CONTENTS PART 1: DELIVERY & PRESENTATION OF FLUE – CURED TOBACCO FOR SALE SECTION PAGE 1. STATUTORY RETURNS 7 1.1 Registration Forms 7 1.2 Crop Estimates 7 1.3 Penalties for Incorrect Estimates 9 1.4 Calculation of Quotas 9 2. THE BOOKING – IN SYSTEM 12 2.1 Selling System 12 2.2 Sales Floors 12 2.3 Rules 13 2.4 Road Delivery times at Auction Floors 15 2.5 Over – Quota and Incorrect Deliveries 16 2.6 Split & Double Deliveries 17 3. RULES GOVERING THE SALE OF RE-OFFER, 18 COLLECT, SPLIT, DEFECTIVE AND “NG” BALES 4. ORDELY MARKETING 20 4.1 Role of the Senior Classifier/Arbitrator 20 4.2 Role of the Sales Supervisor 20 4.3 Role of the Classifier 21 5. POST – S ALE APPEALS AND ARBITRATION 22 6. COMMERCIAL GRADERS SERVICES 26 7. SECURITY 26 8. BALING AND SAMPLING OF TOBACCO 27 8.1 Marking of Bales & Bale Mass & Correct Size of Bales 27 8.2 Sewing of Bales 28 8.3 Wrapping Material 29 8.4 Types of Bales to be offered for sale & Minimum Price 30 8.5 Care in Handling 31 8.6 Sampling of bales on the auction floors 33 8.7 Nesting 33 9. IDENTIFICATION OF CULITVARS 33 10. INCORRECT USE OF REGISTERED NUMBERS 34 1
11. FUMIGATION OF EARLY GRADED TOBACCO 34 12. PESTICIDE MONITORING 34 13. DESTRUCTION OF UNSOLD TOBACCO 35 14. TOBACCO MARKETING RULES 36 15. SCHEDULE OF FEES 36 16. APPENDICES 37 A. GLOSSARY OF TERMS 37 B. CLASSIFICATION GRADE SYMBOL COMBINATIONS & SUMMARY OF FACTORS 30 2
PART 11: THE ONE INDUSTRY APPROACH TO GRADING & PRESENTATION & PRESENTATION OF FLUE-CURED TOBACCO 1. INTRODUCTION 44 2. BUYER’S REQUIREMENTS 46 3. FACTORS AFFECGTING UNIFORMITY OF GRADING 48 4. DIVISION OF LEAVES BY PLANT AND DESCRIPTION OF MAIN GROUP 50 5. GRADING PROCESS 52 Plant Position 52 Basic Colours 52 Style Factor 52 Quality 55 Length 55 6. GRADING OF STRIP AND SCRAP 56 7. SAMPLE GRADING 56 8. CHECK LIST OF DO’S AND DON’TS IN GRADING 57 9. BALING AND PRESENTATION 59 10. GROUPING 59 Objectives 59 Buyers’ Point of View 60 Guide to Grouping 61 11. CONDITIONING 63 Conditioning Process 63 Strip and Scrap 65 Adjustments of Conditioning Methods 65 Conditioning Instructions 66 12. SUMMARY 67 3
PART 1 THE DELIVERY & PRESENTATION OF FLUE-CURED TOBACCO FOR SALE 4
1. STATUTORY RETURNS It is important that all growers complete statutory returns (i.e. registration forms, first and second estimate forms) at the appropriate time, as these returns are the basis upon essential sales information is relayed back to you. 1.1 Registration Forms Application for registration as a grower should be made before the 31 st October of each year. Registration fees shall be payable each year as advised on the registration form. A late registration fee will be paid if the application is made after this date (Refer to page 36). No booking can be accepted unless the grower has been registered for the year in which he/she intends to sell tobacco. 1.2 Crop Estimates Two estimate forms are submitted to the TIMB every year and the dates by which these forms are due are indicated below. The estimate figure required in the form, which will be sent to all registered growers, is a close estimate of the total mass of Flue-cured tobacco (excluding stems), which will be sold by the grower. Grower is therefore requested to maintain the high standards of estimations and prompt return of forms achieved in the past. No booking will be accepted before a current estimate form is submitted. NB: Commercially Graded Tobacco: A grower planning to use a commercial grader must indicate the amount he/she will send to the Commercial Grader. Important Dates (a) First (PRELIMINARY) Crop Estimate Due: 15 th March No alterations may be made after submitting this Estimate apart from unpredictable losses, which occur as a result of fire, theft, damage, or other insurable losses for which documentary evidence is available. (b) Second (FINAL) Crop Estimate Due: 31 st May It is an offence to be more than 5% over the mass sold in the second (Final Estimate (See section 2 for details). Any grower who fails to submit a second (Final) Estimate by due date will not be allowed to deliver or sell tobacco for a two – week period starting from 1 st July or some other date as fixed by the Board. The only alterations that can be made to this Estimate is as follows: - 5
