Cotton

Cotton [No. 21 of 2005 139
THE COTTON ACT, 2005
ARRANGEMENT OF SECTIONS
P A R T I
PRELIMINARY
1. Short title and commencement
2. Interpretation
P A R T U
THE COTTON BOARD
3. Establishment of Board
4. Functions of Board
5 .Composition of Board
6. Tenure of office of member
7. Filling of Casual vacancy
8. Executive Secretary
9. Secretary and other staff
10. Seal of Board
11. Proceedings of Board
12. Committees of Board
13. Allowances
14. Disclosure of interest
15. Prohibition of publication or disclosure of information to
unauthorised persons
16. Cotton Licensing Committee
17. Functions of Cotton Licensing Committee
18. Constitution and functions of Appeals Committee
19. Functions of Appeals Committee
P A R T m
REGISTRATION OF COTTON SEED PRODUCER, GINNERS AND
COTTON SEED SELLER
20. Registration of cotton seed producers, etc
21. Register of persons
22. Cancellation of registration of persons
Copies of this Act can be obtained from the Government Printer,
P.O. Box 30136, 10100 Lusaka. Price K5000 each.

ancellation of registration of persons
Copies of this Act can be obtained from the Government Printer,
P.O. Box 30136, 10100 Lusaka. Price K5000 each.

140 No. 21 of 2005) Cotton
23. Appeals
24. Offences and penalties
25. Publication of list of registered persons
PART IV
DISTINGUISHING MARKS
26. Approval of distinguishing mark
27. Registration of distinguishing mark
28. Refusal to approve distinguishing mark
29. Register of distinguishing marks
30. Use of distinguishing mark
3 1 . Marking of receptacle
32. Prohibition of dealing in cotton without licence
33. Licences
34. Application for licence
35. Condition of licence
36. Licence holder to maintain register
37. Cancellation of licence
38. Appeals
39. Funds of Board
40. Cotton Development Fund
4 1 . Financial year
42. Accounts
43. Annual Report
44. Appointment of inspectors
45. Powers of Inspectors
46. Obstruction of inspector
47. Duty of inspector to report to Board
48. Cancellation of licence by court order
49. Regulations
50 Repeal of Cap. 227 and transitional provisions

47. Duty of inspector to report to Board
48. Cancellation of licence by court order
49. Regulations
50 Repeal of Cap. 227 and transitional provisions

Cotton [No. 21 of 2005 141
GOVERNMENT OF ZAMBIA
ACT
No. 21 of 2005
Date of Assent: 28th September,2005
An Act to establish the Cotton Board and define its functions
and powers; to regulate the cotton industry as it relates to
the production and ginning of seed cotton; to control the
production and marketing of cotton; to repeal and replace
the Cotton Act, 1914; and to provide for matters connected
with or incidental to the foregoing. [ 7th October, 2005
ENACTED by the Parliament of Zambia. PARTI
PRELIMINARY
1. This Act may be cited as the Cotton Act, 2005, and shall
come into operation on such date as the Minister may, bystatutory
instrument, appoint. 2.

1. This Act may be cited as the Cotton Act, 2005, and shall
come into operation on such date as the Minister may, bystatutory
instrument, appoint. 2.

In this Act, unless the context otherwise requires—
" Appeals Committee " means the Committee constituted
by section eighteen;
" Board "means the Cotton Board of Zambia established by
section three;
" Chairperson " means the person appointed chairperson of
the Board under section five;
" cotton " means the cotton plant grown for lint and seed;
" Cotton Development Trust" means the Cotton Development
Trust established under a trust deed registered with the
Registrar of Lands and Deeds under the Lands and Deeds
Registry Act;
" cotton sector"means the producers and ginners of seed
cotton but does not include weavers or spinners of cotton
or producers of textile products;
" cotton seed " means the propagative part of the cotton plant
grown principally for seed multiplication;
Enactment
Short title and
commence
ment
Interpretation
Cap. 185

ns the propagative part of the cotton plant
grown principally for seed multiplication;
Enactment
Short title and
commence
ment
Interpretation
Cap. 185

142 No. 21 of 2005] Cotton
" distinguishing mark " means any sign, inscription, letter or
number which distinguishes a person, association or
organisation;
" Environmental Council of Zambia "means the Environmental
Council of Zambia established under the Environmental
Cap. 204 Protection and Pollution Control Act;
" Executive Director " means a person appointed as
Executive Director under section eight;
" ginned cotton " means seed cotton which has been processed
into lint;
" Ginners Association of Zambia " means the Ginners
Cap- 1 1 9
Association of Zambia registered under the Societies Act;
" inspector " means a person appointed as an inspector under
section forty-four;
" levy " means such charge on cotton lint as may be
prescribed by the Board;
" licence holder " means a person, organisation or company
holding a licence issued under section thirty-four;
" lint" means the fibre component of processed seed cotton;
" packaging " means the recommended packaging in terms of
material, labelling and sealing;
" penalty u n i t " has the meaning assigned to it in the Fees and
Cap.

