TEA BROKERS LICENSE

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Tea brokers in Bangladesh facilitate tea sales at auctions regulated by the Tea Traders Association of Bangladesh (TTAB). Details of the Tea Brokerage Business in Bangladesh: Tea brokerage in Bangladesh is a regulated intermediary system where authorized brokers manage the process of delivering tea from gardens to buyers through weekly auctions. According to government policy, tea gardens must sell at least 75% of their produced tea through this auction system. ## Operational Workflow 1. Warehousing: Produced tea is sent from the gardens to authorized bonded warehouses in Panchagarh. 2. Sampling and Testing: Brokers collect samples for quality verification and determine the tea's quality through professional 'Tea Testers'. 3. Catalog Creation: Based on quality and price, brokers create a detailed catalog mentioning tea lots and potential starting prices. 4. Weekly Auction: Auctions are held every Monday or Tuesday (depending on the auction center). Large blenders like Ispahani or Lipton and exporters place bids on the tea lots. 5. Transaction Completion: Once a bid is accepted, the sale is completed upon immediate payment, and arrangements are made to transfer the tea from the warehouse to the buyer. ## Revenue Model or Commission Brokers receive fees or commissions from both parties involved in the transaction: * Seller's Commission: Usually 1% of the sale price from the tea producer (garden). * Buyer's Fee: A fixed fee (e.g., 10 BDT) is collected from buyers for every 100 kg of tea. ## Regulatory Oversight The entire process is managed and regulated by the Bangladesh Tea Board (BTB) and the Tea Traders Association of Bangladesh (TTAB) to ensure transparency and fair pricing. Only licensed brokers are permitted to participate in these auctions.

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