United States Department of Agriculture Lifts PACA Reparation Sanctions on Texas Produce Business
WASHINGTON, DC - After previous sanctions imposed against LS & CX back in February 2020, the United States Department of Agriculture (USDA) announced that the Texas-based company satisfied a reparation order in the amount of $73,586. The order was issued under the Perishable Agricultural Commodities Act (PACA) and involved unpaid produce transactions.
Direct From the USDA Agricultural Marketing Service:
The Plano, Texas, company can continue operating in the produce industry upon applying for and being issued a PACA license. Xuan Chen, Sheng Lin, and Xin Lin were listed as members/managers of the business and may now be employed by or affiliated with any PACA licensee.
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 its entirety, click here.