" means the recommended packaging in terms of
material, labelling and sealing;
" penalty u n i t " has the meaning assigned to it in the Fees and
Cap.

45 Fines Act;
" person " includes an institution, an individual or company
dealing in cotton;
" producer " means a person, organisation or company engaged
in growing, promoting and marketing of cotton;
" receptacle " means any acceptable packaging approved
by the Board;
" Register " means the summarised record of all persons,
organisations, companies or agents producing, purchasing
and selling the cotton crop;
Cap. 227 " repealed A c t " means the Cotton Act, 1914;
" seed company " means an organisation or company holding
a Cotton Seed Licence issued under section thirty-four;
" seed cotton " means the unginned cotton;
" to pre-finance " means to give a loan in the form of cotton
inputs; and
" Trust Fund " means the Cotton Development Trust Fund
established under section/bwry

finance " means to give a loan in the form of cotton
inputs; and
" Trust Fund " means the Cotton Development Trust Fund
established under section/bwry

Cotton [No. 21 of 2005 143
P A R T II
COTTON BOARD OF ZAMBIA
3 . There is hereby established the Cotton Board of Zambia which
shall be a body corporate with perpetual succession and a common
seal, capable of suing and being sued in its corporate name, and
with power, subject to the provisions of this Act, to do all such
things as a body corporate may by law do or perform. 4.

d in its corporate name, and
with power, subject to the provisions of this Act, to do all such
things as a body corporate may by law do or perform. 4.

(1) Subj ect to the other provisions of this Act, the functions
of the Board shall be to —
(a) regulate the production, ginning and marketing of seed
cotton;
(b) set the standards relating to the quality of the cotton crop
in the field, seed cotton, cotton seed and lint;
(c) advise the Government on regulations, policies and
measures pertaining to the protection, control, promotion
and development of the cotton industry;
(d) encourage the production of good quality cotton;
(e) facilitate the principle functions of the Cotton Development
Trust —
(i) in research and development of cotton; and
(ii) regarding extension programmes and training of
cotton farmers conducted by the Trust;
(f) maintain a record of the credit status of cotton growers;
(g) implement the Government's policies relating to the cotton
industry;
(h) arrange, when so requested by the Government, for the
representation of Zambia, on any international
organisation dealing with cotton, or at any international
conference relating to cotton; and
(i) carry out such activities as are necessary or conducive to
the better performance of its functions under this Act.

ference relating to cotton; and
(i) carry out such activities as are necessary or conducive to
the better performance of its functions under this Act.

(2) The Board may, by directions in writing and subject to such
conditions as it considers necessary, delegate to any member,
committee or the Executive Director any of its functions under this
Act. 5. (1) The Board shall consist of the following part-time
members:
(a) two representatives of the Ministry responsible for
agriculture, one of whom shall be from the Division
responsible for marketing and co-operatives and the other
from the Division responsible for agriculture;
Establishment
of Board
Functions of
Board
Composition
of Board

arketing and co-operatives and the other
from the Division responsible for agriculture;
Establishment
of Board
Functions of
Board
Composition
of Board

144 N o . 21 of 2005] Cotton
Cap. 236
Tenure of
office of
member
(b) one representative from the Cotton Development Trust;
(c)two representatives of the Cotton Ginners Association of
Zambia who are not members of the Board of Trustees
of the Cotton Development Trust;
(d) one representative of an association of cotton farmers;
(e) one representative of small holder cotton farmers;
(#the director of the Seed Control and Certification Institute
appointed pursuant to section three of the Plant Variety
and Seeds Act;
(g) one representative of the Environmental Council of
Zambia;
(h) one representative of the textile industry;
(i) one representative of the Ministry responsible for finance
and national planning; and
(j) one representative of the Attorney-General. (2) The members referred to in subsection (1) shall be nominated
by their respective institutions and shall be appointed by the Minister. (3) The Minister shall appoint the Chairperson of the Board
and the Vice-Chairperson shall be elected by the members from
amongst themselves:
Provided that the members appointed under paragraph (a) of
subsection(l) shall not be elected as Chairperson or Vice-
chairperson.

amongst themselves:
Provided that the members appointed under paragraph (a) of
subsection(l) shall not be elected as Chairperson or Vice-
chairperson.

(4) A person shall not be appointed as a member of the Board
if the person —
(a) is an undischarged bankrupt;
(b) has been convicted of an offence involving fraud or
dishonesty; or
(c) has been convicted of an offence under any written law
and sentenced to a term of imprisonment of not less than
six months, without the option of a fine. 6. (1) The Chairperson and Vice-Chairperson shall hold office
for a period of three years and two years respectively and shall be
eligible for reappointment for one more like term. (2)The members of the Board shall hold office for a period of
three years and may be reappointed for a further term of three years. (3) A member of the Board may resign upon giving one month's
notice in writing to the Minister or the Chairperson of the Board,
as the case may be.

s. (3) A member of the Board may resign upon giving one month's
notice in writing to the Minister or the Chairperson of the Board,
as the case may be.

