Registration as a dealer in tobacco 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. 

registration as a dealer in tobacco in india

What is Tobacco License?

The Tobacco Board, under the ministry of commerce and industry has decided to implement a country-wide portal to ease and facilitate procedures for traders associated with the Board.

Who all need the Tobacco License?

  1. Exporters of Tobacco Products
  2. Exporters of Tobacco
  3. Dealers in Tobacco
  4. Processors of Virginia Tobacco
  5. Manufacturers Virginia Tobacco
  6. Packers of Tobacco
  7. Commercial Grade of Virginia Tobacco

How to get Tobacco and tobacco products registration for export and RCMC Registration-cum-Membership-Certificate from Tobacco Board?

There are two types of registration for EXPORT of TOBACCO Which are mentioned below After registration is done its mandatory to register for RCMC Registration-cum-Membership-Certificate for exports

1 Exporter of Tobacco Products (for example Tobacco Essence and extracts , Cigarettes etc)

2 Exporter of Tobacco (Un manufactured Tobacco)

Exporter of Tobacco Products- Applications received within stipulated time – Rs. 1,000/-

Late Applications

  1. For Fresh Applications received from 02.11.2020 to 31.12.2020 & for Renewal Applications received from 01.12.2020 to 31.12.2020 – Rs.5,000/-
  2. For fresh and Renewal applications received On or after 01.01.2021 – Rs.10,000/-

Exporter of Tobacco (Un-Manufactured Tobacco)- Applications received within stipulated time

  1. If the average annual value of the export of Unmanufactured  Tobacco during the preceding three financial years exceeds Rs.50 Lakhs – Rs.6,000/-
  2. Export turnover above Rs.10 Lakhs and up to Rs.50 Lakhs – Rs.4,000/-
  3. Export turnover up to Rs.10 Lakhs – Rs.1,000/-

 Late Applications

  1. For Fresh Applications received from 11.2020 to 31.12.2020 & for Renewal Applications received from 01.12.202Q to 31.12.2020                                         – Rs.5,000/-
  2. For Fresh and Renewal applications received On or after 01.01.2021 – Rs.10,000/-

Documents List- The applicants should submit documents as mentioned below along with submission of application and payment of requisite fees.

  1. Latest Bank Certificate against current account of the applicants’ banker in the prescribed proforma
  2. Letter of Undertaking on Company letter  head in the prescribed proforma
  3. Copy of Partnership  Deed/Memorandum   of Articles  of Association  along with  full addresses of partners/directors,  If the firm is Partnership/Private   Ltd / Public Ltd.
  4. Copy of GST certificate.
  5. Copy of PAN Card
  6. Copy of Importer Exporter Code{IEC} certificate’
  7. The applicants seeking registration/renewal of registration as Exporter of Tobacco(for Un Manufactured Tobacco ) should furnish the particulars of godowns / warehouses / handling points (including branches) at the relevant column of the application in the following manner:
  8. location – address in full with Phone No.,
  9. Space of each godown in square feet.
  10. Whether own or lease
  11. In case of lease, full address of the owner along with a self attested copy of lease agreement on Rs.100/- non-judicial stamp paper should be submitted.

Registration-cum-Membership-Certificate (RCMC) Registration

After getting the registration for Exporter of Unmanufactured Tobacco & Exporter of Tobacco Product from Tobacco Board its mandatory to apply Registration-cum-Membership Certificate (RCMC ) Which is obtained to furnish to the DGFT department for doing exports of tobacco and tobacco products outside India.

Once registration is granted both categories of Exporters i.e. Exporter of Unmanufactured Tobacco & Exporter of Tobacco Products can apply for RCMC to the board. Exporter can login using the Login ID and password sent to them and click on “Registered” under the particular category of Exporter and navigate

 Registration is granted as Merchant Exporter or Manufacturer Exporter. In case the exporter desires to get registration as Manufacturer Exporter, he shall furnish evidence of manufacturing activity owned by their firm (for example License issued by Industries Department/IDR Act, 1951)) or MSME registration along with application.

