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A WEB RESOURCE FOR THE TEA INDUSTRY
A WEB RESOURCE FOR THE TEA INDUSTRY
Businesses trading in tea in non-producing countries such as the United States and the United Kingdom,
require support in three major legal areas: business formation, import/export and customs, and
intellectual property rights. Most business owners are familiar with the main problems associated with
forming and maintaining a business entity, such as a corporation, and protecting important intellectual
property, such as trade marks. However, tea, as an imported commodity, also requires that the
business be able to function through the channels of international trade.
Forming the Business: In the United States, the form of a tea business will typically be decided under
state law. Where the business is not incorporated into a corporation or limited liability company, local
law will often categorize the business as a sole proprietorship or a partnership. Generally, the choice of
form will often depend upon the opinion of an accountant or tax attorney, who should advise the
business as to the most advantageous tax treatment available under the circumstances. If a business
wishes to take the form of a corporation, limited liability company, or one of various types of limited
partnerships, it will need to file the appropriate forms with the state authorities. These forms of entity will
require periodic filings during the life of the entity. The business can handle its own formation, or retain
an attorney to do so.
Should the business take on a corporate form, or any other form requiring filings with the state
authorities, the name of the business will be listed in one state register or another. Should the business
continue to trade as a sole proprietorship or partnership, it may be wise to apply for registration of a
trade name under state law, to safeguard the use of the name. The availability of and procedures for
trade name registration will vary from state to state, as will any requirements for a business to register
trade names or fictitious names with local authorities.
Importing Product: Tea itself is typically grown only in certain countries whose climates meet the
needs of the tea plant (camellia sinensis). Although internet trading has brought about the end of the
once significant London Tea Auction, important international tea auctions continue to be held in Calcutta
(India), Colombo (Sri Lanka), and Mombasa (Kenya). The number of tea brokers, regulated by their
respective tea boards, has lessened with the advent of the internet age, however, their expertise and
role as graders of tea remains important enough that many important brokerage houses continue to be
available in tea producing countries to help meet the requirements of tea importers in other countries.
Nevertheless, a tea business in the United States or United Kingdom will require its shipments to clear
customs. Customs regulations will require the tea to be packaged and labeled properly, and the
appropriate customs duty to be paid. Additionally, as a food, tea will be subject to regulation by national
food and agriculture authorities. In the United States, a licensed customs broker will often see to it that
a shipment clears U.S. Customs & Border Protection controls. In the U.K., HM Revenue & Customs does
not formally license customs clearance agents.
A business can usually rely upon customs brokers to make certain that the actual importation of tea
goes smoothly. International trade attorneys should be available in most major cities, who will be skilled
in drafting the documents necessary for complex international sales transactions, and for handling
appeals and challenges to any adverse customs determinations.
Intellectual Property Rights: After establishing the business and commencing trade, a business will
likely want to safeguard its intellectual property. Such property takes several forms, from the trade
names of the business itself, to the names of products, logos, trade secrets, and distinctive packaging.
Given that tea is a naturally growing, well-known plant, it is unlikely that a tea producer will have any
need or use for patent protection. However, many businesses, such as those who actually blend
ingredients for tea drinks, find it necessary to keep their trade secrets confidential. The protection of
trade secrets is normally a matter of state law in the US, and will vary from state to state.
Intellectual property is a complex branch
of the law, and requires constant maintenance and
vigilance by the business. Technically, a trade mark
is established at common law through actual use in
trade. However, it helps to register the trade
mark with state authorities, so as to give
notice to competitors of the prior use.
Additionally, registration with the
US Patent & Trademark Office (USPTO)
will give a trademark added protection,
provided that the business continues to
guard its trademark in the relevant markets.
In Canada, trademarks are registered with
the Canadian Intellectual Property Office
(CIPO). It is best to consult with a trademark
attorney, or a law firm practicing in the area
of intellectual property, when deciding how
to go about protecting one’s brand name.
