WASHINGTON, DC - The United States Department of Agriculture (USDA) has imposed sanctions on three 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 (PACA).
Direct from the USDA Agricultural Marketing Service:
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:
- Godawi Produce, operating out of Los Angeles, California, for failing to pay a $4,947 award in favor of a California seller. As of the issuance date of the reparation order, Clara Plancarte and Wilfrido Ramos Lopez were listed as the members of the business
- Savannah Seafood Delivery, operating out of Savannah, Georgia, for failing to pay a $92,088 award in favor of a California seller. As of the issuance date of the reparation order, An Lin Ruan was listed as the member of the business
- Tabasco Produce, operating out of McAllen, Texas, for failing to pay a $3,008 award in favor of a Texas seller. As of the issuance date of the reparation order, Francisco M. Gaspar was listed as the member 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.
For contact information, and to read the release in its entirety, click here.
