Overview of Tea Board License

The Tea Industry of India, by the Act of the Parliament, falls under the authorisation of the Union Government. India is home to the finest varieties of tea around the globe due to its favourable geographical indications and constant innovation and progressive trade practices. India is the second-largest producer of tea globally. In order to regulate and assist the development trade of tea, the Government of India established Tea Act, 1953. Section 4 of the Tea Act, 1953 states about the establishment of The Tea Board of India. It aims to facilitate and promote the cultivation, processing and sale of tea in India. The Tea Board undertakes various activities such as organising fairs, exhibitions, setting up meetings between buyers and sellers, and assisting in the development of trade by disseminating information to relevant stakeholders.

Tea Act, 1953

The Tea Act was enacted in 1953 to regulate the tea industry in the country following the International Agreement. It provides for the establishment of a Tea Board that overlooks the Tea production in India. It helps to improve tea cultivation, grants licenses to entities engaged in Tea production, encourages scientific research and development in this sector and promotes labour welfare practices.

The Tea Board of India

The Tea Board of India falls under the authorisation of the Government of India, which was established for the purpose of promoting of cultivation, processing and domestic trade along with the exportation of tea from India.

Functions of Tea Board of India

The Tea Board of India renders the following functions –

• It provides financial assistance to cultivators and also assists with the technical knowledge needed for the manufacturing and marketing of tea.
• Promotion for the exportation of tea.
• Fosters Research and Development for growth in tea yielding and for improving the quality of tea produced in the country.
• Assists plantation workers financially through various welfare schemes and programmes.
• To help unorganised sectors of small-scale producers and encourage them with financial and technical support.
• To record, maintain & compare different data regarding tea production and trade in India.
• To comply with the rules and regulations assigned by the central government and enforce the same.

List of Licenses and Registrations Needed for Tea Export

The following licenses and Registrations are mandatory for issuance by the exporter for the exportation of tea and tea products from India –

Exporter’s License

An Export License is a Governmental Document that grants the authorisation for conduction of the specific exportation as applied by the applicant. All companies exporting tea in India need to obtain a valid Exporter’s license according to the provisions mentioned under the Tea (Distribution & Export) Control order, 1957. 

The validity of the Exporter’s License is for three years. The applicant needs to apply for the procurement of an Exporter’s license by submitting an application as prescribed in –Form - A with the applicable fees of INR 1,000. For Renewal of Exporter’s License, the applicant needs to submit an application as prescribed in Form - J along with a fee of INR 1,000.

If the exporter wants to secure a Permanent Exporter’s License, the applicant needs to fulfil the eligibility criteria. The Applicant should be eligible for a permanent license only if he has exported a minimum of 100,000 Kgs of Tea continuously for a period of 3 years. The license holder shall submit an application as prescribed in Form - B along with a Fee of INR 2500.

Documents Required for Exporter’s License –

The following documents are needed for applying for an Exporter’s License –

• The applicable Form along with the applicable license fee
• Copy of Importer and Exporter Code duly attested
• Declaration in Letter Head stating that Directors or Partners are not associated with any other company suspended by the Tea Board
• Letter of Authorisation by the Company
• Applicant’s contact details
• Residential address proof
• Any other document, if demanded by the Tea Board

Distributor License

A Distributor License is a license issued by the government for a company that is the business of distribution of goods. The distributor requires to submit an application to the Head Office or Zonal office in the format as in Form - A and also pay a fee of INR 2,500 to the Tea Board through Demand Draft or Banker's Cheque. The applicant must ensure that the application is signed and sealed by the authorised person and is affixed with the applicable date. The licensee needs to provide data of importation as required by the Tea Board by either online or offline every month. If the application is complete in every aspect, the Distributor License shall be issued within two working days, and if the application is incomplete, then it shall be rejected. The validity of the Distributor License is for a Lifetime.

Documents Required for Distributor License

The following documents are needed for applying for a Distributor License –

• Form - A Application duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 2500
• A Copy of the Import and Export Code Certificate that is to be issued by the DGFT
• Details regarding the Name, Residential Address, Contact Information, E-mail Id of all the Proprietor or Partner or Director or any other Authorised Personnel attested in the Company Letter Head along with the Company Address Proof
• A Written Declaration by the Applicant, which is needed to be originally written on the Company Letter Head that clarifies that there is no association of the Applicant with any other Tea Based Company who have previously had their license revoked, suspended or cancelled.
• Any other document, if demanded by the Tea Board

Tea Waste License

The Tea Waste License is issued to prevent the misuse of tea waste and ensure that they are disposed of properly. The tea waste sometimes also contains useful residues which instant tea manufacturers use.

The Applicant must apply through the offline process or the online portal of the Tea Board. The applicant is required to submit the application as mentioned in Form - A and pay a license fee of INR 100. The Tea Waste License is valid until 31^st December of each year. For the Renewal of the license, the applicable fee is INR 50.

