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Perishable Agricultural Commodities Act Information Collections Under Review

Monday, May 02, 2016
Sandler, Travis & Rosenberg Trade Report

The Department of Agriculture’s Agricultural Marketing Service is accepting comments through July 1 on the proposed extension and revision of information collections associated with the reporting and recordkeeping requirements under the Perishable Agricultural Commodities Act regulations. ST&R will soon be conducting a webinar on what importers and foreign growers need to know about PACA; click here to be notified when this webinar is scheduled.

PACA protects growers, shippers and distributors dealing in fresh and frozen fruits and vegetables in interstate or foreign commerce by prohibiting unfair and fraudulent trade practices. The law also (a) provides a forum for resolving contract disputes and a mechanism for the collection of damages from anyone who fails to meet contractual obligations, (b) provides for prompt payment to sellers and sanctions against firms or principals found to have violated the law’s standards for fair business practices, and (c) imposes a statutory trust designed to ensure that suppliers, sellers and agents are paid in full. All commission merchants, dealers and brokers engaged in business subject to PACA must be licensed and those who engage in prohibited practices may have their licenses suspended or revoked.

AMS uses a variety of information collections to administer PACA licensing provisions, adjudicate contract disputes and enforce PACA and the regulations, including form FV-211, Application for License; form FV-231-1, Application for Renewal or Reinstatement of License; letters to notify USDA of changes in business operations; LLC articles of organization and operating agreements; records of produce received; records reflecting lot numbers; waiver of rights to trust protection; and copies of written agreements reflecting times for payment.

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