i. If between 1 st and 30 th June, a grower becomes aware that his Final Estimate is inaccurate, he may apply to the TIMB in writing giving full reasons why an adjustment to the Final estimate is necessary. If an increase in Final Estimate is made, the grower will have his or her quota increased for the second half of the season up to a maximum of 15% only. However, any reduction in the Final Estimate will result in a reduction of a grower’s Delivery Quota to adjust immediately any over-deliveries, which may have occurred. The adjustment of Delivery Quotas in the second half of the selling season will only occur if Quotas were in operation and any downward adjustments will be proportional to the period when quotas were operational in the first half to the selling season. This therefore means that should bookings remain open up to the second half of the selling season, growers Delivery Quotas will be based on Final Estimates only. ii. If, after 30 th June, unpredictable losses occur as a result of fir, theft, damage or other insurable losses for which documentary evidence is available, an adjustment tom the Final Estimate will be considered. iii. If, after 30 th June and up to the end of the selling season losses occur for unpredictable reasons such as excessive mould, an application may be made to the Board for an Inspector to travel to a grower’s farm and verify such unpredictable losses. Forms or application for such an inspection will be sent to growers with the Second Estimate Form. A fee to recover transport costs will be charged. Applications for inspections and the accompanying cheque must be sent to TIMB as soon as possible. Applications for inspection cannot be considered after 14 days of the official closing date of the sales. Any grower who subsequently finds himself in penalty cannot appeal on the grounds that he overlooked the need to call for an inspection. 1.3 Penalties in the Following Year for Incorrect Estimates Any grower whose Estimate exceeds the permitted tolerance of 5% will have the percentage error, including the 5% leeway multiplied by 1.5 and the resulting increased percentage will be the size of the deduction made in the following year to the grower’s Basic Delivery Quota. In addition these penalties will be cumulative from year to year. The utmost care must be taken when submitting Crop Estimates to the Board. No grower will be permitted to avoid a penalty by changing his grower’s number in any way. 1.4 Calculation of Quotas The sizes of delivery quotas depend on the total estimated production. At the beginning of the sales season, there will be no limit to the number of bales a grower may book-in, (i.e. no Delivery Quota restriction). Delivery quotas may be introduced at the floors as 6
soon as the re- booking period reaches the number of days considered appropriate by the TIMB. (See Section for details). Growers will be advised of their delivery quotas based on both the First and Second Crop Estimates. (i) Fixed Factor Should delivery quotas be necessary, a fixed factor determined by using a formula which takes into account the crop size, wastage, the agreed sales programme and 8 – day re-booking period, will be used to calculate Quotas. In view of the need to keep the re-booking period to about 8 selling days, Quotas will be adjusted to Basic plus or minus whenever the occasion arises. Adjustment will be made for bonuses and penalties and each grower will be advised individually of his Quota. (ii) Adjustment of Quotas Depending on prevailing circumstances, delivery quotas may be adjusted as follows: - a) A grower who over-estimated in his First Estimate will have his quota decreased for the second half of the sales season in proportion to the period when quotas were operational in the first half of the season. Example: Grower’s 1 st Estimate = 120 000 Kg Delivery Quota = 96 bales Grower’s 2 nd Estimate = 150 000 Kg Maximum Increase (15%) =138 000 Kg Adjusted Quota = 110 bales NB: 15% increase on 120 000 kg = 1348 000 kg. At 8 bales per 10 000 kg, the calculation Is 13.8 x 8 = 110.4 bales. (iii) Minimum quota The minimum Quota allowed in any one selling season is 16 bales. Consequently, any grower whose penalty indicates a basic delivery quota below this minimum may deliver a maximum of 16 bales only per delivery cycle. (iv) Bonus on Quotas A bonus of 5% on basic Quota will be awarded to all growers who sold tobacco in the previous season and did not exceed 5% leeway provided). 7
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