Regulatory Requirement for Obtaining License for Tabacco Manufacturing in India

Regulatory Requirement for Obtaining License for Tabacco Manufacturing in India

The licensing for Tabacco manufacturing is regulated by The Cigarettes And Other Tobacco Products (Prohibition Of Advertisement And Regulation Of Trade And Commerce, Production, Supply And Distribution) Act, 2003, Section 7 of the act which provides for Restrictions on trade,  commerce, production, and other conducts related to tobacco production. The section provides for various requirements to be complied with, for the businesses engaged in the area of tobacco manufacture and sales.

In Rajasthan, the manufacturing of tobacco products is also regulated by the Food Safety and Standards Authority of India (FSSAI) and the Central Bureau of Narcotics (CBN). To start a tobacco manufacturing business in Rajasthan, A company is required needs to obtain a license from FSSAI and CBN.

To obtain a license from FSSAI, A company is required to follow these steps:

1. Register the business: Register your business as per the requirement of Companies Act

2. Apply for FSSAI registration: Submit an application to the FSSAI for registration along with the required documents.

3. Obtain FSSAI license: Once the application is approved, FSSAI provides for license that is valid for five years.

To obtain a license from CBN, a company need to follow these steps:

1. Register the business: Registration of business under the Companies Act.

2. CBN license: Submission of an application to the CBN for a license along with the required documents.

3. Obtaining CBN license: Once your application is approved, you will receive a CBN license that is valid for one year.

The application needs to be made to the chairman of Tobbaco Board in the prescribed format.

The procedure prescribed as per Tobacco Board Rules are:-

Regulation 34-D. Registration as manufacture of tobacco :-

(1) Every application for registration as processor or manufacturer of Virginia tobacco shall be made to the Secretary or such other officer of the Board as may be authorized by the Chairman in this behalf and shall reach the Secretary or other officer, as the case may be, before the 1st November of the year preceding the calendar year for which the registration is applied for.

(2) (a) The registration under sub-rule (1) as processor or manufacturer has to be renewed every year and, unless so renewed, shall cease to be effective on the expiry of the year for which it is granted. (b) The application for such renewal must reach the Head Office of the Board before the 30th November of the year proceeding the Year for which renewal is applied for;

(3) Every application for registration or renewal of registration as processor or manufacturer shall be in Form 13 and shall contain the particulars specified therein.

(4) * Every application for registration or its renewal shall be accompanied by the fees specified in the Table below :-

Category	Category Applicant	Quantity of Tobacco	Fee Payable (Rs.)
Manufacturer	A Class	If the average value of the products 30,000/- manufactured during previous three years is above 30 crores	30,000/
	B Class	Above one crore and upto 30 crores	20,000/-
	C Class	Above Rs.20 lakhs and below Rs. 1 crores	10,000/ –
	D Class	Rs. 20 lakhs or below	2,000/-

(5) Every person registered with the Board as a processor or manufacturer or whose registration as such has been renewed shall be given certificate of registration in Form 14 which may be issued subject to such condition as may be imposed by the Board from time to time.

Regulation 34-E. Procedure and principles for grant of registration as processor or manufacturer of Virginia tobacco :-

(1) The Board shall constitute a Committee (hereinafter referred to in this rule and rule 34G as the Committee) consisting of five members of the Board to scrutinize the applications for registration as processor or manufacturer of Virginia tobacco.

(2) On receipt of applications for registration as processor or manufacturer, the Secretary or other officer authorized under sub-rule (1) of rule 34D shall make such inquiry as he deems necessary and shall submit the applications with his recommendations to the Committee.

(3) For the purpose of any inquiry under sub-rule (2) the Secretary or other officer referred to in the said sub-rule may call for such further information as he deems fit from any applicant and such applicant shall furnish such further information within the period specified by the Secretary or other officer, and if such information is not furnished by the applicant, the Committee may reject the application.

(4) Subject to the provisions of sub-rule (3), the Committee shall consider the applications in accordance with sub-rule (7) for registration or its renewal as a processor or manufacturer and take such decision thereon either granting or renewing the registration or refusing to grant or renew the registration, as deemed fit.

