Tea Manufacturing Policy

TEA BOARD OF TANZANIA
TEA PROCESSING POLICY IN CONFORMITY WITH THE TEA ACT NO. 3 OF
1997 AND TEA REGULATIONS OF 2010 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 Processing Licence.
1.0
The applicant must apply in writing for a Tea Processing 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 Tea Processing
Licence.
3.0
The application must be accompanied by a feasibility study that shows the
following amongst others:
3.1
Name and address of the applicant.
3.2
Location and name of the factory or proposed factory.
3.3
Expected factory installed capacity.
3.4
The district and region where the factory is to be built.
3.5
Approximate total value of the factory broken into foreign cost and local
cost and the financial structure.
3.6
Projected sales per year whether export or local indicating quantity and
value in kilogram and Tanzania shillings respectively.
3.7
Projected business plan and expansion programme.
3.8
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.
3.9
Directors of the company making the application.
3.10
Any other directorship held by the above directors in any other tea
company or tea related company in East Africa or elsewhere.
3.11
Significant shareholders over 5% in the company.
3.12
Any other significant shareholdings or directorships held by significant
shareholders in any other tea company or tea related company in East
Africa.
3.13
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.
3.14
Intended market areas and planned market distribution system. Ratio of
export to local sales (if any).
3.15
Organization and manpower structure indicating how much work force,
foreign and local and the plan of phasing out foreign personnel.
3.16
Source of energy for firing. If firewood will be used, the plan to obtain
them should be mentioned.
4.0
3.17
Sources of green leaf for tea processing.
3.18
Kinds and types of machines for tea processing.
CONDITIONS FOR OBTAINING PROCESSING LICENCE
4.1
An applicant must own a Tea Processing Factory.
4.2
Tea Processing Factory must have been inspected and approved by the
Board’s inspectors.
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4.3
The applicant will initially be required to pay TZS 1,000,000/= as
inspection fee before the licence is issued.
4.4
The tea manufacturer/processor shall maintain and keep the plant in a
proper manner in such a way as to obtain best quality tea and should be in
accordance with food processing governing law and regulations.
4.5
The tea processor shall ensure that all green leaf delivered to the plant is
processed and graded correctly and that substandard green leaf is not
accepted for processing.
4.6
The licensee should observe/respect and operate in harmony with other
existing green leaf processing factories in the area.
4.7
Should take appropriate measures towards environment conservation and
elimination of pollution.
4.8
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.
5.0
GENERAL POLICY ISSUES
5.1
Each tea processor must submit to TBT on monthly basis a certified report
indicating production tea prices and sales return as required by the Tea
Act No. 3 of 1997.
5.2
A tea processor who may want to engage in tea blending and packing
must clearly state that the tea blending and packing business is a separate
legal entity with a separate management and preferably a separate
location, at least a distinct building.
5.3
After obtaining a licence, the tea processing company must obtain
Tanzania Bureau of Standards (TBS) certificate of quality standard of
products being produced.
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5.4
The licensee will be advised to become a member of the Tea Association of
Tanzania.
5.5
It shall be lawful for any person authorized in writing by the Board and
every green leaf processor 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.
6.0
CONDITION UNDER WHICH THE LICENCE FOR TEA PROCESSING MAY
BE REVOKED
6.1
The licence shall be revoked if work does not start within six months or if
the licence is used for the purpose not intended without prior notice to the
Board.
6.2
The licence shall be revoked if the business stopped for more than three
months without any prior notice to TBT.
6.3
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).
6.4
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.
6.5
The licence shall be revoked if the licensee does not submit a certified
report indicating production tea prices and sales return as required by the
Tea Act No. 3 of 1997.
6.6
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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