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TMCNet:  USDA Restricts Two PACA Violators in New York from Operating in the Produce Industry

[November 21, 2012]

USDA Restricts Two PACA Violators in New York from Operating in the Produce Industry

Nov 21, 2012 (Agriculture Department Documents and Publications/ContentWorks via COMTEX) -- CONTACT: Nadine.Wilkins (202) 720-8998, Nadine.wilkins@ams.usda.gov WASHINGTON, Nov. 21, 2012 - The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).


The following businesses and individuals are currently restricted from operating in the produce industry: --Sam Jin World Trading Inc., operating out of Brooklyn, N.Y., for failing to pay an $8,640 award in favor of a Florida seller. As of the issuance date of the reparation order, Kyung M. Lee and Jin J. Lee were listed as the officers, directors, and major stockholders of the business.

--Desi Food, operating out of Brooklyn, N.Y., for failing to pay a $37,837.30 award in favor of a New York seller. As of the issuance date of the reparation order, Ripos Sheikh was listed as the officer, director, and major stockholder of the business.

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.

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 PACA oversight actions are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 5,000 claims filed under the PACA involving almost $96 million. This is just one more way 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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