PACA covers fresh and frozen fruits and vegetables. The legal authority for determining what is covered under PACA can be found in the statute of 7 USC 449a(4) and in the PACA regulations at 7 CFR 46.2(u).
The following list of commodities are covered by the PACA when they are fresh or frozen (not canned or cooked). Get the list
The United States Department of Agriculture which oversee and enforces PACA provides a form where disputes outside of the court system can be address:
Informal Complaint – A company with a PACA dispute can file at an informal reparation complaint with any PACA Branch regional office. The complaint must be in writing, accompanied with a check for $100 (filing fee).
Mediation – No attorney is required for this process.
Formal Complaint – If informal methods fail, a formal complaint can be filed resulting in a order issued by the USDA for payment. The USDA requires that the documents accompanying the formal complaint be notarized, submitted in triplicates along with a $500 handling fee.
Those are your methods of resolving PACA disputes outside the court system.
The PACA requires bonds to be posted by a licensee where the firm or one of its principals has been involved in bankruptcy or when a PACA licensee employs an individual who is under PACA employment restrictions.
The purpose of the bond is to provide assurance that the licensee’s business will be conducted in accordance with the PACA and that it will pay any reparation order issued against the firm. If a reparation order involving transactions that occurred during the bonding period are not paid by the licensee, the USDA, on behalf of the unpaid reparation holder will make claim on the bond and have the funds distributed to the unpaid complainant in the reparation complaint.
Before you do business with anyone, its best to make sure that they are licensed under PACA, that way you know that the protection afforded under the statute will be available if you needed them.
You can visit this website and do a simple online search. Its that simple.
Welcome to PACA Trust Attorney, we are a law firm specializing in the Perishable Agricultural Commodities Act (PACA) trust litigation. Our website is design to provide those in the produce field with information and resources to protect their rights.
In the weeks to come, we will be adding information covering a variety of topics that affect those in the fruit and vegetable industry. We hope that you will enjoy our website and will come back often to read our blog entries.
If you are looking for a PACA attorney please, consider calling the Law Office of Sakaida & Bui, we have collectively been representing the perishable produce industry for over 25 years. Our telephone number is (818) 660-2085.