USDA lifts PACA reparation sanctions on Texas Produce Business

The U.S. Department of Agriculture (USDA) announced that RR & Tequila Limes LLC satisfied a reparation order in the amount of $11,600 issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transaction(s).

The McAllen, Texas, company has met its obligations and is now free to operate in the produce industry. Victor Rivera was listed as a member of the business and may now be employed by or affiliated with any PACA licensee.

PACA provides 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. USDA is required to suspend the license on 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.

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, 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.

Click here for an overview of companies who previously violated PACA.

For more information:
John Koller
USDA
Tel: +1 202 720 2890
Email: PACAdispute@usda.gov  


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