Registration is granted for a period of 5 years, which is valid from 1st April of the licensing year in which license was issued.

In case of change in ownership, constitution, name or address of an exporter, it shall be obligatory on the part of RCMC holder to intimate such change to the Registering Authority within a period of one month from the date of such change.

Documents required for Tobacco License 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.

FAQs

What are the eligibility criteria for registering as a dealer in tobacco in India?

The eligibility criteria for registering as a dealer in tobacco in India may vary depending on the state or union territory where you intend to operate and the specific laws and regulations governing tobacco sales. However, some common eligibility criteria may include:

  1. Legal Entity: You must be a legally recognized entity, such as a sole proprietorship, partnership firm, limited liability partnership (LLP), or private limited company, eligible to conduct business in India.

  2. Premises: You must have a suitable premises for conducting the tobacco dealership, which complies with all applicable zoning, building, and safety regulations.

  3. Compliance: You must comply with all relevant laws, rules, and regulations governing the sale, storage, distribution, and advertising of tobacco products, including obtaining any necessary licenses or permits.

  4. No Disqualifications: You must not be disqualified from operating as a tobacco dealer due to any legal or regulatory reasons, such as criminal convictions or violations of tobacco control laws.

  5. Financial Stability: You must demonstrate financial stability and viability to conduct the tobacco dealership business responsibly and sustainably.

  6. Age Requirement: You must meet the minimum age requirement specified by the authorities for engaging in tobacco-related activities.

What are the legal requirements and regulations governing tobacco dealerships in India?

The legal requirements and regulations governing tobacco dealerships in India are primarily governed by the provisions of the Cigarettes and Other Tobacco Products Act (COTPA), 2003, and its subsequent amendments, as well as any state-specific laws and regulations. Some key legal requirements and regulations include:

  1. Registration: All individuals or entities engaged in the sale, storage, distribution, or promotion of tobacco products must register with the designated government authority.

  2. Licenses and Permits: Depending on the nature and scale of operations, tobacco dealers may be required to obtain additional licenses or permits, such as trade licenses, shop establishment licenses, or any other permits specified by the authorities.

  3. Advertising Restrictions: COTPA imposes strict restrictions on the advertising and promotion of tobacco products, including bans on direct and indirect advertising, sponsorship of events, and promotional activities targeting minors.

  4. Health Warnings: Tobacco products must display prominent health warnings covering specified percentages of the packaging surface area, as mandated by law.

  5. Sale to Minors: Sale of tobacco products to minors (persons below the age of 18 years) is strictly prohibited under COTPA, and tobacco dealers must verify the age of customers before selling tobacco products.

  6. No-Smoking Zones: Tobacco dealers must comply with designated no-smoking zones and restrictions on smoking in public places as prescribed by law.

  7. Taxation: Tobacco products are subject to specific taxation and excise duties, and tobacco dealers must comply with all applicable tax laws and regulations.

What is the process for registering as a dealer in tobacco in India?
  1. Application: Obtain the application form for registration as a tobacco dealer from the designated government authority. This authority may vary depending on the state or union territory where you intend to operate.

  2. Documentation: Prepare the necessary documents required for registration, which may include identity proof, address proof, proof of ownership or tenancy of the premises, and any other documents specified by the authorities.

  3. Submission: Submit the completed application form along with the required documents to the designated government authority. Ensure that all information provided is accurate and up-to-date.

  4. Inspection: The authorities may conduct an inspection of the premises to verify compliance with applicable laws and regulations regarding tobacco sales and storage.

  5. Fee Payment: Pay the prescribed registration fee as per the applicable rules and regulations. The fee amount may vary depending on factors such as the type of tobacco products being sold and the scale of operations.

  6. Approval: Upon satisfactory completion of the application process and compliance with all requirements, the authorities will issue a registration certificate authorizing you to operate as a dealer in tobacco.

  7. Renewal: Ensure timely renewal of the registration certificate as per the specified intervals and requirements to maintain legal compliance.

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Practice area's of B K Goyal & Co LLP

Company Registration Services in major cities of India

Complete CA Services

RERA Services

Most read resources