TOBACCO ACT: SUBSIDIARY LEGISLATION(CHAPTER 237 )

"auction floor" means premises licensed by the Board for the sale of tobacco by auction, and includes such part of the premises as may be allotted for storage of tobacco;

"auctionable tobacco" means tobacco of a class prescribed as such by the Minister pursuant to section 59 of the Act;

"bale" means a bale of tobacco;

"bale ticket" means the coupon attached to a bale by the holder of an auction floor licence for the purpose of recording thereon the details of sale;

"buyer" shall have the meaning ascribed to it in section 2 of the Act;

"catalogue" means the number of bales to be determined from time to time by the Board, contained in a written record compiled by a holder of an auction floor licence, by floor lot numbers for the purpose of conducting a sale of tobacco by mechanical auction as provided by rule 67;

"classifier" means an official of the Board authorised by the Board to classify tobacco;

"completion" means, in relation to the sale of a bale by auction, the removal of a copy of the bale ticket from the bale for recording purposes by a person authorised for this purpose by the holder of an auction floor licence, and cognate expressions shall be construed accordingly;

"crossing" means cancelling the sale of a bale sold by auction by drawing a cross on the bale ticket pursuant to rule 49, and cognate expressions shall be construed accordingly;

"delivery quota" means the quantity of auctionable tobacco determined by the Board pursuant to paragraph 20 of the Schedule to the Act which may be delivered by or on behalf of a registered grower for sale on any licensed auction floor in each delivery quota period;

"delivery quota period" means any period fixed by the Board pursuant to paragraph 20 of the Schedule to the Act during which delivery quotas may be delivered by or on behalf of registered growers to licensed auction floors;

"employee" means an employee of a licensed buyer;

"floor lot number" means the number allocated to a bale by a holder of an auction floor licence for the purpose of identification during a sale by mechanical auction;

"form" means the appropriate form prescribed in the Schedule;

"funked tobacco" means tobacco which, while appearing to be sound, has in the opinion of an arbitrator an aroma indicating that the tobacco has been or is about to become mouldy;

"grower" means a person registered as a grower or any person deemed to be a grower pursuant to section 26 of the Act;

"house account" means the house account of the holder of an auction floor licence;

"licensed auction floor" means any auction floor licensed by the Board pursuant to Part VIII of the Act;

"licensed buyer" means any person licensed by the Board to buy tobacco pursuant to Part VII of the Act;

"licensed grader" means any person licensed by the Board to grade tobacco pursuant to Part VI of the Act;

"loose leaf" means sound leaf tobacco which is packed without being tied into hands;

"lot number" means the identification number of a seller's bale;

"mechanical auction" means the sale by auction of tobacco by the employment of machinery whereby the buyer records his bid by mechanical means;

"nesting" means the packing of tobacco into bales in such a manner as to deceive a buyer about the nature or quality of the contents as a whole, and cognate expressions shall be construed accordingly;

"non-auctionable tobacco" means any class of tobacco prescribed as such by the Minister pursuant to section 59 of the Act;

"no-sale bale" means a bale for which no bid has been made at a sale by auction;

"primary or rural level" means the sale of tobacco by an individual producer or group of producers to a licensed buyer where it is intended that the said tobacco shall later be offered for sale to the trade by the buyer, whether as auctionable or non-auctionable tobacco, as the case may be;

"registered number" means a number allotted by the Registrar of a sales supervisor, as the case may be, pursuant to the provisions of section 28 of the Act, and shall include a number allotted for the purpose of resale of auctionable tobacco;

"sales floor" means that portion of an auction floor allotted for the sale of tobacco by auction and excludes any area or areas allotted for storage of tobacco;

"sales supervisor" means a person appointed by the Board, under the provisions of section 71 of the Act, to supervise the sale of tobacco by auction on a licensed auction floor;

"seller" means a person or his agent who sells or offers for sale tobacco;

"selling season" means the period in any year fixed by the Board when tobacco may be sold;

"split bale" means a bale containing two but not more than two grades of tobacco;

"starter" means a person authorised by the holder of an auction floor licence to place an approximate value on tobacco offered for sale by auction;

"ticket marker" means a person authorised by the holder of an auction floor licence to record on a bale ticket the details of sale of a bale of tobacco sold by auction;

"tobacco" means unmanufactured tobacco of a class prescribed by the Minister pursuant to section 59 of the Act.

PART II
RETURNS BY REGISTERED GROWERS

3. Crop forecast returns

(1) Every grower, other than a person deemed to be a grower solely by virtue of the provisions of sub-section (6) or (7) of section 26 of the Act, shall-

(a) before the 31st March in any selling season furnish to the Board a preliminary return in writing in Form 1 stating-

(i) the total number of acres of tobacco planted by him;

(ii) the quantity of tobacco which he estimates will be sold by him or on his behalf in that selling season;

(b) on or after the 15th May and before the 1st June in each selling season, furnish to the Board a further return in writing in Form 2 stating-

(i) the total number of acres of tobacco planted by him;

(ii) the quantity of tobacco which he expects will be sold by him or on his behalf in that selling season.

(2) If at any time before the end of a selling season a grower finds that the quantity of tobacco which he then estimates will be sold by him or on his behalf in that selling season will exceed or fall short of the estimated quantity contained in a return made by him in terms of sub-rule (1), he shall immediately inform the Board in writing of his revised estimate.

(3) The requirements of paragraph (a) of sub-rule (1) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower-

(a) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than fifteen per centum of such estimate; or

(b) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty-five per centum of such estimate.

(4) The requirements of paragraph (b) of sub-rule (1) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower-

(a) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than ten per centum of such estimate; or

(b) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty per centum of such estimate.

(5) The requirements of sub-rule (2) as regards the estimate of the quantity of tobacco which will be sold by or on behalf of any grower during any selling season shall be deemed to be substantially complied with, unless the last estimate thereof furnished by the said grower-

(a) if furnished before the 15th May-

(i) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than fifteen per centum of such estimate; or

(ii) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty-five per centum of such estimate;

(b) if furnished on or after the 15th May-

(i) exceeds the quantity of such tobacco sold by him or on his behalf in that selling season by more than ten per centum of such estimate; or

(ii) falls short of the quantity of such tobacco sold by him or on his behalf in that selling season by more than twenty per centum of such estimate.

PART III
LICENSING OF GRADERS

4. Form and manner of application

(1) Application for the issue of a grader's licence shall be made to the Board in Form 3 and shall-

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, or, in the case of a partnership, the name of every partner;

(b) state the name of the person who will supervise the grading;

(i) a plan showing the site; (ii) a plan and elevations;

(iii) a plan and description of the humidification system of the buildings in which it is proposed to carry on the grading or to store tobacco;

(d) in the case of an applicant who has previously been licensed as a grader, be accompanied by-

(i) where the structure of the building or buildings in which it is proposed to carry on the grading or to store tobacco has not been altered since the last licence was issued to such applicant authorising him to grade or store tobacco in such building or buildings, a statement that the structure thereof has not been altered; or

(ii) where the structure of the building or buildings in which it is proposed to carry on the grading or to store tobacco has been altered since the last licence was issued to such applicant authorising him to grade or store tobacco in such building or buildings, a plan showing the nature of such alterations;

(e) be accompanied by a fee of two hundred fee units payable to the Board, which fee however shall be returned to the applicant in the event of his application being unsuccessful.

(2) Every person who makes application for a grader's licence shall, if the Board so requires, submit evidence-

(a) as to his financial standing;

(b) as to the efficient management, supervision and organisation of the proposed business of grading.

[Am by SI 70 of 1992; Act 13 of 1994.]

5. Minimum standards of premises

No person shall carry on the business of a grader in premises unless-

(a) they are of such design and construction as may be approved by an architect appointed for this purpose by the Board;

(b) they are provided with storage space sufficient to permit the stacking of tobacco received for grading or awaiting despatch for sale without exceeding a height of eight feet above the level on which the bottom bale rests;

(c) the floor surface of the grading shed, storage sheds and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, are composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco.

6. Receipting of tobacco

(1) Immediately following receipt of tobacco consigned to him by a grower, a grader shall send to such grower a receipt in Form 4.

(2) If for any reason a grader is unable to weigh bales of tobacco received by him immediately after delivery to his premises, he shall complete that part of the receipt in Form 4 as indicates the number of bales received and within three working days thereof issue a further receipt giving the weights.

7. Reports on condition

(1) Within seven days of receiving tobacco consigned to him by a grower, a grader shall examine not less than ten per centum of the bales in that consignment and send to the grower a report on the condition thereof.

(2) In the event that a grader fails to send to a grower the report referred to in sub-rule (1), the Board will assume that the tobacco in question was received by him in good condition.

8. Grading returns

Within ten days of completion of grading tobacco consigned to him by a grower for grading at any one time, a grader shall furnish the grower with a return in accordance with Form 5.

9. Copies of returns to Board

Copies of all receipts, reports and returns issued by a grader in terms of this Part shall at the same time be furnished to the Board.

[Am by SI 353 of 1969.]

10. Duties of licensed graders

In addition to any other duty imposed on him by or under these Rules or any other law, a grader shall-

(a) effect at his own expense adequate insurance to cover any loss which might otherwise be sustained by a grower while such grower's tobacco is stored in the grader's premises or is being carried in transport by direction of such grader;

(b) use all reasonable care in handling, storing grading and packing tobacco so as to prevent damage or loss due to breakage, contamination or other causes.

PART IV
LICENSING OF BUYERS

11. Form and manner of application for licence

(1) An application for the issue of a licence to buy tobacco shall be made to the Board in Form 6 and shall state-

(a) the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) the names of all persons authorised to buy tobacco on behalf of the applicant;

(d) the manner in which the applicant proposes to buy tobacco;

(e) whether or not the applicant is a buyer solely by virtue of the ownership of land in respect of which he has agreed to permit a third person to produce tobacco on not more than ten acres of the said land in consideration of a share in the said tobacco when produced, or of a share of the proceeds of its sale, and if so the situation of such land;

(f) whether or not the application is for the issue of an exclusive licence pursuant to sub-section (4) of section 44 of the Act, and if so the area in which the applicant wishes to buy tobacco.

(2) Where an applicant has not previously been licensed as a buyer and indicates, pursuant to paragraph (c) of sub-rule (1), that he intends to buy tobacco by auction, he shall attach to his application statements in writing from the holders of all auction floor licences indicating their willingness to do business with the applicant if he is licensed as a buyer.

(3) An application for a buyer's licence made pursuant to this rule shall be accompanied by a fee of five hundred United States Dollars payable to the Board, which fee shall however be returned by the Board to the applicant in the event of the application being unsuccessful.

[Am by SI 70 of 1992.]

12. Grounds for refusal

The Board may refuse an application for the grant of a buyer's licence on any or all of the following grounds:

(a) that it is not satisfied with the financial standing of the applicant;

(b) that in its opinion-

(i) the grant of the licence would not be in the best interests of the industry or would detract from the orderly marketing or export of tobacco;

(ii) the applicant is not a fit and proper person to hold such licence;

(c) that the Board has in respect of any particular class of tobacco granted an exclusive licence, or intends, with the approval of the Minister, to issue such exclusive licence to another applicant pursuant to sub-section (4) of section 44 of the Act.

13. Returns by buyers

Every buyer to whom a licence has been issued under this Part shall before the fifteenth day of every month submit to the Board a return in Form 7 of all tobacco purchased by him in the previous month.

PART V
LICENSING OF AUCTION FLOORS

14. Form and manner of application for licence

An application for the issue of an auction floor licence shall be made in Form 8 and shall-

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) be accompanied by-

(i) in the case of an application relating to premises not previously licensed as an auction floor where the applicant has not obtained a conditional authority for the premises pursuant to rule 15, a plan showing the site of the premises in relation to road and rail facilities, and a plan and elevations of the premises;

(ii) in the case of an application relating to premises previously licensed as an auction floor, a statement giving details of any alteration in the use of the premises as an auction floor since the issue of the last licence for such auction floor;

(iii) a fee of eight hundred fee units payable to the Board, which fee however shall be returned by the Board to the applicant if the application is unsuccessful.

[Am by SI 70 of 1992; Act 13 of 1994.]

15. Application for conditional authority

(1) An application for a conditional authority to erect, alter or extend premises including a licensed auction floor for use as an auction floor, shall be made to the Board in Form 9 and shall-

(a) state the name and address of the applicant and, in the case of a company registered in terms of any law, the name of each director, and, in the case of a partnership, the name of every partner;

(b) be accompanied-

(i) in the case of an application relating to existing premises not previously licensed as an auction floor, or to premises which it is proposed to erect, a plan showing the site of the premises or proposed premises in relation to road and rail facilities and a plan and elevations of such premises or proposed premises;

(ii) in the case of an application to alter or extend premises licensed or previously licensed as an auction floor, a plan and elevations showing details of the extension or alterations to the structure thereof.

(2) Upon completion of the building works in respect of which a conditional authority has been granted, the applicant shall, notwithstanding the issue of such conditional authority, comply with the provisions of rule 14, provided however that where the conditional authority is for the alteration or extension of licensed premises, no further fee shall be payable during the period of validity of the licence in question.

16. Minimum standards of premises

Except where the Board may, with the approval of the Minister, have exempted any premises from the provisions of Part VIII of the Act, no auction floor licence shall be issued in respect of premises-

(a) which do not comply with the following minimum requirements-

(i) the area available for storage of tobacco shall be not less than two-thirds of the area of the sales floor;

(ii) the total area of platforms and verandahs capable of being used for the loading or off-loading of tobacco shall not be less than forty per centum of the area of the sales floor;

(iii) the natural roof lighting of the sales floor shall be a combination of south lighting and translucent roof sheets of a material approved by the Board, so that the total area of such lighting shall not be less than fifteen per centum of the area of the sales floor;

(iv) the floor surface of the sales floor, storage areas, re-handling area, and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, shall be composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads to be imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco;

(v) there shall be in a position adjacent to or as part of the auction floor an area set aside for the re- handling of tobacco, which area shall be not less than seven per centum of the area of the sales floor, and shall be equipped with such devices as are capable of controlling the humidity therein to the satisfaction of the Board;

(b) unless the design and construction thereof are such as may be approved by an architect appointed for this purpose by the Board.

17. Returns to be submitted

(1) Every holder of an auction floor licence shall submit to the Board in writing-

(a) not later than noon on the next working day following any sale of tobacco on his floor, a return in Form 10 in respect of each class of tobacco sold on the previous day;

(b) not later than Monday of each week, a return in Form 11 in respect of each class of tobacco sold on his auction floor during the week ended midnight on the previous Wednesday;

(c) not more than thirty days after the date of the last sale of tobacco on his auction floor in any selling season, a return in Form 12 in respect of each class of tobacco sold thereon in such season.

