Licensing information for licensees

Your Responsibilities as a Canadian Grain Commission Licensee

Operational responsibilities

Once your licence is issued, you are required to adhere to various day-to-day operational and reporting responsibilities. These vary depending on the class of licence you hold. Failure to comply with your obligations under the Canada Grain Act and Canada Grain Regulations could lead to the suspension or revocation of your licence.

As a Canadian Grain Commission (CGC) licensee, you have the following responsibilities:

• Security and liability
• Insurance (terminal, transfer and primary elevators)
• Elevator scale verification (terminal, transfer, process and primary elevators)
• Producer verification of weight (primary elevators)
• Sampling on delivery (primary elevators)
• Subject to inspector's grade and dockage
• Receipts for grain received
• Labelling rail cars at primary elevators

All licensed elevator operators must:

• Post the CGC licence in a conspicuous location in the elevator building
• Install and maintain equipment and facilities to ensure the efficient and accurate weighing, sampling, inspection, grading, drying and cleaning (excluding primary elevators), and accommodation of all grain received or discharged
• Store all grain received in an elevator building described in the licence application. An elevator can also store grain on the ground if a written request is submitted to the CGC, advising the kind of grain to be stored on the ground and the date grain to be stored on the ground is to be received. Upon delivery, an elevator receipt, grain receipt or cash purchase ticket must be issued, and the elevator has the same responsibility for the grain as it has for grain stored in the elevator building.
• Keep elevator buildings and associated equipment in good repair
• Keep sampling equipment and surrounding areas clean
• Provide immediate written notification to the CGC of the following:
  • Functional alterations to the elevator or to grain flows, sampling, control or any other equipment (within 15 days of plans becoming available)
  • Damage or destruction of any elevator building described in the application
  • Damage, destruction or removal of any equipment required by the CGC
  • Damage or destruction of grain stored in any elevator building described in the application

Licensees must notify the CGC before constructing a new elevator or renovating an existing elevator, or if there is a change in the total licensed capacity of an elevator during a licensing year. Total licensed capacity includes principal house, annex, other house, such as bins or twinned elevators, and any condominium storage not already included in the licensed capacity. To report these changes, licensees should choose and complete the following forms:

• Application for Elevator Construction or Elevator Renovation (BE120) under Application and Reporting Forms for Licensees
• Amendment to Application (AM650) (if applied to a currently licensed elevator) under Application and Reporting Forms for Licensees
• Application for Elevator Licence under Application and Reporting Forms for Licensees

The CGC conducts official weigh-overs of all stocks in store at least once every 30 months at terminal elevators and at least once every 60 months at transfer elevators. All stocks are turned over to establish a weight and a grade for each bin. This data is reconciled against officially registered stocks to determine overages or shortages for the weigh-over period.

Operators of primary elevators must conduct their own weigh-overs and report them to the CGC, at minimum, once every three years.

Security and liability

All CGC licensees must post security to cover all eligible liabilities pursuant to the Canada Grain Act and Canada Grain Regulations (link). Security may be tendered in the form of one of the following:

• Bond, issued by an acceptable bonding company (Treasury Board of Canada Secretariat)
• Letter of Credit or Guarantee issued by Canadian chartered banks, caisse populaires, Canadian credit unions, provincial governments or provincial government agencies
• Payables Insurance

For primary and process elevators and grain dealers, security tendered by the licensee covers only producer liabilities. If the licensee refuses or fails to pay producers for grain delivered, they can make a claim against the security to the CGC to recoup what they are owed. There are time periods within which producers are eligible to make a claim.

Insurance (terminal, transfer and primary elevators)

All grain stored in the elevator, and in the course of delivery, in or out of the elevator, must be fully insured against loss or damage caused by:

• Windstorm
• Hail
• Flood
• Inherent explosion
• Smoke
• Leakage from fire protective equipment
• Vandalism
• Malicious act
• Impact by land vehicles
• Impact by vessels or floating objects

The coverage must include a Fully Insured Clause, a Loss Payable Clause and a Trackage Clause. For information on the three required clauses listed above, contact the CGC Licensing & Security Unit.

The CGC monitors the weekly dollar value of grain stocks in store to determine that insurance levels are adequate. Operators of terminal and transfer elevators must submit monthly reports indicating the weekly dollar value of grain stocks in store for the reporting month. In addition, operators of terminal, transfer and primary elevators must:

• Furnish the CGC with a certified copy of each applicable insurance policy on an annual basis.
• Provide written notification to the CGC at least 30 days in advance of any cancellation or change to any policy

Elevator scale verification (terminal, transfer, process and primary elevators)

Operators of primary, process, terminal and transfer elevators must provide documentation showing that Measurement Canada has approved their weigh scales.

Producer verification of weight (primary elevators)

Operators of primary elevators must allow producers who deliver grain to verify scale weight of grain while it is being weighed.

Sampling on delivery (primary elevators)

Operators of primary elevators must take a sample from each load of grain delivered. A representative sample is then taken from the sample, according to these steps:

• The subsample weighs at least 1 kilogram
• The grain producer or the person delivering the grain and the elevator operator agree that the subsample is representative

The subsample may be discarded unless the grain producer or the person delivering the grain requests one of the following:

• An inspection according to the Canada Grain Act provision, Subject to inspector's grade and dockage
• Special bin storage

Subject to inspector's grade and dockage

Operators of primary elevators must follow a provision under the Canada Grain Act called Subject to inspector's grade and dockage. The grain producer or the person delivering the grain has the right to ask for a binding decision from the CGC if the grain producer or the person delivering the grain disagrees with the grade and dockage determined at a licensed primary elevator. The grain producer is paid according to the CGC's decision.

Receipts for grain received

Licensees must issue CGC-authorized documents to the producer upon receipt of grain. If the producer makes a claim against security, the producer must provide one of these documents in order for the claim to be eligible for compensation.

Grain dealers and operators of process elevators must issue one of the following:

• Grain receipt
• Cash purchase ticket

Operators of primary elevators must issue one of the following:

• Combined primary elevator receipt that includes
  • Primary elevator receipt
  • Interim primary elevator receipt
  • Special bin primary elevator receipt
• Grain receipt
• Cash purchase ticket

Operators of terminal elevators must issue to the CGC:

• Terminal elevator receipt or Grain Inventory Accounting System record of receipt of grain for registration

Operators of transfer elevators must issue to the CGC:

• Transfer elevator receipt or Montreal Registration System record of receipt of grain for registration

Labelling rail cars at primary elevators

When shipping grain, operators of primary elevators must attach a railcar shipping tag called an I-90 tag to the notice board of the rail car to provide information about the origin and contents of the rail car. Use the appropriate tag colour for the type of shipment as follows:

Labelling rail cars

I-90 tag colour	Type of shipmenth>
White	Regular shipment
Yellow	Prairie inspected cars
Blue	Shipments of malting barley
Red	Shipments of unlicensed varieties

To order I-90 tags, contact:
Canadian Grain Commission
Procurement
1-800-853-6705 or (204) 983-8302