(5) Where the Committee reject any application under sub-rule (3) or refuses to grant a registration or renewal there of under sub-rule (4) it shall record the reasons for its decision. The decision of the Committee along with the reasons for such decisions shall be communicated by the Secretary to the applicant within fifteen days from the date of the decision.

(6) Where the application for registration or its renewal is refused by the Committee the fee paid by the applicant along with the application shall, subject to the orders passed on the representation, if any, made under sub-rule (8) be refunded to the applicant after deducting therefrom the cost, if any, of remitting such amount, as soon as may be after thirty days from the date of the decision, but not later than fifteen days after the limitation for making the said representation expires or, as the case may be, Board passes the order on that representation.

(7) (a) In registering or renewing the registration or refusing to register or renew the registration of any persons as a processor or manufacturer regard shall be had to the experience and conduct of the person in matters relating to processing or manufacturing of Virginia tobacco.

(b) In renewing or refusing to renew the registration as processor or manufacturer, in addition to the matters referred to in clause (a), regard shall also be had to whether the applicant has been complying with the provisions of the Act, these rules and regulations made under the Act, conditions of registration and whether he has been complying with the directions issued by the Board from time to time in pursuance of the Act, these rules and regulations made under the Act and also whether the processor or manufacturer has been maintaining the registers required to be maintained by him and submitting the returns required to be submitted by him and whether the processor or manufacturer has been issuing a leaf purchase voucher to the registered dealers and others from whom tobacco has been purchase, indicating there in the quantity, the grade variety and the rate per quintal and the total amount due by way of price of tobacco as stipulated or decided by the Board.

(8) Any per, whose application for registration on its renewal as a processor or manufacturer has been refused by the Committee, may represent to the Board for revision of the decision of the committee, within thirty days of the communication of the decision to such person and the Board shall, after giving the person concerned a reasonable opportunity of being heard, pass such orders thereon as it deems fit.

 Regulation 34-H. Licensing of Commercial grader :-

• Every person intending to operate as a commercial grader of Virginia tobacco shall apply to the Secretary or such other officer of the Board as may be authorized by the Chairman in this behalf for a licence as a commercial grader before the 1st November of the year preceding the calendar year for which the licence is sought.
• The licence as commercial grader under sub rule (1) has to be renewed every year and unless so renewed, shall cease to be renewed every year and unless so renewed, shall cease to be effective on the expiry of the year for which it is granted. An application for renewal of licence shall be made before the 30th November of the year preceding the year for which renewal of licence is sought.

Regulation 34-I. Procedure and principles for grant of licence as commercial grader :-

• The Board may constitute a Committee (hereinafter in this rule and rule 34K referred to as the Committee) consisting of five members of the Board to scrutinize the applications for licence or renewal of licence as commercial graders.
• Separate licensing requirement are provided for operation of Barn provided in Section 36 of the Act.

Online Registration

To Register with Tobacco Board as Manufacturer / Processor / Exporter of Tobacco / Exporter of Tobacco Products / Packer / Dealer and Commercial Grader for any calendar year, please submit the applications through online (http://www.tobaccoboard.in/) introduced by the Board, as filing of applications through online is compulsory from 2016 onwards.

Documents required for Tobacco Manufacturing Registration

1. Bank Certificate

2. Letter of Undertaking

3. Copy of Partnership Deed/Memorandum of Articles of Associations also with complete address of partners/directors if firm is Partnership /Private Limited /Public Limited

4. Copy of PAN Card

5. Udhyami Registration (MSME)

6. License under Factory Act 1948 or Registration under Shop and establishment act

7. Copy of Central Excise registration Certificate for manufacture of Exciseable goods.

8. Copy of Latest Municipal Corporation tax paid receipt pertaining to Factory or unit premises

9. Copy of GST Certificate

10. Copy of permission letter issued by RBI/Concerned Authorities of Govt. of India (Incase of MNC or Foreign Majority companies)