Cotton [No. 21 of 2005 145
(4) The office of a member of the Board shall become
vacant —
(a) upon the death of the member;
(b) if that member is absent without
reasonable excuse from three consecutive meetings of the
Board of which that member has had notice;
(c) on ceasing to be a representative of the organisation which
nominated the member;
(d) if the member becomes mentally or physically incapable
of performing the duties of a member of the Board;
(e) if the member is declared bankrupt; or
(f) if the member is convicted of an offence under any written
law and sentenced therefor to imprisonment for a term
of not less than six months without the option of a fine. 7. Whenever the office of a member becomes vacant before Filling of
the expiry of the term of office, the Minister may appoint another casual
member in place of the member who vacates the office, but that v a c a n c
y
member shall hold office only for the unexpired part of the term. 8. (1) The Board shall appoint an Executive Director who Executive
shall be the Chief Executive Officer of the Board on such terms Director
and conditions as the Board may determine.

n Executive Director who Executive
shall be the Chief Executive Officer of the Board on such terms Director
and conditions as the Board may determine.

(2) The Executive Director shall, subject to the direction of
the Board, be responsible for the day to day administration of the
Board. (3) The Executive Director shall attend the meetings of the
Board and any committee of the Board and may address such
meetings but shall have no vote. 9. (1) The Executive Director shall be the Secretary to the Secretary
Board. a n d o t h e r
staff
(2) The Board shall appoint, on such terms and conditions as
the Board may determine, such other staff of the Board as it considers
necessary for the performance of its functions under this Act. 10. (1) The seal of the Board shall be such device as may be Seal of Board
determined by the Board and shall be kept by the Secretary. (2) The Board may use a wafer or rubber stamp in lieu of the
seal. (3) The affixing of the Seal shall be authenticated by the
Chairperson or the Vice chairperson and the Secretary or one other
person authorised in that behalf by a resolution of the Board.

authenticated by the
Chairperson or the Vice chairperson and the Secretary or one other
person authorised in that behalf by a resolution of the Board.

146 No. 21 of 2005] Cotton
(4) Any contract or instrument which, if entered into or executed
by a person not being a body corporate, will not be required to be
under seal, may be entered into or executed without seal on behalf
of the Board by the Secretary or any other person generally or
specifically authorised by the Board in that behalf. (5) Any document purporting to be a document under the seal
of the Board or issued on behalf of the Board shall be received in
evidence and shall be deemed to be so executed or issued, as the
case may be, without further proof, unless the contrary is proved. Proceedings 11. (1) Subject to the other provisions of this Act, the Board
of Board m a v regulate its own procedure. (2) The Board shall meet for the transaction of business, at
least once in every three months at such places and at such times as
the Chairperson may determine. (3) The Chairperson may, upon giving notice of not less than
fourteen days, call a meeting of the Board and shall call a special
meeting to be held within fourteen days of receipt of a written request
to the Chairperson by at least five members of the Board.

shall call a special
meeting to be held within fourteen days of receipt of a written request
to the Chairperson by at least five members of the Board.

(4) If the urgency of any particular matter does not permit the
giving of such notice as is required under subsection (3), a special
meeting may be called by the Chairperson, upon giving a shorter
notice. (5) Seven members shall form a quorum at any meeting of the
Board. (6) There shall preside at any meeting of the Board—
(a) the Chairperson;
(b) in the absence of the Chairperson, the Vice-Chairperson,
or
(c) in the absence of the Chairperson and the Vice-chairperson,
such member as the members present may elect for the
purpose of that meeting. (7) A decision of the Board on any question shall be by a
majority of the members present and voting at the meeting and in
the event of an equality of votes, the person presiding at the meeting
shall have a casting vote in addition to the deliberative vote. (8) Where a member is for any reasonable cause unable to attend
any meeting of the Board, the member may, in writing appoint a
proxy in that member's stead and such person shall be deemed to
be a member for the purpose of such meeting.

ard, the member may, in writing appoint a
proxy in that member's stead and such person shall be deemed to
be a member for the purpose of such meeting.

Cotton [No. 21 of 2005 147
(9) The Board may invite any person whose presence is in its
opinion, desirable, to attend and to participate in the deliberations
of a meeting of the Board and any other committee of the Board but
such person shall have no vote. (10) The validity of any proceedings, action or decision of the
Board shall not be affected by any vacancy in the membership of
the Board or by any defect in the appointment of any member or by
reason that any person not entitled so to do took part in the
proceedings. (11) The Board shall cause minutes to be kept of the
proceedings of every meeting of the Board and every meeting of
any committee established by the Board. 12. (1) The Board may, for the purpose of performing its
functions under this Act, establish such committees as it considers
necessary and may delegate to any such committees such of its
functions as it considers fit. (2) The Board may appoint as members of a committee
established under subsection (1), persons who are or are not,
members of the Board, except that at least one member of a
committee shall be a member of the Board, and such persons shall
hold office for such period as the Board may determine.

that at least one member of a
committee shall be a member of the Board, and such persons shall
hold office for such period as the Board may determine.

