LAWS OF GUYANA

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Rice Factories Cap.95:05

CHAPTER 95:05

RICE FACTORIES ACT

ARRANGEMENTS OF SECTIONS

SECTIONS

1. Short title and commencement.

2. Interpretation
3. Application for permit to establish rice factory.
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4. Rice not to be manufactured without licence.

5. Refusal to issue licences.
6. Appeal against refusal to issue licence.
7. Form and fees for licences
8. Revocation of licences
9. Transfer of licences.
10. Power to enter and inspect factory and examine books.
11. Register of licences.
12. Official Padi grading agency.
13. Padi to be bought or sold at 143lbs per bag.
14. Application of due process provisions.
15. Prosecution of offences and recovery of penalties.
16. Repeal.
17. Regulations.

FIRST SCHEDULE – Application for licence to Manufacture Rice.

SECOND SCHEDULE – Licence to Manufacture Rice.
THIRD SCHEDULE – Application for Official Padi Grading Agency Status.
FOURTH SCHEDULE – Authorisation as Official Padi Grading Agency.
FIFTH SCHEDULE – Establishment Requirements for Rice Factories.
SIXTH SCHEDULE – Record of Sale of Padi by Producer to Manufacturer.

AN ACT to repeal and re-enact the Rice Factories Act 2002, to provide for the
establishment of rice factories, the regulation and control of rice factories
and the manufacture of rice.

A.D. 2002 Enacted by the Parliament of Guyana:-

Short title and 1. This act may be cited as a Rice Factories Act 1998, and shall come into
commencement operation on such date as the Minister may by order appoint.

Interpretation 2. In this Act –

(a) “Board” means the Guyana Rice Development Board

Act No. 15 establish by section 3 of the Guyana Rice Development Board
of 2002 Act 1994.

(b) “district” means a district declared and established by the

Cap. 19:02 Minister under section 2 of the District Government Act;

(c) “licence” means a licence issued to person under section 4;

(d) “licensee” means a person to whom a licence has been issued;

(e) “manufacture of rice” means the use of any process in

connection with the converting padi into rice;
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(f) “official padi grading agency” means a facility authorised by

the Board under section 12.

(g) “padi” means the unhulled product of the rice plant;

(h) “rice factory” means any premises on which padi is

manufactured into rice by mechanical power; and includes any
place, building, machinery or equipment used in connection
with the storage of padi or rice, or the manufacture of rice and
includes rice milling facilities;

(i) “rice milling facility” means premises, whether or not owned

by the Government or any of its agencies -

(i) into which padi or rice may be received directly from

trucks, trailers, ships or other conveyances, or out of
which padi or rice may be discharged directly into
trucks, trailers, ships or other conveyances;

(ii) constructed for the purposes of handling, storing and

processing padi or rice received directly from producers,
otherwise than as part of the farming operation of a
particular producer;

and which have services ancillary to milling including services for

welfare of workers.

3. (1) A person who desires to establish a rice factory shall apply to the Board Application for
for permit to do so in triplicate accompanied by – permit to establish
rice factory.

(a) the building plans

(b) the certificate of title, lease or any other document evidencing
title or a right of occupancy of the land;
(c) an environmental permit from the Environmental Protection Act No.11
Agency established under the Environmental Protection Act of 1996
1996 or a statement from the Agency to the effect that the
applicant has been exempted from the requirement for an
environmental impact assessment.

(2) The Board upon receipt of the documents referred to in subsection (1)
shall transmit copies thereof to the Central Housing and Planning
Authority, the Central Board of Health, the Factories Division of the
Occupational Health and Safety Department, the Environmental
Protection Agency and the Department of Fire Service for their
consideration and recommendations.
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(3) The Board shall, notwithstanding anything in any other written law,
upon receipt of the recommendations of the entities to which the
documents were transmitted and taking those recommendations into
consideration decide whether or not a permit should be granted for the
rice factory to be established.

(4) The Board shall manufacture shall issue a permit under this section,
where the applicant satisfies generally the requirements for rice
factories specified in the Fifth schedule.
Fifth Schedule

Rice not to be 4. (1) No person shall manufacture rice unless, upon an application therefor
manufactured in the Form in the First Schedule, he is issued with a licence by the
without licence Board.

(2) In any case where a producer sells padi to a manufacturer, the sale shall
Sixth Schedule be evidenced in writing, in the form in the Sixth Schedule.

(3) Any person who contravenes subsection (1) or (2) shall be guilty of an
offence and shall be liable, on summary conviction -

(a) for a first offence, to a fine of five hundred thousand dollars

and in the case of continuing offence a further fine of one
thousand dollars for each day during which the offence
continues.

(b) For a second or subsequent offence, to a fine of five hundred

thousand and imprisonment for six months, and in the case of
a continuing offence to a further fine of one thousand dollars
for every day during which the offence continues.

Second Schedule (4) A licence shall be in the Form in the Second Schedule and shall be
Subject to the attached thereto.

Refusal to issue 5. The Board may refuse to issue a licence to any applicant who in the
licence five-year period immediately preceding his application was convicted
of an offence in this Act.

Appeal against 6. (1) An applicant who is aggrieved by a decision of the Board

refusal to issue refusing to issue a licence may, within thirty days of the date of being
licence notified of the decision, appeal in writing to the Minister and within
the same period furnish to the Board a copy of his appeal.

(2) An appeal shall contain the facts and argument upon which the
aggrieved applicant relies.
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(3) The Board shall, within fourteen days from the date of receipt of a copy
of the appeal, submit to the Minister the reasons for refusal to issue the
licence.

(4) The Minister may, after considering the appeal and the reasons
furnished by the Board, order the Board to issue the licence.

7. (1) A licence shall be in the Form in the Second Schedule and shall expire Forms and fees
on 31st December in every year. for licences

(2) The following licence fees shall be paid annually for a rice factory Second Schedule
having a –
Fee ($)

(a) milling capacity not exceeding

two tons 25,000
(b) milling capacity exceeding two
tons but not exceeding five tons 40,000
(c) milling capacity exceeding five tons
but not exceeding ten tons 80,000
(d) milling capacity exceeding ten
tons 100,000

(3) Where a licence is issued for the time on any date after 1st July , the
licence fee shall be halved.

(4) The Minister may by order increase or decrease the fees prescribed
under subsection (2).

8. (1) The board may revoke or suspend a licence where the holder thereof Revocation
commits a breach of any of the terms and conditions of the licence or of licences
contravenes any of the provisions of this Act or any regulations made
thereunder.

(2) Without prejudice to the generality of subsection (1), the

Board may revoke or suspend a licence where the holder -

(a) fails to comply with requirements relating to –

(i) the quality or grading of padi or rice under any

law;
(ii) the manufacture of rice;

(b) produces rice or padi for export by a person who is not a

holder of an export licence:

(c) sells rice or padi for which a quality certificate has not
been issued under any law without approved packaging
or approved labeling; or

(d) fails to maintain proper records of the rice or padi entering

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and leaving his factory.

(3) The board shall, before revoking a licence, grant the holder thereof an
opportunity of being heard.

Transfer of 9. (1) A licence shall not be transferred except with the prior
Licence consent of the Board.

(2) Where a licensee wishes to transfer his licence to some

other person, shall deliver to the Board an application in
writing signed by himself and the proposed transferee and
the Board may, where the proposed transferee qualifies
for issue of a licence, endorse on the licence its consent to
the transfer.

Power to enter 10. (1) The Chairman or the General Manager of the Board, or
and inspect any person authorised in writing by or on behalf of the
factory and Board or the head of any of the entities referred to in
examine books section 3 (2) or anyone authorised in writing by or behalf
of such head, may at all reasonable times enter a rice
factory and inspect it or any padi or rice therein or any
books kept under this Act or any other books kept under
this Act or any other written law.

(2) Any person who refuses to permit any person authorised

by or under subsection (1) to do anything referred to
therein shall be guilty of an offence and shall be liable to
a fine of one hundred thousand dollars and imprisonment
for a term not exceeding six months.

Register of 11. The Board shall cause to be kept a register of licences issued by the
licences board.

Official padi 12. (1) A licensee who desires to become an official padi grading
grading agency. agency shall submit to the Board an application in the
Third Schedule Form in the Third Schedule.

(2) The Board may, if it thinks fit, authorise in the Form in

Fourth Schedule the Fourth Schedule a licensee to become an official padi
grading agency.
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Paid to be 13. (1) No person shall sell, purchase or receive padi for the
bought or sold manufacture of rice, except at a price calculated on a bag at 143 lbs
per bag of one hundred and forty-three pounds net or such other
weight as may be prescribed by the Minister by order.

(2) Any person who contravenes subsection (1) shall be

Guilty of an offence and shall be liable to fine of one hundred
thousand dollars and imprisonment for a term not exceeding six
months.

14. Sections 5, 6, 8, 9, and 11 shall apply mutates mutandis to Application

a permit issued under section 3 and to an authorization of provision
granted under section 12.

15. All offences and penalties under this Act may be prosecuted Prosecution
and recovered under the Summary Jurisdiction Acts. of offences
and recovery
of penalties.

16. The Rice factories Act is hereby repealed. Repeal

Cap 95:05

17. The Minister may, subject to the provision of this Act, make
regulations for carry out the provision of this Act including
regulations prescribing fees payable for a permit under section
3 and an authorizing under section 12.
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s .4

FIRST SCHEDULE
RICE FACTORIES ACT 1998
GUYANA RICE DEVELOPMENT BOARD
APPLICATION FOR LICENCE TO MANUFACTURE RICE

I/We ……………………………………………………………………………………. Residing at

……………………………………………………………………………………..whose registered

office is at ……………………………………………………………………………………………

in the county of …………………………………………………………..hereby apply for a licence

to manufacture rice. My/Our rice factory is situated at

…………………………………………………………………………………….. In the county of

………………………………….and has a total milling capacity of……………………………….

tons per hour.

DATED THE……………………….DAY OF ………………………….19.…

…………………………….
APPLICANT

*DELETE IF INAPPLICABLE
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s .4

SECOND SCHEDULE
RICE FACTORIES ACT 1998
GUYANA RICE DEVELOPMENT BOARD
LICENCE TO MANUFACTURE FICE

LICENCE NO……………………………………………MILL NO…………………………………

NAME AND ADDRESS OF HOLDER………………………………………………………………

…………………………………………………………………………………………………………

SITUATION OF RICE FACTORY…………………………………………………………………...

TOTAL MILLING CAPACITY………………………………………………………………………

This licence is issued to the above-mentioned person to manufacture

rice at the factory stated in this licence.
This licence expires on the 31st December, 19…..
This licence is granted subject to the conditions endorsed hereon.
Licence Fee $………………………………………………………..

DATED THIS…………………….DAY OF ……………….19……

………………………………………………………….
CHAIRMAN/CHIEF EXECUTIVE/SECRETARY
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CONDITIONS OF LICENCE

This licence is granted subject to the following conditions namely –

a. the licence shall purchase or receive padi for manufacture of rice at his factory at any time during
the working hours of the factory, subject to availability of storage accommodation;

b. the rice factory and all machinery and equipment shall be in serviceable condition;

c. a schedule of service offered, milling fees and deductions to be made shall be displayed
prominently at the premises of the rice factory;

d. the licence shall carry out such pest control, hygiene and safety measures as directed by the Board.

e. The licence shall ensure that the scales and the grading equipment used at the factory are accurate,
efficient and approved by the Board;

f. The licence shall submit to the Board at the end of every calendar month daily records of rice
entering and leaving the factory;

g. The licence shall comply with such other directions regarding compliance with this Act and any
regulations made hereunder, as are given to him from time to time by the Chairman, Deputy
Chairman or General Manager of the Board, or any other employee authorised by the Board.
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s. .12

THIRD SCHEDULE
RICE FACTORIES ACT 1998
GUYANA RICE DEVELOPMENT BOARD
APPLICATION FOR OFFICIAL PADI GRADING AGENCY STATUS

DATE……………………………………………………………..

NAME OF APPLICANT……………………………………………………………………………..

BUSINESS ADDRESS……………………………………………………………………………….

…………………………………………………………………………………………………………

MILLING CAPACITY………………………………………….TONS/HOUR……………………..

STORGE CAPACITY………………………………………………………………………………...

DRYING CAPACITY………………………………………………………………………………...

OFFICES CERTIFIED:……………………………………………………………………………….

NAMES

……………………………………………….

……………………………………………….

…………………………….. ………………..

……………………………………………….

LIST AVAILABLE EQUIPMENT FOR PADI GRADING

…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………

NOTE: ANY CHANGES IN GRADING STAFF SHOULD BE COMMUNICATED

WHENEVER THIS OCCURS:

SIGNATURE:………………………………………
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s . 12

FOURTH SCHEDULE
RICE FACTORIES
GUYANA RICE DEVELOPMENT BOARD
AUTHORISATION AS OFFICIAL PADI
GRADING AGENCY

DATE……………………………………………

NAME OF AUTHORISED ENTITY OR PERSON………………………………………………

………………………………………………………………………………………………………

BUSINESS ADDRESS…………………………………………………………………………….

MILLING CAPACITY………………………………………………………TONS/HOURS

STORAGE CAPACITY……………………………………………………………………………

DRYING CAPACITY……………………………………………………………………………..

OFFICERS CERTIFIED
NAMES:

…………………………………………..

