What companies are required to apply for the PACA License?

Any business that buys or sells more than 2,000 lbs of fresh or frozen fruits and vegetables in one day must have the PACA License.

The PACA License, or the Perishable Agricultural Commodities Act License, is essential for businesses involved in the wholesale marketing of fresh and frozen fruits and vegetables. Companies that are required to apply for this license include:

1. Wholesalers: Businesses that buy large quantities of produce to sell to retailers or other businesses must obtain a PACA License to ensure compliance with federal regulations.

2. Brokers: Those who facilitate transactions between buyers and sellers of perishable agricultural commodities also need this license. Brokers play a crucial role in the supply chain, and having a PACA License helps maintain trust and legality in their operations.

3. Importers and Exporters: Companies that import or export fresh produce must have a PACA License to ensure that they adhere to U.S. agricultural standards and regulations.

4. Dealers: Any business that engages in the buying and selling of perishable agricultural commodities, whether directly or indirectly, is required to hold a PACA License.

5. Retailers: While not all retailers need a PACA License, those who purchase large quantities of produce for resale may be required to obtain one, especially if they operate in a wholesale capacity.

Obtaining a PACA License not only ensures compliance with federal laws but also provides businesses with certain protections, such as the ability to file claims for unpaid produce. It is crucial for companies in the agricultural sector to understand their obligations under PACA to avoid penalties and maintain a good standing in the industry.

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