USDA files action for $6.3 million PACA violation
The U.S. Department of Agriculture has filed an administrative complaint against Imperial Frozen Foods Op Co LLC for alleged violations of the Perishable Agricultural Commodities Act. The company, operating from North Carolina, allegedly failed to make payment promptly to 31 produce sellers in the amount of $6.37 million from May 2019 through January 2020.
Imperial Frozen Foods Op Co LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
In the past three years, USDA resolved approximately 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million.