(3) Subject to any specific or general directions of the Board,
a committee may regulate its own procedure. 13. The members of the Board or any Committee of the Board
shall be paid such allowances as the Board may, with the approval
of the Minister, determine. 14. (1) If a member or person is present at a meeting of the
Board or any Committee of the Board at which any matter is the
subject of consideration and in which matter the member or person
or the member or person's spouse is directly or indirectly interested
in a private capacity, the member or person shall, as soon as
practicable after the commencement of the meeting, declare such
interest and shall not, unless the Board or committee otherwise
directs, take part in any consideration or discussion of, or vote
on, any question touching such matter. (2) A declaration of interest made under subsection (1), shall be
recorded in the minutes of the meeting at which it is made. 15.

ouching such matter. (2) A declaration of interest made under subsection (1), shall be
recorded in the minutes of the meeting at which it is made. 15.

(1) A person, shall not without the consent in writing given
by, or on behalf of, the Board publish or disclose to any person,
otherwise than in the course of duty, the contents of any document,
communication or information, which relates to, and which has
come to that person's knowledge in the course of duties under this
Act. Committees
of Board
Allowances
D i s c l o s u r e
of interest
Prohibition of
publication or
disclosure of
information to
unauthorised
persons

is
Act. Committees
of Board
Allowances
D i s c l o s u r e
of interest
Prohibition of
publication or
disclosure of
information to
unauthorised
persons

148 No. 21 of 2005] Cotton
Cotton
Licensing
Committee
Functions of
Cotton
Licensing
Committee
(2) Any person who knowingly contravenes the provisions of
subsection (1) commits an offence and shall be liable, upon
conviction to a fine not exceeding ten thousand penalty units or to
imprisonment for a term not exceeding six months, or to both. (3) If any person having any information which to that person's
knowledge has been published or disclosed in contravention of
subsection (1), unlawfully publishes or communicates any such
information to any person, that person commits an offence and
shall be liable upon conviction, to a fine not exceeding five thousand
penalty units or to imprisonment for a term not exceeding six months,
or to both. 16. (1) There is hereby established the Cotton Licensing
Committee which shall consist of not more than seven members
who shall be appointed by the Board.

(1) There is hereby established the Cotton Licensing
Committee which shall consist of not more than seven members
who shall be appointed by the Board.

(2) A person, other than a Board member, shall not be appointed
as a member of the Committee unless the person has expertise,
skills and experience in any of the following areas:
(a) cotton agronomy, cotton variety development, cotton variety
maintenance;
(b) crop marketing, handling, transportation and storage;
(c) crop seed production; and
(d) cotton ginning. (3) The Chairperson of the Committee shall hold office for a
period of two years and shall be eligible for re-election for another
period of one year. (4) A member of the Committee, other than the Chairperson of
the Committee, shall hold office for one year. (5) A member of the Committee may resign upon giving one
month's notice, in writing to the Board and may be removed by the
Board at any time. (6) There shall preside at any meeting of the Committee the
Chairperson and in the absence of the Chairperson such member of
the Committee as the members present may elect for the purpose of
that meeting. (7) Subject to any specific or general direction of the Board the
Committee may regulate its own procedure. 17.

elect for the purpose of
that meeting. (7) Subject to any specific or general direction of the Board the
Committee may regulate its own procedure. 17.

(1) Subject to the control and direction of the Board, the
functions of the Committee shall, on behalf of the Board be to —
(a) issue registration certificates and licences in accordance
with this Act;
(b) approve and register distinguishing marks; and
(c) maintain a register of land planted with cotton, registered
cotton growers and distinguishing marks.

pprove and register distinguishing marks; and
(c) maintain a register of land planted with cotton, registered
cotton growers and distinguishing marks.

Cotton [No. 21 of 2005 149
(2) The Board may delegate to the Committee such other of its
functions as it may consider necessary. 18. (1) There is hereby constituted the Appeals Committee,
which shall consist of not more than five members who shall be
appointed by the Board. (2) A member of the Committee shall hold office for one year. (3) A member of the Committee may resign upon giving one
month's notice in writing to the Board and may be removed by the
Board at any time. (4) Subject to any specific or general direction of the Board the
Committee may regulate its own procedure. 19. (1) The functions of the Committee shall, on behalf of the
Board, be to hear and determine appeals from aggrieved cotton
growers, ginners and promoters on matters relating to cotton. (2) In subsection ( 1 ) " promoter "means any person who does
any act for purposes of advancing the production and marketing of
cotton. PARTffl
REGISTRATION OF COTTON SEED PRODUCERS, GINNERS AND COTTON
SEED SELLERS
20. (1) Any person who intends to produce, buy, sell, transport,
store or gin cotton shall apply for registration in the prescribed
form to the Board.

