Paul Horton: What is PACA?

PACA is the federal law which applies to interstate and international trade in fresh and frozen produce. If you sell or consign fresh or frozen fruits or vegetables, fresh herbs or roots into the United States or between states in the US, then the PACA law almost certainly applies to your dealings with your receiver, consignee, broker or buyer. PACA is the acronym for a federal law known as the Perishable Agricultural Commodities Act. Unlike trade in other products which is subject to state law, produce trade in the United States is subject to federal law. However, all produce traders should keep in mind that it is quite easy to waive PACA protections in a produce sale contract. All produce contracts should be carefully reviewed before they are signed.

The PACA law supplies missing terms to produce agreements. When two businesses deal in fresh or frozen produce, they may not agree as to all the terms for the delivery of the produce. They may only have an invoice and no other document that describes the terms of their deal. PACA fills in the gaps and provides automatic terms which apply to produce transactions when the two parties have not agreed to these additional terms.

The PACA law is found in the United States Code, Chapter 7, Section 499, in the PACA regulations, found un 7 CFR Section 46 and in cases decided in the PACA branch of the USDA and in cases decided mostly in United States District Courts.

PACA and Federal Produce Law

As PACA and Federal Produce Law Attorneys, We Represent and Help Protect the Interests of Growers and Traders

We represent growers and traders in the interstate and international produce industry. We help US and foreign firms protect and exercise their rights and responsibilities by preparing and revising sales contracts, confirmations and other documents in order to comply with federal or state produce laws.

The Basics of PACA

PACA and the PACA trust are the basic laws that apply to produce that is shipped across the United States and to produce that is imported into the United States. Any business that buys, sells or deals in fresh or frozen produce which enters the US or is traded in the US needs to be aware of PACA and its protections. One of our major areas of practice is assisting our clients to take advantage of and to comply with PACA.

The PACA laws are a set of default laws and protections that apply to commercial transactions subject to PACA. As part of the legal representation we provide, we advise clients of the PACA regulations and how they will impact certain aspects of commercial transactions. It is important that our clients understand how PACA can help reduce the risk of some aspects of international commercial transactions, as well as the remedies that sellers may have in the event of a buyer default. It’s also important to understand that the PACA rights can be waived, which may be beneficial in certain circumstances. We work with each client to carefully understand the objectives of the client so that we can provide aimed at achieving the client’s objectives.