CHAPTER 237
TOBACCO ACT

Arrangement of Sections

   Section

PART I
PRELIMINARY

   1.   Short title

   2.   Interpretation

PART II
ESTABLISHMENT OF TOBACCO BOARD

   3.   Establishment of Tobacco Board of Zambia

   4.   Composition of Board

   5.   Alternate appointments to Board

   6.   Tenure of office and vacancies

   7.   Meetings of Board

   8.   Committees of Board

   9.   Member to declare connection with companies and firms dealing with Board

   10.   Appointment of secretary to Board

   11.   Tobacco inspectors

   12.   Powers of inspector

   13.   Contracts and instruments of Board

PART III
FUNCTIONS, DUTIES AND POWERS OF THE BOARD

   14.   Functions and duties of Board

   15.   Powers of Board

   16.   Power of Minister on default of Board

   17.   Reports of Board

PART IV
FUNDS OF THE BOARD

   18.   Funds of Board

   19.   Payments to Board from money appropriated by Parliament

   20.   Statement of revenue and expenditure of Board to be submitted

   21.   Accounts of Board

   22.   Appointment of auditors and audit of accounts of Board

   23.   Duties of auditors

PART V
REGISTRATION OF GROWERS

   24.   Register of growers

   25.   Registration periods and duration of registration

   26.   Growers to be registered

   27.   Registration fees

   28.   Allotment of registered numbers to growers, licensed buyers, etc.

   29.   Prohibition against disclosure of identity of registered growers

   30.   Only registered growers to sell or export tobacco on consignment

   31.   Marking of bales of auctionable tobacco

   32.   Marking of bales of non-auctionable tobacco

   33.   Board agent of registered grower for disposal of surplus or unsold tobacco

   34.   Failure to furnish prescribed returns by registered grower

   35.   Cancellation of registration

   36.   Appeal to Minister

PART VI
LICENSING OF GRADERS

   37.   Licensing of graders

   38.   Application for grader's licence

   39.   Cancellation and suspension of grader's licence

   40.   Appeal to Minister

PART VII
LICENSING OF BUYERS

   41.   Licensing of buyers

   42.   Application for buyer's licence

   43.   Nominated agents

   44.   Grounds of refusal to issue and conditions attaching to buyer's licence

   45.   Appeal to Minister

   46.   Buyer's licence to specify particulars

   47.   Minister may prescribe conditions of sale at primary level

   48.   Cancellation and suspension of buyer's licence

   49.   Appeal to Minister

PART VIII
LICENSING OF AUCTION FLOORS

   50.   Licensing of auction floors

   51.   Appeal to Minister

   52.   Prohibition against sale of auctionable tobacco on unlicensed auction floors

   53.   Cancellation and suspension of auction floor licences

   54.   Appeal to Minister

   55.   Conditional authorities for building or extending auction floors

   56.   Issue of conditional authorities

   57.   Conditions on issue of conditional authority

   58.   Licensing of improvements

PART IX
SALE OF TOBACCO

   59.   Auctionable and non-auctionable tobacco

   60.   Prohibition against sale of auctionable tobacco otherwise than by auction

   61.   Prohibition against sale of non-auctionable tobacco by auction

   62.   Auctionable tobacco to be delivered to auction floor by registered grower

   63.   Delivery in excess of delivery quota

   64.   Import of auctionable tobacco for sale in Republic

   65.   Duties of auction floor licensee on sale of imported auctionable tobacco

   66.   Sale of auctionable tobacco grown in earlier season

   67.   Auctionable tobacco to be sold only on sales days in the selling season, etc.

   68.   Deductions from purchase price of auctionable tobacco

   69.   Weighing, selling and commission charges of holders of auction floor licences

   70.   Disposal of auctionable tobacco which is left unsold

   71.   Appointment of sales supervisors

   72.   Duties and powers of sales supervisors

   73.   Power of Minister to control sales of non-auctionable tobacco

   74.   Power of Minister to fix minimum prices for auctionable tobacco

   75.   Duties of licensed buyers on purchase of auctionable tobacco

   76.   Prohibition against resale of auctionable tobacco bought at less than internal market minimum price

   77.   Prohibition against manufacture or keeping of auctionable tobacco not sold on licensed auction floors

PART X
MARKETING QUOTAS AND POOLS

   78.   Control of marketing of tobacco of specified class or grade

   79.   Evidence of amount of marketing quotas

   80.   Establishment of pools

   81.   Power of Board to dispose of surplus tobacco otherwise than through pools

