Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, Oct. 22, 2010 – The U.S. Department of Agriculture has filed an administrative action against Tropical Banana Company Inc., alleging the company failed to make full payment promptly to 16 sellers of the agreed purchase prices or balances totaling $746,696.15 under the Perishable Agricultural Commodities Act (PACA). The company, operating out of Chelsea, Mass., purchased, received, and accepted 281 lots of produce during the period of August 2008 through April 2009.
The Tropical Banana Company 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 for two years. Furthermore, its principals would not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies 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 the PACA are conducted by the AMS, an agency within the USDA. The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.
In fiscal year 2010 USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For further information contact Phyllis Hall, Director, Trade Practices Section, at (202) 720-6873, by fax at (202) 720-8868, or by email at TradePracticesSection@ams.usda.gov.
Follow us on Twitter to receive the latest press releases, stories, and important updates about the Agricultural Marketing Service at: http://twitter.com/USDA_AMS_NEWS.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).