TOBACCO ACT
Arrangement of Sections
Section
PART I
PRELIMINARY PROVISIONS
1. Short title
2. Interpretation
PART II
TOBACCO BOARD OF ZAMBIA
3. Continuation of Tobacco Board of Zambia
4. Functions of Tobacco Board of Zambia
5. Establishment of Board
6. Functions of Board
7. Delegation of functions
8. Executive Director, Secretary and other staff
PART III
REGISTRATION OF GROWERS
9. Prohibition of growing tobacco without certificate
10. Registration of growers
11. Certificate of registration
12. Allotment of registered number to grower
13. Prohibition against disclosure of allotment number
14. Suspension or revocation of registration
15. Duration of certificate of registration
16. Returns by grower
17. Register of growers
PART IV
LICENSING GRADERS, BUYERS AND SALES FLOORS
18. Prohibition to grade, buy or use premises to sell tobacco without licence
19. Application to operate as grader, buyer or use premises to sell tobacco
20. Suspension or revocation of licence
21. Period of validity of licence
22. Renewal of licence
23. Exemption to use sales floor without licence
PART V
SALE OF TOBACCO
24. Prohibition of buying or selling at unlicensed sales floor
25. Marking of bales of saleable tobacco
26. Holder of sales floor licence to sell tobacco of grower
27. Delivery in excess of marketing quota
28. Import of saleable tobacco for sale in Republic
29. Duties of holder of licence of sales floor on sale of imported saleable tobacco
30. Sale of saleable tobacco grown in earlier season
31. Saleable tobacco to be sold on sales days in the selling season
32. Weighing, selling and commission charges of holder of sales floor licence
33. Deductions from purchase price of saleable tobacco
34. Notice to remove tobacco from licensed sales floor
35. Tobacco Board of Zambia to dispose of surplus or unsold tobacco
36. Appointment and functions of sales supervisors
37. Saleable tobacco by auction
38. Prohibition against manufacture or keeping of saleable tobacco not sold on licensed sales floor
PART VI
PRESCRIBED VARIETIES OF TOBACCO
39. Variety of tobacco to be grown or sold
40. Prohibition against growing or selling tobacco not of prescribed variety
PART VII
INSPECTORATE
41. Inspectors
42. Powers of inspectors
43. Arrest without warrant
44. Seizure of property
45. Restoration of property
PART VIII
TOBACCO LEVY
46. Leviable tobacco
47. Imposition of levy
48. Payment of levy
49. Collection and remittance of levy
PART IX
TOBACCO LEVY FUND
50. Establishment of Fund
51. Administration of Fund and accounts
52. Annual report
PART X
GENERAL PROVISIONS
53. Appeals
54. Establishment of pool
55. General offences
56. General penalty
57. Regulations
58. Repeal of Cap. 237 and 238
AN ACT
to provide for the promotion, regulation and monitoring of the production, marketing and packing of tobacco in the Republic; provide for the regulation of the import of tobacco to the Republic; continue the existence of the Tobacco Board of Zambia and re-define its functions; re-constitute the composition of the Board and revise the Board functions; provide for the imposition and collection of a levy on tobacco grown in the Republic; repeal and replace the Tobacco Act, 1967 and the Tobacco Levy Act, 1967; and provide for matters connected with, or incidental to, the foregoing.
[11th August, 2022]
Act 10 of 2022.
PART I
PRELIMINARY PROVISIONS
This Act may be cited as the Tobacco Act.
