FNS 709-5, Rev. 4: Shipment & Receipt of USDA Food

This management bulletin provides updated guidance to school food authorities (SFAs) and other entities that receive USDA Foods directly from a USDA-contracted vendor. In 2024, the USDA Food and Nutrition Administration (FNA) released Instruction 709-5, Rev. 4 Shipment and Receipt of USDA Foods (Instruction), and on June 16, 2026, the USDA issued a technical assistance question-and-answer communication to clarify information provided in the Instruction. Together, these documents provide guidance on USDA Foods received directly from a USDA-contracted vendor in the areas of:

• Arranging for shipment and delivery
• Inspecting shipments
• Accepting and refusing shipments
• Receipting a shipment
• Unloading a shipment
• Disposition and replacement of out-of-condition USDA Foods

The Instruction 709-5, Rev. 4 Shipment and Receipt of USDA Foods (Instruction) is not applicable to USDA Foods received from a state distribution center, Co-op or a recipient’s contracted warehouse or for processed end products received from either a USDA Foods processor or commercial distributor. Additionally, it does not apply to deliveries of Department of Defense Fresh Fruit and Vegetable Program (USDA DoD Fresh) products.

Instruction 709-5 Rev. 4, can be viewed on the USDA Food Distribution Program Instructions and Handbooks web page at https://www.fna.usda.gov/usda-foods/shipment-receipt-goods-instruction-709-5.

Key Content

Key highlights relating to the shipments and receipt of USDA Foods are detailed below, the section numbers refer to the corresponding section in the USDA Instruction.

Section IV: Records Management Requirements

An entity that receives a shipment of USDA Foods from a vendor or federally-contracted storage facility, referred to as the Consignee in the Instruction, must maintain documentation of the serial number of the truck’s security seal, the temperature of the trailer interior upon arrival, inspection results regarding the condition of the food (if applicable), and disposition of any USDA Foods received out-of-condition, including, as applicable, the destruction of such foods, or a signed salvage receipt from the vendor or carrier.

Records must be retained for a period of three years from the close of the fiscal or school year to which they pertain.

Section VI: Definitions

The Instruction contains definition of terms used throughout the guidance document and detail important distinctions such as the difference between a refused shipment and a rejected shipment:

• A refused shipment is one that the entity receiving the USDA Foods refuses to unload if:
  • the security seal is broken or missing, or the serial number on the seal does not match the number on the supporting documentation; or
  • For shipments originating from a vendor, the USDA Contracting Officer does not respond with a resolution within two hours of receipt of all the required information.
  • A rejected shipment results when the USDA Contracting Officer provides a determination regarding out-of-condition USDA Foods, after review of the Refused Shipment Request.
• Consignee is defined as an entity (e.g., State Distributing Agency [California Department of Education (CDE)], Food Distribution Program (FDP) participant, or processor) that receives a shipment of USDA Foods from a vendor or Federally-contracted storage facility.
• Contracting Officer is defined as the USDA representative who may authorize rejection of loads and make contractual determinations
• Contracting Office is the USDA Office (e.g., Agriculture Marketing Service’s [AMS] Commodity Procurement Program, that awards a contract for supplies or services and works with contractors to resolve issues).

Section VIII: Arranging for Shipment and Delivery

Vendors and carriers must arrange for an agreeable delivery appointment with the entity receiving USDA Foods, also referred to as the Consignee, as far in advance of the expected delivery as possible; however, there is no minimum time period required.

If the vendor or carrier arrives at the scheduled time and is unable to make the delivery due to any action or inaction by the Consignee, the vendor must contact USDA FNA before placing the foods into storage or moving them to another location which may subject the Consignee to additional charges.  

If a delivery arrives without an appointment or is late, the Consignee should accept the shipment if they are able or work with the carrier to schedule an alternate delivery appointment. If a suitable redelivery time cannot be found, the Consignee should contact the CDE FDP directly, by phone at 916-324-7132 or by email at FoodDistribution@cde.ca.gov, who will immediately notify the USDA FNA of the request to reject the delivery. When receipting for the delivery in the USDA’s Web Based Supply Chain Management (WBSCM) system, Consignees should report in the comment section any issues experienced and identify the carrier.

Destination change requests for sales orders in the “purchased” status must be submitted at minimum 45 days in advance of the start of the delivery period to the CDE FDP by phone at 916-324-7132 or by email at FoodDistribution@cde.ca.gov.

Section IX: Inspecting the Shipment

Consignees must inspect each shipment carefully prior to unloading, ensuring the security seal is intact on the door and that it matches the seal number on the supporting documentation (e.g. bill of lading [BoL]). If the seal is missing, broken, or does not match the documentation, the Consignee must refuse the shipment by contacting the CDE FDP directly, by phone at 916-324-7132 or by email at FoodDistribution@cde.ca.gov, who will immediately notify the USDA FNA of the rejected delivery (See Section X. Shipment Acceptance or Refusal Request for the process for refusing shipment). Refusal of a shipment for these instances does not require prior approval from the USDA.

