transferred directly from trucks and/or railcars to a vessel for direct export through a licensed terminal elevator without added processing or storage.

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 current Direct Hit program was effective August 1, 2002 and includes requirements related to: official Canadian Grain Commission inspection and weighing, storage space, monitoring, equipment, certification, fees, and alternatives for meeting the general requirements.

Given amendments to the Canada Grain Act to eliminate official Canadian Grain Commission inward inspection and weighing services at licensed terminal elevators, as of August 1, 2013, the Canadian Grain Commission will no longer 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 will move from the Canadian Grain Commission to the private sector.

As a consequence of this legislative change, section 47 (Direct Hit Shipments) of the Canada Grain Regulations will be 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Paragraphs 47(a) and 47(b) are repealed.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 amended legislation will still allow licensed terminal elevators to handle grain consistent with the 2002 Direct Hit Program requirements, these types of shipments will be negotiated and carried out under commercial handling agreements. As such, as of August 1, 2013 the Canadian Grain Commission Direct Hit Program 2002, Notice of Direct Hit Shipment form (IW-10), and schedule of Direct Hit Service Fees cease to be in effect and are replaced by the following requirements for licensed terminal elevators undertaking a direct hit grain shipment:

  1. Reporting: Canadian Grain Commission Licensed Terminal Elevator Reporting Requirements (May 9, 2013), under the authority of paragraphs 116(l) and (p) of the Canada Grain Act and section 27 of the Canada Grain Regulations, encompassing data pertaining to terminal elevator receipts, shipments, and stocks in storemust be met for both individual railcar receipts and vessel loadings.
  2. 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.
  3. Weighing: Canadian Grain Commission Weighing Oversight and Certification Program 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 Weighing Oversight and Certification Program requirements.

Contact

If you have any questions about direct hit shipments post August 1, 2013 please contact either Randy Dennis, Chief Grain Inspector for Canada at 204 983-2780 (Email: gino.castonguay@grainscanada.gc.ca) or Brent Andrews, Chief of Weighing at 204 229-0128 (Email: brent.andrews@grainscanada.gc.ca).

Gino Castonguay
Chief Grain Inspector for Canada

Brent Andrews
Chief of Weighing

Date modified: