National Coffee Act

This Act's purpose is to provide for regulation, promotion and overseeing of the coffee subsector by the Uganda Coffee Development Authority; to facilitate development of a competitive, participatory and sustainable coffee subsector in line with the National Coffee Policy, 2013; and to regulate all on‑farm and off‑farm activities in the coffee value chain.

This section provides definitions for terms used in the Act relating to coffee (for example: "adulterated coffee", "Authority", "Board", "cess", "coffee farmer", "coffee value chain", "Minister", "Ministry", "off-farm activity", "on-farm activity", "out-turn test", "seed").

When a Board member vacancy occurs the Chairperson must notify the Minister within one month; the Minister must appoint a replacement. If the vacancy is for the Chairperson, the Managing Director must notify the Minister and the Minister must, with prior parliamentary approval, appoint a new chairperson.

The Board has a set of enumerated functions concerning policy, performance targets and appraisal, organisational structure, financial oversight, staff appointments and discipline, and other functions assigned under the Act.

The Chairperson and members of the Board are to be paid remuneration determined by the Minister.

The meetings of the Board and related matters shall be conducted in accordance with Schedule 2 to this Act.

The Board may appoint committees to inquire into and advise on matters, to exercise delegated powers or functions, and may require committees to act jointly; committees must have a chairperson and other persons and may regulate their procedure subject to Board direction, but must follow Schedule 2.

Establishes the Uganda Coffee Development Authority as a body corporate with powers to own property, sue and be sued, sets custody and authentication rules for its seal and requires signatures; provides continuity for the pre-existing Authority.

The Authority's objectives include promoting good practices, regulating on- and off-farm coffee activities, promoting research and value addition, facilitating credit, monitoring marketing and prices, ensuring quality, conducting market research, promoting related industries and services, organising farmers, and promoting consumption and tourism.

The Authority has multiple functions concerning the coffee value chain, including regulating activities, promoting and registering participants, registering exports and assessing cess, prescribing quality standards and prices, licensing operators, supporting research and extension services, advising Government, liaising internationally, collecting data, and performing functions directed by the Minister.

The Authority may arbitrate disputes in the coffee value chain; where the Authority is in dispute with a person or body in the coffee value chain the parties must agree an arbitrator under applicable Ugandan law.

The Authority must have a Board of Directors as its governing body composed of specified representatives; the Minister appoints members (except the Managing Director); at least one-third of Board members must be women; the Managing Director is an ex‑officio member.

A person shall not be appointed to the Board if they meet listed disqualification criteria (conviction for dishonesty or fraud; undischarged bankruptcy; imprisonment of six months or more without option of a fine; or membership of Parliament, a Minister, or a local government council).

Members (other than the Managing Director) hold office for three years and may be re-appointed once; Chairperson and members hold office on terms in instruments; a member may resign with at least one month written notice to the Minister; the Minister may remove members for listed grounds.

The Board must appoint a Managing Director of the Authority; the Managing Director shall hold office for five years, may be re-appointed once, and shall cease to hold office on specified grounds including removal by the Board, resignation, insolvency, certain convictions, incapacity, or misbehaviour.

The Managing Director must perform and is responsible for numerous functions including day-to-day operations, serving as chief executive and accounting officer, implementing policies and programmes and reporting to the Board, managing funds and property, organising staff, cooperating with government bodies, developing management structures and plans, ensuring policy implementation and targets are met, providing advice, performing other Board-assigned functions, and is answerable to the Board.

The Secretary to the Board must be appointed by the Board and is responsible for arranging meetings, taking minutes, keeping Board records, providing legal advice to the Authority, performing functions assigned by the Managing Director, and is answerable to the Managing Director.

The Board must appoint other staff of the Authority as necessary, the staff hold office on terms set by the Board, and the Board must regulate appointment, service terms and discipline.

The Authority may appoint a qualified person by notice in the Gazette to be a coffee inspector; an appointed person shall hold office for five years, subject to re-appointment by the Authority.

A person must have at least a diploma in agriculture or related sciences and extensive coffee knowledge and experience to qualify as a coffee inspector.

Coffee inspectors may enter and inspect premises and take samples to ensure compliance; they must produce their appointment and identification when required.

The Authority may, by Notice in the Gazette, designate qualified persons as coffee extension officers; a person so designated shall be a coffee extension officer for five years or such period as the Authority determines.

A person must possess at least a Bachelor of Science in agriculture, agribusiness management, agriculture extension, or a related field from a recognised university to qualify as a coffee extension officer.

A coffee extension officer must perform a list of functions including nursery development, supervising standards, implementing extension programmes, promoting research technologies, disease surveillance, advising farmers, liaising with authorities, participating in planning, supporting data collection, monitoring quality and regulations, compiling monthly reports, and other functions assigned by the Authority.