Inspection steps include:

• Removal of the intact security seal by the Consignee
• Temperature check using the thermometer of the trailer to ensure is at an acceptable level and that the unit is turned on and working
• Temperature check of the physical product is also strongly recommended for all frozen and refrigerated products; canned products should not be received if frozen.
• Confirmation that the quantity of physical product matches the BoL with any overages; document shortages or damages in writing on the BoL prior to the vendor or carrier departing
• A thorough examination of the shipment to observe the condition, taking note of any odors, evidence of pest activity, signs of defrosting or thawing then refreezing, and/or damage to the outer or inner containers
  • Identify findings in writing on the BoL prior to the vendor or carrier departing

Section X: Accepting or Refusing a Shipment

If the Consignee inspection indicates that some, but not a major portion of the USDA Foods in the shipment are out-of-condition, or there is only a minor discrepancy from the quantity of USDA Foods ordered, the Consignee may accept the entire shipment, document the discrepancy on the BoL, and segregate any out-of-condition USDA Foods.

The recipient must immediately notify the CDE FDP by phone at 916-324-7132 with a follow-up email to FoodDistribution@cde.ca.gov of the out-of-condition foods to request refusal of that part of the shipment and must be done prior to the vendor or carrier departing. The CDE will immediately notify the USDA FNA upon receiving documentation of the delivery issue.

To refuse a delivery:

• Immediate notification must be made to the CDE FDP by phone at 916-324-7132 with a follow-up email to FoodDistribution@cde.ca.gov.
• Consignee must also immediately file a complaint in the WBSCM to ensure formal rejection and other appropriate actions are taken.
• A previously-refused shipment may only be accepted by the Consignee after a Condition of Container Inspection has been performed by a USDA representative.
  • Note however, if the vendor replaces the refused shipment with a new delivery of USDA Foods, no Condition of Container inspection is required.

Documentation required for a Refused Shipment Request:

• The BoL, including item codes and descriptions, and quantity of product(s) in question;
• Photographs or video of the product exhibiting the concerns, including photographs of the product and product label(s); and
• Temperature readings, when applicable.

If the Contracting Officer does not respond to the CDE FDP with a resolution within two (2) hours of receipt of a complete Refused Shipment Request, the CDE FDP will notify the Consignee that they may refuse to unload the shipment. The CDE FDP will notify the Contracting Officer of all shipments refused to ensure formal rejection or other appropriate contractual remedies are completed.

In certain circumstances, the Contracting Office may require and arrange for a Condition of Container Inspection or other inspection for deliveries refused for being out-of-condition; these inspections will assess whether the USDA Foods product(s) still meets specifications. The Consignee shall never pay for a USDA-requested inspection.

Section XI: Receipting for the Shipment

A Consignee must enter the Goods Receipts into the WBSCM system within two (2) business days.

Section XIII: Disposition and Replacement of Out-of-Condition USDA Foods

All coordination and instruction for the disposition and replacement of out-of-condition USDA Foods will be received from the Contracting Office and will be communicated through the CDE FDP to the Consignee. For shipments that are found to contain out-of-condition USDA Foods, and after taking all necessary steps detailed in the Instruction, the vendor or carrier must be provided the opportunity to remove the items for salvage. A signed salvage receipt must be provided at time of pick up and provided to the CDE, USDA FNA, or the Contracting Office upon request.

If the vendor’s shipment has already been accepted and the vendor or carrier is unwilling to remove such foods, it is the responsibility of the Consignee to destroy or otherwise dispose of the out-of-condition USDA Foods, in accordance with State and local requirements pertaining to food safety and health. Out-of-condition USDA Foods may not be used in any USDA food assistance programs. Any USDA markings must be obliterated if the product is salvaged for other use. Requests to the USDA for reimbursement for expenses incurred by the Consignee for unloading, storing, inspecting, or disposing of USDA Foods that are delivered out-of-condition may be made through the CDE FDP.

When all or a major portion of a shipment is rejected, coordination of replacement foods or of a claim against the vendor shall be negotiated by the Contracting Officer and will be communicated to the CDE FDP who will notify the Consignee of the status.

Comments

AMS, FNA, and the CDE, are committed to ongoing improvement of the Shipment and Receipt of USDA Foods Instruction and ensuring it meets the needs of USDA Foods program partners. USDA welcomes comments on how to further improve support and operations. A dedicated email to accept comments regarding the FNA-709-5 instructions is available at Comments@usda.gov.

Contact Information

If you have any questions regarding this subject, please contact the CDE’s FDP by email at FoodDistribution@cde.ca.gov.