(2) Whenever a holder of an auction floor licence becomes aware that information submitted by him in any return to the Board in terms of sub-rule (1) contains a material error, he shall forthwith notify the Board accordingly in writing, and as soon as possible thereafter submit an amended return.

18. Duties of holders of auction floor licences

In addition to any other duty imposed on him by or under these Rules or any other law, the holder of an auction floor licence shall-

(a) use all reasonable care in handling, storing and despatching tobacco so as to prevent damage or loss due to breakage, contamination or other causes;

(b) effect at his own expense insurance to cover loss of or damage to any seller's tobacco from time of receipt to completion of sale.

PART VI
MARKING OF BALES FOR SALE

19. Part VI not to apply to sales at primary or rural level

The provisions of this Part shall not apply to tobacco offered for sale at a primary or rural level.

20. Registered numbers

(1) Subject to the provisions of this rule-

(a) every seller of Virginia flue-cured tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than eight centimetres in height and on not less than two sides and one end of each bale, and shall in addition mark above his registered number the letters "VZ" in the same dimensions;

(b) every seller of Burley tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than eight centimetres in height and on not less than two sides and one end of each bale, and shall in addition mark above his registered number the letters "BUZ" in the same dimensions;

(c) every seller of Oriental tobacco shall mark his bales clearly on the outside of the wrapping material with his registered number in arabic numerals not less than three centimetres and not more than eight centimetres in height and on not less than two sides, and shall in addition mark above his registered number the letters "TZ" in the same dimensions.

(2) In any selling season when the Board shall, in exercise of its powers under paragraph 16 of the Schedule to the Act, have declared its intention to buy tobacco and to do so by classification, it may direct that bales offered for sale shall be marked in such a manner that when the bale wrappings are opened the registered number shall not be visible to a classifier.

(3) For his own identification purposes, a seller, in addition to the registered number referred to in sub- rule (1), may mark his bales after and in the same place as his registered number with an alphabetical letter.

(4) The provisions of this rule shall not apply to any sale by the Board of any tobacco purchased by the Board, nor to any resale of tobacco by the holder of an auction floor licence pursuant to paragraph (b) of sub-rule (3) of rule 59.

21. Bale labels

(1) A seller shall securely attach to a bale offered for sale a bale label on which shall be clearly marked in arabic numerals the lot number of the bale, which lot number shall be exclusive to that bale and shall not be allocated to any other bale during the season.

(2) A seller may if he so wishes mark on the bale label a group number to indicate the order in which bales are to be offered for sale, in which case-

(a) bales shall be numbered from one upwards for each consignment;

(b) a numeral or numerals indicating the group number shall be positioned on the bale label above the lot number;

(d) no seller may mark his bale labels with group numbers in more than one colour.

(3) The provisions of sub-rule (1) shall not apply to the sale by the Board of any tobacco purchased by the Board.

22. Labelling of bales by graders

(1) A grader shall securely attach to each bale delivered by him for sale a label bearing his name in printed letters which shall not be less than one centimetre in height.

(2) A seller or a grader may not deliver for sale a bale labelled so as to indicate that the tobacco has been graded by a grader unless the tobacco has been graded by the grader whose name is printed on the label.

23. Prohibition of any other markings

Except with the permission of the Board in writing, and subject to the provisions of Part VIII, no seller or other person shall cause to be displayed on a bale offered for sale any marking, identification or other information nor in a manner other than is permitted under this Part:

Provided however that should he so wish a seller of a bale of Oriental tobacco may, in addition to his registered number, mark on the outside of the wrapping material the lot number of the bale.

PART VII
PACKING OF TOBACCO FOR SALE

24. Part VII not to apply to sales at primary or rural level

The provisions of this Part shall not apply to tobacco offered for sale at a primary or rural level.

25. Wrapping and sewing materials

(1) Subject to the provisions of this rule, every seller of tobacco shall ensure that his tobacco is packed in bales-

(a) having in good condition an outer covering of hessian or such other material as may from time to time be approved by the Board;

(b) having an inner covering of new or undamaged waterproof paper or such other material as may from time to time be approved by the Board;

(c) properly sewn with twine in good condition not being made from sisal or jute, so that no single stitch shall exceed eight centimetres in length and no gap between stitches shall exceed eight centimetres in length and all stitches shall be locked on the ends of the bales near the corners.

(2) The provisions of paragraph (c) of sub-rule (1) shall not apply to the sellers of oriental tobacco which tobacco shall however be offered for sale in bales laced with twine in such manner as the Board may from time to time direct.

26. Weights and dimensions of bales

(1) Subject to the provisions of this rule, a seller shall-

(a) pack his Virginia flue-cured tobacco in bales-

(i) weighing not less than twenty-three kilogrammes net nor more than one hundred and nine kilogrammes net;

(ii) having dimensions of eighty-six centimetres long, sixty-one centimetres high and not more than sixty-six centimetres wide;

(b) pack his Burley tobacco in bales-

(i) weighing not less than nine kilogrammes net nor more than fifty-nine kilogrammes net;

(ii) having dimensions of eighty-six centimetres long, sixty-one centimetres high and not more than sixty-six centimetres wide;

(i) not exceeding twenty-three kilogrammes net in weight;

(ii) having dimensions of sixty-nine centimetres long, thirty-eight centimetres high and not more than fifty-one centimetres wide.

(2) Notwithstanding the provisions of sub-rule (1), no seller may offer for sale-

(a) a split bale of Virginia flue-cured tobacco weighing less than forty-five kilogrammes net;

(b) a split bale of Burley tobacco weighing less than fourteen kilogrammes net.

PART VIII
SALE OF TOBACCO BY AUCTION

27. Application of Part VIII

The provisions of this Part shall apply-

(a) to the sale by auction of auctionable tobacco other than a sale of such tobacco at a primary or rural level;

(b) to the sale by the Board by auction of any non-auctionable tobacco purchased by the Board.

28. Duties and powers of sales supervisors

(1) A sales supervisor shall-

(a) ensure that the provisions of the Act and the regulations made thereunder and the rules made and the instructions given by the Board are being complied with;

(b) report breaches of such Act, regulations, rules and instructions to the Board;

(d) check weighing-in scales;

(e) from time to time re-weigh bales of tobacco for the purpose of ensuring that they have been correctly weighed;

(f) report incorrect weighing to the holder of the auction floor licence concerned and cause the necessary adjustments to be made.

(2) A sales supervisor may remove or cause to be removed from an auction floor any bale which does not conform to the standards laid down in these Rules.

(3) A sales supervisor shall have access to all books, receipts and documents kept by the holder of an auction floor licence relating to the arrival, receipting, booking and sale of tobacco.

(4) Should circumstances arise which are not covered by any instructions given to him by the Board pursuant to section 72 of the Act, a sales supervisor, after consultation with the Secretary to the Board, or, in his absence, an official of the Board acting on his behalf, may, whenever in his opinion it is necessary so to do in order to facilitate the orderly selling of tobacco or to protect the interests of the sellers of tobacco or buyers of tobacco, or both-

(a) suspend a sale of tobacco for a period not exceeding twenty-four hours;

(b) give such directions to sellers, buyers or the holders of auction floor licences as may be necessary on any matter not specifically prescribed under this Part.

29. Power to inspect records

Any official or agent of the Board duly authorised thereunto by the Board in writing may, at any time, examine books and vouchers of the holder of an auction floor licence to ascertain whether the charges authorised by the Board pursuant to section 69 of the Act have been, or are being, adhered to.

30. Tobacco which may be offered for sale

(1) Tobacco may be offered for sale in the form of-

(a) tied leaf;

(b) straight laid loose leaf;

(d) clean stemmed scrap;

(e) cleanunstemmed scrap.

(2) In the case of tied leaf, a seller shall ensure that the size of hands of graded tobacco is not less than three centimetres and not more than three centimetres across the butt ends and that the depth of the tie is not less than four centimetres and not more than five centimetres.

(3) A seller shall not offer as loose leaf sound tobacco leaf twenty centimetres or more in length.

(4) No bale offered for sale shall contain ungraded tobacco.

(5) No seller may offer for sale a bale containing more than one class of tobacco.

31. Declared mixed bales

(1) Subject to the provisions of this rule, no person shall knowingly offer for sale a bale which contains-

(a) leaf of different types, qualities, or colours, mixed in the hand;

(b) hands of tobacco of different types, qualities, or colours;

(d) sound leaf mixed with barn rot leaf.

(2) A seller may offer for sale a mixed bale containing tobacco as enumerated in paragraphs (a), (b), (c) and (d) of sub-rule (1), provided that-

(i) he has affixed to the bale a label additional to the bale label referred to in rule 21 on which is marked the word "mixed" in letters not less than five centimetres in height;

(ii) the word "mixed" is printed clearly on a notice displayed prominently on the bale by the holder of the auction floor licence;

(iii) the bale is declared to buyers by the starter to be mixed before being offered for sale.

(3) A bale containing mixed tobacco sold in accordance with the provisions of sub-rule (2) shall not thereafter be repudiated on the grounds that it is mixed unless, in the opinion of an arbitrator, it contains an undue proportion of tobacco of other than bordering types, qualities or colours.

32. Split bales

(1) Subject to the provisions of this rule, a seller may offer for sale a split bale, that is to say, a bale containing not more than two grades of tobacco, provided that-

(i) the two grades are separated by a sheet of water-proof paper;

(ii) he attaches to the bale a label additional to the bale label referred to in rule 21 on which is marked the word "split" in letters not less than five centimetres in height;

(iii) the word "split" is printed clearly on a notice displayed prominently on the bale by the holder of an auction floor licence;

(iv) the bale is declared by the starter to buyers to be split before being offered for sale.

(2) A split bale offered for sale may not weigh less than forty-five kilogrammes net in the case of Virginia flue-cured tobacco, nor less than fourteen kilogrammes net in the case of Burley tobacco.

33. Consignment of tobacco to auction floor

A seller shall consign his tobacco to an auction floor packed so as to facilitate its sale, storage and handling.

34. Duties of holders of auction floor licences

(1) In addition to any other duties imposed upon him by the provisions of these Rules, every holder of an auction floor licence shall-

(a) furnish the sales supervisor before each sale with a statement giving the following particulars about the bales laid on the auction floor for that sale in the order in which they are laid-

(i) the registered numbers of the sellers;

(ii) the names of the sellers;

(iii) the number of bales in each consignment;

(iv) whether the bales are up for sale for the first time or whether they are re-handled bales, buyer's resales, house resales or bales which have had their tickets crossed at a previous sale or, if they fall into any other category, what that category is;

(v) if the bales have been graded by a grader, the name of the grader;

(vi) the row number in which each bale is placed;

(b) space the bales of tobacco offered for sale as may be required by the Board;

(i) the registered number of the seller;

(ii) the lot number;

(iii) the net weight;

(iv) the buyer's code letter;

(v) the buyer's grade classification if available;

(vi) the price per kilogramme;

(d) ensure that there are sufficient clearly legible copies of the bale ticket available to meet the sale requirements;

(e) after sale, attach the bale ticket securely to the outside of the bale to which it relates;

(f) as the sale proceeds, properly repack and securely resew all bales;

(g) present his accounts to a buyer or his agent not later than 09.00 hours on the day following the day of sale;

(h) be responsible for any loss occasioned by his errors in weighing or otherwise and make good any loss so occasioned;

(i) furnish the sales supervisor daily with such information as he may require with regard to-

(i) the amount of tobacco in stock;

(ii) the future programme of sales.

(2) The holder of an auction floor licence shall not sell tobacco-

(a) except with the permission of a sales supervisor, unless it has been weighed during the seventy- two hours immediately preceding the sale of such tobacco;

(b) for less than any minimum price which may have been fixed by the Minister pursuant to section 74 of the Act;

(c) in which the starter, auctioneer or any other employee of such holder of an auction floor licence has any interest, without disclosing such interest at the time of the sale;

(d) which is not packed in conformity with the provisions of these Rules.

35. Receipting of tobacco

(1) The holder of an auction floor licence shall-

(a) keep a receipt book in a form approved by the Board;

(b) issue from such receipt book a receipt in triplicate for every bale received upon his auction floor except for a bale which-

(i) is being re-offered for the house account; or

(ii) has had its ticket crossed at a previous sale and which has not been returned to the grower; or

(iii) is returned for sale by the auction floor's re-handling department; or

(iv) is being re-offered and declared as mixed, mouldy or funked.

(2) Each receipt shall be numbered consecutively and shall show-

(a) the registered number and name of the seller;

(b) the number of bales received;

(d) the date and time of delivery.

(3) The holder of an auction floor licence shall-

(a) deliver the second copy of the receipt to the sales supervisor before the midday following each twenty-four-hour period:

Provided that-

(i) when such midday following a twenty-four-hour period falls on a Sunday or a public holiday, he shall deliver the second copy of the receipt to the sales supervisor before midday on the next business day;

(ii) for the purposes of this sub-rule, "twenty-four-hour period" means the period of twenty-four hours commencing at 07.00 hours on one day and ending at 07.00 hours on the next day;

(b) keep the third copy of the receipt, which shall be available for inspection by an official of the Board, until the end of the selling season.

(4) The holder of an auction floor licence shall issue receipts for tobacco in order of its arrival at his premises-

(a) by train, beginning with the consignments contained in the first truck entering the private siding of the premises;

(b) by lorry, in rotation and immediately following the receipt of the tobacco contained in the last train to be shunted into the siding;

(5) When rail consignments from a grower are received with the bales loaded in more than one truck in the same train, the total consignment shall be deemed to have been received in the first truck which is unloaded and which contains tobacco from that grower.

(6) Tobacco stored by a holder of an auction floor licence, other than tobacco referred to in sub- paragraphs (i) to (iv) of paragraph (b) of sub-rule (1), or tobacco for which a receipt has been issued pursuant to sub-rule (1), on the day fixed for the commencement of delivery quotas shall be-

(a) deemed to have been delivered on that day;

(b) receipted pursuant to sub-rule (1);

(d) deemed to be part of the delivery quota of the grower who delivered it.

(7) If a seller wishes to deliver to an auction floor several bales of tobacco for sale as one consignment, he may accumulate such bales on the auction floor premises for a period not exceeding twenty-four hours, without such bales being entered into the receipt book, if he informs the holder of the auction floor licence of his intention before or at the same time as his consignment arrives at the auction floor.

(8) The holder of an auction floor licence shall issue a receipt for tobacco accumulated pursuant to sub- rule (7)-

(a) twenty-four hours after the delivery of the first bale; or

(b) when the whole consignment has been accumulated; whichever is the earlier.

(9) A holder of an auction floor licence shall not sell tobacco, other than tobacco referred to in sub- paragraphs (i) to (iv) of paragraph (b) of sub-rule (1), unless-

(a) a receipt has been issued for that tobacco; and

(b) a duplicate of that receipt has been delivered to the sales supervisor pursuant to paragraph (a) of sub-rule (3).

