USDA raises PACA license fees

USDA raises PACA license fees    The U.S. Department of Agriculture has significantly increased its license fees under the Perishable Agricultural Commodities Act (PACA), effective Oct. 1.
   Specifically, annual license fees of $550 will be raised to $995. Fees for branch locations are increased from $200 for branch locations in excess of nine, to $600 for each branch location. The maximum amount a licensee will pay per year has increased from $4,000 to $8,000.
   The new regulations also remove the provisions to phase out license fees by retailers and grocery wholesalers and the provisions to phase in triennial license renewal for retailers and grocery wholesalers as these processes have been completed. In addition, the regulations were changed to eliminate the multi-year license renewal option for commission merchants, brokers, and dealers.
   The 1930 Perishable Agricultural Commodities Act establishes a code of fair trade practices covering the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce. PACA protects growers, shippers, distributors, and retailers dealing in those commodities by prohibiting unfair and fraudulent trade practices. USDA’s Agricultural Marketing Service administers and enforces the PACA.
   On Feb. 24, 2009, the USDA Fruit and Vegetable Industry Advisory Committee unanimously recommended to the department its approval of the proposed license fee increase. Some large produce groups to endorse the fee increase were the Western Growers Association in Newport Beach, Calif., and the Produce Marketing Association of Newark, Del.
   To read the rulemaking, access the Federal Register notice at https://edocket.access.gpo.gov/2010/2010-20978.htm