How to Get a Tea Board License in India?

India’s tea industry is a major contributor to the agricultural economy as well as the trading sectors. Tea development, processing, blenders, and exports define the business. Under the Tea Act 1953, the Tea Board, an Indian organisation, controls this industry. Maintaining the quality of tea and the incomes of those in domestic and worldwide markets is made possible by the Tea Board.

Eligibility Criteria For Obtaining Tea Board Licenses

1. Applicant’s Legal Status: A legally established entity, such as an individual, sole proprietorship, partnership firm, LLP, corporation, cooperative society, trust, or any government agency, should be the applicant seeking registration as an MSME unit.
2. Nature of Business Activity: A candidate for the license must be involved or expect to be engaged in tea-related operations like growth, manufacturing, blending, trading, warehousing, and export.
3. Conducting Business in India: The intending entrepreneur should also have a genuine business location in India, which should be proven either by ownership documents or a registered lease agreement.
4. Infrastructure & Facilities: In the case of licenses related to manufacture, mixing, or storage, the applicant would necessarily require the necessary facilities, equipment, and machinery as defined by the Tea Board.
5. Statutory registrations: The necessary registrations for tea exports include PAN, GST Registration (if applicable), and the Import Export Code (IEC).
6. Banking Requirements: The candidate has to hold an active bank account under the name of the business entity.
7. Clean Regulatory Record: Applicants should not be blacklisted, suspended, or prohibited by the Tea Board and/or any other government agency.
8. Compliance Undertaking: The applicant must agree to be bound by the quality requirements, inspection, record-keeping, and reporting requirements of the Tea Board.

Types of Tea Board Licenses

1. Tea Growers Registration: This is mandatory for people or firms involved in growing tea plantations. It enables the Tea Board to oversee the production of tea and provide support and subsidies for tea growers.
2. Tea Manufacturing Factory License: This licence is important for those tea processing and manufacturing units, as it includes activities like withering, rolling, fermenting, drying, and processing. It imposes regulations pertaining to quality, health, and facilities.
3. Tea Blender Registration: Those organisations that mix different types of tea for the purpose of selling the same under the same brand name are required to register under this registration. It helps to control the variability of the blended tea.
4. Tea Buyer Registration: This registration is required in cases where companies re-purchase tea from growers, factories, or auction houses. The registration promotes transparency and accountability with respect to tea trade transactions.
5. Registration of Tea Seller: Tea vendors, whether they deal in tea by packs or loose, have to register their business either with the Tea Board for compliance with trade practices and standards required.
6. Tea Warehouse Registration: The kind of warehouses that are required for storing tea have to be registered before being put to use at the Tea Board. This leads to ideal conditions for tea storage, cleanliness, and retention of quality.
7. Tea Exporter Registration: This registration is mandatory for tea-exporting companies in the country. This registration enables tea exporters to conduct their export operations in accordance with global standards.

Step-by-Step Procedure to Get a Tea Board License

1. Identification of Relevant Tea Board Registration or License

• Before even starting the application process, the intended applicant has to determine the nature of the tea business activity, where every activity requires a different registration.
• The general groups include registration for tea growers, tea factories, blenders, exporters, warehouses, buyers and sellers.
• All these categories have different eligibility requirements.

2. Preparation of Required Documents

It is the duty of the applicant to prepare and collate the required documents. Although these documents differ according to the type of license to be acquired, the common documents needed include:

• A properly filled Tea Board application form.
• A photocopy of the candidate’s PAN card.
• Proof of the Constitution (Partnership Deed, LLP Agreement, MOA, and AOA).
• Proof of the Registered Office/ Business Premises.
• Copies of ownership or leasing agreements for the factory or warehouse.
• A list of directors, partners, or proprietors.
• Passport-sized photographs.
• Bank account information and/or a cancelled check.
• GST registration certificate.
• Import Export Code (for exporters).
• Factory layout plan & machinery requirements (for manufacturers).

3. E-Registration through the Tea Board Website

The Tea Board of India has made it easier for applications to be submitted online through their official website. The general process involves:

• The generation of user credentials on the Tea Board website.
• Choosing a suitable license or category of registration.
• Submission of business and operational information.
• Upload scanned copies of supporting documents
• Verification of entered data before submission

One has to be cautious while filling out the application, as inaccuracies can result in rejection and/or delay.