……………………………………………

……………………………………………

……………………………………………

……………………………………………

……………………………………………………………
CHAIRMAN/CHIEF EXECUTIVE/SECRETARY
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S. 3

FIFTH SCHEDULE
RICE FACTORIES ACT 1998
GUYANA RICE DEVELOPMENT BOARD
ESTABLISHMENT REQUIREMENTS
FOR RICE FACTORIES

1. ENVIRONMENTAL CONSIDERATIONS

(a) LOCATION: If possible, away from residential areas

(b) ACCESS: Factory must have good access roads to

accommodate both heavy and light vehicles.

(c) DRAINAGE: Areas should have good drainage.

(d) WATER SUPPLY: Potable water is readily available. If there is no

potable water supply, a water reservoir should be
constructed, or a well sunk and a water purification
plant installed.

(e) POWER SUPPLY: Must have access to power source for lighting and
milling operations.

(f) WASTE DISPOSAL: Disposal plan must conform to all relevant laws on
environmental protection and pollution control.

(g) EXPANSION: If there are plans for expansion of the factory,

adequate area must be available and included on the
site plan.

2. LAYOUT OF FACTORY

(a) COMPONENTS : Components should be so arranged as to facilitate a

continuoud flow of operations.

(b) MILL: Must be separate from all other areas of operations.

3. MILL CONSTRUCTION:

(a) FLOOR: Mill floor and all other floors should be water and
gas proof and slightly inclined. Floors should also
be smooth and from cracks and crevices. Drains
must be provided.

(b) WALLS: Smooth surfaces with no seams. All openings

should be meshed to prevent entry of rodents, birds

or pests. Ventilation should be provided.
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(c) CEILING: Should be flat to minimize accumulation of dust,

debris and cobwebs. The eaves should be sealed to
prevent entry of bats and rodents.

(d) LIGHTING: Light intensity should be adequate for the operation

of various units.

4. FENCING: Perimeter fencing must be provided.

5. WEIGHTING FACILITIES: Standard scales must be provided for various

operations.

6. QUALITY CONTROL: Minimum grading equipment must be available to

determine the quality of raw materials and finished
products in accordance with the stipulations laid
down by the relevant authority.

7. DRYING: Either mechanical or floor drying may be used.

8. PADI STORAGE: Bonds, silo and other storage facilities should be

constructed in such a manner as to ;-

(1) restrict entry of rodents, birds or pest; and

(2) be weatherproof.

9. PRODUCT STORAGE: The main product (rice) should be stored separately

from by-products.

10. EQUIPMENT &

STORAGE MATERIAL An area should be provided for the storage of bags,
tools and other equipment and machinery.

11. STAFF FACILITIES Washrooms (toilets and bathrooms), rest rooms and
a canteen must be provided for staff in accordance
with relevant labour laws.

12. PARBOILING FACILITIES

(a) WATER SUPPLY: Potable water must be available
(b) DRAINAGE Drains to dispose water and waste are necessary.
(c) STEAM GENERATING Should be sited away storage from storage and imm-
UNIT: ediate work areas should have proper safety laws.
(d) FUEL STORAGE Must confirm to relevant fire laws.
(e) FUEL WASTE Must confirm to relevant conditions.
DISPOSAL:
(f) SOAKING TANKS: Should be close to drying area. They should be of a
type approved by the Board and must be equipped
with adequate fittings for filling and draining.
(g) STEAMING TANKS: Should be closed to soaking tanks. They should be
made of non-corrosive material.

(h) STEAM CONDUIT

PIPES: Must be insulated and be free from leaks.
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SIXTH SCHEDULE
RICE FACTORIES ACT 1998
GUYANA RICE DEVELOPMENT BOARD
RECORD FOR SALE OF PADI BY PRODUCER TO MANUFACTURER

DATE:………………………………………………..

NAME OF MANUFACTURER:………………………………………………………………………………

ADDRESS OF MANUFACTURER:………………………………………………………………………….

NAME OF PRODUCER:………………………………………………………………………………………

QUANTITY OF PADI DELIVERED TO MANUFACTURER:……………………………………………..

QUALITY OF PADI:………………………………………………………………………………………….

PRICE PER BAG:……………………………………………………………………………………………..

TOTAL SUM OF MONEY: $…………………………………………………………………………………

I hereby acknowledge receipt of the quality herein mentioned this…………..day of………………….199…

…………………………………….. ……………………………………………..
Signature of Mark of producer Signature of Manufacturer

WITHNESSES’ NAMES AND SIGNATURES:

1…………………………………………………

2…………………………………………………