United States Department of Agriculture Lifts PACA Reparation Sanctions on New York Produce Business
WASHINGTON, DC - After being restricted from operating in the produce industry back in December 2021, the United States Department of Agriculture (USDA) announced that Fong Shing International Corp. has satisfied a $53,540 reparation order.
The Maspeth, New York-based company is now free to operate in the industry after meeting its obligations under the Perishable Agricultural Commodities Act (PACA), and Minh Thai, who was listed as the officer, director, and/or major stockholder of the business, may now be employed or affiliated with any PACA licensee.
Direct from the USDA Agricultural Marketing Service:
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, 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, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
For contact information, and to read the release in full, click here.