The Authority's funds must consist of money appropriated by Parliament for the Authority and in accordance with the Public Finance Management Act.

The Authority must levy a charge, not exceeding two percent, on the export contract price for coffee.

The Authority must operate on sound financial principles when performing its functions under the Act.

The Board must, with the authority of the Accountant General, open and maintain such bank accounts as are necessary for the Authority's functions.

The Authority must prepare and submit its annual budget with estimates of income and expenditure to the Minister responsible for finance and must not spend more than its budget without that Minister's approval.

The Authority must keep proper books of account and related records; and within two months after each financial year end must prepare and submit the previous year's financial statements and accounts to the Auditor General.

The Auditor General or a delegate must audit the Authority's accounts each financial year and must submit a report to the Minister and Parliament within three months after receipt of the accounts.

The Authority must, in coordination with the National Agricultural Research Organisation, oversee formulation of a National Coffee Research and Development Agenda.

The Authority must establish a coffee auction system.

The Authority must register all coffee farmers in the coffee subsector.

The Authority must establish and maintain a national register of coffee farmers, issue registration numbers when registering farmers, must not charge registration fees, and must use the register information to facilitate services.

People who want to operate a coffee nursery or coffee seed garden must apply in writing to the Authority; the Authority must assess soil and the facility and, if satisfied, issue a certificate. Persons planting coffee must obtain planting materials from certificated operators.

The Authority must register every coffee nursery operator and every coffee seed garden operator.

The Authority must register and keep a register of coffee farmer organisations and cooperatives, issue registration numbers on registration, and promote an apex body.

The Authority must register and regulate persons and bodies in the coffee value chain across Uganda and must promote formation of apex bodies to represent and advocate for each category of coffee value chain activities.

The Authority must keep and maintain national registers of specified coffee value chain actors.

National registers must record specified particulars for each coffee value chain actor, including name and address, directors' or partners' names and shareholdings, activity, capacity, location, and any other information necessary for registration.

The Authority must keep a register of coffee processing factories and must register every coffee processing factory; it must issue a certificate of registration upon ascertaining the submitted particulars and on payment of prescribed registration fees.

The Authority must, on application, issue specified coffee-related licences and must inform applicants of refusals within thirty days; persons may not carry out listed commercial coffee activities without a licence.

People aggrieved by an Authority decision may appeal to the Minister within thirty days; the Minister must respond within thirty days; aggrieved persons may apply for judicial review within thirty days; appeal procedure follows Minister's regulations.

The Authority may vary, suspend or cancel a licence issued under the Act if the licence's terms and conditions have not been complied with.

The Authority must determine and regulate which types and varieties of coffee are grown in different parts of Uganda, be guided by National Coffee Research Institute research on suitable conditions, and promote high-yielding, disease-resistant, drought-tolerant and cup-quality varieties.

The Authority must promote recommended coffee types and varieties and inform and sensitise farmers about them.

The Authority must develop coffee standards (with UNBS), profile, grade and certify all coffee grown or marketed in Uganda, and use a universal standard for out-turn tests for locally traded pre-export coffee.

The Authority must promote and support value addition across the coffee value chain and specific activities such as primary processing, bulking and marketing, roasting and packaging, certification, branding, factory establishment and access to affordable financing.

The Authority must promote and support domestic consumption of coffee and take specified actions to encourage coffee drinking.

The Authority must cooperate with other government ministries, departments, agencies and other organisations in implementing this Act.

Members and staff of the Authority, and persons acting on its directions, are not personally liable for acts or omissions done in good faith while exercising functions under this Act.

Offences relating to coffee production, processing, storage and export are listed; certain activities without required licences or that adulterate or mishandle coffee are offences; the Authority shall confiscate and destroy; offenders face fines up to three hundred sixty currency points or imprisonment up to fifteen years and confiscation orders may vest forfeited items in the Government.

Companies intending to warehouse coffee for export must sign a memorandum of understanding with the Authority; companies with such an MOU that warehouse coffee not cleared for export or tamper with cleared coffee will have their licence cancelled and the coffee confiscated and forfeited to the State.

If a body corporate commits an offence under section 53, every director and employee of that body corporate shall be taken to have committed that offence; if the body corporate is a firm, a partner of that firm shall also be taken to have committed that offence.

The Minister may, on the Board's recommendation, make regulations; those regulations may prescribe a long list of procedural and substantive matters for the coffee value chain.

The Minister responsible for finance may, by statutory instrument and with the approval of Cabinet, amend Schedule 1 to this Act.