4. Payment of Prescribed Fees

Upon completing the form, the applicant shall pay the fees of statutory registration or licenses that have been prescribed by the Tea Board. Some of the important points include:

• Fees are charged depending on the type of registration
• Payment is done online through online banking systems.
• Costs incurred are often non-refundable
• The proof of payment will be automatically linked to this application

5. Examination of Applications by Tea Board Authorities

After being submitted, the application is then assessed by the concerned regional office of the Tea Board. There are:

• Verification of documents and declarations.
• Verification of statutory registrations.
• Assessment of eligibility criteria.
• Asking for explanations or further documentation if required.

Candidates are expected to react promptly to any inquiries made by the authorities.

6. Inspecting the Premises (If applicable)

The Tea Board may also conduct physical inspections for certain registrations, ranging from tea production units, warehouses, to blenders. The inspection includes the following aspects:

• Site and infrastructural verifications.
• Assurance concerning sufficient machinery and processing power.
• Compliance with standards of cleanliness, safety, and quality.
• Proper tea storage and handling techniques.

Reports from inspections are essential when considering approvals.

7. Issuance of Tea Board License/Registration Certificate

Finally, once the concerned authority is satisfied that all necessities have been met, the Tea Board grants the license or the registration certificate, which covers:

• Registration/License number.
• Name and address of the registered entity.
• Type of permissible tea activity.
• Validity period of the registration.

The certificate allows for legal operation in the tea sector.

8. Compliance Requirements Post-Registration

In order to maintain the Tea Board license, the following terms and conditions need to be fulfilled by the licensee:

• The licensee has to provide returns and production data regularly,
• keep records as required,
• renew the registration before the date of expiration,
• inform the Tea Board about changes in the constitution, address, or activity, and
• follow quality control and packaging requirements.

Failure to comply may result in the imposition of sanctions, suspension of registration, or even cancellation of registration.

9. License Renewal & Modification

Tea Board licenses are normally valid for a fixed period, after the expiration of which they have to be renewed. The renewal procedure requires:

• Filing a renewal application.
• Payment of renewal fees.
• Provision of updated documents.
• Compliance certification of continued conformity.

Any change in their business activity needs clearance from the Tea Board.

Benefits of a Tea Board License

1. Legal Recognition and Application:

• A licence from the Tea Board gives official recognition under the Tea Act of 1953.
• This licence allows the holder to legally take part in the cultivation, manufacturing, blending, trading, storage, and export of tea with proper conformation to all the laws and regulations concerned with Indian tea.

2. Business Operation:

• It is compulsorily required for business functions.
• Many activities related to tea require primary registration with the Tea Board.
• Any enterprise operating without a valid licence may face penalties, restrictions, or even closure.
• A licence protects the enterprise from legal consequences and regulatory challenges

3. Admissibility to Export Tea:

For export approval, one requires a licence from the Tea Board. Registered exporters reach international markets and can legally export Indian tea abroad, thereby increasing their foreign trade and global footprint.

4. Access to Government Schemes and Subsidies:

Licensed members stand to receive financial assistance, subsidisation, grants, and development programs from the Tea Board and Government of India for specific purposes connected with or incidental to the re-structuring of gardens, improvement in quality, and modernisation.

5. Enhanced Business Credibility:

• Registration with the Tea Board increases credibility and dependability in conducting business with buyers, exporters, financial institutions, and representatives of the government.
• It serves as proof of legitimacy and follow-through.

6. Quality Control and Standardisation:

• The Tea Board promotes quality assurance, grading, and standardisation.
• License holders are advised on how to maintain standards of quality, packaging requirements, and best practices in the industry.

7. Market Access and Trade Facilitation:

Licensees can participate in tea auctions, exhibitions, trade fairs, and other promotional events organized or sponsored by the Tea Board and have better market exposure as well as networking opportunities.

8. Support and Advisory Services:

The Tea Board provides technical guidance, training programs, and advisory support to the registered entities in the adoption of modern techniques and improvement in productivity.

9. Protection Against Unfair Trade Practices:

Registration checks the unregulated and spurious trade in tea, thereby saving genuine businesses from unfair competition and preserving the integrity of the industry.

10. Business Long-term Sustainability:

A license from the Tea Board brings in structured growth, regulatory protection, and long-term sustainability in India’s organised tea sector.

Conclusion

Licenses given by the Tea Board to India account for the importance of ensuring legal compliance, controlling quality, and ensuring a planned growth of the tea sector. Such licenses that control growth, preparation, trading, as well as exports of tea, make it more transparent, ensure stakeholders’ protection, and improve India as a major tea producer internationally.