CHAPTER 237 - TOBACCO ACT: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
Tobacco (Marketing and Licensing) Rules
Tobacco (Registration of Growers) Regulations
Tobacco (Prescribed Classes) Regulations
Tobacco (Prescribed Varieties) Regulations
Tobacco (Sale of Non-Auctionable Tobacco) Regulations
Tobacco (Auctionable Tobacco Importation) Regulations
TOBACCO (MARKETING AND LICENSING) RULES
[Section 15 and Paragraphs 18, 19, 22-24, 29, 31, 33-37 and 40-42 of the Schedule]
[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 Rules
Rule
PART I
PRELIMINARY
PART II
RETURNS BY REGISTERED GROWERS
PART III
LICENSING OF GRADERS
4. Form and manner of application
5. Minimum standards of premises
10. Duties of licensed graders
PART IV
LICENSING OF BUYERS
11. Form and manner of application for licence
PART V
LICENSING OF AUCTION FLOORS
14. Form and manner of application for licence
15. Application for conditional authority
16. Minimum standards of premises
18. Duties of holders of auction floor licences
PART VI
MARKING OF BALES FOR SALE
19. Part VI not to apply to sales at primary or rural level
22. Labelling of bales by graders
23. Prohibition of any other markings
PART VII
PACKING OF TOBACCO FOR SALE
24. Part VII not to apply to sales at primary or rural level
25. Wrapping and sewing materials
26. Weights and dimensions of bales
PART VIII
SALE OF TOBACCO BY AUCTION
28. Duties and powers of sales supervisors
30. Tobacco which may be offered for sale
33. Consignment of tobacco to auction floor
34. Duties of holders of auction floor licences
38. Sales supervisor may alter order of selling
39. Holders of auction floor licences not to withdraw tobacco
43. Auction floor official's and buyer's positions
48. Alteration of bale tickets
50. Repudiation of bales at sale
51. Badly handled, mixed, damaged or nested bales
54. Cancellation of sale of mouldy tobacco
55. Cancellation of sale of bales damaged by grease, paraffin or oil
59. Tobacco purchased for house account
61. Bales re-offered on final day of selling season
64. Payment of accounts by buyers
65. Disposal of bale wrappings
67. Special provisions relating to the sale of tobacco by mechanical auction
[Rules by the Tobacco Board of Zambia, with the approval of the Minister]
Act 13 of 1994,
SI 142 of 1968,
SI 353 of 1969,
SI 70 of 1992.
PART I
PRELIMINARY
These Rules may be cited as the Tobacco (Marketing and Licensing) Rules.
In these Rules, unless the context otherwise requires-
"arbitrator" means a classifier, sales supervisor or a buyer nominated by a sales supervisor and acceptable to the aggrieved buyer;
"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
(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;
(c) in the case of an applicant who has not previously been licensed as a grader, be accompanied by-
(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.
(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.
(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.
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.
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;
(c) the class or classes of tobacco which the applicant intends to buy;
(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.]
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.
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.
(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.
(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.
(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;
(c) there shall be no limit to the number of groups in any one consignment;
(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;
(c) pack his Oriental tobacco in bales-
(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
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;
(c) ensure that bales are properly placed in rows on auction floors and suitably opened and sampled;
(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.
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;
(c) clean graded strips;
(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.
(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;
(c) short and long leaf mixed in the hands, or hands of short and long leaf;
(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.
(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;
(c) ensure that the bale ticket clearly shows the following particulars-
(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.
(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;
(c) whether the bales come direct from a grower or from a storage firm, a grader or an auction floor;
(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;
(c) from storage, as though it had been received by lorry.
(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);
(c) booked in for sale as though it had been delivered on that day;
(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.
(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
(c) is returned for sale by the auction floor's re-handling department; 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.
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.
(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.
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.
(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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