In this Act, unless the context otherwise requires—
"associate" has the meaning assigned to the word in the Anti-Corruption Act;
"Board" means the Board of the Tobacco Board of Zambia constituted under section 5;
"buyer" means a person who is licensed to buy tobacco from a grower at the licensed sales floor;
"certificate of registration" means a certificate of registration issued under section 11;
"Chairperson" means the person appointed as Chairperson of the Board under section 5;
"emoluments" has the meaning assigned to the word in the Constitution;
"Emoluments Commission" means the Emoluments Commission established by the Constitution;
"Executive Director" means the person appointed as Executive Director of the Tobacco Board of Zambia under section 8;
"export on consignment" means the consignment of tobacco to an agent, factor or commission agent for purposes of sale outside the Republic;
"external market" means the demand for tobacco in any country outside the Republic;
"Fund" means the Tobacco Levy Fund established under section 50;
"grader" means any person who grades tobacco as a business or trade and "grading" shall be construed accordingly;
"grower" means a person who is registered to grow tobacco for purposes of sale on a licensed sales floor;
"inspector" means a person appointed as an inspector under section 41;
"internal market" means the demand for tobacco for the purposes of manufacture in the Republic;
"legally disqualified" means the absence of legal capacity as provided in section 4 of the Mental Health Act;
"licence" means a licence issued under section 19;
"licensed sales floor" means a sales floor licensed by the Tobacco Board of Zambia under Part IV for the purpose of buying and selling tobacco;
"licensed grader" means a person licensed by the Tobacco Board of Zambia to grade tobacco under Part IV;
"leviable tobacco" means tobacco prescribed as leviable tobacco under section 46;
"levy" means a levy imposed under this Act;
"manufacture" in relation to tobacco, means to subject tobacco to a process or treatment other than butting, thrashing, stripping or re-drying, and cognate expressions shall be construed accordingly;
"member" means a member of the Board;
"pool" means a centre established under section 54 where, on the instruction of the Tobacco Board of Zambia, surplus tobacco is delivered by a grower and stored for disposal by the Tobacco Board of Zambia;
"register" means the register referred to under section 17;
"relative" has the meaning assigned to the word in the Anti-Corruption Act;
"sales floor" means the premises used for the sale of saleable tobacco;
"saleable tobacco" means any class of tobacco which is prescribed by the Minister under section 39;
"sales supervisor" means a person appointed as sales supervision under section 36;
"Secretary" means the person appointed as Secretary under section 8;
"selling season" means the period in each year fixed by the Tobacco Board of Zambia during which saleable tobacco may be sold;
"surplus tobacco" means saleable tobacco in excess of registered production quota;
"tobacco" means unmanufactured tobacco including tobacco stems of a class prescribed by the Minister under section 39;
"Tobacco Board of Zambia" means the Tobacco Board of Zambia continued in existence under section 3;
"unsold tobacco" means tobacco that remains on the licensed sale floor after the last day of the selling season;
"Vice-Chairperson" means the person elected as Vice-Chairperson of the Board under section 5; and
"Zambia Bureau of Standards" means the Zambia Bureau of Standards established under the Standards Act.
PART II
TOBACCO BOARD OF ZAMBIA
3. Continuation of Tobacco Board of Zambia
(1) The Tobacco Board of Zambia established under the repealed Act is continued in existence under this Act as a body corporate with perpetual succession and a common seal, capable of suing and being sued in its corporate name and with power, subject to the provisions of this Act, to do acts and things that a body corporate may, by law, do or perform.
(2) The First Schedule applies to the Tobacco Board of Zambia.
4. Functions of Tobacco Board of Zambia
The functions of the Tobacco Board of Zambia are to—
(a) promote, protect and maintain the production, sale, preparation for subsequent use and export of tobacco grown in the Republic;
(b) regulate and monitor the production, marketing, import and export of tobacco;
(c) carry out tobacco research and ensure quality standards of tobacco as approved by the Zambia Bureau of Standards;
(d) collect information relating to the production, marketing, manufacture and consumption of tobacco within and outside the Republic;
(e) provide and operate services and other facilities that may be necessary for the tobacco industry;
(f) facilitate the production of tobacco or tobacco seed as and when the Tobacco Board of Zambia is of the opinion that it is in the best interests of the tobacco industry of the Republic to do so;
(g) buy tobacco, in consultation with the Minister, if it is in the best interests of the tobacco industry to buy that tobacco;
(h) promote, protect and maintain the sale of tobacco grown in the Republic, having regard to buyers and trade interests and the stability of the market; and
(i) advise the Minister on matters relating to tobacco.
