USDA lifts sanctions on Texas produce company after reparations payment made

Produce
A Dallas-based produce company has paid over $26,000 in reparations for PACA violations. | CBP Photography/Wikimedia Commons

USDA lifts sanctions on Texas produce company after reparations payment made

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The U.S. Department of Agriculture (USDA) announced that Dallas-based Itamp Inc. has paid $26,912 reparation order and will be able to operate in the produce industry once it has the appropriate license.

The reparation order, which involved unpaid produce transactions, was issued under the Perishable Agricultural Commodities Act (PACA), USDA stated in the Feb. 14 announcement. Now that Itamp has paid the reparations, it may apply for and be issued a PACA license. Luis Armando Lopez, listed as Itamps' "officer, director and major stockholder," has also been cleared to work for or otherwise be associated with any PACA licensee. 

"Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid," the agency states in the announcement, "USDA lifts the employment restrictions of the previously named, responsibly connected individuals."

USDA also requires any unlicensed company what has paid reparation fines to obtain the PACA license to continue working in its industry, the USDA reports.

PACA, an administrative forum, investigates disputes over produce transactions. Companies found to violate contractual obligations in selling and/or buying fresh or frozen produce face reparation orders from the USDA. Failure to pay PACA reparations may result in the required suspension of the company's PACA license and the imposition of sanctions on unlicensed businesses and their principals, the USDA reports. 

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