(10) For the purposes of sub-rules (7) and (8), when calculating the period of twenty-four hours, no public holiday or Sunday shall be included.

36. Booking of tobacco

(1) If a seller notifies the holder of an auction floor licence in writing that he wishes to be present at the sale of his tobacco, and if stocks of tobacco for sale at the auction floor are such that his tobacco will be sold within twenty-four hours of its arrival, such tobacco may, on arrival, be booked in by the sales supervisor so that there will be a period of not less than twenty-four hours between the time of arrival and the time of sale.

(2) The holder of an auction floor licence may book in, for sale at any time convenient to him and the seller, a bale of tobacco which-

(a) is being re-offered for the house account; or

(b) has had its ticket crossed at a previous sale and which has not been returned to the grower; or

(d) is being re-offered and declared as mixed, mouldy or funked.

(3) The holder of an auction floor licence shall treat tobacco which has-

(a) been graded by him; and

(b) not previously been offered for sale;

as though it had been placed in storage on the auction floor when the grading and packing were completed.

37. Order of selling

Subject to the provisions of sub-rule (1) of rule 36 and of rule 38, the holder of an auction floor licence shall not sell tobacco in an order other than the order in the receipt book:

Provided that-

(i) on the request of the seller made not later than the time at which a consignment of his tobacco is received upon the auction floor, the holder of an auction floor licence may divide up that consignment-

(a) if it consists of thirty bales or more, into groups of not less than fifteen bales;

(b) if it consists of less than thirty bales, into not more than two groups;

(ii) in the case of tobacco which is being re-offered, the consignment may, on the request of the seller made at the time the tobacco was last offered for sale, be divided up into groups of not less than five bales.

38. Sales supervisor may alter order of selling

A sales supervisor may vary the order of sale as shown in the receipt book if he considers such variation necessary in order to-

(a) avoid splitting a consignment of tobacco; or

(b) facilitate the conduct of a sale.

39. Holders of auction floor licences not to withdraw tobacco

The holder of an auction floor licence shall not-

(a) withdraw tobacco from the sale for which it has been booked in; or

(b) permit tobacco receipted by him to be diverted to any other auction floor; except with the permission of a sales supervisor.

40. Date and time of sale

(1) Before the tobacco is booked in, the holder of an auction floor licence shall not give a person any information relating to the date or time of sale or the position of tobacco on the auction floor, other

than the probable number of days after delivery that the tobacco may have to be stored before sale.

(2) After the tobacco has been booked in, the holder of an auction floor licence shall, if so requested by the seller and at the seller's cost, notify the seller by telephone or telegram of the probable date on which his tobacco will be sold.

(3) The holder of an auction floor licence shall not-

(a) be responsible for any change of the date of sale due to circumstances beyond his control; or

(b) agree to sell tobacco on a specified row or at a specified time.

41. Storage of tobacco

The holder of an auction floor licence shall not-

(a) stack tobacco more than two hundred and forty-four centimetres above the level on which the bottom bale rests without the premission of a sales supervisor;

(b) during any period for which delivery quotas are in force, store, without the written authority of the Board, tobacco for which the receipt provided for by rule 35 has not been issued.

42. Delivery quotas

(1) The provisions of this rule shall apply whenever the Board shall, in exercise of its powers under paragraph 20 of the Schedule to the Act, have fixed a date, hereinafter called the "fixed date", from which it deems it necessary to control the rate of delivery of auctionable tobacco to licensed auction floors and have fixed delivery quota periods from and after the fixed date and determined delivery quotas applicable to each or any of such delivery quota periods.

(2) The Board shall give notice of such fixed date, delivery quota periods and delivery quotas in such manner as it may determine and may cause a copy of any notice issued for this purpose to be displayed prominently at every licensed auction floor.

(3) Subject to the provisions of this rule, no grower or his agent shall cause to be delivered to an auction floor any tobacco in excess of his delivery quota.

(4) Where, during any first or second delivery quota period, as the case may be, any grower delivers in respect thereof a quantity of tobacco less than his delivery quota, he may, thereafter, during any delivery quota period, not later than the third delivery quota period, deliver tobacco in excess of his delivery quota for the period in which delivery is actually made, up to the undelivered portion or portions of the earlier delivery quota or quotas, if-

(a) he gives the Board full particulars in writing of the reasons why he did not deliver his full delivery quota in such period or periods; and

(b) he receives the written permission of the Board to exceed his delivery quota in the second or third delivery quota period or in the second and third delivery quota periods, as the case may be; and

(c) he does not exceed in the first three delivery quota periods his total delivery quota for such delivery quota periods; and

(d) where he did not deliver his full delivery quota because of the inability of a grader to deliver his tobacco, he has sent all the tobacco to be delivered in the second or third delivery quota period or in the second and third delivery quota periods, as the case may be, to the grader before the fixed date.

(5) Subject to the provisions of sub-rule (4), where a grower or his agent delivers to an auction floor any tobacco in excess of his delivery quota, the Board may, in writing, direct the holder of the auction floor licence to whom such tobacco was delivered to return to the grower at a place and by a date specified by the Board and at the grower's risk and expense, a number of bales equal to the number of bales delivered by the grower in excess of his delivery quota.

(6) A grower whose delivery quota as fixed by the Board for any particular quota period is less than twenty-five bales may deliver or cause to be delivered on his behalf to an auction floor-

(a) in any one of four subsequent consecutive quota periods, hereinafter called a "combined quota period", a quantity of tobacco not exceeding four times his delivery quota for the first quota period of the combined quota period or one hundred bales;

(b) in any quota period forming part of the combined quota period subsequent to the first such quota period, a quantity of tobacco equivalent to the difference between his delivery quota for such first quota period and such subsequent quota period, provided that such difference is in the form of an increase in delivery quota and not a reduction thereof:

Provided that-

(i) not less than fifty per centum of the quantity of tobacco so delivered shall have been graded by a grader; and

(ii) such grower shall not deliver to an auction floor in a combined quota period more than--

A. four times his delivery quota for the first quota period of the combined quota period; or

B. the total of the four quotas for the combined quota period; or

C. one hundred bales;

whichever is the greatest.

(7) A grower who removes mixed, mouldy, damaged or funked tobacco from the auction floor for re- handling may again deliver it to an auction floor and it shall not count against his delivery quota:

Provided that-

(i) he shall not return more than the number of bales that he removed from the floor; and

(ii) he notifies the Board in writing of the number of bales removed and the date on which they were removed; and

(iii) he obtains from the Board a written acknowledgment of the receipt of such notice.

(8) Where two or more growers are using the same grading facilities, other than the grading facilities of a licensed grader, they may combine their delivery quotas:

Provided that permission in writing is first obtained from the Board.

(9) Growers who have been permitted by the Board, pursuant to sub-rule (8), to combine their delivery quotas shall not deliver to the auction floors any tobacco in excess of the total thereof.

(10) The Board may furnish to a licensed grader, if requested to do so by him, information regarding the delivery quota fixed by the Board for any grower whose tobacco has been or is to be graded by such grader.

(11)-

(a) Notwithstanding the provisions of this rule, the Board may, at any time when it has deemed it necessary to control the rate of delivery of auctionable tobacco to licensed auction floors, further adjust the rate of delivery of such tobacco by means of an increase or decrease, as the case may be, in a grower's delivery quota, which increase or decrease shall be expressed as a percentage thereof and shall give notice of such adjustment, in the manner described in sub-rule (2).

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(b) Where such percentage increase or decrease does not produce a whole number, the amount of tobacco which may be delivered shall be calculated to the next higher whole number.

(c) Where in terms of this sub-rule the amount of auctionable tobacco which a grower may deliver or cause to have delivered for sale to an auction floor has been either increased or decreased, the quantity of tobacco thereby determined shall be considered for the purposes of this rule as such grower's delivery quota.

43. Auction floor official's and buyer's positions

(1) At any auction sale the starter, auctioneer and ticket marker shall take their positions together in line and shall not be separated by any other person.

(2) The auctioneer shall stand facing the main line of buyers and beside the bale which he is in the process of selling and shall not move from that position until the name of the buyer of the bale has been declared by him.

(3) Buyers shall arrange their own positions in the main line of buyers on the auction floor.

(4) If any buyer is unwilling to accept the position in the main line of buyers allotted to him pursuant to sub-rule (3), or wishes to take up a position elsewhere than in the main line, the matter shall be submitted to the Board whose decision shall be final.

44. Interested parties

No person shall bid for tobacco in which he has any interest other than as-

(a) a buyer; or

(b) a person nominated by a buyer pursuant to section 43 of the Act; or

(c) a person authorised by the holder of an auction floor licence to buy tobacco for the house account; without disclosing such interest at the time of the sale.

45. Rate of selling

(1) The rate of selling shall be fixed by the Board or by the sales supervisor with the authority of the Board, but shall not exceed six hundred bales in any period of an hour.

(2) If the rate of selling at any sale is lower than the rate fixed by the Board or by the sales supervisor, the sales supervisor may fix a time within which such sale shall be concluded.

(3) If the rate of selling at any sale is higher than the rate fixed by the Board or by the sales supervisor, the sales supervisor may suspend the sale for such period as he considers necessary.

46. Size of bids

A buyer may accept the starter's valuation and thereafter bidding shall proceed by bids of not less than one-half of one hundred kwacha per half kilogramme until the bale is knocked down to the highest bidder.

47. No-sale bales

(1) A no-sale bale shall be re-offered for sale at least once on a day other than the day upon which it was first offered for sale.

(2) If, on the second occasion on which it is offered for sale, no bid is made, the holder of the auction floor licence may dispose of the tobacco contained in such no-sale bale in accordance with the instructions given to him in writing by the owner.

(3) Where no instructions have been given to the holder of an auction floor licence pursuant to sub-rule (2), and where any registered grower has at the end of any selling season in his possession or under his control any surplus or unsold tobacco belonging to such registered grower, the Board may dispose of, destroy, or cause to be destroyed, such tobacco as provided by sub-section (1) of section 33 of the Act.

48. Alteration of bale tickets

(1) Subject to the provisions of sub-rule (2), no person shall alter any of the particulars recorded on a bale ticket.

(2) An alteration may, before the completion of the sale of the bale to which the ticket relates, and where appropriate subject to the provisions of sub-rule (1) of rule 59, be made by-

(a) a sales supervisor or other person authorised for the purpose in writing by the Board;

(b) the buyer of a bale to record his own grade classifications; or

(c) a buyer taking over a bale from either the house account or another buyer to record necessary alterations to the bale ticket.

(3) A person making an alteration pursuant to sub-rule (2) shall-

(a) initial the alteration; and

(b) in the case of an alteration made pursuant to paragraph (c) of sub-rule (2), obtain the initials of the previous buyer of the bale.

49. Crossing of bale tickets

(1) Before the sale of a bale has been completed-

(a) the seller may, by drawing a red cross on the bale ticket, refuse to accept the price for such bale;

(b) if a seller refuses to accept the price for any bale or bales of his tobacco, the original buyer may, by drawing a blue cross on the bale ticket, cancel the sale of an equal number of bales purchased by him from such seller.

(2) A seller shall not cross the bale ticket on any bale of his tobacco-

(a) if he himself has offered a bid for that bale; or

(b) while a buyer's contention that the bale is unfit for sale is being considered by an arbitrator pursuant to rule 50; or

(3) A seller whose bale ticket has been crossed shall, within ten days of the crossing of the ticket, either re-book the tobacco for sale or remove it from the auction floor.

(4) A sales supervisor may book for sale at the end of the period of ten days any tobacco not re-booked for sale or withdrawn from the auction floor by the seller pursuant to sub-rule (3).

50. Repudiation of bales at sale

(1) Subject to the provisions of sub-rule (8) and of sub-rule (2) of rule 31, if a buyer contends before the sale of the last bale of a seller's consignment has been completed, that a bale purchased by him containing tobacco sold by that seller is badly handled or mixed, mouldy, funked, damaged or nested or is in some other respect unfit for sale, he may forthwith notify an arbitrator of his desire to repudiate the sale.

(2) The arbitrator shall investigate the matter and, if he upholds the buyer's contention, the sale may be repudiated.

(3) If the arbitrator does not uphold the buyer's contention, he shall forthwith obtain the opinion of another arbitrator.

(4) If, in the opinion of both arbitrators, the buyer's contention is upheld, the buyer may repudiate the sale.

(5) If, in the opinion of both arbitrators, the buyer's contention is not upheld, the sale shall stand and the decision of the arbitrators shall be final.

(6) If the opinion of the arbitrators is divided-

(a) in a case where the buyer has contended that the bale is mixed, the buyer may repudiate the sale;

(b) in any other case, the arbitrators shall forthwith obtain the opinion of a third arbitrator whose decision shall be final.

(7) Where the buyer's contention has-

(a) been upheld, an arbitrator shall indicate on the front of the bale ticket the reason for the repudiation;

(b) not been upheld, an arbitrator shall indicate on the back of the bale ticket that the buyer's contention has been rejected;

(c) been upheld by one arbitrator and the sale has been repudiated pursuant to paragraph (a) of sub-rule (6), an arbitrator shall mark the bale ticket with the words "mixed dispute, re-offer" and the bale may be re-offered without being re-handled.

(8) The purchase of a bale which has been bought by a buyer at a price of one hundred kwacha per half kilogramme or less shall not be repudiated in terms of this rule on the ground that such bale was mixed unless such bale is made up of tobacco containing stem rot and sound stem.

51. Badly handled, mixed, damaged or nested bales

(1) Subject to the provisions of sub-rule (2) and of paragraph (c) of sub-rule (7) of rule 50, no person shall re-offer a bale which has been-

(a) repudiated at a sale by a buyer because it contains tobacco which is badly handled, mixed or nested; or

(b) condemned for any of these reasons before the sale by an arbitrator;

until it has been re-handled.

(2) No person shall re-offer a bale containing mixed tobacco unless he complies with the provisions of sub-rule (2) of rule 31.

(3) Within ten days following the repudiation or condemnation of a bale referred to in sub-rule (1), the owner of the bale shall-

(a) remove it from the auction floor; or

(b) have it re-handled by the holder of the auction floor licence.

(4) If the owner of the bale does not remove it, the holder of the auction floor licence may-

(a) return it to the owner or his agent at the risk and expense of the owner; or

(b) re-handle and re-offer it.

52. Funked tobacco

A bale which has been-

(a) repudiated at a sale by a buyer because it contains funked tobacco; or

(b) condemned for this reason before the sale by an arbitrator;

shall, at the option of the owner of the bale, be-

(i) returned to him or his agent; or

(ii) labelled as "funked" and re-offered.

53. Mouldy or damaged tobacco

(1) Subject to the provisions of sub-rule (2), a bale which-

(a) has been repudiated at the sale by a buyer because it contains tobacco which is mouldy or damaged; or

(b) has been condemned for either of the reasons specified in paragraph (a) before the sale by an arbitrator; or

may, at the option of the owner of the bale, be-

(i) returned to him or his agent; or

(ii) labelled "mouldy" or "damaged", as the case may be, and re-offered, subject to it being declared as such to the buyers by the starter before being re-offered for sale.

