In general, any person who buys or sells more than 2,000 pounds of fresh or frozen fruits and vegetables in any given day is required to be licensed under the PACA. Wholesalers, processors, truckers, grocery wholesalers, and food service firms fit into this category.
A person who negotiates the sale of fruits and vegetables on behalf of another person is required to be licensed on the first transaction. A person operating in this capacity may be considered to be a commission merchant, broker, or a growers’ agent. A broker handling only frozen fruits and vegetables, however, is not subject to the PACA licensing requirements until the invoice value of the total negotiated sales exceeds $230,000 in a calendar year.
A person selling at retail is subject to a PACA license once the invoice costs of fresh and frozen fruits and vegetable purchases exceed $230,000 in a calendar year.
To apply for a license, to obtain more specific information about licensing requirements, or to find out if a firm is a licensee, call us toll-free at 800-495-7222.