GA - GAC
Rules and Regulations of the State of Georgia
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Subject 40-18-1 LEAF TOBACCO SALES

Rule 40-18-1-.01 Sales Opportunity

All holders of tobacco warehouse licenses issued by the Georgia Department of Agriculture shall operate relative to sales opportunity under the following formula:

(a) The formula for determining sales opportunity for all warehouses operating under license by this State shall be as follows: The initial sales opportunity shall be the number of hours of sale per day multiplied by the number of pounds per hour allocated by the United States Flue-Cured Tobacco Marketing Committee; this allocation shall be broken down from markets to individual warehouse firms by rules and regulations of the local tobacco boards of trade; upon the determination of an individual warehouse's daily sales allocation, sixty percent of that warehouse's last five year average of out-of-belt sales shall be divided by the number of sale days scheduled in the first four weeks by the Marketing Committee and that one-fifteenth portion shall be deemed to be that warehouse's daily allocation of out-of-belt sales opportunity; further, that any warehouse may substitute in-belt sales opportunity for any unused out-of-belt opportunity. Provided further that any warehouse without a minimum adjusted sales history of five percent of out-of-belt sales shall be allocated five percent of his daily local market allocation for out-of-belt sales opportunity.
(b) A warehouseman may exceed his daily allocation of out-of-belt tobacco by a maximum of 100 percent; provided further that the warehouseman shall adjust on the next sales day after the oversell of his daily allocation; provided further that the warehouseman shall not oversell on a following day in order to make up an undersell on a preceding day; the two day average is based only upon an oversell on a preceding day with a compensatory undersell on a following day.

Rule 40-18-1-.02 Penalties

Any holder of a tobacco warehouse license issued by the Georgia Department of Agriculture that fails to comply with the formula set out in Section 40-18-1-.01 of these regulations shall subject said license to immediate suspension or revocation by the Commissioner of Agriculture of the State of Georgia.