(2) If a bale has been repudiated at a sale by a buyer because it contains tobacco which is mouldy or damaged and, in the opinion of an arbitrator, the tobacco is so mouldy or damaged as to be irreparable by re-handling but, in the opinion of the arbitrator, may nevertheless have some value, the bale may be re-offered by the holder of the auction floor licence as soon as possible without the tobacco being re- handled if the word "mouldy" or "damaged", as the case may be, is printed clearly on a notice displayed prominently on the bale, and the bale is declared as such to the buyers by the starter before being re- offered for sale.

(3) No person shall re-offer a bale referred to in sub-rule (1) until it has been re-handled unless it is labelled "mouldy" or "damaged", as the case may be, pursuant to these Rules.

54. Cancellation of sale of mouldy tobacco

(1) A buyer may, within forty-eight hours of the end of a day's sale, apply to cancel the sale of a bale bought by him on that day on the ground that it contains mouldy tobacco by returning such bale, intact and in its original bale wrappings, to the auction floor for inspection by an arbitrator.

(2) Subject to the provisions of sub-rule (4), if the arbitrator agrees with the buyer that the bale contains mouldy tobacco, the sale shall be cancelled.

(3) Where a mouldy bale has been bought on a day which is followed by a Saturday, Sunday or a public holiday, such bale shall be delivered for inspection not later than 13.00 hours on the next day of sale.

(4) Where, in the opinion of a sale supervisor, the buyer has neglected to examine his purchases adequately on the auction floor before the sale was completed, he may refuse to allow a buyer to cancel the sale, notwithstanding the agreement of the arbitrator pursuant to sub-rule (2).

55. Cancellation of sale of bales damaged by grease, paraffin or oil

(1) A buyer may, before a bale has left the auction floor, apply to an arbitrator to cancel the sale of the bale on the ground that it is damaged by grease, paraffin or oil.

(2) If the arbitrator agrees with the buyer that the bale is damaged by grease, paraffin or oil, the sale shall be cancelled.

56. Nesting

(1) No seller shall offer for sale any tobacco which is nested.

(2) If a buyer discovers and reports to an arbitrator within forty-eight hours of a sale that a bale purchased by him was nested, the arbitrator shall immediately inspect the tobacco and report the result of his inspection to the Board.

(3) If the Board decides that the bale has been nested, the bale shall be confiscated by the Board.

(4) The Board's decision pursuant to sub-rule (3) shall be final.

(5) The bale shall be re-offered by the Board and the Board shall, with the proceeds of the sale, make a refund to the buyer towards the purchase price of such bale, and the cost of transport.

(6) If, at any time after the period of forty-eight hours referred to in sub-rule (2), the buyer discovers that a bale purchased by him has been nested, the matter shall immediately be reported by the buyer to the Board for investigation and the Board may take such action as it thinks fit.

(7) If tobacco which is offered for sale by a seller is found to be nested on a second or subsequent occasion, his registered number shall be posted in a conspicuous place on the auction floor for the remainder of the selling season.

(8) A report made by a buyer pursuant to sub-rule (2) shall not be of a frivolous or vexatious nature.

57. Completion of sales

According to the circumstances, the sales supervisor shall ensure that the sale of a bale is completed before not less than one hundred bales and not more than two hundred bales have been passed since the buyer purchased the bale to which the bale ticket relates.

58. Buyer's disputes

(1) If two or more buyers claim to be purchasers of the same tobacco it shall, unless the buyers otherwise agree, be re-offered.

(2) If a buyer contends before the sale of a bale is completed that-

(a) the price recorded on the bale ticket was not the price at which the bale was knocked down to him; or

(b) he was not the buyer of the bale;

the matter shall be investigated by a sales supervisor.

(3) The sales supervisor may, if he is satisfied that an error has occurred-

(a) cancel the sale and order that the bale be re-offered; or

(b) with the agreement of the buyer and the seller or his agent, correct the bale ticket.

59. Tobacco purchased for house account

(1) A person shall not buy tobacco bought for the house account before it is re-offered unless-

(a) the price he pays for the tobacco is not less than one-half of one hundred kwacha per half kilogramme more than the price at which the tobacco was knocked down to the house account; and

(b) the purchase is made before the sale of the tobacco is completed; and

(2) No person employed by the holder of an auction floor licence shall buy tobacco except for the house account.

(3) If tobacco purchased for the house account is not bought pursuant to sub-rule (1), it-

(a) shall be resold by auction during the same selling season;

(b) need not be rebaled in which case it shall be resold under the grower's registered number.

(4) When tobacco purchased for the house account is resold under the grower's registered number pursuant to paragraph (b) of sub-rule (3), the holder of the auction floor licence shall stamp the bale ticket with the word "resale", immediately after the sale of such tobacco and before its removal from the auction floor.

(5) A holder of an auction floor licence shall send to the Secretary to the Board a daily return showing the number of bales bought for the house account that day.

(6) Tobacco purchased for the house account may be offered for resale by a holder of an auction floor licence on any sale.

(7) A holder of an auction floor licence shall place tobacco purchased for the house account which is being re-offered on the floors in lots of not less than five bales.

60. Removal of bales

(1) A buyer shall, if so requested by a sales supervisor, remove his purchases from the place of sale on the auction floor to a place indicated by the sales supervisor within half an hour of the closing of the bales after sale.

(2) A buyer shall remove his tobacco from the auction floor within five hours of the close of the sale at which the tobacco was purchased unless an extension of time is authorised by the sales supervisor.

(3) If the buyer fails to remove his tobacco in terms of sub-rule (2), the holder of the auction floor licence shall not be liable for any loss or damage which may be occasioned to such tobacco.

(4) A holder of an auction floor licence shall allot-

(a) an exit point; and

(b) a clipping point; and

to each buyer for his purchases.

(5) A buyer shall clip the bale tickets of his purchases with a distinctive mark at the clipping point allotted to him.

61. Bales re-offered on final day of selling season

Immediately before the sales close on the day of the last sale of the selling season, any unsold tobacco which is badly handled, or mixed, mouldy, funked or damaged which was, earlier on that day-

(a) offered for sale and for which no bid was made; or

(b) sold and the sale of which was repudiated;

may, notwithstanding anything contained in these Rules, be re-offered for sale:

Provided that, in the case of tobacco referred to in paragraph (b)-

(i) the tobacco shall be clearly marked so as to indicate the reason why the earlier sale was repudiated; and

(ii) the reason shall be declared to buyers before sale.

62. Resale numbers

A bale re-offered by any buyer, other than the Board but including the holder of an auction floor licence, shall, subject to the provisions of paragraph (b) of sub-rule (3) of rule 59, be re-offered for sale marked with the registered number allotted to him by a sales supervisor pursuant to sub-section (2) of section 28 of the Act.

63. Seller's accounts

The holder of an auction floor licence shall, not later than half an hour before the close of banking hours on the day following the day of sale, pay to a seller or his agent thereunto authorised in writing, the proceeds of the sale of his tobacco, less such weighing, selling, commission and re-handling charges as may have been approved by the Board in terms of section 69 of the Act, or such other charges as he may be authorised to deduct by or under the Act or any other written law.

64. Payment of accounts by buyers

(1) Except in the case of a dispute reported in writing to the holder of the auction floor licence and only to the extent of such dispute, a buyer or his agent shall settle his account not later than half an hour before the close of banking hours on the day following the day of sale.

(2) If a buyer or his agent fails to do so, the holder of the auction floor licence may report the matter to the sales supervisor.

(3) A holder of an auction floor licence may, and shall if so instructed by the sales supervisor, refuse to accept a subsequent bid from such buyer until the account in question has been paid in full.

65. Disposal of bale wrappings

(1) A seller shall notify the holder of the auction floor licence of the manner in which the bale wrappings in which his tobacco is packed shall be disposed of.

(2) The holder of the auction floor licence shall immediately return all bale wrappings received from the buyers to the owners of such wrappings or otherwise deal with the wrappings on the instructions of the owners.

66. Return of bale wrappings

(1) The buyer shall promptly return to the auction floor on which he purchased tobacco contained in any bale, the wrappings of such bale, as directed by the Board.

(2) A buyer shall take all reasonable steps to ensure that the bale wrappings are not cut or otherwise damaged when the tobacco is unpacked.

67. Special provisions relating to the sale of tobacco by mechanical auction

Notwithstanding any rule to the contrary in this Part, whenever the Board, by direction given to a holder of an auction floor licence, has instructed that the sale of tobacco be conducted by mechanical auction, the following provisions shall apply:

(a) the holder of the auction floor licence in question shall include in the statement required by paragraph (a) of sub-rule (1) of rule 34 the floor lot number on which the bale is placed;

(b) the holder of the auction floor licence shall ensure that the bale ticket clearly shows the floor lot number in addition to the particulars enumerated in paragraph (a) of sub-rule (1) of rule 34;

(c) the sales supervisor shall ensure that according to circumstances the sale of a bale is completed not later than the commencement of the sale of the catalogue immediately following the one in which the bale is recorded or ten minutes after the sale of the last bale of the catalogue in which it is recorded, whichever shall first occur;

(d) the provisions of rule 43 shall not apply.

SCHEDULE

[Rule 2]

PRESCRIBED FORMS

FORM 1

[Rule 3]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

PRELIMINARY CROP FORECAST RETURN

I certify-

(i) that the total acreage of Virginia flue-cured/Burley/Oriental tobacco * planted by me this
19 .......... /19 .......... growing season is ........................................ acres;

(ii) that I estimate that the total quantity of Virginia flue-cured/Burley/Oriental tobacco*which will be offered for sale by me or on my behalf this 19 ................ selling season, will be .................. kg.

...............................................................	..............................................................................................
Date	Signature

*Delete whichever are inapplicable.

Registered number of grower .................................................................................................................

Registered name of grower (block capitals) Postal address .................................................................

Name of farm or farms and I.C.A ............................................................................................................

NOTES-

(1) This form duly completed must reach the Secretary, Tobacco Board of Zambia, P.O. Box 31963, Lusaka, on or before 31st March, in a selling season.

(2) Severe penalties are provided for inaccurate estimates of false returns.

(3) You are required to state the total net area of land, excluding unplanted outcrops, roads, contour ridges, etc., planted on all your farms irrespective of whether the stand is good or bad.

FORM 2

[Rule 3]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

FURTHER CROP FORECAST RETURN

I certify-

(i) that the total acreage of Virginia flue-cured/Burley/Oriental tobacco* planted by me this 19 ........... /19 ............. growing season is ............................................ acres;

(ii) that I estimate that the total quantity of Virginia flue-cured/Burley/Oriental tobacco* which will be offered for sale by me or on my behalf this 19 ........... selling season, will be .......... kg.

...............................................................	..............................................................................................
Date	Signature

*Delete whichever are inapplicable.

Registered number of grower ..........................................................................................................

Registered name of grower (block capitals) Postal address ............................................................

Name of farm or farms and I.C.A. ....................................................................................................

NOTES-

(1) This form duly completed must reach the Secretary, Tobacco Board of Zambia, P.O. Box, Lusaka, after 15th May but before 1st June in a selling season.

(2) Severe penalties are provided for inaccurate estimates or false returns.

(3) You are required to state the total net area of land, excluding unplanted outcrops, roads, contour ridges, etc., planted on all your farms irrespective of whether the stand is good or bad.

FORM 3

[Rule 4]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

TO:

The Secretary,

Tobacco Board of Zambia,

P.O. Box 31963,

Lusaka.

APPLICATION FOR GRADER'S LICENCE

I, (name) ..........................................................................................................................................................

of (address) .....................................................................................................................................................

hereby apply for the issue of a licence to grade tobacco pursuant to Part VI of the Tobacco Act, and in support of my application submit the following particulars:

1. In the case of a company, state the names of all directors

...........................................................................................................................................................................

2. In the case of a partnership, state the name of every partner

...........................................................................................................................................................................

3. Description of the premises in which it is proposed to carry on the business of a grader

...........................................................................................................................................................................

4. Name of the person who will supervise the grading

...........................................................................................................................................................................

5. Have you previously held a grader's licence? (YES/NO) If YES state-

(a) date of issue of last licence

(b) the premises in respect of which such licence was issued

................................................................................................................................................................

6. If you have not previously held a licence, have you enclosed the plans required by rule 4 (1) (c) (see reverse of this form)? (YES/NO) .................................................................................................................

7. If you have previously held a licence, but the premises have been altered since the last licence was issued, have you enclosed a plan showing the nature of such alterations? (YES/NO) ..............................

8. Have you enclosed the licence fee of one hundred and fifty-five fee units? (YES/NO) ....................

...............................................................	..............................................................................................
Date	Signature

[P.T.O]

[Reverse side of Form 3]

NOTE 1. Rule 4(1)(c) of the Tobacco (Marketing and Licensing) Rules requires the submission of the following-

(i) a plan showing the site;

(ii) a plan and elevations;

(iii) a plan and description of the humidification system of the buildings in which it is proposed to carry on the grading or to store tobacco.

NOTE 2. The minimum standards of premises which may be licensed by the Board for grading tobacco are specified in rule 5 as follows-

(a) they are of such design and construction as may be approved by an architect appointed for this purpose by the Board;

(b) they are provided with storage space sufficient to permit the stacking of tobacco received for grading or awaiting despatch for sale without exceeding a height of two hundred and forty-four centimetres above the level on which the bottom bale rests;

(c) the floor surface of the grading shed, storage, sheds and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, are composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco.

FORM 4

[Rules 6 and 7]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

GRADER'S RECEIPT FOR TOBACCO

(Name of Grader) ..........................................................................................................................................

.................................................................. (Date)

Received from................................................................... (name of grower) ...............................................registered number...................................................... by lorry/rail*........................................................bales of Virginia flue-cured/Burley tobacco*for grading, weighing......................................................................kg. net, on...........................................(date received)

Number of bales examined ............................................................................................................................

Report on condition of bales examined. ........................................................................................................

........................................................................................................................................................................

.............................................................................

Signature

*Delete whichever are inapplicable.

NOTE 1. If for any reason a grader is unable to weigh bales immediately following receipt, this form shall be completed for the number of bales received and a further receipt showing the weights shall be sent to the grower within three working days.

NOTE 2. Unless a report on condition is made in this receipt, such report shall be sent to the grower within seven days of receipt of the tobacco, failing which the Board will assume that the condition thereof is satisfactory.

FORM 5

[Rule 8]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

RETURN BY A GRADER

(Name of Grader) ............................................................................................................................................

Grading Return ................................................................................... Date ...............................................

Class of Tobacco (Burley or Flue-Cured) .

Grower's Name .............................................................Grower's Registered No...........................................