Documents Required for Tea Waste License

The following documents are needed for applying for a Tea Waste License –

• Form - A Application duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 50
• Copy of Warehouse license
• Copy of Registration Certificate of the manufacturing plant
• Any other document, if demanded by the Tea Board

Warehouse License

The Company in the exportation business of tea needs to obtain a Warehouse License from the Tea Board to set up a warehouse for the Tea Business. The applicant needs to submit an application prescribed in Form - A and pay the fees of INR 1,000 to the Tea.

Board. The validity of the license is of three years, and upon renewal of the license, the validity is for one year from the date of issuance.

Documents Required for Warehouse License

The following documents are needed for applying for a Warehouse License –

• Signed Application of Form - A including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 1000
• A Copy of the Proprietorship with notary attested with stamp paper od minimum INR 100, with the inclusion of the Name and Residential Details, if any
• A Copy of the Partnership Deed attested by a minimum of two Partners, if any
• MOA & AOA
• Registered Lease Deed or Rent Receipt
• Ownership Details of the Warehouse
• Map of Warehouse
• Trade License
• Contact Details of company’s Partner/Directors/ Representatives
• Any other document, if demanded by the Tea Board

Registration of Manufacturing Unit

In 2003, an order was issued by the Tea Board notified under The Tea Marketing Control Order that no manufacturer shall carry out the business of Tea Manufacturing without getting registered with the Tea board. The validity of the Registration of the Manufacturing Unit is for a lifetime, along with a license fee being INR 2500. However, the are no application fees for the NOC for the construction of the Manufacturing Unit.

Documents Required for Registration of Manufacturing Unit

The following documents are needed for applying for Registration of the Manufacturing Unit –

• Submission of payment of the applicable fees of INR 2500
• An Expression of Intent also known as an EoL, to be submitted to the Chairman of the Tea Board is the specified format as provided by the Tea Board attested with the Name and Signature of the Applicant
• Issuance of a NOC for the construction of the Manufacturing Unit from the Tea Board
• Submission of Form – A with the inclusion of the following documents –
• Details of list of pieces of machinery being installed in the factory with the date of information is the specific format as provided by the Tea Board
• A Non-Judicial Declaration Stam Paper that specifies the Tea being manufactured is in accordance with the Rules set by the Food Safety and Standards Authority of India also known as the FSSAI Rules
• Submission of any one of the below-mentioned documents –

1. A copy of the MoA and AoA, with the inclusion of the certification from at least one of the Directors of the Company, if the Applicant is a Company
2. A Copy of the Partnership Deed as certified by a Court or A Notary, if the Applicant is a Partnership Firm
3. A copy of the issuance of the Certificate of Notification by the Registrar of Firms, if the Applicant is a Registered Firm
4. A Copy of the issuance of the Registration Certificate of the Notification by the Registrar of Co-Operative Firm, if the Applicant is a Co-Operative Firm
5. A Copy of the issuance of the Registration Certificate by the Society of State Government, if the Applicant is a Self Help Group also known as SHG that are part of the Small Tea Growers also known as STGs

• A Copy of the Central Excise Registration Certificate
• Any other document, if demanded by the Tea Board

Broker License for Tea Auction

As stated by the Tea Board, no person is allowed to conduct an auction without getting themselves registered with the tea board of India. Only brokers who have a valid license issued by the committee can auction.

An application needs to be submitted to the concerned authority through Form - G. The validity of the Broker License expires on 31^st December of each year. The applicable fees for filling a new Broker License for Tea Auction are INR 2500 and for renewal of the Broker License for Tea Auction is INR 500.

Documents Required for Broker License for Tea Auction

The following documents are needed for applying for a Broker License for Tea Auction –

• Submission of Application Form - G inclusion of the signature, date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees
• A Copy of the Certification of Incorporation along with the MoA and AoA of the Company
• Payment of the Application Fees applicable
• Any other document, if demanded by the Tea Board

Tea Auctions

Tea auctions are held with the primary purpose of marketing tea in India, allowing tea manufacturers to sell their products at a fair market price. On average, the Public Tea Auctions handle approximately more than Five Hundred Million Kilograms of Tea. The essential part takers of the Tea Auctions are as follows –

• Tea Auction Organisers
• Tea Sellers
• Tea Buyers
• Tea Brokers
• Tea Warehouses

Registration as a Buyer

In accordance with the Tea Board License, a person needs to be registered with the Tea board to purchase tea in bulk, either from auctions or directly from tea estates. This step was introduced to enhance transparency in the Tea Industry.

The applicant needs to submit an application in the format of Form - C through online mode or to the Head/Zonal Offices of Tea board along with necessary documents. The validity of the Buyer Registration is for a lifetime with the application fee being INR 2500.

