Blending Financing by xha75205

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									                               TEA BOARD OF TANZANIA



      TEA BLENDING AND PACKING AND TEA IMPORTATION POLICY IN
CONFORMITY WITH THE TEA ACT NO. 3 OF 1997 AND TEA REGULATIONS OF
             1999 MADE UNDER SECTION 31 OF TEA ACT NO. 3 OF 1997.



The Board under the stated Act above hereby states the following policy issues in guidance of
issuing of Tea Blending and Packing Licence.

1.0    The applicant must apply in writing for a Blending and Packing Licence in a prescribed
       form obtained from Tea Board of Tanzania (TBT).

2.0    The applicant must submit a certified copy of Memorandum and Article of Association
       (MEMART) of the company that applying for a Blending and Packing Licence.

3.0    There should be a reasonable limit on the number of Blenders and Packers in one
       location. The limit should be based on the fair distribution of Blenders and Packers
       countrywide.

4.0    The application must be accompanied by a feasibility study that shows the following
       amongst others:

       4.1    Name and address of the applicant.

       4.2    Location and name of the factory or proposed factory.

       4.3    Expected factory installed capacity.

       4.4    The district and region where the factory is to be built.

       4.5    Approximate total value of the factory broken into foreign cost and local cost and
              the financial structure.
4.6    Projected sales per year whether export or local indicating quantity and value in
       kilogram and Tanzania shillings respectively.

4.7    Projected business plan and expansion programme.

4.8    Source of packing materials and its financing.

4.9    Owners of the project and share ownership. Any changes of project ownership
       should be reported in writing to TBT within a period of one month.

4.10   Directors of the company making the application.

4.11   Any other directorship held by the above directors in any other tea company or
       tea related company in East Africa or elsewhere.

4.12   Significant shareholders over 5% in the company.

4.13   Any other significant shareholdings or directorships held by significant
       shareholders in any other tea company or tea related company in East Africa.

4.14   Please note that it is a requirement that Directors or shareholders of the company
       making application should clearly state if they have any other material interest in
       connection to any other East Africa tea company.

4.15   Intended market, distribution areas and planned market distribution system.
       Ratio of export to local sales if any.

4.16   Organization and manpower structure indicating how much work force, foreign
       and local and the plan of phasing out foreign personnel.

4.17   Product brand name, Logo with colour of the packet/design of the packet and
       technology to be used, should be submitted along with feasibility study.

4.18   Sources of tea for blending and packing.

4.19   Kinds and types of drums or machines for blending tea.

4.20   The brand name of the product launched should be similar to what has been
       stated in the feasibility study. Any change should be notified to the Tea Board
       within a period of one month so that the Board can check if it respects other
       existing trade marks.



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5.0   CONDITIONS FOR OBTAINING PACKING AND BLENDING LICENCE

      5.1   An applicant must own a Blending and Packing Tea Factory.

      5.2   Blending and Packing Tea Factory must have been inspected and approved by
            the Board’s inspectors.

      5.3   The applicant will initially be required to pay TZS 1,000,000/= as inspection fee
            before the licence is issued.

      5.4   The Blending and Packing Tea Factory should be in accordance with food
            processing governing law and regulations.

      5.5   The licensee should observe/respect other existing tea trade marks in the country.

      5.6   Should take appropriate measures towards environment conservation and
            elimination of pollution.

      5.7   Should satisfy the team of inspectors from the Board who will carry out
            inspections on the factory layout, and all features stated in the feasibility report.

      5.8   The tea to be blended and packed must be obtained from local tea manufactures
            or imported into Tanzania from East African member states under the permit
            issued by the TBT.

6.0   GENERAL POLICY ISSUES

      6.1   Each tea blender and packer must submit to TBT on monthly basis a certified
            report indicating production and sales return as required by the Tea Act No. 3 of
            1997.

      6.2   Each tea blender and packer should submit to TBT on quarterly basis a report
            indicating marketing operations done and future plans to promote local
            consumption and distributions to the remote areas.

      6.3   A tea manufacturer who may want to engage in blending and packing must
            clearly state that the blending and packing business is a separate legal entity with
            a separate management and preferably a separate location, at least a distinct
            building.




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      6.4   After obtaining a licence, the blending and packing company must obtain
            Tanzania Bureau of Standards (TBS) certificate of quality standard of products
            being produced.

      6.5   The licensee will be advised to become a member of the Tea Association of
            Tanzania or Tea Blenders and Packers Association.

      6.6   Tea Board of Tanzania to encourage blenders and packers in exporting finished
            products and be required to submit quarterly progress reports on the exported
            teas.

      6.7   It shall be lawful for any person authorized in writing by the Board and every
            blenders and packers shall at all reasonable times allow any person so authorized
            to make such inspection of the books and vouchers as may be necessary to satisfy
            himself as to correctness of the sales records.

7.0   CONDITION UNDER WHICH THE LICENCE FOR BLENDING AND PACKING
      MAY BE REVOKED

      7.1   The licence shall be revoked if work does not start within six months or if the
            licence is used for purpose not intended without prior notice to the Board.

      7.2   The licence shall be revoked if the business is stopped for more than three
            months without any prior notice to TBT.

      7.3   The licence shall be revoked if the licensee does not maintain the quality of tea as
            set by the Tea Board of Tanzania and certified by the Tanzania Bureau of
            Standards (TBS).

      7.4   The licence shall be revoked if the licensee does not comply with correct weights
            and measures ordinance or if weights can be proved to be short of what they
            should be.

      7.5   The licence shall be revoked if the licensee does not submit a certified report
            indicating production and sales return as required by the Tea Act No. 3 of 1997.

      7.6   The licence shall be revoked if the licensee encroaches on the existing trade
            marks, brands of competing blenders.

      7.7   The licence shall be revoked if the licensee fails to comply with any rule or
            regulation issued by the Tea Board from time to time.

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8.0   CONDITIONS FOR ISSUANCE OF TEA IMPORT PERMIT AMONG EAST
      AFRICAN MEMBER STATES

      8.1   Each applicant must submit in writing to the Tea Board of Tanzania the
            applications that indicating the amount to be imported in Kg, the country of
            origin and the name and address of the agent whose tea will be sold.

      8.2   The applicant must pay the sum of TZS 1,000,000/= as initial cost of the permit
            and thereafter US $ Cents 1.25 per kg should be paid to the Tea Board of
            Tanzania for every consignment imported in the country.

      8.3   The imported tea must clearly show a mark on each packet “Made for Export”
            and must be certified by the National Bureau of Standards of the country of
            origin.

      8.4   Importer should pay to TRA all the required taxes at the point of entry. TRA
            Customs department at the point of entry should liaise with TBT on this.

      8.5   The applicant of tea import permit must have an Agent in Tanzania who is well
            known by the Tea Board of Tanzania for easy follow up on the sales return.

      8.6   Imported tea must be subjected to Maximum Residual Level (MRL) Standards
            for pesticides as determined by TPRI (Tropical Pesticides Research Institute).
            Before importation a sample of tea to be imported must be sent to Tanzania Tea
            Board for submission to TPRI for MRL test.

      8.7   Each imported tea consignment must be accompanied by a certificate of origin.
            This is for traceability purposes.

      8.8   The imported tea from Kenya shall be subjected to declining internal tariff rate of
            5%, 4%, 3%, 2%, 1% and 0% in the 6th year commencing from the first year of
            commercial operations.




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