New York Firm Posts $50,000 Surety Bond to Obtain PACA License

USDA/AMS Press Release:

WASHINGTON, Feb. 16, 2016 – Porto Pavion LLC, operating in Harrison, N.Y., has posted a $50,000 surety bond with the U.S. Department of Agriculture (USDA).

The company posted the bond to obtain a license to operate in the produce industry.

Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post a bond following its principal’s prior involvement in bankruptcy.

USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Tuesday, February 16, 2016 – 11:00am

Release No.: 028-16