The U.S. Department of Agriculture has imposed sanctions on Sunrise International LLC, Miami, Fla., for violating the Perishable Agricultural Commodities Act. These sanctions include barring the business and the principal operator of the business from engaging in PACA licensed business or other activities without approval from USDA.
Sunrise failed to pay $329,508 to four sellers for produce that was purchased, received and accepted in interstate and foreign commerce from September 2014 to January 2017. This is in violation of the PACA. Sunrise cannot operate in the produce industry until Sept. 23, 2022, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Robert A. Arthur, may not be employed by or affiliated with any PACA licensee until Sept. 23, 2021, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The PACA Division, which is a part of AMS’ Fair Trade Practices Program, 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. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support 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
www.ams.usda.gov