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Application for EATTA membership - General Information

APPLICATION FOR MEMBERSHIP OF EAST AFRICAN TEA TRADE ASSOCIATION

 

GENERAL GUIDELINES

 

The East African Tea Trade Association (EATTA) is a voluntary membership organization that brings together Tea Producers, Buyers, Brokers, Packers and Warehousemen, affording them a disciplined environment in which to interact commercially, and to promote the best interests of the trade in Africa. EATTA has been in existence for over 50 years.

 

A membership application form and certificate of acceptance list is attached for your information. Please note that detailed rules and regulations regarding the tea auction and trading by members are articulated in the EATTA Rule book.  A copy of the booklet is available at the EATTA Secretariat at a cost of Kshs. 250/=. 

 

AFA Tea Directorate’s Registration Certificate by Kenyan based Producer, Buyer, Broker, Warehouse and Packer applicants must be attached prior to being considered by the EATTA. The Tea Directorate can be contacted on the following address: P 0 Box 20064-00200 Nairobi; Tel 020 2536886; Email: or P0 Box 903486-80100, Mombasa, Tel 2314668/2313059, Email: . Please contact AFA Tea Directorate prior to submitting your completed application form to EATTA.

 

Applicants for Membership must be introduced to the Company by a Member (Proposer) and the introduction by the Proposer must be seconded by another Member of the Company (Seconder) both of whom must have been active Member(s) for a minimum period of three years prior to the application for Membership.

 

Note that the annual subscription fee is paid on a pro rata basis and is therefore determined by the month your application for membership is considered.

 

Criteria and Requirements for Proposer and Seconder

 

The Proposer and Seconder shall submit to the Company under separate cover a recommendation letter of the applicant’s suitability for Membership and in the case that the applicant is a corporate entity, the Proposer and Seconder must confirm to the Board that the Directors and Shareholders of the applicant are personally known to the Proposer and Seconder respectively. A Member may only propose or second a maximum of three applicants in any one year.

 

The Proposer and Seconder will be held fully responsible and liable to the Company for the applicant for a period of two years from the date of acceptance of the applicant as a Member.

 

Definition of the Various Membership Categories

 

Producers – Any person, firm or company, actively engaged in the growing and/or manufacture of tea, or as agents for tea growers and/or tea manufacturers in Africa.

 

Brokers – Any person, firm or company, established in Africa for the purpose of negotiating the purchase or sale of tea between Members of the Company.

 

Buyers – Any person, firm or company, engaged in buying tea in Africa.

 

Packers – Any person, firm or company, actively engaged in buying tea in Africa for retail.

 

Tea Warehouses – Any person, firm or company, established in Africa warehousing teas being sold in accordance with the EATTA General Trading Rules and EATTA Trading Regulations.

 

Associate – Any person, firm or company not falling within the above Member Categories and is in the support business of the Company.

 

Requirements for Associate Membership

 

  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
  • Copy of Certificate of Incorporation/Registration.
  • EATTA certificate of acceptance duly signed.
  • Trading license issued by relevant authority.
  • Copies of PIN & VAT Registration.
  • Registration fees – (Comprises: Entrance fee of Kshs. 50,000, and the relevant Annual Subscription).

 

Associate Members are categorized as follows:

 

  • Category A – Banks on Tea Sales Payment System (Annual Subscription – Kshs 500,000)
  • Category C – Suppliers and service providers to the Tea Trade (Annual Subscription – 150,000)
  • Category D – Regulators and Research Institutions (Annual Subscription – 200,000)
  • Category E – Others (Business associates and well wishers who wish to be associated with the Tea Trade), Annual Subscription – 100,000.

                                                                                       

Requirements for Buyer Membership (Exporter)

  • Buyer Registration Certificate issued by the AFA Tea Directorate.
  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
  • Bank recommendation letter.
  • Copy of company registration certificate.
  • Letters of appointment in the form of a warehouse agreement.
  • Trading license issued by relevant authority.
  • PIN & VAT Certificate
  • Certificate of acceptance duly signed (enclosed)
  • Registration fees – Kshs 192,600 (Entrance fee – Kshs 72,000, Annual Subscription – Kshs 75,600, Auction Centre Development Fund – Kshs 45,000).

