USDA Lifts PACA Reparation Sanctions on California Produce Business
WASHINGTON, D.C. - The U.S. Department of Agriculture (USDA) has revealed that Excell Prod. Inc. has satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the Los Angeles, CA-based company has met its obligations and is now free to operate in the produce industry. Wing Tsan, who was listed as the Officer, Director, and Major Stockholder of the business, may now be employed by or affiliated with any PACA licensee, the department reports.
As we’ve previously reported, Excell Prod., Inc., was originally restricted for failing to pay a $15,526 award in favor of a California seller.
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.
In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
