Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Thursday, May 31, 2007

On the question of cost

Jimmie Turner of USDA AMS responded to a query I gave him earlier about whether the USDA May 30 rule, referenced in this post, would preclude buyers from charging suppliers for trust notification.
Below is his response:


Below is AMS’ response to your query about the final rule on electronic trust protection, specifically: Does the rule address whether buyers can charge sellers to receive the PACA trust notice?:

“The rule does not attempt to regulate business relationships in new ways. Under the new rule, there are no restrictions on the buyers’ and sellers’ negotiating -- as they always have -- prices for product, freight, brokerage, late fees and all the other details of their contracts, including the methods and cost of trust notification.”



TK: While the agency "punted" on this issue, the USDA eventually needs to stipulate that buyers are prohibited from charging suppliers for any reason relating to the communication of PACA trust language.

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