The PACA law or the perishable agricultural commodities act is actually the federal law, which generally deals with interstate and international deal in both frozen as well as fresh product. This kind of law is basically applicable for the dealings that rare made with one’s buyer, receiver, broker, consignee, if one is actually engaged in the business of selling and buying products that comprise of fresh and frozen vegetables and fruits, herbs and fresh roots in the foreign country or between different US states. The trade that is related to produce, unlike that of merchandize and clothes, is directly related to the subject of federal law. The produce contracts, which are generally placed under this law, should go through a proper review before it is signed.

The P.A.C.A law is generally imposed by the PACA division, which is a Department of the Agricultural or USDA. The same also sets various laws, which are actually connected in resolving the disputes, contracting to sell and buy produce and also at times, collection of undisputed debts as well. An individual, if one wishes to can find an informative website on different laws of the PACA. Such websites provide an individual with all the necessary information’s regarding the rules, regulations and laws that come under the law. Various other things like licensing; protecting and dispute declaration is properly mentioned in these various websites. Forms like the license forms, bond forms, guidelines on proper delivery, forms for filing reparation complaints, and a fifty page list of merchandise enclosed under PACA are all present there. Such websites also contain good article on the topic of development and creation of Vegetable and Fruit Dispute Resolution Corporation, which is commonly known as DRC.

The industries that are involved in the buying and the selling of various goods should be properly licensed, so that they can trade in a proper manner without facing any kind of difficulty and can gain the best desired result from one’s business. When a produce generally gets exported and imported and crosses the drawn line, then it can be clearly stated as the “interstate” transit. In order to have proper interstate transit, one should have proper set license. If an industry who is involved in the business, is required to have a license in under the P.A.C.A law, but is not a license holder, then a proper letter is sent to them, as a form of advice, to draw a license for oneself as soon as possible and even one is also accountable to answer the same, about the fact, why one did not get a license for oneself till date?

There are certainly few expectations like the growers and the retailers, who generally make a purchase that is less than that of $230,000 per annum. The independent agents who deal with various frozen food brokers and the sell per year is less than that of $230,000 of theta of the produce, and the processors who generally make the purchase of the produce that needs to be circulated, within the state itself. Farmers who generally make a produce for someone and make a sell on behalf of the other, needs a P.A.C.A license as stated under the P.A.C.A law. PACA normally covers just about all kinds of produces. The products that come under this law are: mushrooms, herbs , root crops, edible flowers.

Author's Bio: 

The author, Laxmon runs a business of different agricultural and firming products, and has researched in a wide manner about the rules and laws of the P.A.C.A law that is valid in the line of trade.