WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on a produce business for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, McAllen, Texas-based MRP Cuts LLC, continues to be restricted from operating in the produce industry for failing to pay a $36,744 award in favor of a Washington seller. As of the issuance date of the reparation order, Juan Gamez was listed as a member of the business. The USDA has added Luis Enrique Garcia as a responsibly connected member of the business. Roberto Garcia is contesting his responsibly connected status, according to the release.
Subsequent to the issuance of the reparation order listed above, a new reparation order was issued against MRP Cuts LLC to pay $1,411 to a Texas seller. The USDA reports that MRP Cuts LLC has not made payment to the Texas seller within the time designated in the new reparation order. As a result, the sanction period levied against the company and its principals has been extended to reflect this new violation.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), 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 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.