   82.   Prohibition against sale or export of surplus tobacco by grower except through Board

PART XI
PRESCRIBED VARIETIES OF TOBACCO

   83.   Power of Minister to prescribe varieties of tobacco

   84.   Prohibition against growing or selling tobacco not of prescribed variety

PART XII
EXPORT OF TOBACCO

   85.   Prohibition against export of tobacco by grower

   86.   Prohibition against export of tobacco

   87.   Power of Minister to permit export

   88.   Power of Minister to grant exemption from this Part

   89.   Export of sample

PART XIII
MISCELLANEOUS AND OFFENCES

   90.   Period of validity of licences issued by Board

   91.   Official documents to be produced to inspector

   92.   Failure to comply with Act, regulations or rules an offence

   93.   Secrecy

   94.   Prohibition against altering, defacing or removing official records

   95.   Prohibition against altering or defacing prescribed records

   96.   Prohibition against obstruction, etc., of inspectors or sales supervisors

   97.   Prohibition against failure to furnish returns, etc

PART XIV
PROCEEDINGS AND PENALTY

   98.   Venue of proceedings for offences

   99.   Penalty

PART XV
REGULATIONS

   100.   Regulations

PART XVI
TRANSITIONAL PROVISIONS

   101.   Savings

   102.   Dissolution of Tobacco Industry Board

   103.   Composition of Board pending appointment of members

   104.   Vesting of property in Board

   105.   Transfer of contractual rights to Board

   106.   Transfer of contractual and other liabilities to Board

   107.   Registration upon transfer of registered lands or interests

   108.   Proceedings not to abate

      SCHEDULE

AN ACT

to provide for the promotion, control and regulation of the production, marketing and packing of tobacco in the Republic, the promotion and control of the export of tobacco from and import of tobacco to the Republic, the direction and promotion of research in connection with tobacco, and for incidental matters.

[1st April, 1968]

Act 64 of 1967,

Act 13 of 1994,

Act 46 of 1970.

PART I
PRELIMINARY

1.   Short title

This Act may be cited as the Tobacco Act.

2.   Interpretation

In this Act, unless the context otherwise requires—

“auction floor” means premises used for the sale by auction of auctionable tobacco;

“auctionable tobacco” means any class of tobacco which is prescribed as auctionable tobacco by the Minister pursuant to section 59 and as such is required to be sold by auction on a licensed auction floor;

“Board” means the Tobacco Board of Zambia established under the provisions of section 3;

“buyer” means any person who buys tobacco and includes any person who possesses land and who agrees with a third person to permit the said third person to produce tobacco on not more than ten acres of the said land in consideration of the receipt of a share of the said crop when produced or of a share of the proceeds of its sale;

“delivery quota” means the quantity of auctionable tobacco determined by the Board 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 during which the Board permits the delivery of delivery quotas by registered grower to licensed auction floors;

“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;

“external market minimum price” means the minimum price fixed by the Minister, pursuant to section 74, for auctionable tobacco sold for the purposes of any external market;

“financial year”, in relation to the Board, means any period of twelve months prescribed as such by the

Minister;

“grader”, in relation to tobacco, means any person who grades tobacco as a business or trade;

“grower”, in relation to tobacco, means any person who grows tobacco for purposes of sale, or any person who is deemed to be a grower pursuant to section 26;

“inspector” means an inspector appointed pursuant to sub-section (1) of section 11;

“internal market” means the demand for tobacco for the purposes of manufacture in the Republic;

“internal market minimum price” means the minimum price fixed by the Minister, pursuant to section 74, for auctionable tobacco sold for the purposes of the internal market;

“licensed auction floor” means any auction floor licensed as such by the Board pursuant to Part VIII;

“licensed buyer” means any person licensed by the Board to buy tobacco pursuant to Part VII;

“licensed grader” means any person licensed by the Board to grade tobacco pursuant to Part VI;

“manufacture”, in relation to tobacco, means to subject it to a process or treatment other than butting, thrashing, stripping or redrying, and cognate expressions shall be construed accordingly;