Documents Required for Registration as a Buyer

The following documents are needed for applying for a Registration as a Buyer for Tea Auction –

• Submission of Form - C Application duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 2500
• A Copy of Value Added Tax also known as VAT and Central Added Tax also known as CST
• Any other document, if demanded by the Tea Board

Flavour Registration

To manufacture and sell tea with infused flavours, a person needs to register with the Tea board. The tea packaging must contain a label that specifies the flavour and the percentage by which it is infused.

The applicant is needed to submit the required form according to the notification issued by the Ministry of Health and Family Welfare, the Government of India under “GSR 694 (E) on 11^th October 1999. The validity of the Flavour Registration is of a lifetime with the applicable fees being INR 5000 for three different flavours. If the types of flavours being registered are more than three, then the applicable charges will be increased to INR 1000 per flavour accordingly.

Documents Required for Flavour Registration

The following documents are needed for applying for Flavour Registration –

• Submission of the Application in accordance with the specific format stated by the Tea Board duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees
• A Declaration notarised by a Non-Judicial Stamp Paper which cannot be less than INR 100 declaring the Sole Proprietorship along with the details of the name and residential address, if the Applicant is a Proprietorship
• The Partnership Deed with the assessment of a minimum of two Partners, if The Applicant is a Partnership Firm
• The Company’s MoA and AoA along with the Incorporation Certification which is needed to be certified by a minimum of one Director
• Certification from the Food Safety and Standards Authority of India also known as FSSAI
• Test Report that fulfils the set parameters by the Food Safety and Standards Authority of India also known as FSSAI or the Parameters set by Bio-Chemical, that has to be conducted in a NABL Laboratory which has been enlisted by the Tea Board
• A Declaration by the Applicant that has been affirmed by the Executive Magistrate that enlists the Flavours to contain All-Natural Flavours and Natural Flavouring Substances that are safe for human consumption
• Any other document, if demanded by the Tea Board

Registration Cum Membership Certificate (RCMC)

If a person wants to export tea in bulk in packets, bags or instant tea etc., it is required to register with the Tea Board and obtain a Registration Cum Membership Certificate also known as RCMC.

The Applicant needs to apply for Form 19 - A and Form 19 – B, that is valid up to the validation of the manufacturer’s Exporter’s License with the application fee of a new RCMC of INR5000, and for renewal, the application fee of INR 5000

Documents Required for RCMC

The following documents are needed for applying for Registration Cum Membership Certificate, also known as RCMC –

• Submission of Form 19 - A and Form 19 - B Application duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 5000
• A Copy of the Import Export Code as per the issuance of the DGFT
• A Copy of the Exporter’s License as per the issuance by the Tea Board
• A Declaration from the Company’s Letter Head stating that there is maintenance in the regular submission of the Export Returns applicable monthly with the inclusion of the NIL Returns
• Any other document, if demanded by the Tea Board

Mini Tea Factory Registration

For establishin the Mini Tea Factory, the Applicant needs to register with Tea Board in accordance with Para 3 A of the Tea Marketing Control Order, 2003, also known as the TMCO, 2003 Guidelines.

According to the TMCO 2003 Guidelines, the Applicant needs to submit a duly filled application of Form – K that needs to be filed within thirty days from the initiation of Commercial Manufacturing. The validity of the Mini Tea factory is for a lifetime, with the applicable fees being INR 1000.

Documents Required for Mini Tea Factory Registration

The following documents are needed for applying for Mini Tea Factory Registration –

• Submission of Form K Application duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Submission of payment of the applicable fees of INR 1000
• Any other document, if demanded by the Tea Board

Planting Permit

For the purpose of planting new tea plantations, replacement of tea plantations or extension of the tea plantations, a Planting Permit is necessary along with the requirement for a Tea License. The validity of the Planting Permit expires on 31^st December of each year. There are no fees applicable for licensing of a Planting Permit.

Documents Required for Planting Permit

The following documents are needed for applying for Planting Permit –

• Submission of the Application is the specific format as stated by the Tea Board, which is duly filled including the date and seal of the appropriate Proprietor or Partner or Director or any other Authorised Personnel
• Any other document, if demanded by the Tea Board

Procedure for Registration of Tea Board License

After obtaining all the above-mentioned Licenses, the Applicant is needed to submit an application to the Tea Board for the purpose of issuance of a Tea Board License. The Applicant is also needed to submit the RCMC to any of the Regional, Head or Zonal Office of the Tea Board of India. If all the Application, upon strict evaluation, is found satisfactory, the Tea Board License is granted.

Cancellation Of Licenses or Registrations

The Licenses and Registrations will be revoked if there has been deliberate misrepresentation of facts, the licensee has violated any of the provisions of the Tea Act, 1953. If the licensee has failed to follow the directions issued by the authority, or if the Authority has found about any unfair trade practice the licensee is dealing in the appropriate license is to be cancelled immediately.

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