USDA restricts PACA violators in Texas, Idaho from operating in produce industry

The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

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

Mercatropic Corp., operating out of McAllen, Texas, for failing to pay a $40,110 award in favour of a California seller. As of the issuance date of the reparation order, Roberto De La Torre was listed as the officer, director, and major stockholder of the business.
Mega Avoconamex USA LLC, operating out of McAllen, Texas, for failing to pay a $3,997 award in favour of a California seller. As of the issuance date of the reparation order, Miriam Del Carmen, Martinez Castro, and Ivan Domingo Ruiz Ponce were listed as members of the business.
The Best Sun Produce, operating out of Dallas, Texas, for failing to pay an $18,021 award in favour of a California seller. As of the issuance date of the reparation order, Jose A. Rayas and Juan E. Torres were listed as partners of the business.
Blackbird Seven LLC, operating out of Blackfoot, Idaho, for failing to pay a $105,393 award in favour of an Idaho seller. As of the issuance date of the reparation order, Scott M. Phillips was listed as a member of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.

For more information:
John Koller
USDA
Tel: +1 (202) 720-2890
Fax: +1 (202) 690-2815
Email: [email protected]
www.ams.usda.gov/news