“marketing quota” means the weight of tobacco of a class, prescribed pursuant to section 78, which a registered grower may sell in the Republic or export on consignment during a period fixed by an order relating thereto made pursuant to that section;

“member” means a member of the Board;

“non-auctionable tobacco” means any class of tobacco which is prescribed as non-auctionable by the Minister pursuant to section 59, and as such is not required to be sold by auction on a licensed auction floor;

“Permanent Secretary” means the Permanent Secretary, Ministry of Agriculture;

“producer” means any grower not required to be personally registered as such under section 26;

“Registrar” means the secretary to the Board;

“sale at a 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;

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

“selling season” means the period in each year fixed by the Board during which auctionable tobacco may be sold;

“surplus tobacco” means tobacco produced by a registered grower in excess of the marketing quota allotted to him pursuant to section 78;

“tobacco” means unmanufactured tobacco (including tobacco stems) of a class prescribed by the Minister pursuant to section 59;

“tobacco research” means—

      (a)   research and investigation of any kind in connection with tobacco, tobacco ecology, insect pests of tobacco, bacterial, fungoid and virus diseases and other pests of tobacco; and

      (b)   experiments in the planting, handling and curing of tobacco;

“tobacco stem” means the midrib of the tobacco leaf;

“weight” means the weight which is known in the usage of the trade as wet weight.

PART II
ESTABLISHMENT OF TOBACCO BOARD

3.   Establishment of Tobacco Board of Zambia

There is hereby established a board to be known as the Tobacco Board of Zambia which shall be a body corporate with a common seal and capable of suing and being sued and, subject to the provisions of this Act, of doing all acts as a body corporate may by law perform.

4.   Composition of Board

   (1) The Minister shall appoint the members of the Board.

   (2) The Board shall consist of—

      (a)   one member chosen by the Minister who shall be designated as Chairman;

      (b)   one member representing the growers of Virginia flue-cured tobacco chosen by the Minister;

      (c)   one member representing the growers of Oriental tobacco chosen by the Minister;

      (d)   one member representing the growers of Burley tobacco chosen by the Minister;

      (e)   not more than three members representing the buyers of tobacco chosen by the Minister.

   (3) The Minister may appoint to the Board such additional members as he deems essential to the Board in the exercise of its powers and functions.

   (4) The Minister may permit the attendance of observers at any meeting of the Board, who shall have no voice in the proceedings of such meeting or any voting powers.

   (5) No person shall be appointed a member or alternate member of the Board—

      (a)   while he is an undischarged bankrupt; or

      (b)   while he is serving a sentence of imprisonment upon conviction of an offence involving fraud or dishonesty.

5.   Alternate appointments to Board

   (1) The Minister may appoint to the Board as an alternate member to each of the members referred to in paragraphs (b), (c), (d) and (e) of sub-section (2) of section four a person chosen from the same category as the member to whom he is alternate was chosen.

   (2) The Minister may appoint to the Board an alternate member to the Chairman.

   (3) An alternate member referred to in this section—

      (a)   shall act as a member only when the member to whom he is alternate is unable to exercise his functions on the Board by reason of illness, absence from the Republic or other cause; and

      (b)   when acting as a member shall have all the powers and duties of the member to whom he is alternate including, in the case of an alternate member to the Chairman of the Board, the powers and duties of the Chairman.

   (4) Alternate members may, when not acting under the provisions of sub-section (3), attend meetings of the Board as observers only but shall have no voting powers at any such meeting.

[S 5 am by Act 46 of 1970.]

6.   Tenure of office and vacancies

   (1) Members of the Board shall, subject to the provisions of this section, hold office for a period of two years.

   (2) A retiring member shall be eligible for reappointment.

   (3) On the expiration of the period for which a member is appointed, he shall continue to hold office until his successor has been appointed but in no case shall such further period exceed three months.

   (4) The office of a member or alternate member shall be vacated—

      (a)   upon his death;

      (b)   if he is adjudicated bankrupt;

      (c)   if he is absent from three consecutive meetings of the Board without the permission of the Board;

      (d)   upon the expiry of one month's notice in writing of his intention to resign his office given by him to the Minister;

      (e)   upon the expiry of one month's notice in writing given to him by the Minister;

      (f)   if he becomes mentally or physically incapable of performing his duties as such;

      (g)   if he is convicted of an offence and sentenced to imprisonment without the option of a fine.

