When selling under the term FOB, it is commonly referred to as an FOB No Grade Contract under the PACA Regulations. What are allowable condition-only defects for a trip from the west coast to the east coast, or any five day trip? Only Iceberg lettuce has Good Delivery Standards that are included in the PACA regulations; every other commodity is calculated utilizing this standard.
Remember that only condition defects are scored against good delivery standards, not quality (permanent) defects unless those defects affect the merchantability of the commodity. Condition defects can be influenced by transit time, temperature fluctuation, and timeliness of USDA inspection. In addition, the number of cartons inspected and timely notification of inspection results all need to be considered when determining good delivery of your product. An inspection might be represented as timely, but it might not be reflective of what the product should have looked like upon arrival. For example, when a load should have arrived Friday, but the buyer secures a USDA inspection on Monday, is this the first opportunity to inspect the product? The answer is yes. Is this inspection representative of what the condition of the product was when it was expected to arrive? The answer is no.
Download a good delivery chart for most commodities under normal transit for a five day trip prepared by the PACA.
For transit times less than five days, or to discuss a USDA inspection, please feel free to contact me at 949-885-2269 or firstname.lastname@example.org.