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TMCNet:  USDA Lifts PACA Reparation Sanctions on Texas Produce Business

[October 03, 2012]

USDA Lifts PACA Reparation Sanctions on Texas Produce Business

Oct 03, 2012 (Agriculture Department Documents and Publications/ContentWorks via COMTEX) -- CONTACT: Nadine Wilkins (202)720-8998, Nadine.wilkins@ams.usda.gov WASHINGTON, October 3, 2012 - The U.S. Department of Agriculture (USDA) announced that Adam Guzman Jr. satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).

Adam Guzman Jr., d/b/a AG Tomato Co., of Houston, Texas, has met its obligations and is now able to operate in the produce industry. Adam G. Guzman Jr. was listed as the sole proprietor of the business and may now be employed by or affiliated with any PACA licensee.

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 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.

Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named responsibly connected individuals. USDA will only reinstate the license of a business to an active status if all reparation awards are satisfied and if the license is not terminated.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers, within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.

In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million. This is just one more way the USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.

USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).

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