FERTILIZER MANUFACTURING AND TRADE PROCLAMATION NUMBER 137 OF 1998


PROCLAMATION NO. 137/1998

FERTILIZER MANUFACTURING AND TRADE PROCLAMATION

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WHEREAS, it is necessary to promote the agricultural sector which is the base of development of the material economy, with modern agricultural science and inputs of manufacture;

WHEREAS, fertilizer is the determining input of the agricultural sector of the economy, it is necessary to follow closely and systematize the on time supply, the quality, marketing, distribution and selling of fertilizer to the required quantity;

WHEREAS, fertilizer is a chemical material which needs special care, it is necessary to control and follow up the fertilizer to make sure that it conforms the standard during manufacturing, import, handling and storing;

WHEREAS, it is necessary to appoint governmental bodies which support, advice and control individual organizations engaged in manufacture, import, sale and distribution of fertilizers;

NOW, THEREFORE, in accordance with Article 55(1) of the constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

SECTION ONE

GENERAL

1. Short Title

This Proclamation may be cited as the “Fertilizer Manufacturing and Trade Proclamation No. 137/1998″

2. Definitions

Unless the context otherwise requires in this Proclamation:

1) “Fertilizer” means any man made substance organic or inorganic including mixture of fertilizer physical mixture of fertilizer and granulated mixture of fertilizer that is added to the soil or to the plant to supply those elements required in the nutrition of plants Manure, compost, ash, gypsum or refuse are not considered as fertilizer materials when they are used for commercial purpose in their original condition and under these names;

2) “Dealer” means any person who is engaged in the business of fertilizer;

3) “Person” means any natural person or juridical organization;

4) “Sub-Standard Fertilizer” means any fertilizer which does not conform to the quality requirements of the Ethiopian standards;

5) “Fertilizer Business” means a business dealing that includes import, wholesale, retail, export and manufacture of fertilizer, mixture of fertilizer and special mixture of fertilizer;

6) “Adulterated Fertilizer” means a fertilizer that contains any foreign substance the addition of which is likely eliminate or decrease the nutrient content of plants;

7) “Tampered Bag” means a bag which contains fertilizer and its stitching, lead sealing or any other place has been broken and stitched again by the dealer or any person;

8) “Grade” means available plant nutrient content in a fertilizer expressed in terms of percentage;

9) “Manufacturer” means a person who produces fertilizer from the original raw material;

10) “Mixture of Fertilizer” means a physical mixture of granulated fertilizer;

11) “Physical mixture of fertilizer” means mixture of fertilizers made by physical mixing two or more types of fertilizers with or without inert material;

12) “Granulated mixture of fertilizer” means mixture of fertilizers made by intimately mixing the required amount of fertilizer and granulating them together without involving chemical reaction;

13) “Granule” means a solid fertilizer with the specified particle size;

14) “Special Mixture of Fertilizer” means any mixture of fertilizer, outside of those fertilizers that the Agency hold registering, prepared for experimental purposes;

15) “Composite Fertilizer” means a fertilizer which contains two or more substance and which has a chemical reaction during manufacturing;

16) “Importer and/or Exporter” means a person who imports and /or exports fertilizer;

17) “Inspector” means an inspector of fertilizer assigned under Article 24 of this Proclamation;

18) “Ethiopian Standards” means fertilizer standards formulated by the quality and Standards Authority of Ethiopia;

19) “Licensing body” means as the condition requires Ministry of Trade and Industry of the Federal Government or the Regional Bureau of Trade and Industry or Bureau of trade and Industry accountable to the Federal Government or other appropriate Federal or Regional Body;

20) “Board” means as condition requires the National Fertilizer Industry Agency Board or the board of Quality and Standards Authority of Ethiopia.

21) “Agency” means the National Fertilizer Industry Agency;

22) “Authority” means the Quality and Standards Authority of Ethiopia.

3. Scope of Application

The provisions of this Proclamation shall apply to a person who is engaged in the business of fertilizer.

Section Two

Competence Assurance Certificate

4. The Necessity of Competence Assurance Certificate

Any person who wants to engage in fertilizer business shall possess a competence assurance certificate of the Agency.