(a)	UNGRADED LEAF RECEIVED TO DATE:
	(per receipts issued): . . .	Bales ....................kg .......................
(b)	GRADED
	This return To Date
		Bales	Net kg.	Bales	Net kg.
	Issued for grading .	............	............	............	............
	Add: "Tails" ex last grading..	........... .	...........	............	............
	Mixed ex Auction Floor	............	............ .	...........	...........
	........................................	............	............	............	............
	Total issued	_______	_______	_______	_______
		_______	_______	_______	_______
(c)	RESULTS OF GRADING:
	Packed for sale . .	............	............	............	............
	"Tails" . .	..............	............	............	............
	....................................................	_______	_______	_______	_______
	....................................................	_______	_______	_______	_______
	Total "Saleable"
	Unsaleable-
	(1) Mouldy ..	............	............	............	............
	(2) Funked	............	............	............	............
	(3) Stem Rot	............	............	............	............
	(4) Perished, green, etc.	............	............	............	............
	(5) Stems	............	............	............	............
	(6) Sand	............	............	............	............
	(7) Fine Scrap	............	............	............	............
	Total "Unsaleable"	_______	_______	_______	_______
	Grand Total:	_______	_______	_______	_______
		_______	_______	_______	_______
	Total Grading loss to date: ............ %: Grading loss less (1)-(4) ............ %
	Number of hessian wrappers received . . . . . .	.............................. pieces
	Number of hessian wrappers used . . . . . .	.............................. pieces
	Old hessian left over . . . . . . . . . .	.............................. pieces
	New paper issued . . . . . . . . . .	................................ yards
	New hessia issued . . . . . . . . . .	.............................. pieces
(d)	DELIVERIES TO AUCTION FLOORS:
	This return To Date
	Bales Net kg.		Bales	Net kg.
	Date .....................................	............	............	............	............
	Date .....................................	............	............	............	............
	Date ....................................	............	............	............	............
Remarks.............................................................................................................................................
............................................................................................................................................................
........................................................... Supervisor Signature

FORM 6

[Rule 11]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

To: The Secretary,

Tobacco Board of Zambia,

P.O. Box 31963,

Lusaka.

APPLICATION FOR BUYER'S LICENCE

I, (name) .................................................................of (address) ..............................................................................................

hereby apply for the issue of a licence to buy tobacco pursuant to Part VII of the Tobacco Act and in support of my application submit the following particulars:

1. In the case of a company, the names of all directors .........................................................................................

......................................................................................................................................................................................

2. In the case of a partnership, the name of every partner .....................................................................................

.......................................................................................................................................................................................

3. Where appropriate, the names of all persons entitled to buy tobacco on your behalf:

.......................................................................................................................................................................................

4. The class of tobacco which you intend to buy (e.g. Burley, Virginia flue-cured, Oriental)

.......................................................................................................................................................................................

5. The manner in which you propose to buy tobacco (e.g. by auction at a licensed auction floor, by private treaty or at a primary or rural level)

6. Whether or not you are a buyer solely by virtue of the ownership of land in respect of which you have agreed to permit a third person to produce tobacco on not more than ten acres of the said land in consideration of a share in the said tobacco when produced, or of a share of the proceeds of its sale, and if so the situation of such land ................................................................

7. Whether or not the application is for the issue of an exclusive licence pursuant to section 44 (4) of the Act, and if so the area in which the applicant wishes to buy tobacco...................................................................................................................................

8. If you wish to buy tobacco by auction, and have not previously been licensed as a buyer, have you attached to this application statements in writing from the holders of all auction floor licences that they are willing to do business with you? (YES/NO) ..........................................................................................................................................................................................

9. Have you enclosed the licence fee of three hundred fee units? (YES/NO) ..................................................................................

...............................................................	..............................................................................................
Date	Signature

FORM 7

[Rule 13]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

RETURN OF PURCHASES BY A BUYER

Class of tobacco ..........................................................................................................

Area of origin .................................................................................................................

Month ending..................................................................................................(see note 3)

Market	How purchased (see notes 1 and 2 below)	Total	Less Resales	Net Total
Internal
External
Total

NOTE 1.-Here indicate whether purchased by auction on a licensed auction floor, by private treaty or at a primary or rural level.

NOTE 2.-Except where tobacco covered by this return has been purchased by auction at a licensed auction floor, the buyer shall attach to this return a statement showing in detail the weight purchased from each grower by name and registered number during the month and the gross value thereof.

NOTE 3.-This return is to be submitted to the Secretary, Tobacco Board of Zambia, P.O. Box 31963, Lusaka, not later than the fifteenth of the month following that to which it refers.

FORM 8

[Rule 14]

TOBACCO ACT

THE TOBACCO (MARKETING AND LICENSING) RULES

APPLICATION FOR AN AUCTION FLOOR LICENCE

To:

The Secretary,

Tobacco Board of Zambia,

P.O. Box 31963,

Lusaka.

I, (name) ......................................................................................................................of (address) ................................................

hereby apply for the issue of an auction floor licence pursuant to Part VIII of the Tobacco Act, and in support of my application submit the following particulars-

1. In the case of a company, the names of all directors ..................................................................................................................

...........................................................................................................................................................................................................

2. In the case of a partnership, the name of every partner ......................................................................................................................................................................................................................................................................................................................................................................................................................

3. Description of the premises .........................................................................................................................................................

4. Have the premises previously been licensed as an auction floor? (YES/NO)

A. If YES-

(a) state the date on which the last licence was issued. ...............................................................................

(b) give details of any alteration in the use of the premises as an auction floor since the issue of the last licence

.......................................................................................................................................................................................

B. If NO have you-

(a) obtained a conditional authority from the Board? (rule 15) (YES/NO); ......................................................................... or

(b) enclosed a plan showing the site of the premises in relation to road and rail facilities and a plan and elevation of the premises? (YES/NO) ...................................................................................................................................................

5. Have you enclosed the licence fee of one thousand five hundred fee units? (YES/NO) ................................................................................................

...............................................................	..............................................................................................
Date	Signature

See Reverse of this Form for Minimum Standards of Auction Floors

[Reverse side of Form 8]

MINIMUM STANDARDS OF PREMISES

Rule 16 reads:

"Except where the Board may, with the approval of the Minister, have exempted any premises from the provisions of Part VIII of the Act, no auction floor licence shall be issued in respect of premises-

(a) which do not comply with the following minimum requirements:

(i) the area available for storage of tobacco shall be not less than two-thirds of the area of the sales floor;

(ii) the total area of platforms and verandahs capable of being used for the loading or off- loading of tobacco shall not be less than forty per centum of the area of the sales floor;

(v) there shall be in a position adjacent to or as part of the auction floor an area set aside for the re-handling of tobacco, which area shall be not less than seven per centum of the area of the sales floor, and shall be equipped with such devices as are capable of controlling the humidity therein to the satisfaction of the Board;

(b) unless the design and construction thereof are such as may be approved by an architect appointed for this purpose by the Board."

FORM 9

[Rule 15]

TOBACCO ACT

TOBACCO (MARKETING AND LICENSING) RULES

APPLICATION FOR CONDITIONAL AUTHORITY

[Auction Floor]

To: The Secretary,

Tobacco Board of Zambia,

P.O. Box 31963,

Lusaka.

I, (name).......................................................................................of (address) .................................................................................

hereby apply for the grant of a conditional authority to erect, extend or alter premises for use as an auction floor pursuant to Part VIII of the Tobacco Act, and in support of my application submit the following particulars:

1. In the case of a company, the names of all directors ...................................................................................................................

2. In the case of a partnership, the name of every partner ...............................................................................................................

3. Have the premises for which the conditional authority is sought been previously licensed? (YES/NO)

If YES-

(a) describe briefly the proposed alterations or extensions .....................................................................................................

(b) have you supplied a plan and elevations of the proposed alterations or extensions? (YES/NO)

4. If the premises for which conditional authority is sought-

(a) do not exist;

(b) exist but have not previously been licensed as an auction floor*;

have you enclosed a plan showing the site of the premises or proposed premises in relation to road and rail facilities and a plan and elevations of such premises or proposed premises? YES/NO)...........................

*Delete (a) or (b) whichever is inapplicable.

...............................................................	..............................................................................................
Date	Signature

For Minimum Standards of Auction Floors see overleaf.

[Reverse side of Form 9]

MINIMUM STANDARDS OF PREMISES

Rule 16 reads-

(a) which do not comply with the following minimum requirements:

(i) the area available for storage of tobacco shall be not less than two-thirds of the area of the sales floor;

(ii) the total area of platforms and varendahs capable of being used for the loading or off- loading of tobacco shall not be less than forty per centum of the area of the sales floor;

(v) there shall be in a position adjacent to or as part of the auction floor an area set aside for the re-handling of tobacco, which area shall be not less than seven per centum of the area of the sales floor, and shall be equipped with such devices as are capable of controlling the humidity therein to the satisfaction of the Board;

(b) unless the design and construction thereof are such as may be approved by an architect appointed for this purpose by the Board.

FORM 10

[Rule 17]

TOBACCO ACT

TOBACCO (MARKETING AND LICENSING) RULES

AUCTION FLOOR DAILY TOBACCO SALES RETURN

Name of Auction Floor .....................................................................................................................

Class of tobacco ..............................................................................................................................

Selling day No ................................... Date of sale ..........................................................................

Weight sold, in kgs............................................................................................................................

Gross value of tobacco sold K Average price per kg, in kwacha................................................

...............................................................	..............................................................................................
Date	Signature

FORM 11

[Rule 17]

TOBACCO ACT

TOBACCO (MARKETING AND LICENSING) RULES

AUCTION FLOOR WEEKLY TOBACCO SALES RETURN

Name of Auction Floor ......................................................................................................................

Class of tobacco ...............................................................................................................................

Selling week No............................................................Week ending ......................................19 ..........

For Week Season to Date

1. Summary of Net Sales (Excluding resales)	....................	....................
Number of bales offered	....................	....................
Number of bales sold	....................	....................
Percentage sold of bales offered	....................	....................
Weight sold, in kgs	....................	....................
Gross value of tobacco sold	K ................	K ................
Average price per kg, in kwacha	....................	....................
Average weight of bales, in kg	....................	....................
2. Summary of Resales	....................	....................
Weight resold, in kgs	....................	....................
Value of tobacco resold	K ...............	K ...............

...............................................................	..............................................................................................
Date	Signature

NOTE 1. All weights to be expressed as wet weight.

NOTE 2. This return is to be made up for each week during a selling season to midnight on Wednesday, and submitted to the Board by not later than the following Monday.

FORM 12

[Rule 17]

TOBACCO ACT

TOBACCO (MARKETING AND LICENSING) RULES

AUCTION FLOOR SEASONAL TOBACCO SALES RETURN

Name of Auction Floor ......................................................................

Class of tobacco .................................................................................

Selling season 19.............................................................

Name of Grower*

Grower's Registered Number

Total weight sold

Gross value of tobacco sold

.........

.......

Totals

....................

.......

____________

.........

________________

........

______________

...............................................................	..............................................................................................
Date	Signature

*For the purposes of this return "grower" shall exclude any person deemed to be a grower solely by virtue of section 26 (6) of the Act (i.e. resales).

TOBACCO (REGISTRATION OF GROWERS) REGULATIONS

[Sections 24, 25, 26, 27 and 100]

Arrangement of Regulations

Regulation

1. Title

2. Registers of growers

3. Registration period and validity of registration

4. Application for registration

5. Registration fee for late application

SCHEDULE

[Regulations by the Minister]

SI 139 of 1968,

Act 13 of 1994,

SI 85 of 2018.

1. Title

These Regulations may be cited as the Tobacco (Registration of Growers) Regulations.

2. Registers of growers

(1) The Registrar shall cause to be kept a register of each of the growers of the following classes of tobacco-

(a) virginia flue-cured;

(b) burley;

(d) other classes as may be prescribed.

(2) A register kept under sub-regulation (1) shall be in Form I set out in the Schedule.

[Subs by reg 2 of SI 85 of 2018.]

3. Registration period and validity of registration

(1) A grower or intended grower shall apply for registration from 1st ApriI to 31st October each year.

(2) The Board shall validate and register growers or intended growers from 1st November to 31st December each year.

(3) The Board shall issue a grower registered under these Regulations with a certificate of registration in Form II set out in the Schedule.

(4) A certificate of registration remains valid until the last sale of tobacco by the holder of that certificate in the year following the issue of the certificate.

(5) A certificate of registration is not transferable.

[Subs by reg 2 of SI 85 of 2018.]

4. Application for registration

(1) A person that intends to grow a class of tobacco shall apply to the Board in Form Ill set out in the Schedule.

(2) Where a prescribed class of non-auctionable tobacco is contracted to be sold to a licensed buyer by a grower, that grower's application for registration shall be supported by a declaration, by the licensed buyer, in Form IV set out in the Schedule, and submitted to the Board by 1st May in each year.

[Subs by reg 3 of SI 85 of 2018.]

5. Registration fee for late application

Where an application for registration is made after the termination of the registration period prescribed by regulation 3 (1), the applicant shall pay to the Board-

(a) for an application submitted from 1st November to 31st December, a registration fee of 3,334 fee units; and

[Subs by reg 4 of SI 85 of 2018.]

(b) for an application submitted after 31st December, a registration fee of 8,334 fee units.

[Am by Act 13 of 1994; subs by reg 4 of SI 85 of 2018.]

SCHEDULE

PRESCRIBED FORM

[Sch am by reg 5 of SI 85 of 2018.]

FORM I

[Regulation 2]

Tobacco Board of Zambia

The Tobacco Act

(Laws, Volume 14, Cap. 237)

The Tobacco (Registration of Growers) Regulations, 1968

No.	Name of grower	Class of tobacco	No of growers/ producers* of non-auctionable tobacco	Projected volumes of non-auctionable tobacco	Particular of licensed buyers
1.
2.
3.

Form II

[Regulation 3(3)]

Tobacco Board of Zambia

The Tobacco Act

(Laws, Volume 14, Cap. 237)

The Tobacco (Registration of Growers) Regulations, 1968

CERTIFICATE OF REGISTRATION AS GROWER

I certify that .................................................... (name of grower) has been registered as a grower of ........................................... (prescribed class of tobacco) in accordance with this Act and has been entered in the Register for that class of tobacco under Registration Number .......................
...................................................	.............................................................
Date of issue	Signature of Registering Officer
Note: This registration is subject to the following conditions:
CONDITIONS OF REGISTRATION
1. This certificate is valid only for the selling season in respect of which it is issued.
2. The holder of this certificate shall abide by the provisions of the Act, Rules and Regulations.
3. The holder of this certificate shall submit such returns as are by law required to be submitted.
4. The holder of this certificate shall comply with such directions as may, from time to time, be issued by the Board, in regard to the growing of the prescribed class of tobacco.

