USDA Restricts PACA Violators in Texas from Operating in the Produce Industry
WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices, the Department of Agriculture (USDA) has imposed sanctions on two produce businesses operating out of Texas. The two companies allegedly failed to meet their contractual obligations to sellers of produce as well as failed to pay reparation awards amounting to a total of $13,560 issued under the PACA. These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
Direct from the USDA Agricultural Marketing Service:
By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Candymar Produce Inc., operating out of McAllen, Texas, for failing to pay a $1,920 award in favor of a Florida seller. As of the issuance date of the reparation order, Candido Nieto and Maricela Diaz were listed as the officers, directors and/or major stockholders of the business.
- Itamp Inc., operating out of Dallas, Texas, for failing to pay an $11,640 award in favor of a Texas seller. As of the issuance date of the reparation order, Luis Armando Lopez was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in the 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. The 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.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
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