WASHINGTON, D.C. – DGS Acquisitions LLC, a company operating in Kansas City, Kansas, has posted a $200,000 surety bond with the U.S. Department of Agriculture (USDA).
According to a USDA press release, the company posted the bond in order to obtain a license to operate in the produce industry.
Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post a bond following one of its principal’s prior involvements in bankruptcy.
USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
