WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- IXE Agro USA LLC, operating out of Sparks, Ga., for failing to pay a $12,284 award in favor of a Florida seller. As of the issuance date of the reparation order, Alejandro Garcia, IXE Trading Ag, Northstar Distributors LLC, and Alexander Salgado were listed as members of the business.
- Fresh Mex Produce Inc., operating out of Houston, Texas, for failing to pay a $7,280 award in favor of an Arizona seller. As of the issuance date of the reparation order, Maria Luisa Loaiza and Osualdo H. Rios were listed as the officers, directors, and major stockholders of the business.
PACA provides for 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.
The USDA stated that it is required to suspend the license of a 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.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
