Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, Aug. 1, 2011 – The U.S. Department of Agriculture has announced that Tropical Depot Inc., a license terminated business operating in Bronx, N.Y., has satisfied the $19,885 reparation order issued under the Perishable Agricultural Commodities Act (PACA). The responsibly connected officer, director and stockholder is Luis N. Vargas.
Under PACA laws, any unlicensed or license terminated businesses cannot operate in the produce industry; however, the responsibly connected individuals may now be employed by or affiliated with any PACA licensee.
PACA provides for an administrative forum to handle disputes over produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA suspends the license of a business that fails to pay PACA reparations awarded against it and imposes restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, the PACA lifts the employment restrictions of the previously named, responsibly connected individuals. PACA will only reinstate the license of a business to an active status if all reparation awards have been satisfied and if the license has not entered a terminated status. All oversight of actions related to the PACA are conducted by the Agricultural Marketing Service, an agency within the USDA.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by e-mail at disputeresolutionsection@ams.usda.gov regarding this matter.
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