Form Ill

[Regulation 4]

Tobacco Board of Zambia

The Tobacco Act

(Laws, Volume 14, Cap. 237)

The Tobacco (Registration of Growers) Regulations, 1968

APPLICATION FOR REGISTRATION OF GROWER
Please complete in BLOCK LETTERS	Shaded fields for official use only	Application No.
Date/Time

Information Required

Information Provided

	PARTICULARS OF APPLICANT
1.	Name(s) of applicant
2.	Business address (Physical address of Head Office)
3.	Telephone. No.
4.	Email
5.	Location of activities
Operations	Districts
6.	Class of Tobacco (Please tick () what is applicable below)
Virginia flue-cured
Burley
Oriental
Other (Specify)
.................................................................................................................................. ..................................................................................................................................
7.	Do you intend to grow more than one class of tobacco?
YES	NO
Ir yes, please provide intended acreage or each class.
8.	Attachments
Particulars of the acreages

	DECLARATION
I declare that the information I have stated is correct and truthful to the best of my knowledge and belief.
................................... ................................................... Name Designation
................................... ................................................... Signature Date
FOR OFFICIAL USE ONLY
Date of submission: .............................................................................................................
Application number: ............................................................................................................
Application deficient (notifying applicant on deficiencies): .....................................................

	.................................................... Registrar

[Reverse side of Form Ill]

NOTE 1 - The form applies to all applications relating to all prescribed classes of tobacco.

NOTE 2 - The prescribed class of tobacco are-

(a) auctionable tobacco; and

(b) non-auctionable tobacco which consists of-

(i) fire-cured;

(ii) oriental;

(iii) sun-cured; and

(iv) air-cured.

NOTE 3 - Registration is conditional upon the applicant's compliance with the provisions of regulations 3 and 4 of the Plant Pests and Diseases (Tobacco) Regulations, which relate to the destruction of tobacco plants, stalks and roots after cropping. Failure to comply with the regulations may result in the refusal or cancellation of registration.

NOTE 4 - In terms of section 84 of the Act, only prescribed varieties of prescribed classes may be grown or sold. The prescribed varieties, by classes, are-

(a) virginia flue-cured tobacco-Bonanza, Canadel, Delcrest, Hicks, Jamaica Wrapper, Kutsaga 51, Kutsaga E.1, Kutsaga E.2, Rhomos 7, Trelawney C.7, White Gold, White Stem Orinoco, Yellow Mammoth;

(b) fire-cured tobacco-Malawi Western;

(d) oriental tobacco-Samsun; and

(e) other prescribed classes-Malawi Western.

The prescribed varieties to be grown must be shown separately in item 6 of the form and the acreage of each.

NOTE 5 - Application for registration in respect of the following year's crop must be made within the periods-

(a) oriental tobacco: 1st June to 31st December; and

(b) all other prescribed classes of tobacco: 1st April to 31st October.

NOTE 6 - The completed application, duly signed, should be sent to the Registrar, Tobacco Board of Zambia, P.O. Box 31963, Lusaka, from whom additional forms are available.

Form IV

[Regulation 4(2)]

Tobacco Board of Zambia

The Tobacco Act

(Laws, Volume 14, Cap. 237)

The Tobacco (Registration of Growers) Regulations, 1968

DECLARATION OF PROJECTED TOBACCO VOLUMES TO BE BOUGHT

TO: The Registrar,

Tobacco Board of Zambia,

P.O. Box 31963,

Lusaka.

I/We, (name of buyer) ............................................................................................ of (address) ................................................................................................ declare that I/We have contracted to buy ............. (volume) of tobacco, being eighty per cent of my/our intended purchase volumes for the selling season. Twenty per cent of the tobacco, being ............... (volume), shall be purchased from self-sponsored growers.

In support of this declaration, I/We submit the following particulars:

1. In the case of a company, the names of the directors ....................................................

.............................................................................................................................................

2. In the case of a partnership, the names of the partners .................................................

.............................................................................................................................................

3. Where appropriate, the names of persons entitled to buy tobacco on your behalf:

Name of Grower	Grower's Registration Number	Class of Tobacco	Prospective Volume	Estimated Value (ZMW)

Declared at ...................... the ...................... day of .................. 20.........

Before me:

.............................................
Commissioner for Oaths

Note: This declaration is subject to the condition that the licensed buyer shall concurrently purchase the 80 per cent contracted crop and the 20 per cent self-sponsored crop.

TOBACCO (PRESCRIBED CLASSES) REGULATIONS

[Section 59]

Arrangement of Regulations

Regulation

1. Title

2. Prescribed classes

SCHEDULE

[Regulations by the Minister]

SI 140 of 1968,

SI 68 of 1977.

1. Title

These Regulations may be cited as the Tobacco (Prescribed Classes) Regulations.

2. Prescribed classes

The class or classes of tobacco specified in the first column of the Schedule shall be auctionable or non-auctionable tobacco for the purposes of the Act as specified in the second column of the Schedule, opposite the said specified classes.

SCHEDULE

[Regulation 2]

PRESCRIBED CLASSES OF TOBACCO

Class

Auctionable/non-auctionable

Virginia flue-cured tobacco

non-auctionable

Fire-cured, Burley, Oriental, sun-cured, air-cured, sun- and
air-cured tobacco. .

non-auctionable

[Am by SI 68 of 1977.]

TOBACCO (PRESCRIBED VARIETIES) REGULATIONS

[Section 83]

Arrangement of Regulations

Regulation

1. Title

2. Prescribed varieties

SCHEDULE

[Regulations by the Minister, after consultation with the Tobacco Board of Zambia]

SI 141 of 1968,

SI 354 of 1969,

SI 33 of 1973,

SI 178 of 1977,

SI 72 of 1983.

1. Title

These Regulations may be cited as the Tobacco (Prescribed Varieties) Regulations.

2. Prescribed varieties

Of the classes of tobacco specified in the first column of the Schedule, the variety or varieties, as the case may be, specified in the second column of the Schedule, opposite the said specified classes, are prescribed varieties of such classes of tobacco for the purposes of Part XI of the Act.

SCHEDULE

[Regulation 2]

PRESCRIBED VARIETIES OF TOBACCO

Class	Variety
Virginia flue-cured tobacco	Bonanza, Canadel, Delcrest, Hicks, Jamaica Wrapper, Kutsaga 51 Kutsaga E.1, Kutsaga E.2, Rhomos 7, Trelawney C.7, White Gold, White Stem Orinoco, Yellow Mammoth
Burley tobacco	Burley 21, Kentucky 41
Oriental tobacco	Samsun
Fire-cured, sun-cured, air-cured, or sun- and air-cured tobacco	Malawi Western
Cigar tobacco	Virginia Mammoth
Virginia flue-cured tobacco	Kutsaga Mammoth E(KME), Speight G.41
Burley air-cured tobacco	Banket A.1, Harian

[Am by SI 354 of 1969; 33 of 1973; 178 of 1977.]

TOBACCO (GENERAL) REGULATIONS

[Section 100]

[Re-denominate the currency as stipulated under S 4 of Re-denomination Act, 8 of 2012, read with Bank of Zambia Act, 43 of 1996.]

Arrangement of Regulations

Regulation

1. Title

2. Appeals

3. Fee for restoration of registration

4. Export of tobacco

5. Prescription of noxious substances

6. Inspection of tobacco held over

FIRST SCHEDULE

SECOND SCHEDULE

SI 138 of 1968.

[Regulations by the Minister]

1. Title

These Regulations may be cited as the Tobacco (General) Regulations.

2. Appeals

(1) Where, under the provision of sections 36, 40, 45, 49, 51 and 54 of the Act, an aggrieved person appeals to the Minister, notice of the appeal shall be given to the Permanent Secretary, in writing, within thirty days of the notification to the aggrieved person of the decision against which he wishes to appeal:

Provided that the Minister may, in circumstances which he deems to merit special consideration, consider appeals, notice of which is given after the expiration of the said period of thirty days.

(2) The notice of appeal shall be accompanied by a deposit of twenty kwacha, and shall specify in detail the grounds on which the appeal is made and such other information and representations in support thereof as the appellant may think fit, but the appellant shall have no right to appear in person before the Minister.

(3) The Permanent Secretary shall transmit to the Minister every notice of appeal given to him pursuant to sub-regulation (1), together with such other information and representations as the appellant may have submitted pursuant to sub-regulation (2).

(4) The Minister may, if he deems fit, call upon the Registrar or the Board, as the case may be, to submit, within a stated time, such information or representations in writing as the Registrar or the Board, as the case may be, may wish to submit in respect of any appeal.

(5) After considering the information and representations made by the appellant and such information and representations as the Registrar or the Board, as the case may be, have submitted pursuant to sub- regulation (4), the Minister shall confirm or set aside the decision against which the appeal is made, and, if the decision is so set aside, he may substitute for such decision such alternative decision as to him seems just and equitable.

(6) The Minister shall, in any appeal, make such order for the return or forfeiture of the whole or part of the deposit referred to in sub-regulation (2) as seems to him to be just and equitable.

3. Fee for restoration of registration

The registration fee payable by a grower pursuant to section 34 of the Act in respect of the restoration of his name to the appropriate register shall be-

(a) for the first such restoration in any one season, sixty fee units;

(b) for every subsequent restoration in any one season, one hundred and fifty fee units.

[Am by Act 13 of 1994.]

4. Export of tobacco

(1) An application for a permit to export tobacco, as may be granted pursuant to section 87 of the Act, shall be submitted in triplicate in the Form T.A. Gen. 1 set out in the First Schedule, and shall be addressed to the Permanent Secretary.

(2) The application shall state the class and weight of tobacco to be exported and the date by which the exportation shall have been completed.

(3) Upon the granting of any application made pursuant to sub-regulation (1), the Minister shall endorse the permit to export on each copy of such application and shall specify thereon such conditions as may be applicable, including a date of expiry:

Provided that, if no date is so specified, the permit shall be deemed to expire on the 31st December following the date of issue.

(4) Such permit shall be issued by delivering to the applicant a copy thereof endorsed pursuant to sub- regulation (3), and shall be deemed to have been issued on the date appearing as the date of such endorsement.

5. Prescription of noxious substances

(1) The substances specified in the Second Schedule are deemed to be noxious and unfit for use in the treatment of tobacco.

(2) No person shall sell or otherwise dispose of tobacco which has been- Prohibition against sale of tobacco treated with certain substances

(a) treated with; or

(b) reaped from tobacco plants treated with;

any such scheduled noxious substance.

6. Inspection of tobacco held over

(1) The inspection of auctionable tobacco held over from any selling season, as required by section 66 of the Act, shall be carried out by the isolation of the sample or bale and its examination in a manner calculated to ensure that the presence of any living pest of tobacco would by such examination be revealed.

(2) In the course of the inspection, the registered grower shall, if so required, indicate to the inspector the place and manner of storage of the tobacco and shall make any portion of the tobacco as stored available to the inspector at his request.

(3) The certificate in respect of auctionable tobacco certifiable under section 66 of the Act shall be in the Form T.A. Gen. 2 set out in the First Schedule.Certificate of inspection

(4) The fumigation of tobacco pursuant to section 66 of the Act shall be effected at the rate of one kilogramme methyl bromide per 1,000 cubic feet under gas-proof sheets for a period of forty-eight hours. Fumigation

FIRST SCHEDULE

PRESCRIBED FORMS

FORM T.A. GEN. 1

[Regulation 4]

APPLICATION FOR PERMIT TO EXPORT TOBACCO

(To be submitted in triplicate)

The Permanent Secretary,

Ministry of Agriculture,

Lusaka.

SEASON 19 .............. /19 ...............

1. I hereby apply for a permit to export the following weights of tobacco in the above season:

Prescribed Class	Weight
(a)
(b)
(c)

2. If the permit is granted, I undertake to complete exportation by.................,

19 ..............

Address of applicant:

............................................................................	Signature
............................................................................	.............................................................................
............................................................................	.............................................................................
Date.....................................................................	(name in block capitals)

PERMIT

The Minister has approved the above application, subject to the completion of exportation by (date) ............................. , 19 ..............., and to the following further conditions:

Date.......................................................................

File No ...................................................................

.......................................................................

Permanent Secretary,
Ministry of Agriculture

FORM T.A. GEN. 2

[Regulation 6]

FUMIGATION CERTIFICATE

NOTE. Section 66 of the Act reads-

"(1) Any registered grower who has, under a permit from the Board, held any auctionable tobacco over from any selling season, may deliver the said tobacco to an auction floor for sale in any later selling season if he is the holder of a certificate in the form prescribed, issued by an inspector appointed pursuant to section 22 of the Plant Pests and Diseases Act to the effect that- Sale of auctionable tobacco grown in earlier season.

Sale of auctionable tobacco grown in earlier season.

(a) the tobacco has been fumigated in the manner prescribed; and

(b) the tobacco or a representative sample thereof has been inspected as prescribed and no evidence of the presence of any living pest of tobacco has been found therein; and which certificate has been issued not more than thirty days before the said tobacco is delivered to the said licensed auction floor.

(2) Immediately before any auctionable tobacco, which has been delivered to an auction floor pursuant to sub-section (1), is auctioned on such auction floor, the sales supervisor on the said auction floor shall publicly announce the year of the growth of the said tobacco and that the certificate required by sub-section (1) has been issued in respect thereof."

1. THIS CERTIFICATE is issued pursuant to section 66 of the Act.

2. I hereby certify-

(a) that the tobacco (specify)..........................................................................................................

...................................................................................................................................................

grown by (name of registered grower)......................................................................................

in the season 19 ................................. has been fumigated in accordance with these Regulations; and

(b) that it or a representative sample thereof has been inspected as prescribed and no evidence of the presence of any living pest of tobacco has been found therein.

3. This certificate is valid only for thirty days from the date of issue.

............................................................

Inspector P.P. and D.A.

Date of issue .........................................................

SECOND SCHEDULE

[Regulation 5]

NOXIOUS SUBSTANCE

1. Maleic hydrazide, also known as MH.

TOBACCO (SALE OF NON-AUCTIONABLE TOBACCO) REGULATIONS

[Sections 73 and 100]

Arrangement of Regulations

Regulation

1. Title

2. Interpretation

3. Sale of non-auctionable tobacco

4. Submission of buyer's pricing matrix

5. Request for additional information

6. Rejection of buyer's pricing matrix

7. Submission of revised buyer's matrix

8. Approval of buyer's pricing matrix

9. Prohibition of erection, alteration or extension of sales floor

10. Application for conditional authority

11. Prohibition of operation of undesignated sales floor

12. Restriction on operating sales floor

13. Application for designation of sales floor

14. Rejection of application for designation

15. Grant of designation

16. Duplicate designation

17. Suspension of designation

18. Revocation of designation

19. Operation of sales floor by Board

20. Deposit of purchase price for tobacco in certain cases

21. Delivery quotas

22. Sales and supervision

FIRST SCHEDULE

SECOND SCHEDULE

SI 84 of 2018.

