Do you import or export fruits or vegetables to the US? If so, it is important to know the PACA Law.
Have you been through any of the following cases?
- You didn’t receive a payment after delivering your product
- You had disputes about quality issues
- Received unjustified deductions
What is the PACA Law?
The Perishable Agricultural Commodities Act (PACA) facilitates fair trade practices in the marketing of fresh and frozen fruits or vegetables in the United States market. This law created by the United States Department of Agriculture (USDA) aims to ensure that merchants get what they paid for and that they are paid for what they sold.
ProducePay operates under the PACA licence: 20150951
It is worth mentioning that in order to be supported by the PACA Law, your company must first be legally incorporated in the United States. ProducePay Inc, being an US company can offer PACA protection to exporting companies located in Mexico and Latin America.
It’s our duty to locate this potential growers that have very good products and are consistent during their harvest, but which also may be “scared” to connnect with new distributors because of past issues.
At the end, we look for a win-win connection for both sides involved. Distributors receiving more product to sale with consistent quality control supervised by ProducePay and growers with safer sales, total transparency and security in transactions.
What products are covered by PACA?
Generally, all fresh fruit or vegetables and some frozen that do not pass through a process in which they are converted into pulps, juices, etc. You will find coverage for common products as well as exotic products that are destined for very specific niches.
See the official list of products that are covered by PACA:
Products that generally are not supported by PACA are dry, canned, cooked or precooked products. If you wish to consult a particular product that you cannot find on the list, you can dial the PACA Division number: 800-495-7222, option 2.