5. Conditions Enabling to Engage in the Fertilizer Business Sector

1) Any person who wants to engage in fertilizer business shall possess competence assurance certificate, acquired by fulfilling the requirements of the Agency.

2) Notwithstanding sub-Article (1) of this Article

(a) where the applicant is a manufacturer of fertilizer, shall have qualified professional employees who have directly engaged in manufacturing.

(b) Where the applicant has established a laboratory wherein he tests the quality and the contents of substance of fertilizer he manufactures.

6. Application for Competence Assurance

1) Pursuant to Article 5 of this Proclamation an application to get competence assurance certificate shall be in-accordance with the form prepared for this purpose, and shall be given to the Agency.

2) Notwithstanding sub-Article (1) of this Article the Agency shall record in the form designed for this purpose:

(a) Qualification of the professional employees who directly engaged in manufacturing.

(b) Whether the applicant has established a laboratory wherein he tests the quality and the content of substance of fertilizer he manufactures.

7. Conditions for Refusal of Certificate of Competence

The Agency shall not grant certificate of competence to a person:

1) Whose previous certificate of competence has been canceled and the period of cancellation has not elapsed one year;

2) Who has been convicted of an offense under other laws concerning fertilizer business prior to the issuance of this Proclamation;

3) Whose application is incomplete in respect to the provisions of Article 5 of this proclamation;

4) Who has been convicted of an offense under this fertilizer proclamation or any other regulation there under and who hasn’t completed his penalty.

8. Obtaining Duplicate Copy of Certificate of Competence

1) Any person whose certificate of competence is lost or deformed, may, on an application to the Agency in writing, can obtain duplicate copy of such certificate.

2) That such certificate is deformed, the deformed certificate should be returned.

3) The Agency subject to provision of sub-Article (1) of this Article upon publishing in newspaper notifies that the applicant certificate of competence is lost and requested duplicate copy of such certificate by the applicant’s expense, may grant a duplicate copy within one month after notification, provided that no person has released an objection to it.

9. Period of Validity

A certificate of competence granted under the provisions of this Proclamation shall, be valid for a period of one year.

10. Renewal

1) Every holder of a certificate of competence desiring to renew the certificate, shall make an application to the Agency in accordance with the form designed for this purpose, with in one month before the date of expiry of the said certificate.

2) On receipt of an application for renewal, and keeping in view the performance of the applicant and other relevant circumstances and by charging service fee the Agency may renew the certificate of competence within 15 days period.

11. Suspension or Cancellation of Certificate of Competence

1) The Agency may suspend or cancel a certificate of competence on any of the following grounds;

(a) That such certificate has been obtained by misrepresentation as to material particulars;

(b) That such certificate has been passed over to any other person without prior permission of the Agency;

(c) That such certificate has not been renewed pursuant to Article 10 of this proclamation;

(d) That the fertilizer does not conform to the quality requirements of Ethiopian Standards on fertilizers.

(e) That license for fertilizer business dealing has been canceled.

2) The Agency after having canceled the certificate of competence notify to the licensing Authority to cancel the license.

12. Duty to Provide Information

Any person engaged in the activity of fertilizer sector shall have the duty to provide information relating to fertilizer in accordance with the form designed for collecting information whenever requested by the Agency.

Section Three

Manufacturing, Dealing, Handling and Distribution of Fertilizer

13. Manufacture, Import and Distribution of Fertilizer

Any fertilizer manufactured locally or imported and stocked, which is ready for distribution and sale.

1) Shall conform to the requirements of Ethiopian Standards,

2) Shall be registered by the Agency for use in the country as fertilizer.

14. Restriction

1) No person shall carry on the activity of preparing any fertilizer, without a certificate and outside of the terms and conditions of such certificate of manufacture granted to him by the Agency.

2) No person shall import, manufacture for sale or sell, offer for sale, or exhibit for sale or distribute any fertilizers, mixture or special mixture of fertilizers, which does not conform to the particulars specified in the competence assurance certificate and which does not conform to the Ethiopian standard and in the absence of such standard unless authorized by the Agency.