 

All new Buyer members are required to pay Kshs 75,000 for a standard auction seat. Payment for the seat shall grant a member a seat in the Auction room to bid. A Buyer member can either source his teas from the Auction, from Producers or from other Buyer members. Relevant duty and taxes have to be paid where transit teas are diverted to home use.

 

All new Buyer members shall in writing, nominate the person(s) with authority to bid on behalf of the Buyer Member at the Auction and to provide details of authorized signatories for tea delivery orders and other sales related documents. New Buyer members who intend to access the auction are required to deposit to the Brokers’ Association, 25% of their intended purchases prior to the date of purchase.

 

Requirements for Producer Membership

 

  • An endorsement letter from a Government Authority recognized by EATTA and for Kenyan applicants a Producer Registration Certificate issued by the AFA Tea Directorate.
  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
    • Letters of appointment in the form of both a brokerage and a warehouse agreement to be filed with the Company.
    • Documentary evidence of ownership of tea estate (s) and or tea factory.
    • Average annual production of made tea by the tea factory.
    • Percentage of production of made tea allocated to the Mombasa Auction.
    • A company profile of the Producer.
  • Certificate of acceptance duly signed (enclosed).
    • Registration fees – 158,800 (Entrance fee - Kshs.40,000, Annual Subscription Kshs.118,800/=)

 

Requirements for Broker Membership

 

  • A Broker Registration Certificate issued by AFA Tea Directorate.
  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
  • A bank guarantee for the amount of US Dollars 125,000 from a reputable bank recognized by the Company. This specific guarantee will lapse after a year’s Membership.
  • The applicant must satisfy the Board that: at least three of the applicant’s staff have the requisite technical qualifications to taste, value and report on and auction tea and that the employees are fully conversant with the established customs and practices of the business of tea broking.
  • The applicant must satisfy the Board that the applicant has employed a qualified accountant.
  • A Broker Member who represents any Non-Participating Producer Member(s) shall provide to the Company a bank guarantee for a maximum of US Dollars 300,000, renewable at the beginning of each calendar year.
  • A Broker Member who represents only Participating Producer Member(s) shall not be required to provide a bank guarantee and such a Broker Member will not be considered to be a Guaranteed Broker Member.
  • Copy of company registration certificate.
  • Trading license issued by relevant authority.
  • PIN & VAT Certificate.
  • Certificate of acceptance duly signed (enclosed).
  • Registration fees – Kshs 1,087,000 (Entrance fee – Kshs 402,000, Annual Subscription – Kshs 350,000, Auction Centre Development Fund – Kshs 335,000).

 

Requirements for Warehouse Member

  • A Warehouse Registration Certificate issued to the applicant by AFA Tea Directorate.
  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
  • Letters of appointment in the form of Warehouse Agreement(s) with Producer Member(s) and these agreements should specify the names of individual Factory Marks and agreement with Buyer Member(s).
  • Warehouse Inspection report from EATTA.
  • Copy of company registration certificate.
  • Trading license issued by relevant authority.
  • PIN & VAT Certificate.
  • Certificate of acceptance duly signed (enclosed).
  • Registration fees – Kshs 240,000/= (Entrance fee – Kshs 40,000, Annual Subscription – Kshs 200,000).

 

Requirements for Packer Membership

 

  • A Packer Registration Certificate issued to the applicant by AFA Tea Directorate.
  • EATTA membership application form duly completed.
  • Confirmation of Directors (Latest updated list of Directors from the Department of the Registrar General)
  • Registration of your Trademark or a copy of the completed application form (TM2), copies of receipts for payment of application and registration to confirm process was initiated.
  • Health certificate for business premises.
  • Certificate of acceptance duly signed (enclosed).
  • Registration fees – Kshs 21,500 (Entrance fee – Kshs 10,000, Annual Subscription – Kshs. 11,500)

 

A Packer member does not access the auction directly. He can source his teas from Producer or Buyer members. Relevant duty and taxes have to be paid for auction purchases of transit teas through Buyers.

 

Membership applications are reviewed and approved by the Board at its quarterly meetings. The next meeting is scheduled for 23rd February 2018 then 29th March 2018 thereafter 20th July 2018 and finally 23rd November 2018. Please complete the form plus payment (banker’s cheque for the correct amount of subscription and entrance fees) and forward to the Secretariat atleast 2 weeks before any of the board meetings if you wish to be considered for membership.

 

East African Tea Trade Association

 

January 2018