PR coffee industry highly regulated

The Puerto Rican coffee importing business is sufficiently regulated that Burger applies. The beans here were seized after an administrative inspection under PR law. United States v. 323 “Quintales” of Green Coffee Beans, 2012 U.S. Dist. LEXIS 47775 (D. P.R. March 30, 2012), R&R 2012 U.S. Dist. LEXIS 47765 (D. P.R. March 9, 2012):

The Supreme Court stated in Burger that an administrative search qualifies as an exception if: (1) the state has a substantial interest in regulating the industry (2), the inspection is necessary to further the regulatory scheme, and (3) the inspection is properly limited in scope and puts the business owner on notice that the search is being made. Burger, 482 U.S. at 702-703. The second part of this last requirement is satisfied if the regulatory scheme is “sufficiently comprehensive and defined that the owner of commercial property cannot help but be aware that his property will be subject to periodic inspections undertaken for specific purposes.” Id. at 703 (quoting Donovan v. Dewey, 452 U.S. 594, 600 (1981)).

The laws of Puerto Rico contain a comprehensive set of provisions pertaining to the regulation of the coffee industry. P.R. Laws Ann. Tit. 5, § 320 et. seq.; Tit. 13, §§ 2201-2205. The laws relating to coffee production express the need to protect the local coffee industry and eradicate plant pests and diseases on coffee plantations. P.R. Laws Ann. Tit. 5, §§ 319-319g. The Court agrees with the Magistrate’s determination that these provisions evince a substantial government interest in regulating the coffee industry in order to meet local consumption needs and promote the economic health of the industry.

(Lorenzo J. Palomares-Starbuck appeared for the beans.)

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