20. (1) Any person who intends to produce, buy, sell, transport,
store or gin cotton shall apply for registration in the prescribed
form to the Board.

(2) The application referred to in subsection (1) shall state —
(a) the type of cotton trade to be engaged in; and
(b) such other particulars as may be prescribed. (3) The Board shall issue a certificate of registration in the
prescribed form to an applicant referred to in subsection (1) upon
payment of a prescribed fee. (4) A certificate of registration shall contain —
(a) the name of the registered person;
(b) the type of cotton trade; and
(c) such other particulars as the Board may prescribe. (5) A certificate of registration issued under subsection (3) shall
be valid for one year. (6) The Board may refuse to register a person or reject a
person's application for registration and shall give reasons in writing
for such refusal or rejection. Constitution
and functions
of Appeals
Committee
Functions of
Appeals
Committee
Registration
of cotton
seed
producers,
etc

r such refusal or rejection. Constitution
and functions
of Appeals
Committee
Functions of
Appeals
Committee
Registration
of cotton
seed
producers,
etc

150 N o . 21 of 2005] Cotton
Register o f
persons
Cancellation
of
registration
of persons
Appeals
Offences
and
penalties
Publication
of list of
registered
persons
2 1 . The Board shall establish and maintain a register of persons,
which shall contain such particulars, as may be prescribed. 2 2 . (1) The Board may cancel the registration of a registered
person—
(a) who ceases to comply with any of the provisions under
section nineteen;
(b) who buys pre-financed cotton without the prior written
consent of the pre-financing institution or company. (2) The Board shall, before cancelling any person's registration
under subsection ( 1 ) , give written notice to the registered person of
the Board's intention to cancel the registration and specify the
grounds for cancellation and require the registered person to show
cause, within such period as the Board may specify, why the
registration should not be cancelled. (3) The Board shall not cancel the person's registration under
this section if the registered person complies with such requirements
as the Board may specify to the satisfaction of the Board within the
period referred to in subsection (2).

ered person complies with such requirements
as the Board may specify to the satisfaction of the Board within the
period referred to in subsection (2).

(4) If the registered person notified under subsection (2) fails
to show cause to the satisfaction of the Board why the registration
should not be cancelled or does not take remedial measures within
the time specified in subsection (2) the Board shall cancel the
registration. 2 3 . ( 1 ) Any person aggrieved by a decision of the Board to
cancel the registration of such person may appeal to the Appeals
Committee subject to a further appeal to the Board. (2) Any person who is dissatisfied with the decision of the Board
on appeal under subsection (1) may appeal to the High Court against
such decision within thirty days of being notified of the decision. 2 4 . Any person who produces, buys, sells, transports, stores
or gins cotton when that person —
(a) is not registered under section twenty; or
(b) has been notified in writing that their application for
registration has been refused or that their registration
certificate has been cancelled;
commits an offence and shall be liable upon conviction to a fine
not exceeding fifty-six thousand penalty units or to imprisonment
for a term not exceeding two years or to both. 2 5 .

iable upon conviction to a fine
not exceeding fifty-six thousand penalty units or to imprisonment
for a term not exceeding two years or to both. 2 5 .

The Board shall at regular intervals, but not less than once a
year, cause to be published in the Gazette a list of all persons
registered under this Part.

oard shall at regular intervals, but not less than once a
year, cause to be published in the Gazette a list of all persons
registered under this Part.

Cotton [No. 21 of 2005 151
PARTIV
DISTINGUISHING MARKS
26. Every registered ginner or producer of processed cotton
shall submit a copy of the distinguishing mark to the Board for
approval. 27. Where the Board approves a mark submitted to it under
section twenty-six, it shall register the mark and shall issue to the
registered cotton ginner or producer of processed cotton a certificate
in the prescribed form. 28. (1) The Board may refuse to approve a mark and may
require the applicant to submit an alternative mark for its approval. (2) Where the Board refuses to approve a distinguishing mark
it shall give reasons for so refusing. (3) Any person aggrieved by a decision of the Board not to
approve a distinguishing mark may appeal to the Minister who
may either confirm the decision of the Board or request the Board
to reconsider the submission made by the applicant. 29. (1) The Board shall keep a register of approved
distinguishing marks. (2) The Board shall publish in the Gazette and one daily
newspaper details of all registered distinguishing marks. 30. (1) No person, other than the holder of a certificate issued
in relation to that distinguishing mark, shall use that mark.

d distinguishing marks. 30. (1) No person, other than the holder of a certificate issued
in relation to that distinguishing mark, shall use that mark.

