WASHINGTON, DC - The United States Department of Agriculture (USDA) recently revealed it has imposed sanctions on Ayar Produce NY for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the Brooklyn, New York-based business and its principal operators from engaging in PACA-licensed business or other activities without USDA approval.
Direct from the USDA Agricultural Marketing Service:
Ayar Produce failed to pay $720,226 to 14 sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from February 2020 to September 2020. This is in violation of the PACA. Ayar Produce cannot operate in the produce industry until May 16, 2024, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Necati Ayar, may not be employed by or affiliated with any PACA license until May 16, 2023, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