(1) There is constituted a Board of the Tobacco Board of Zambia which consists of the following part-time members appointed by the Minister—
(a) a representative each of the ministry responsible for—
(i) agriculture;
(ii) commerce; and
(iii) finance;
(b) a representative of the Attorney-General;
(c) a representative of the Zambia Chamber of Commerce and Industry;
(d) a representative of the Zambia Environmental Management Agency;
(e) a representative each of an association representing—
(i) small scale tobacco growers; and
(ii) large scale tobacco growers; and
(f) a person with proven knowledge and experience in matters relevant to this Act.
(2) The ministries, institutions, or organisations under sub-section (1)(a), (b), (c), (d) and (e) shall nominate their representatives for appointment by the Minister.
(3) The Minister shall appoint the Chairperson of the Board from among the members of the Board.
(4) The members shall elect the Vice-Chairperson from among themselves.
(5) A person shall not be appointed as a member of the Board if that person is—
(a) not a citizen;
(b) an employee of the Tobacco Board of Zambia;
(c) convicted of an offence under any written law and is sentenced to imprisonment for a term exceeding six months without the option of a fine;
(d) legally disqualified; or
(e) an undischarged bankrupt.
(6) The First Schedule applies to the Board.
(1) Subject to the other provisions of this Act, the Board shall provide strategic policy direction to the Tobacco Board of Zambia.
(2) Despite the generality of sub-section (1), the functions of the Board are to—
(a) approve the annual budget estimates and financial statements of the Tobacco Board of Zambia;
(b) approve the annual work plan and activity reports of the Tobacco Board of Zambia;
(c) promote effective corporate governance of the Tobacco Board of Zambia; and
(d) formulate the policies, programmes and strategies of the Tobacco Board of Zambia.
(1) The Board may, on conditions that the Board considers necessary, delegate any of the Board’s functions to the Executive Director.
(2) A delegation made under sub-section (1) shall not prevent the Board from performing the delegated function.
(3) The Minister may give to the Board general or specific directions, which are consistent with the provisions of this Act, relating to the performance of its functions and the Board shall give effect to those directions.
8. Executive Director, Secretary and other staff
(1) The Board shall appoint an Executive Director who shall be—
(a) the Chief Executive Officer of the Tobacco Board of Zambia; and
(b) responsible for the day-to-day administration of the Tobacco Board of Zambia.
(2) The Executive Director shall be an ex officio member of the Board.
(3) The Board shall appoint a Secretary who shall perform corporate secretarial duties for the Board and other functions as the Tobacco Board of Zambia may determine, under the direction of the Board and the Executive Officer.
(4) The Board shall appoint inspectors and other staff of the Tobacco Board of Zambia that the Tobacco Board of Zambia considers necessary for the performance of the Board’s functions.
(5) The Emoluments Commission shall, on the recommendation of the Board, determine the emoluments of the Executive Director, Secretary, inspectors and other staff of the Tobacco Board of Zambia.
(6) The Board shall determine the terms and conditions of service, other than emoluments, of the Executive Director, Secretary, inspectors and other staff of the Tobacco Board of Zambia.
PART III
REGISTRATION OF GROWERS
9. Prohibition of growing tobacco without certificate
(1) A person shall not grow tobacco for purposes of sale on a licensed sales floor without a certificate of registration issued under this Act.
(2) A person who contravenes sub-section (1) commits an offence and is liable, on conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years, or to both.
(1) Subject to the provisions of this section, a person who intends to grow tobacco for purposes of sale on a licensed sales floor shall apply to the Tobacco Board of Zambia for registration as a grower in the prescribed manner and form and on payment of a prescribed fee.
(2) An application under sub-section (1) shall be made to the Executive Director.
(3) The Tobacco Board of Zambia shall, within 30 days of receipt of an application under sub-section (1), grant or reject the application and inform the applicant of the decision of the Tobacco Board of Zambia.
11. Certificate of registration
(1) The Tobacco Board of Zambia shall, where the Tobacco Board of Zambia grants an application under section 10, issue the applicant with a certificate of registration in a prescribed form.
(2) The Minister may, in consultation with the Tobacco Board of Zambia, by statutory instrument, prescribe—
(a) classes of tobacco for purposes of an application under this Part;
(b) the registration period in respect of classes of tobacco specified within which growers or intended growers of any specified classes of tobacco shall register under this Act; and
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