(2) Any person who contravenes subsection (1) commits an
offence and shall be liable, upon conviction, to a fine not exceeding
ten thousand penalty units or to imprisonment for a term not
exceeding twelve months, or to both. 31. (1) A registered cotton ginner or processed cotton seller
shall not part with possession of any cotton unless each bag or
receptacle in which the cotton is contained has clearly marked on it
the registered distinguishing mark of the registered cotton ginner or
seller of processed cotton. (2) For the purposes of subsection (1), a bag or receptacle in
which cotton is contained shall be clearly marked if the registered
distinguishing mark of the cotton ginner or processed cotton seller
is
(a) made of a cloth tag firmly sown on the bag or receptacle
in letters or figures which are easily distinguishable; or
(b) stencilled on the bag or receptacle in letters or figures,
which are easily distinguishable. Approval o f
distinguishing
mark
Registration
of
distinguishing
mark
Refusal to
approve
distinguishing
mark
Register of
distinguishing
mark
Use of
distinguishing
mark
Marking of
receptacle

tration
of
distinguishing
mark
Refusal to
approve
distinguishing
mark
Register of
distinguishing
mark
Use of
distinguishing
mark
Marking of
receptacle

152 No. 21 of 2005] Cotton
Prohibition
of dealing in
cotton
without
licence
PART V
LICENSING
32. (1) Aperson shall not buy, sell ,import, export or otherwise
deal in cotton, for commercial purposes, without a valid licence
issued under this Part. (2) Any person who contravenes subsection (1) commits an
offence and shall be liable, on conviction, to a fine not exceeding
fifty-six thousand penalty units or to imprisonment for a term not
exceeding three years, or to both. Licences 33. Subject to the other provisions of this Act, the Board may
issue the following licences:
(a) a cotton ginner's licence which shall authorise the holder
to process such description of cotton, by means of such
machinery, and in such manner, as may be specified in
the licence;
(b) a cotton seed seller's licence which shall authorise the
holder to purchase, sell, export, import or otherwise
market cotton seed on such premises as may be specified
in the licence;
(c)a cotton seed producer's licence which shall authorise the
holder to produce cotton seed on such premises as may
be specified in the licence. Application
for licence
Cap. 441
34.

ence which shall authorise the
holder to produce cotton seed on such premises as may
be specified in the licence. Application
for licence
Cap. 441
34.

(1) Every application for a licence, or renewal of a licence,
shall be made to the Board in the prescribed form and shall be
accompanied by the prescribed fee. (2) The Board shall issue a licence, in the prescribed form, to
an applicant under subsection (1) if the Board is satisfied that the
applicant has fulfilled such conditions for the issue of a licence as
the Board may prescribe. (3) The Board may refuse to issue a cotton seed producer's
licence if the works or premises are not properly equipped or if the
installed machinery is not adequate or suitable for producing cotton
and processing seed of good quality, or the premises do not conform
to the provisions of the Factories Act. (4) The Board shall not issue a licence to any person if it is
satisfied that the applicant or a person employed by the applicant
does not have sufficient knowledge or experience in the cotton trade.

rson if it is
satisfied that the applicant or a person employed by the applicant
does not have sufficient knowledge or experience in the cotton trade.

Cotton [No. 21 of 2005 153
35. A licence issued under this Part shall be subject to the Conditions
following conditions: of licence
(a) unless earlier cancelled, it shall remain in force for one
year following the date of issue;
(b) it shall not be transferable;
(c) the holder shall not carry on any business related to cotton
on any premises or place except those stipulated in the
licence;
(d) that where the licence is for the importation or exportation
of cotton the licence shall be subject to an import or
export permit issued under the Control of Goods Act; Cap. 421
(e) such other conditions as the Minister may on the
recommendation of the Board, by statutory instrument,
impose. 36. (1) A licence holder shall at all times maintain Licence
on their premises, a register in which shall be recorded, as applicable holder to
to the licence— m a i n t a i n
register
(a) all purchases, sales or movement of cotton;
(b) the quantity of cotton processed;
(c) the name and address of the owner, vendor or purchaser,
of the cotton; and
(d) the date of each transaction.

(b) the quantity of cotton processed;
(c) the name and address of the owner, vendor or purchaser,
of the cotton; and
(d) the date of each transaction.

(2) A register maintained in accordance with,
subsection (1) shall be open to inspection at all reasonable times,
by the Board or by an inspector appointed by the Board. (3) Any licence holder who contravenes subsection (1) commits
an offence and is liable, upon conviction, to a fine not exceeding
five thousand penalty units. 37. (1) Subject to subsection (2) and on the recommendation Cancellation
of the Cotton Licensing Committee the Board may cancel a licence o f
licence
issued under this Part if the licence holder has contravened, or failed
to comply with, any of the conditions subject to which the licence
was issued. (2) The Board shall, before cancelling a licence in accordance
with subsection (1), give written notice to the licence holder of its
intention to cancel the licence and specify the grounds for cancellation
and shall require the licence holder to show cause why the licence
should not be cancelled or to take such remedial action as the Board
may specify, within a period of thirty days.

holder to show cause why the licence
should not be cancelled or to take such remedial action as the Board
may specify, within a period of thirty days.

