AMS No. 016-13

Nadine Wilkins (202) 720-8998

nadine.wilkins@ams.usda.gov

WASHINGTON, Feb. 5, 2013 – The U.S. Department of Agriculture (USDA) announced that America Growers Association LLC has satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).

The Vernon, Calif., company may continue operating in the produce industry once they apply for, and are issued, a PACA license. Albert Huang, listed as a member of the business, may now be employed by or affiliated with any PACA licensee.

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 impose sanctions 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. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.

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 oversight of actions related to PACA are conducted by AMS, an agency within the 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 the 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.