1. Title

These Regulations may be cited as the Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018.

2. Interpretation

In these Regulations, unless the context otherwise requires-

"approved buyer's pricing matrix" means a buyer's pricing matrix approved by the Board;

"arbitrator" has the meaning assigned to the word in the Tobacco (Marketing and Licensing) Rules, 1968;

"buyer's pricing matrix" means a schedule of non-auctionable tobacco grade marks with related prices per unit of measure for each grade mark describing the tobacco leaf;

"buyer's representative" means a person nominated by a licensed buyer to buy tobacco on the buying line for and on behalf of the licensed buyer;

"buying line" means the order of buying tobacco on a sales floor comprising a classifier, buyer's representative, grower's representative and an arbitrator;

"classifier" has the meaning assigned to the word in the Tobacco (Marketing and Licensing) Rules, 1968;

"conditional authority" means the authority under regulation 10, granted by the Board to a person to erect, alter or extend a sales floor;

"contract crop" means non-auctionable tobacco to be sold under an outgrower production contract entered into between a grower and licensed buyer;

"designation" means a designation granted by the Board to operate a sales floor;

"grower" means a person who grows or intends to grow tobacco and is registered by the Board as a grower;

"grower's representative" means a person nominated by a grower, and registered by the Board, to sell tobacco for and on behalf of the grower on the buying line;

"market contract" means an agreement between a self sponsored registered grower and a licensed buyer who is an offtaker of self-sponsored tobacco;

"non-contract crop" means tobacco which can be freely sold to a willing licensed buyer on an auction floor or a sales floor;

"production contract" means an agreement between a grower and a licenced buyer for the grower to produce a projected volume of tobacco and sell the tobacco produced to the licensed buyer on a sales floor;

"sales area" means the portion of a sales floor allotted for the sale of non-auctionable tobacco and excludes an area or areas allotted for storage of the tobacco;

"sales floor" means premises designated by the Board for the sale of non-auctionable tobacco;

"sales supervisor" means a person appointed by the Board to supervise the sale of non-auctionable tobacco on a sales floor;

"self-sponsored tobacco" means tobacco produced by a grower or producer who is not financed by the buyer, with the grower or producer retaining ownership until sale;

"sponsor" means a person that finances the production of tobacco by a grower and retains ownership of the tobacco until the point of sale for purposes of recovering the financing advanced to the grower in the production of the tobacco; and

"sponsorship contract" means an agreement between a grower or producer and a buyer for the production of tobacco where the buyer prefinances the production of the tobacco and retains ownership of the tobacco.

3. Sale of non-auctionable tobacco

(1) A grower of tobacco under a production contract shall offer the non-auctionable tobacco produced under that contract for sale during a selling season on a sales floor.

(2) Where, in a selling season, a licensed buyer is entitled to buy a projected volume of non-auctionable tobacco under a production contract, the actual volume bought shall be segregated as set out in the First Schedule.

4. Submission of buyer's pricing matrix

(1) A licensed buyer shall, not less than 60 days before the commencement of a selling season, submit to the Board that buyer's pricing matrix for approval.

(2) The Board shall, within 14 days of receipt of the buyers pricing matrix, notify the licensed buyer of the decision of the Board.

(3) The Board shall, in considering the buyer's pricing matrix, take into account the costs of producing tobacco in any season.

5. Request for additional information

The Board may request a licensed buyer that has submitted a buyer's pricing matrix to submit additional information in relation to the buyer's pricing matrix in Form I set out in the Second Schedule.

6. Rejection of buyer's pricing matrix

(1) The Board may reject a buyer's pricing matrix if the prices contained in the buyer's pricing matrix are below the costs of production of tobacco in the season to which the buyer's pricing matrix relates.

(2) The Board shall, where the Board rejects a buyer's pricing matrix, notify the licensed buyer within seven days of the Board's decision, in Form II set out in the Second Schedule.

7. Submission of revised buyer's matrix

(1) A licensed buyer shall, where the licensed buyer's pricing matrix is rejected under regulation 6, submit a revised buyer's pricing matrix that remedies the causes of the rejection of the buyer's pricing matrix submitted under regulation 4.

(2) A licensed buyer shall submit a revised buyer's pricing matrix within 14 days from the date of receipt of the notice of rejection of the buyer's pricing matrix submitted under regulation 4.

8. Approval of buyer's pricing matrix

(1) The Board shall, where a buyer's pricing matrix contains reasonable prices, approve the buyer's pricing matrix.

(2) The Board shall, where it approves a buyer's pricing matrix, notify the licensed buyer of the approval within seven days of the Board's decision in Form III set out in the Second Schedule.

(3) An approved buyer's pricing matrix is valid for the duration of the selling season to which it relates.

9. Prohibition of erection, alteration or extension of sales floor

(1) A person shall not erect, alter or extend a sales floor without the conditional authority of the Board.

(2) A person that contravenes sub-regulation (1) commits an offence and is liable, on conviction in case of a-

(a) first offender, a fine not exceeding four thousand penalty units or to imprisonment for a term not exceeding six months, or to both; and

(b) second or subsequent offender, a fine not exceeding fifteen thousand penalty units or to imprisonment for a term not exceeding one year, or to both.

10. Application for conditional authority

(1) A person that intends to erect, alter or extend a sales floor shall apply to the Board for conditional authority in Form IV set out in the Second Schedule.

(2) The provisions of regulations 14, 15, 16, 17 and 18 apply to conditional authority as if for a reference to "designation" these were substituted with the reference to "conditional authority".

(3) A holder of conditional authority shall, on completion of the building works in respect of which conditional authority has been granted, apply for designation in accordance with regulation 13.

(4) Where conditional authority granted is for the alteration or extension of a sales floor, a further fee is not payable to the Board during the period of validity of the designation granted prior to the grant of the conditional authority.

11. Prohibition of operation of undesignated sales floor

(1) A person shall not operate a sales floor that is not designated by the Board.

(2) A person that contravenes sub-regulation (1) commits an offence and is liable, on conviction in case of a-

(a) first offender, a fine not exceeding four thousand penalty units or to imprisonment for a term not exceeding six months, or to both; and

(b) second or subsequent offender, a fine not exceeding fifteen thousand penalty units or to imprisonment for a term not exceeding one year, or to both.

12. Restriction on operating sales floor

(1) A licensed buyer, sponsor or grower is not eligible to operate a sales floor.

(2) A sales floor shall be at least 10 kilometres away from another sales floor.

13. Application for designation of sales floor

(1) A person that intends to operate a sales floor shall apply to the Board for designation in Form V set out in the Second Schedule on payment of 70,168 fee units.

(2) The Board may request an applicant to submit additional information in relation to the application in Form I set out in the Second Schedule.

(3) The Board shall, within 90 days of receipt of an application, notify the applicant of the decision of the Board.

(4) An applicant shall, where the applicant intends to operate more than one sales floor, submit a separate application in respect of each premises intended to be operated as a sales floor.

(5) The Board may inspect the premises in respect of which an application is made to determine if the premises are suitable for operation as a sales floor.

14. Rejection of application for designation

(1) The Board shall reject an application for designation if-

(a) the applicant fails to comply with a condition precedent to the grant of a designation;

(b) a designation granted to the applicant was revoked by the Board within a period of two years preceding the application; or

(2) The Board shall, where it rejects an application for designation, notify the applicant within seven days of the decision in Form II set out in the Second Schedule.

15. Grant of designation

(1) The Board shall, where an applicant meets the requirements for designation, grant a designation in Form VI set out in the Second Schedule.

(2) A designation is valid for the duration of the selling season in respect of which it is granted.

(3) A designation is not transferable.

16. Duplicate designation

A person shall, where that person's designation is lost, damaged or defaced, apply to the Board for a duplicate designation in Form VII set out in the Second Schedule.

17. Suspension of designation

(1) The Board shall suspend a designation if the holder of the designation contravenes the conditions of the designation, the provisions of the Act or any other relevant written law.

(2) The Board shall, before suspending a designation, notify the holder of the designation of the intention to suspend the designation and request the holder of the designation to show cause, within a specified period, why the designation should not be suspended.

(3) A notice of intention to suspend a designation shall be in Form VIII set out in the Second Schedule.

(4) The Board shall suspend a designation if the holder of the designation does not take corrective measures within the period specified in the notice issued under sub-regulation (2).

(5) A notice of the suspension of a designation shall be in Form IX set out in the Second Schedule.

(6) The Board shall, where a designation has been suspended, operate the sales floor for the duration of the suspension.

18. Revocation of designation

(1) The Board shall revoke a designation if the holder of the designation-

(a) contravenes the conditions of the designation, provisions of the Act or any other relevant written law;

(b) does not take corrective measures following the suspension of the designation within the period specified for taking such measures; or

(2) The Board shall, before revoking a designation, notify the holder of the designation of the intention to revoke the designation and request the holder of the designation within a specified period, to show cause, why the designation should not be revoked.

(3) A notice of intention to revoke a designation shall be in Form VIII set out in the Second Schedule.

(4) The Board shall revoke a designation if the holder of the designation does not take corrective measures within the period specified for taking such measures.

(5) A notice of revocation of designation shall be in Form IX set out in the Second Schedule.

(6) The Board shall, where a designation has been revoked, operate the sales floor for the remainder of the selling season.

19. Operation of sales floor by Board

The Board shall, where an applicant for a designation does not meet the requirements of the Act in a particular selling season, operate that applicant's sales floor in that selling season.

20. Deposit of purchase price for tobacco in certain cases

(1) A prospective buyer that intends to purchase tobacco shall, in the first three years of being granted the first buyer's licence, deposit with the Board the full purchase price of the expected volume of tobacco to be purchased in each selling season.

(2) The Board shall undertake disbursements on behalf of a licensed buyer for the first three years of that buyer being granted a buyer's licence.

21. Delivery quotas

A grower shall not deliver or cause to be delivered to a sales floor, in a selling season, non-auctionable tobacco in excess of the delivery quota fixed by the Board for that grower in that selling season.

22. Sales and supervision

(1) Parts VI, VII and VIII of the Tobacco (Marketing and Licensing) Rules, 1968, apply, with necessary changes, to the marking of bales, packing and selling of non-auctionable tobacco.

(2) Despite sub-regulation (1)-

(a) the Board shall appoint sales supervisors as designated sales supervisors; and

(b) a designated sales supervisor shall inspect the weights of non-auctionable tobacco delivered to a sales floor by or on behalf of a grower or producer.

(3) A classifier shall assign a classification grade mark to non-auctionable tobacco laid on a buying line.

(4) A buyer's representative shall assign a price to the non-auctionable tobacco classified under sub-regulation (3) in accordance with the buyer's approved pricing matrix.

(5) A buyer's representative shall register with the Board within 14 days of being nominated by a grower.

(6) A buyer's representative shall inform that buyer's representative's grower, of the-

(a) classification grade mark assigned to the non-autionable tobacco by the classifier; and

(b) price assigned to the non-auctionable tobacco by the buyer's representative.

(7) An arbitrator shall, where a dispute arises relating to the price assigned or the classification grade mark of non-auctionable tobacco, determine the dispute in accordance with the approved buyer's pricing matrix within 48 hours of the date of receipt of notice of the dispute.

FIRST SCHEDULE

[Regulation 3(2)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

SEGREGATION OF VOLUMES OF NON-AUCTIONABLE TOBACCO FOR SALE UNDER PRODUCTION CONTRACT

Category of crop	Volume
Contract	80%
Self-Sponsored	20%

SECOND SCHEDULE

[Regulations 5, 6, 8, 10, 13, 14, 15, 16, 17 and 18]

FORM I

[Regulations 5, 10(2) and 13(2)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

REQUEST FOR ADDITIONAL INFORMATION

To .................................................

Address: ................................................

Application No.: .............................................

You are requested to furnish the following information or documents in respect of your application for ...........................:

(a) ..........................................

(b) ..........................................

(d) ..........................................

within .... days of this notice.

If you fail to furnish the requested information within the stipulated period, your application will be treated as invalid and shall be rejected.

Dated this ....... day of ......., 20...

.............
Registrar

FORM II

[Regulations 6(2), 10(2) and 14(2)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

NOTICE OF REJECTION OF BUYER'S PRICING MATRIX/CONDITIONAL AUTHORITY/DESIGNATION*.*

(1) Here insert the full names and address of applicant	To: (1) .......................................
.............................................
IN THE MATTER OF (2) ............................. you are notified that your buyer's pricing matrix/application for conditional authority/ application for designation. has been rejected on the following grounds.:
(2) Here insert the reference No. of the application
(a) ...................................................
(b) .....................................................
(c) .................................................................
Dated this .... day of ........, 20..

	............ Registrar

FORM III

[Regulation 8(2)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

NOTICE OF APPROVAL OF BUYER'S PRICING MATRIX

(1) Here insert the full names and address of applicant	To: (1) ......................................
............................................
IN THE MATTER OF (2) ............................................... you are notified that your pricing matrix for the (3) ............. selling season ................................. has been approved with approval reference No. .............. as with particulars listed below:
(2) Here insert the reference No. of the application
(a) ...................................................
(3) Here insert selling season for which approval is granted	(b) .....................................................
(c) .................................................................
Dated this .... day of ........., 20...

	............ Registrar

FORM IV

[Regulation 10(1)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

*Delete as appropriate

[Reverse side of Form IV]

MINIMUM STANDARDS OF PREMISES

A designation shall not be granted in respect of premises-

(a) which do not comply with the following minimum requirements-

(i) the area available for storage of tobacco shall be not less than two-thirds of the area of the sales area;

(ii) the total area of platforms and verandas capable of being used for the loading or off-loading of tobacco shall not be less than 40 per cent of the area of the sales area;

(iii) the natural roof lighting of the sales area shall be a combination of south lighting and translucent roof sheets of a material approved by the Board, so that the total area of such lighting shall not be less than 15 per cent of the area of the sales area;

(iv) the area surface of the sales area, storage areas, re-handling area, and all ramps, platforms and verandahs adjacent thereto, and where applicable the walls thereof, shall be composed of such material as to be resistant to rising damp and of sufficient strength and elasticity to withstand the loads to be imposed upon them, and capable of being so maintained and treated as to prevent the harbouring of pests of tobacco;

(v) there shall be in a position adjacent to or as part of the sales area an area set aside for the re-handling of tobacco, which area shall be not less than seven per cent of the area of the sales area, and shall be equipped with such devices as are capable of controlling the humidity therein to the satisfaction of the Board; and

(b) where the design and construction of that premise has been approved by a registered architect appointed for this purpose by the Board.

FORM V

[Regulation 13(1)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

NOTE: Where an applicant intends to operate more than one sales floor, the applicant shall submit a separate application in respect of each premise intended to be operated as a sales floor.