154 N o . 21 of 2005] Cotton
(3) A licence holder who is notified under subsection (2) may,
within the period specified in that subsection, make representations
to the Board giving the reasons why the licence holder breached the
conditions of, or failed to comply with, the conditions of the licence
and shall inform the Board of any remedial measures taken by the
licence holder. (4) The Board shall not cancel a licence under this section if
the holder of the licence takes the remedial measures, to the
satisfaction of the Board, within the period stipulated in subsection
(2). (5) If the holder of the licence notified under subsection (2)
fails to show cause, to the satisfaction of the Board or does not take
remedial measures within the period stipulated in subsection (2) the
Board shall cancel the licence. (6) Where a licence is cancelled under this section, the Board
shall inform the licence holder of the reasons for the cancellation. Appeals 3 8 .

nce. (6) Where a licence is cancelled under this section, the Board
shall inform the licence holder of the reasons for the cancellation. Appeals 3 8 .

(1) Any person who is aggrieved by —
(a)the refusal of the Board to issue, or renew a licence;
(b)the cancellation of a licence; or
(c)my restrictions imposed on the licence;
may, within thirty days of the receipt of notification of the
refusal to issue, renew or cancel the licence, as the case
maybe, appeal to the Minister subject to further appeal
to the High Court. (2) On any appeal made under subsection (1), the Minister may
confirm, set aside or vary the Board's decision and notify the
appellants of the decision in writing. (3) Any person who is aggrieved with the Minister's decision
under subsection (2) may appeal to the High Court against such
decision within thirty days of receipt of the Minister's notification
given under subsection (2). PART VI
FINANCIAL PROVISIONS
3 9 . (1 )The funds of the Board shall consi st of such moneys as
may —
(a) be appropriated by Parliament for the purposes of the
Board;
(b) be paid to the Board by way of fees, grants or donations;
and
(c )vest in or accrue to the Board. Funds of
Board

nt for the purposes of the
Board;
(b) be paid to the Board by way of fees, grants or donations;
and
(c )vest in or accrue to the Board. Funds of
Board

Cotton [No. 21 of 2005 155
(2) The Board may —
(a) subject to the approval of the Minister, raise by way of
loans, or otherwise such moneys as it may require for
the discharge of its functions; and
(b) charge and collect licence fees for services provided by
the Board such as for instance, the issuing of licences. (3) There shall be paid from the funds of the Board —
(a) the salaries, allowances and loans of the staff of the Board;
(b) such reasonable sitting, travelling, transport and
subsistence allowances for members or members of any
committee of the Board when engaged on the business
of the Board, at such rates as the Board may, with the
approval of the Minister, determine; and
(c) any other expenses incurred by the Board in the
performance of its functions. (4) The Board may invest in such manner as it thinks fit any
of its funds which it does not immediately require for the
performance of its functions. 40. (1) The Board shall establish and maintain a Cotton
Development Trust Fund into which levies, grants, donations and
royalties paid to the Board shall be paid.

Board shall establish and maintain a Cotton
Development Trust Fund into which levies, grants, donations and
royalties paid to the Board shall be paid.

(2)The moneys of the Fund shall be applied for the purposes of—
(a) research and development;
(b) extension programmes and training of cotton farmers;
(c) seed production and multiplication;
(d) seed quality control;
(e) phytosanitory and quarantine on cotton;or
(f) such other areas as the Board may consider appropriate. 41. The financial year of the Board shall be the period of twelve Financial
months ending 31 st March of each year. v e a r
42. (1) The Board shall cause to be kept proper books of Accounts
accounts and other records relating to its accounts. (2) The accounts of the Board shall be audited annually by
independent auditors appointed by the Board. 43. (1) As soon as practicable, but not later than six months Annual
after the expiry of each financial year, the Board shall submit to report
the Minister a report concerning its activities during such financial
year. Cotton
Development
Trust Fund

ncial year, the Board shall submit to report
the Minister a report concerning its activities during such financial
year. Cotton
Development
Trust Fund

156 N o . 21 of 2005] Cotton
(2) The report referred to in paragraph (1) shall include
information on the financial affairs of the Board and there shall be
appended to the report —
(a) an audited balance sheet;
(b) an audited statement of income and expenditure;
(c) such other information as the Minister may require. PART v n
INSPECTIONS AND GENERAL PROVISIONS
Appointment 44. (1) The Board may appoint such inspectors as it may
of inspectors consider necessary to monitor and ensure compliance with the
provisions of this Act. (2) The Secretary shall issue an identity card to every inspector
which shall be prima facie evidence of the inspector's appointment
as such. (3) An inspector shall, on demand by any person affected by the
exercise of an inspector's powers under this Act, produce for
inspection the identity card referred to in subsection (2). Powers of 45.

ffected by the
exercise of an inspector's powers under this Act, produce for
inspection the identity card referred to in subsection (2). Powers of 45.

