USDA Lifts PACA Reparation Sanctions on Texas Produce Business
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Thomas W. Northcross, doing business as Produce Place USA, satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the McAllen, Texas, company can continue operating in the produce industry upon applying for and being issued a PACA license. Thomas W. Northcross was listed as the sole proprietor of the business and may now be employed by or affiliated with any PACA licensee.
USDA is required to impose sanctions on a 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.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.