Kansas Firm Posts $200,000 Surety Bond to Obtain PACA License

Date
Thursday, July 23, 2015 - 10:00am

Release No.: 105-15

WASHINGTON, July 23, 2015 – DGS Acquisitions LLC, operating in Kansas City, Kan., has posted a $200,000 surety bond with the U.S. Department of Agriculture (USDA).

The company posted the bond to obtain a license to operate in the produce industry.

Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post a bond following one of its principal’s prior involvements in bankruptcy.

USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.  USDA is authorized to suspend or revoke a company’s license for violations of PACA.  All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million.  Our experts also assisted more than 7,000 callers with issues valued at approximately $110 million.  These are just two examples of how USDA continues to support the fruit and vegetable industry.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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