3) No person shall sell, offer for sale, or exhibit for sale or distribute:

(a) Any fertilizer which is an imitation or a substitute for another fertilizer under the name of which it is sold,

(b) Any fertilizer found to be adulterated,

(c) Any fertilizer, label or container whereof bears the name of any individual firm or company purporting to be manufacturer of the fertilizer, which individual firm or company does not exist.

(d) Any fertilizer label or container whereof bears any statement which makes a false claim or gives misleading information.

4) No person shall import natural fertilizer.

15. Package, Packing and Labeling of Fertilizer

1) Packaging materials for fertilizer bags and labels affixed on bags shall comply with the relevant Ethiopian standards.

2) Types of fertilizer locally manufactured or imported, not in accordance with the Ethiopian standards for packaging contained in plastic or tin packages shall bear necessary information’s.

16. Selling Unpacked Fertilizer

 Notwithstanding the provisions of this Proclamation

1) Fertilizer retailer can maintain one bag of unpacked fertilizer of each type of fertilizer at anytime, for sale.

2) Any fertilizer manufacturer and importer can sale unpacked fertilizer only to manufacturers of mixture of fertilizers, special mixture of fertilizer and composite mixture of fertilizers and to large scale farms.

17. Selling of Sub-Standard Fertilizer

1) Notwithstanding the provisions of this Proclamation Any; person, can sell, offer for sale, stock, exhibit for sale or distribute any fertilizer which, not being an adulterated fertilizer, does not confirm to the Ethiopian standard, subject to the condition that:

(a) the container to such sub-standard fertilizer is conspicuously super scribed in red colour with the words, “sub-standard” and also with the sign “X”;

(b) sub-standard fertilizer shall be sold only to the mixture of or special mixture of fertilizers manufacturer, for agricultural research purpose to the Agricultural bureaus, Agricultural research institutes, universities and colleges; and

(c) sub-standard fertilizer shall be sold upon prior authorization of the Agency.

2) the Agency, upon receipt of the test result of sub-standard fertilizer, shall fix the prices, as per size of the content of the substance.

18. Disposal of Adulterated Fertilizer

Any adulterated fertilizer shall be disposed in accordance with the Agency directives.

19. Supply and Distribution of Fertilizer

1) Any importer of fertilizer is liable to notify the Agency the schedule of purchase, freightage at port & transportation of fertilizer from the port.

2) Any importer of fertilizer shall transport fertilizer to the center of the country within the period of notified schedule.

3) Any importer, wholesaler and retailer shall supply the fertilizer to the consumer at the required time and place for sale.

20. Licensing

1) The licensing Authority upon receipt of application for license to manufacture, import, wholesale and retail of fertilizer, shall ascertain that the applicant has obtained a competence assurance certificate from the Agency.

2) Research institutes and investors that require to import new types of fertilizer for use respectively in research purposes and in their own farms, shall obtain permission from the Agency, and shall be subject to the specified directive of the Agency.

3) Any person who obtains a permission pursuant to sub-Article (2) of this Article, shall have no right to pass over or sell the fertilizer to any person.

Section Four

Enforcement Bodies and Their Duties

21. Duties and Responsibilities of the Authority

Notwithstanding the powers it is vested with under its establishment proclamation, the Authority, shall have the following powers and duties:

1) The Authority on the basis of the essential type of fertilizers list provided by the Agency shall carry out inspection on imported fertilizers and certify the quality of the same;

2) Notwithstanding to the provisions of Article 22(4) of this Proclamation, ensure that locally manufactured fertilizer comply to the quality requirement of the specified standard.

22. Duties and Responsibilities of the Agency

Notwithstanding the powers it is vested with under its establishment proclamation, the Agency shall:

1) decide the type of fertilizers to be imported or locally manufactured;

2) enable the issuance of the types of fertilizer in public notification, make follow-up, monitor and periodically notify same to the Authority;

3) grant, refuse, renew, suspend, cancel competence assurance certificate in matters related to manufacture fertilizer, mixture of fertilizer, import, wholesale and retail of fertilizer;

4) establish a team of inspection, assign inspectors, establish, organize and administer laboratories to enforce this proclamation; perform quality control and testing activities on fertilizer;

5) design strategies to establish price, follow-up the enforcement of the strategies and monitor same, whenever required, study appropriate measures to be taken and initiate ideas of the same to the Government; and follow-up the practicability, upon decision;

6) follow-up and monitor the supply of fertilizer every cropping season in adequate quantity into the country and its timely distribution to the regions;

7) may delegate its power and decide upon the conditions on how to exercise the delegation to enforce this proclamation;

8) decide upon suspension of fertilizers from sell pursuant to the laboratory test result.