   (5) Whenever representation on the Board of any two or more of the categories of membership thereof provided for by sub-section (2) of section 4 becomes vacant, the Minister may perform all of the functions and duties of the Board until such time as, by appointment, such categories are duly represented, and all such appointments to the Board necessary to complete the representation of such categories shall, in such event, be made by the Minister within three months of the date of the vacancy last occurring before the Minister exercises his powers under this sub-section.

   (6) Any member or alternate member who is not a public officer shall be paid out of the funds of the Board such remuneration and allowances, if any, as the Minister may, in his case, fix.

7.   Meetings of Board

   (1) Meetings of the Board shall be held at such places and times as the Chairman of the Board may determine and shall be convened by notice given by him:

Provided that the Chairman of the Board may, himself, at any time, and shall, at the request in writing of any two members of the Board, and within fourteen days after the receipt of such request, convene a special meeting of the Board.

   (2) A notice convening a special meeting of the Board shall state the purpose of such meeting.

   (3) In the absence from any meeting of the Board of the person entitled to act as Chairman pursuant to this Act, the members present at that meeting may elect one of their members to be Chairman of that meeting.

   (4) All decisions at any meeting of the Board shall be by resolution by majority vote of the members present thereat, and in the event of an equality of votes the Chairman shall have a casting vote in addition to his deliberative vote.

   (5) A majority of the members of the Board with voting powers shall form a quorum.

8.   Committees of Board

   (1) The Board shall establish and appoint the members of such committees as the Minister may prescribe to implement any of the Board's powers and functions and shall delegate to any such committee such of its powers as the Minister may deem necessary.

   (2) The Board may establish and appoint the members of committees, other than those prescribed pursuant to sub-section (1), to carry out any special or general functions determined by the Board and may delegate to any such committee such of its powers as it may deem fit.

   (3) —

      (a)   No person shall be appointed to any committee established under the provisions of sub-section (1) if he would be disqualified for membership of the Board.

      (b)   The Board, or the Minister in the case of any committee established pursuant to sub-section (1), shall appoint a chairman of each committee established under this section.

      (c)   Each committee may, with the approval of the Minister previously obtained, co-opt as member’s persons who are not members of the Board and who are not disqualified for membership of the Board.

      (d)   The Chairman of the Board shall be an ex officio member of all committees established pursuant to this section.

   (4) Any committee appointed under the provisions of this section shall keep minutes of its meetings, and shall inform the Board and, in the case of a committee established pursuant to sub-section (1), the Minister, of its activities, and shall conduct its proceedings in such manner as may be prescribed.

   (5) The Chairman of each committee may at any time and at any place convene a meeting of the committee of which he is Chairman.

   (6) The Chairman of the Board may at any time and at any place convene a meeting of any committee.

[S 8 am by Act 46 of 1970.]

9.   Member to declare connection with companies and firms dealing with Board

   (1) If a member or his spouse—

      (a)   tenders for or acquires or holds any pecuniary interest in any contract with the Board; or

      (b)   knowingly acquires or holds any capital interest in a company or firm applying or negotiating for any contract with the Board; or

      (c)   owns any lands or any right or interest in, upon or over any lands or owns any other property whatsoever which ownership, because of any conflict of interest, or other circumstance, might be considered as prejudicial to the interests and rights of the Board or to his duties as a member: the member shall, as soon as practicable after the relevant facts have come to his knowledge, declare the nature of his interest to the Chairman of the Board.

   (2) This section shall not apply to a contract with the Board for the delivery, sale or disposal of tobacco, entered into by a member or his spouse, in which the member or his spouse receives no special advantage or preferential treatment.

10.   Appointment of Secretary to Board

   (1) Subject to the approval of the Minister, the Board shall appoint the Secretary to the Board.

   (2) The Secretary to the Board shall be the Registrar for the purposes of this Act.

11.   Tobacco inspectors

   (1) Subject to the approval of the Minister, the Board shall appoint tobacco inspectors, who shall be inspectors for the purposes of this Act.

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