USDA sanctions five companies for violating PACA

The U.S. Department of Agriculture has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act.

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.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Jind Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $37,437 award in favor of a California seller. As of the issuance date of the reparation order, Bhagatveer Singh and Akwant Kaur were listed as the officers, directors and/or major stockholders of the business.
• R & S Export & Import Inc., operating out of Doral, Fla., for failing to pay a $15,769 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Shivash Rampersad and Rabby Rampersad were listed as the officers, directors and/or major stockholders of the business.
• Carioto Produce Inc., operating out of Green Island, N.Y., for failing to pay an $11,510 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Gregory Carioto and Anthony Carioto were listed as the officers, directors and/or major stockholders of the business.
•  Produce Tech Giants, operating out of New York, N.Y., for  to pay a $9,180 award in favor of a Texas seller. As of this issuance date of the reparation order, Edgar Burgos was listed as a member/manager of the business.
• Fernando McIntyre, doing business as Morning Star Produce, operating out of McAllen, Texas, for failing to pay a $8,640 award in favor of a Texas seller. As of the issuance date of the reparation order, Fernando McIntyre was listed as the sole proprietor of the business.

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.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.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 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch, at (202) 720-2890, by fax at (202) 690-2815, or PACAdispute@usda.gov.