By Blake Jackson
The U.S. Department of Agriculture (USDA) announced that JD Produce Maspeth LLC, a Maspeth, New York-based produce company, has resolved a $3,352 reparation order issued under the Perishable Agricultural Commodities Act (PACA). This means the company has fulfilled its financial obligations and is now free to operate in the produce industry.
Shengbo Dong, previously listed as the member and manager of JD Produce Maspeth, is also cleared by the USDA. They can now be employed by or affiliated with any PACA licensee, as the USDA has lifted the employment restrictions imposed due to the unpaid reparations.
PACA provides a forum for resolving disputes within the produce industry. When a company fails to meet its financial obligations in buying or selling fresh and frozen fruits and vegetables, the USDA may issue a reparation order requiring them to pay damages. If the order remains unpaid, the USDA has the authority to suspend the company's license or impose sanctions on unlicensed businesses. Additionally, individuals considered "responsibly connected" to the company, such as members, managers, or major stockholders, may be barred from working with any PACA licensee until the order is fully satisfied.
In the case of JD Produce Maspeth, once the company settled the reparation order and the USDA confirmed no other outstanding payments were due, the employment restrictions for Shengbo Dong were lifted, allowing them to resume their career in the produce industry.
This case highlights the importance of PACA in ensuring fair and ethical business practices within the produce trade. By providing a mechanism for resolving disputes and holding companies accountable, PACA helps protect both buyers and sellers and promotes a healthy and competitive marketplace.
For more information, contact Penny Robinson-Landrigan, Chief, Dispute Resolution Branch, at (202) 720-2890 or PACAdispute@usda.gov.
Photo Credit: usda
Categories: New York, Business