(July 29, 10:00 a.m.) WASHINGTON, D.C. — The U.S. Department of Agriculture has cited Grandmart International Foods GA No. 5 Inc., operating in Smyrna, Ga., for failure to pay a reparation award issued in favor of a Pennsylvania seller under the Perishable Agricultural Commodities Act.

As a result, the business has been barred from operating in the produce industry until the award is paid. The business was served a complaint by USDA and was given the opportunity to respond. USDA subsequently ordered payment of the amount of $3,069. The sole officer, director, and stockholder is Min S. Kang.

USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.