23. Duties and Responsibilities of the Inspector

An inspector shall be assigned by the Agency and has the following duties and responsibilities:-

1) require any manufacturer, importer, wholesale, or retail dealer involved in fertilizer business to give any information in his possession with respect to manufacture, storage and selling of any fertilizer manufactured or in any manner handled by him;

2) draw fertilizer samples according to procedure described in the relevant Ethiopian standard; provided that inspector shall prepare sampling details together with packed and specially labeled samples in triplicate, and hand over one to the dealer, send one to the laboratory for analysis and the third to his next higher authority;

3) enter and search any premises where any fertilizer is manufactured or being manufactured, sold, offered for sale, stored, exhibited for sale or distributed according to the provisions of this proclamation;

4) seize or detaining fertilizer in respect of which he has reason to believe that a contravention of sub-Article (3) of this Article has been, is being or is about to be committed;

5) pursuant to sub-Article (4) of this Article, the Inspector shall give the stop sale notice in writing to the person whose stocks have been detained and initiate appropriate action and notify the Agency;

6) follow-up and monitor every manufacture, importer, wholesaler and retail dealer of fertilizer of his possession, to protect a man-made shortage of fertilizer through hoarding fertilizer stock.

Section Five

Miscellaneous

24. Duty to Co-operate

Any person, if so required by an Inspector shall be bound to afford all necessary facilities to him for the purpose of enabling him to exercise his duties under this proclamation.

25. Appeal

Any person who is aggrieved by the action taken according to this Proclamation can appeal:-

1) in respect of duties of the Agency, to the Management Board of the Agency;

2) in respect of duties of the Authority, to the Management Board of the Authority.

26. Penalties

1) Any person who intentionally offers for sale or sales adulterated or unregistered fertilizers will be punished with imprisonment from 8 years upto 10 years and with fine from birr 25 thousands up to 35 thousands.

2) Any person who offers for sale or sells sub-standard fertilizer in contravention to Article 17 of this proclamation will be punished with imprisonment from 5 years upto 7 years and with fine from Birr 25 thousands upto 30 thousands.

3) Any person who knowingly offers for sale or sells fertilizers in bags which do not comply with the standard will be punished with imprisonment from 3 years upto 5 years and with fine from Birr 15 thousands upto 25 thousands.

4) Any person who offers for sale to sells fertilizers in bags which do not comply with the standard on labeling and packaging and reduces the required content of the bag, will be punished with imprisonment from 1 year upto 3 years and with fine from Birr 5 thousands to 15 thousands.

5) Any person who prohibits document, when requested by an inspector of the Agency or worker in the exercise of his power and duties will be punished with imprisonment upto 1 year and with fine from Birr5 thousands upto 10 thousands.

6) A person who deceives or misleads the inspector, tampers with an article in a way that a sample of it, taken or submitted for analysis, incorrectly represents the articles, will be punished with imprisonment from 1 year upto 3 years and with fine from Birr10 thousands upto 15 thousands.

7) A person who intentionally break a sealed store will be punished with imprisonment upto 1 year and with fine from Birr 5 thousands upto 10 thousands.

27. Power to Issue Regulations

The council of Ministers shall issue regulations inorder to implement this Proclamation.

28. Directives

In order to implement this Proclamation the Agency may issue directives.

29. Laws Consistent to this Proclamation

1) As the condition requires the Investment and Commercial Registration and Business Licensing proclamation will be applicable to a person engaged in fertilizer business.

2) Other law or customary practice which is inconsistent with this Proclamation shall have effect with respect to matters covered by this Proclamation.

30. Effective Date

This Proclamation shall enter into force as of the 24th day of November, 1998.

Done at Addis Ababa, on the 24th day of November,1998

NEGASO GIDADA(DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

 

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