Florida Firm Posts $100,000 Surety Bond to Obtain PACA License
WASHINGTON, DC - Acosta Inc., with headquarters in Jacksonville, Florida, recently posted a $100,000 surety bond with the U.S. Department of Agriculture (USDA) to obtain a Perishable Agricultural Commodities Act (PACA) license. Under the regulations of the PACA, the company was required to post the bond following its prior involvement in bankruptcy.
Direct from the USDA Agricultural Marketing Service:
The company posted the bond as a prerequisite to obtain a new license to operate in the produce industry.
USDA will hold the bond for three years and nine months, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the 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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