( i ) In the performance of duties under this Act, an
inspectors inspector shall have power —
(a) on production of an identity card issued to the inspector
under subsection (2) of section forty-four, to enter and
search any premises upon which the inspector has reason
to believe there is cotton in respect of which an offence
under this Act is being or has been committed and seize
and remove any cotton found on the premises which the
inspector has reasonable cause to believe may provide
evidence of the offence:
Provided that, before removing any cotton under
this section, the inspector removing it shall furnish
the person in whose custody or possession the cotton
is, at the time of removal, with a written receipt of the
cotton.

ector removing it shall furnish
the person in whose custody or possession the cotton
is, at the time of removal, with a written receipt of the
cotton.

(b) to stop, search and detain any vehicle or other conveyance
which the inspector has reason to believe is being or has
been used for conveying any cotton in respect of which
an offence is being or has been committed;
(c) to inspect all books, records, returns, reports and other
documents relating to cotton or to any dealings in cotton;
(d) to seize machinery, any motor vehicle or material with
which the inspector has reason to believe an offence under
this Act appears to have been or is likely to be committed;
(e) to require any person connected with the cotton business
to supply any information relating to the purchase, sale,
import or export of cotton.

ed;
(e) to require any person connected with the cotton business
to supply any information relating to the purchase, sale,
import or export of cotton.

Cotton [No. 21 of 2005 157
(2) Any person detained or any thing seized under this section
shall without delay be taken before a court to be dealt with according
to the law, and where it is not practicable to remove from its location
any apparently unlawful tool or other means of processing or
producing cotton, such tool or other means may immediately be
rendered inoperative. (3) An inspector may request any person whom the inspector
sees doing an act for which a licence or certificate is required under
this Act to produce a licence or certificate. 46.

any person whom the inspector
sees doing an act for which a licence or certificate is required under
this Act to produce a licence or certificate. 46.

Any person who obstructs an inspector in the execution of Obstruction
duties under this Act or who, without reasonable excuse, fails to of inspector
comply with a request made under subsection (3) of section forty-
five commits an offence and shall be liable upon conviction to a fine
not exceeding eight thousand penalty units or to imprisonment for a
term not exceeding six months, or to both:
Provided that a person who on demand is u n a b l e to
produce any licence or certificate issued under this Act shall
not be guilty of an offence under this subsection —
(a) if that person produces the licence, or certificate within
a reasonable time, not exceeding twenty-one days,
to an inspector, the Executive Director or the Board;
and
(b) explains to the inspector, Executive Director or the
Board that the licence or certificate is produced in
compliance with the demands of an inspector and
names the place where the demand was made. 47. Each inspector shall furnish the Board with such reports
and other information relating to an inspection as the Board may
direct. 48.

nd was made. 47. Each inspector shall furnish the Board with such reports
and other information relating to an inspection as the Board may
direct. 48.

Where any person is convicted of an offence under this Act,
the court may order the cancellation of any certificate or licence
held by that person with effect from such date as the court may
consider reasonable to enable that person to dispose of any stocks
of cotton at hand, and may further order that the person shall not be
issued with any further certificate or licence for such period as the
court thinks fit. Duty of
inspector to
report to
Board
Cancellation
of licence by
court order
49. ( 1 ) The Minister may, on the recommendation of the Board, Regulations
by statutory instrument, make regulations for the better carrying
out of the provisions of this Act.

, on the recommendation of the Board, Regulations
by statutory instrument, make regulations for the better carrying
out of the provisions of this Act.

158 No.

158 No.

21 of 2005] Cotton
(2) Without prejudice to the generality of subsection (1),
regulations made under this section may prescribe —
(a) the fees to be paid for anything to be done under this Act;
(b) the forms of certificate and licences issued under this Act
and the manner for applying for registration or licences
under this Act;
(c) the condition in which premises specified in a certificate or
licence shall be kept;
(d) the manner in which cotton shall be stored;
(e) the books and register which shall be kept, the inspection
of such registers and how returns under this Act shall be
made;
(f) the manner in which any levy imposed under this Act shall
be collected;
(g) the forms to be used and the procedures to be followed on
any appeal under this Act;
(h) declaration of a prescribed area which shall cease to be
one of the recommended areas to be used for planting
and growing of any or specified variety of cotton;
(i) time to uproot and burn ratoon cotton plant without sprout
growing;
(j) persons who shall maintain, test cotton seed or monitor the
quality of cotton seed production;
(k) guidelines of cotton seed imports and exports; and
(I) anything which may or is required to be prescribed under
this Act for the better carrying out of the provisions of
this Act.

orts and exports; and
(I) anything which may or is required to be prescribed under
this Act for the better carrying out of the provisions of
this Act.

Repeal of 50. (1) The Cotton Act, 1914, is hereby repealed. Cap. 227