A reparation order involving unpaid produce transactions was satisfied by Espirit Trading Inc in the amount of $26,990 issued under the Perishable Agricultural Commodities Act (PACA).
If the Vernon, Calif., company is granted a PACA license, it will be able to continue operating in the produce industry. The business listed Lin Calin as an officer, director, and/or major stockholder, and may now work for or be associated with any licensee of PACA.
Produce transaction disputes are handled by PACA; USDA may issue a reparation order requiring those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables to pay damages.
When an unlicensed business fails to pay the PACA reparations awarded against it as well as impose limitations on the principals who are determined to be responsible for the business when the order is issued, the USDA is required to suspend the license or impose sanctions. PACA licensees are not allowed to employ or affiliate sole proprietors, partners, members, managers, officers, directors, or major stockholders without USDA approval.
USDA releases individuals with previously identified, responsible connections once they have fully satisfied a reparation order and there are no outstanding unpaid awards. Similarly, any unlicensed company that fully satisfies all unpaid reparation awards must obtain a license if it intends to continue operating in the industry.
Call (202) 720-2890, fax (202) 690-2815, or email PACADispute@usda.gov to speak with John Koller, Chief, Dispute Resolution Branch.
As part of the Agricultural Marketing Service’s Fair Trade Practices Program, PACA regulates the fair trading practices of businesses within the fruit and vegetable industry who operate under the PACA program, including buyers, sellers, commission merchants, dealers, brokers, and so on. About 3,625 PACA claims involving more than $104 million were resolved by USDA in the past three years. Approximately $166 million worth of issues were handled by PACA staff to over 7,600 callers.
Contact Info
Public Affairs
PA@usda.gov
(202) 720-8998
Source : Producebluebook
