USDA Imposing Sanctions on Local Business
MCALLEN – The U.S. Department of Agriculture is imposing sanctions under the Perishable Agricultural Commodities Act on a McAllen produce business for failing to pay a seller.
PACA is a code to ensure fair trading practices protection for distributors, farmers and retailers. The law requires the trader, seller and buyer to comply with the terms of their contracts.
Veronica Garza with Garza Produce said although they haven’t been involved in a dispute, she’s seen the impact of a seller not complying with specifics in a contract.
“We need certain – we order it and it’s not been able to be delivered at a certain time. So that product cannot go on our truck where we have to deliver it at a certain time,” she said. “It affects us because it’s not going to be in the truck where somebody is expecting to receive it.”
Produce traders found not in compliance with PACA rules could face fines, license suspension or revocation and other sanctions.