FORM VI

[Regulations 10(2) and 15(1)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

GRANT OF CONDITIONAL AUTHORITY/DESIGNATION**

(1) Here insert the full names and address of applicant	To: (1) ......................................
..............................................
IN THE MATTER OF (2) ............................ you are notified that your application for conditional authority/designation** has been approved with approval reference No. ................ as with particulars listed below:
(2) Here insert the reference No. of the application
(a) ...................................................
	........................................................
	(b) ...................................................
Dated this .... day of ........, 20...

	........... Registrar

"¢ Note: Conditional authority/designation is not transferable.

FORM VII

[Regulations 10(2) and 16]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

FORM VIII

[Regulations 10(2), 17(3) and 18(3)]

Tobacco Board of Zambia

The Tobacco Act
(Laws, Volume 14, Cap. 237)

The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018

NOTICE OF INTENTION TO SUSPEND/REVOKE**
CONDITIONAL AUTHORITY/DESIGNATION**

(1) Here insert the full names and address of holder	To: (1) ......................................
............................................
IN THE MATTER OF (2) .................................................. you are notified that the Board intends to suspend/revoke your conditional authority/designation on the following grounds:
(2) Here insert the conditional authority No./ designation
(a) ...................................................
(b) ...................................................
	(c) .....................................................
Accordingly, you are requested to show cause why your conditional authority/ designation should not be suspended/revoked and to take action to remedy the breaches set out in paragraphs ........... (above) within (3) ..... days of receiving this notice. Failure to remedy the said breaches shall result in the suspension/revocation of your conditional authority/ designation.

Dated this .... day of ......., 20..

	........... Registrar

FORM IX

[Regulations 10(2), 17(5) and 18(5)]


Tobacco Board of Zambia
The Tobacco Act (Laws, Volume 14, Cap. 237)
The Tobacco (Sale of Non-Auctionable Tobacco) Regulations, 2018
NOTICE OF SUSPENSION/REVOCATION function a15(msg) { myWindow=window.open('','','width=233,height=156,left=400 ,scrollbars=1,top=400,screenX=400,screenY=100');myWindow.document.write(msg);}
(1) Here insert the full names and address of licensee	To: (1) ......................................
............................................
(2) Here insert the Licence No.	IN THE MATTER OF (2) ................................................................... you are notified that your conditional authority/designation has been suspended for a period of (3) ............./revoked on the following grounds:
(3) Here insert number of days stipulated	(a) ...................................................
(b) ...................................................
(c) .....................................................
	(d) .....................................................

	Dated this ... day of ........, 20..

	.......... Registrar

TOBACCO (AUCTIONABLE TOBACCO IMPORTATION) REGULATIONS

[Section 64]

Arrangement of Regulations

Regulation

1. Title

2. Interpretation

3. Classes of auctionable tobacco for importation

4. Requirements for import of auctionable tobacco

5. Application for permit

6. Consideration of application for permit

7. Request for further particulars or information

8. Grant of permit

9. Refusal to grant permit

10. Amendment of permit

11. Suspension or cancellation of permit

12. Renewal of permit

13. Duplicate permit

14. Register

15. Inspection of register

16. General penalty

FIRST SCHEDULE

SECOND SCHEDULE

SI 65 of 2020.

1. Title

These Regulations may be cited as the Tobacco (Auctionable Tobacco Importation) Regulations, 2020.

2. Interpretation

In these Regulations, unless the context otherwise requires-

"applicant" means a holder of an auction floor licence who applies for a permit to import auctionable tobacco of a specified class in accordance with the Act and these Regulations; and

"permit" means an importation permit issued under regulation 7.

3. Classes of auctionable tobacco for importation

The classes of auctionable tobacco specified in the Tobacco (Prescribed Classes) Regulations not grown in the Republic may be imported and sold on a licensed auction floor in the Republic under these Regulations.

4. Requirements for import of auctionable tobacco

A person who intends to import for sale on a licensed floor auctionable tobacco not grown in the Republic shall-

(a) enter into an agreement for the sale of the auctionable tobacco with-

(i) a holder of an auction floor licence for the sale of auctionable tobacco on the licensed auction floor; and

(ii) a licensed buyer who shall purchase the imported auctionable tobacco;

(b) obtain a phytosanitary certificate in accordance with the Plant Pests and Diseases (Importation) Regulations, 1960; and

(c) ensure that the auctionable tobacco is not treated or reaped from tobacco plants treated with any noxious substance listed under the Tobacco (General) Regulations, 1968.

5. Application for permit

A person who intends to import for sale on a licensed auction floor auctionable tobacco not grown in the Republic shall apply to the Board for a permit in Form I set out in the First Schedule on payment of a fee set out in the Second Schedule.

6. Consideration of application for permit

The Board shall, within 30 days of the date of receipt of an application made under regulation 4 consider and determine the application.

7. Request for further particulars or information

The Board may request an applicant to submit further particulars or information relating to the application for a permit in Form II set out in the First Schedule.

8. Grant of permit

(1) The Board shall, where the Board is satisfied that an applicant meets the requirements for a permit, grant the applicant a permit in Form III set out in the First Schedule.

(2) The permit issued under sub-regulation (1) shall indicate the terms and conditions of the permit.

(3) A permit granted under regulation 7 is valid for a period not exceeding seven months.

9. Refusal to grant permit

The Board shall, where the application for a permit does not meet the requirements of the Act and these Regulations, refuse to grant a permit, and notify the applicant, in writing, within seven days of date of the decision, giving reasons for that refusal.

10. Amendment of permit

(1) Subject to sub-regulation (3), a permit holder shall, where that holder intends to amend the permit, apply to the Board in Form IV set out in the First Schedule, on payment of a fee set out in the Second Schedule.

(2) The Board may amend a permit where-

(a) the name of a business changes;

(b) the port of entry or exit for the auctionable tobacco in respect of which the permit was issued changes; or

(3) The Board shall, within 14 days of the receipt of an application for amendment of a permit, inform the permit holder of its decision.

(4) A permit holder shall, where the Board grants the application for amendment of the permit, surrender the permit to the Board and the Board shall issue an amended permit for the remainder of the permit's validity period in Form III set out in the Schedule.

(5) The Board shall, where the Board refuses to vary the permit, within 30 days of the decision, notify the permit holder, stating the reasons for the decision.

11. Suspension or cancellation of permit

(1) Subject to the Act and these Regulations, the Board may suspend or cancel a permit, if the permit holder-

(a) obtained the permit on the basis of fraud, negligence or misrepresentation;

(b) transfers or otherwise assigns the permit;

(d) contravenes any term or condition of the permit.

(2) The Board shall, before suspending or cancelling a permit in accordance with sub-regulation (1), notify the permit holder of its intention to suspend or cancel the permit in Form V set out in the First Schedule, giving reasons for its decision and requesting the permit holder to show cause, within a reasonable period that may be specified in the notice, why the permit should not be suspended or cancelled.

(3) The Board shall, where a permit holder fails to correct the contravention within the period specified under sub-regulation (2), suspend or cancel the permit as it considers appropriate in the circumstances of the case.

(4) Where a permit is cancelled, in accordance with this regulation, the permit holder shall surrender the permit to the Board and the Board shall cancel the permit, subject to conditions that it may impose with respect to the winding up of the permitted business or activity.

(5) The Board shall notify a permit holder of an auction floor licence of the suspension or cancellation of a permit in Form VI set out in the First Schedule.

(6) The permit holder shall, from the date of cancellation of a permit, immediately cease to sell auctionable tobacco not grown in the Republic and surrender the permit to the Board.

12. Renewal of permit

(1) A permit holder may, 30 days prior to the expiration of the period of validity of the permit, apply to the Board for the renewal of the permit in Form VII set out in the First Schedule on payment of the fee set out in the Second Schedule.

(2) The Board shall, within 30 days of receiving an application for the renewal of a permit, approve or reject the application and give reasons where it rejects the application for renewal of the licence or permit.

(3) A permit holder who submits an application for the renewal of a permit in accordance with sub-regulation (1), shall continue to operate the permitted business or activity until a decision is made by the Board on the application for renewal of the permit.

13. Duplicate permit

A person who loses a licence or permit or whose licence or permit is damaged shall inform the Board within 14 days of the loss or damage and shall, after a further period of 14 days, apply to the Board for the issuance of a duplicate permit in Form VIII set out in the First Schedule on payment of the fee set out in the Second Schedule.

14. Register

(1) The Board shall keep and maintain a register of permit holders in Form IX set out in the First Schedule.

(2) Despite sub-regulation (2), the Board shall maintain an electronic register of permit holder, which shall-

(a) track and monitor an application for a permit under these Regulations;

(b) track and monitor any variation to a permit; and

(c) maintain an auditable trail of the outcomes of an application and reasons for decisions to grant, refuse or vary a permit.

(3) The Board shall ensure proper and accurate entries in the electronic register of permit holders which shall correspond with the entries in the manual register, if any.

(4) An entry in a register shall be maintained in a sequential order.

15. Inspection of register

A register shall be kept by the Board at the offices of the Board, and shall be open for inspection by members of the public during office hours on payment of the fee set out in the Second Schedule.

16. General penalty

A person who contravenes these Regulations commits an offence and is liable, on conviction-

(a) in the case of a first offence, to a fine not exceeding four thousand penalty units or to imprisonment for a term not exceeding six months, or to both; or

(b) in the case of a second or subsequent offence, to a fine not exceeding fifteen thousand penalty units or to imprisonment for a term not exceeding one year, or to both.

FIRST SCHEDULE

PRESCRIBED FORMS

[Regulations 5, 7, 8, 10, 11, 12, 13 and 14]

Form I

[Regulation 5]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

APPLICATION FOR A PERMIT TO IMPORT
Please complete in block letters	Shaded field for official use only	Application No.
Date and Time
Information provided	Information Required
A. PARTICULARS APPLICANT
1.	Name:
2.	Type of entity:
3.	Business premises:
	(a) Physical address:
	(b) Plot No.:
	(c) Street:
	(d) Postal address:
	(e) Telephone No.:
	(f) Email address:
	(g) Town:

B. INFORMATION TO BE ATTACHED
1. Copy of Certificate of Registration
2. Names of Directors, shares held, Nationality and NRC/Passport No.
3. Names of Shareholders shares held, Nationality and NRC/Passport No.
4. The name of the Chief Executive Officer and nationality
5. Name of Company Secretary and Nationality
6. The country of origin of the auctionable tobacco intended for importation into the country
7. Brief description of the auctionable tobacco intended for importation into the country
8. The auction floor intended to be used to sale the auctionable tobacco once the imported into country
9. Location of storage facilities where the auctiobable tobacco will be kept once in the country before it is taken to an auction floor
10. A summary of measures to be put in place to minimise environmental risks and to control pest while the auctionable tobacco is in storage facilities
DECLARATION:
I declare that all the information I have stated in this application is correct and truthful to the best of my knowledge and belief. I understand that submission of false information shall render the application void and that if granted, the permit shall be cancelled.
................................................... ............................................... Name Designation
FOR OFFICIAL USE ONLY
Date of submission ..................................................................................................................
Application Number .................................................................................................................
Payment Receipt Number ........................................................................................................

Form II

[Regulation 7]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

REQUEST FOR ADDITIONAL INFORMATION

To: ........................................................................................................................................

Address: ................................................................................................................................

Application No.: ......................................................................................................................

You are requested to furnish the following information or documents in respect of your application for ............................. within ............ days of this notice.

(a) ..........................................................................................................................................

(b) ..........................................................................................................................................

(c) ..........................................................................................................................................

(d) ..........................................................................................................................................

If you fail to furnish the requested information within the stipulated period, your application will be treated as invalid and be rejected.

Dated this ............. day of ....................... 20.......

......................................................
Chief Executive Officer

Form III

[Regulation 8(1)]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

PERMIT NO.: ......................

PERMIT/AMENDED PERMIT TO SELL AUCTIONABLE TOBACCO NOT GROWN IN THE REPUBLIC ON A LICENSED AUCTlON FLOOR

Registration No.: ..........................................................................................................................

Holder's name: ........................................................................................................................ of

(Physical Address): ....................................................................................................................

..................................................................................................................................................

This Permit! Amended Permit is granted for a period of ................................................ commencing on the ................ day of ........................... 20........

The terms and conditions of grant of the permit/amended permit are as shown in the Anncxures attached hereto.

Issued at ............................. this ............... day of ...................... 20.....

ENOORSEMENT OF REGISTRATION

This Permit has this ............... day of ............................., 20........

..........................................
Chief Executive Officer

Form IV

[Regulation 10(1)]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

Form V

[Regulation 11(2)]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

NOTICE OF INTENTION TO SUSPEND/CANCEL PERMIT

(1) Here insert the full names and address of the permit holder	To (1) .......................................................................................................
................................................................................................................
(2) Here insert the Permit No.	IN THE MATTER OF (2) .................................................. you are notified that the Authority intends to **suspend/cancel your permit on the following grounds:
(a) ..........................................................................................................
(b) ..........................................................................................................
(c) ..........................................................................................................
(3) Here insert type of application	Accordingly, you are requested to show cause why your permit should not be **suspended/cancelled and to take action to remedy the breaches set out in paragraphs .................... (above) within (3) ........... days of receiving this notice. Failure to remedy the said breaches shall result in the	Dated this .............. day of .............................. 20.........

(4) Signature of Chief Executive Officer	(4) ............................................. Chief Executive Officer

Form VI

[Regulation 11(5)]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

NOTICE OF SUSPENSION/CANCELLATION OF PERMIT

(1) Here insert the full names and address of the permit holder	To (1) ......................................................................................................
................................................................................................................

(2) Here insert the Permit No.	IN THE MATTER OF (2) .................................................. you are notified that your permit has been **suspended for a period of (3) ....................................... /cancelled on the following grounds:
(3) Here insert number of day stipulated	(a) ..........................................................................................................
(b) ..........................................................................................................
(c) ..........................................................................................................
(d) ..........................................................................................................
Dated this ................... day of ................................... 20........
(4) Sign by Chief Executive Officer	(4) ............................................. Chief Executive Officer

Form VII

[Regulation 12(1)]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

Form VIII

[Regulation 13]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

Form IX

[Regulation 14]

(To be completed in duplicate)

REPUBLIC OF ZAMBIA

The Tobacco Act

(Cap. 237)

The Tobacco (Auctionable Tobacco Importation) Regulations, 2020

No.	Name of Permit Holder	Permit Number	Date of Issue	Expire Date
1.
2.
3.
4.
5.
6
7.

SECOND SCHEDULE

[Regulation 15]

PRESCRIBED PEES

Description of Fees	Fee Units
1. Import for sale on a licensed auction floor auctionable tobacco not grown in the Republic	40.00
2. Amendment of the permit	40.00
3. Validity of the permit	40.00
4. Duplicate permit	40.00
5. Inspection in the Register	40.00

{/mprestriction}

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