Trademark protection is typically only good
in the locales and market sectors in which
the business trades. Additionally, the
protection afforded by nationally registered
trademarks extends only as far as national
boundaries. Thus, a business with a USPTO-
registered trademark, doing business in England with
the same product names, will need to file for trademark protection with the UK Intellectual Property Office
(UK-IPO). While the European Union also issues a community trademark through its Office of
Harmonization in the Internal Market (OHIM), a business should consult with an English intellectual
property solicitor or trade mark attorney when deciding which type of IP protection is best for the
business. These same concerns will apply for each country in which the business sells its products.
require support in three major legal areas: business formation, import/export and customs, and
intellectual property rights. Most business owners are familiar with the main problems associated with
forming and maintaining a business entity, such as a corporation, and protecting important intellectual
property, such as trade marks. However, tea, as an imported commodity, also requires that the
business be able to function through the channels of international trade.
Forming the Business: In the United States, the form of a tea business will typically be decided under
state law. Where the business is not incorporated into a corporation or limited liability company, local
law will often categorize the business as a sole proprietorship or a partnership. Generally, the choice of
form will often depend upon the opinion of an accountant or tax attorney, who should advise the
business as to the most advantageous tax treatment available under the circumstances. If a business
wishes to take the form of a corporation, limited liability company, or one of various types of limited
partnerships, it will need to file the appropriate forms with the state authorities. These forms of entity will
require periodic filings during the life of the entity. The business can handle its own formation, or retain
an attorney to do so.
Should the business take on a corporate form, or any other form requiring filings with the state
authorities, the name of the business will be listed in one state register or another. Should the business
continue to trade as a sole proprietorship or partnership, it may be wise to apply for registration of a
trade name under state law, to safeguard the use of the name. The availability of and procedures for
trade name registration will vary from state to state, as will any requirements for a business to register
trade names or fictitious names with local authorities.
Importing Product: Tea itself is typically grown only in certain countries whose climates meet the
needs of the tea plant (camellia sinensis). Although internet trading has brought about the end of the
once significant London Tea Auction, important international tea auctions continue to be held in Calcutta
(India), Colombo (Sri Lanka), and Mombasa (Kenya). The number of tea brokers, regulated by their
respective tea boards, has lessened with the advent of the internet age, however, their expertise and
role as graders of tea remains important enough that many important brokerage houses continue to be
available in tea producing countries to help meet the requirements of tea importers in other countries.
Nevertheless, a tea business in the United States or United Kingdom will require its shipments to clear
customs. Customs regulations will require the tea to be packaged and labeled properly, and the
appropriate customs duty to be paid. Additionally, as a food, tea will be subject to regulation by national
food and agriculture authorities. In the United States, a licensed customs broker will often see to it that
a shipment clears U.S. Customs & Border Protection controls. In the U.K., HM Revenue & Customs does
not formally license customs clearance agents.
A business can usually rely upon customs brokers to make certain that the actual importation of tea
goes smoothly. International trade attorneys should be available in most major cities, who will be skilled
in drafting the documents necessary for complex international sales transactions, and for handling
appeals and challenges to any adverse customs determinations.
Intellectual Property Rights: After establishing the business and commencing trade, a business will
likely want to safeguard its intellectual property. Such property takes several forms, from the trade
names of the business itself, to the names of products, logos, trade secrets, and distinctive packaging.
Given that tea is a naturally growing, well-known plant, it is unlikely that a tea producer will have any
need or use for patent protection. However, many businesses, such as those who actually blend
ingredients for tea drinks, find it necessary to keep their trade secrets confidential. The protection of
trade secrets is normally a matter of state law in the US, and will vary from state to state.
Intellectual property is a complex branch
of the law, and requires constant maintenance and
vigilance by the business. Technically, a trade mark
is established at common law through actual use in
trade. However, it helps to register the trade
mark with state authorities, so as to give
notice to competitors of the prior use.
Additionally, registration with the
US Patent & Trademark Office (USPTO)
will give a trademark added protection,
provided that the business continues to
guard its trademark in the relevant markets.
In Canada, trademarks are registered with
the Canadian Intellectual Property Office
(CIPO). It is best to consult with a trademark
attorney, or a law firm practicing in the area
of intellectual property, when deciding how
to go about protecting one’s brand name.
Trademark protection is typically only good
in the locales and market sectors in which
the business trades. Additionally, the
protection afforded by nationally registered
trademarks extends only as far as national
boundaries. Thus, a business with a USPTO-
registered trademark, doing business in England with
the same product names, will need to file for trademark protection with the UK Intellectual Property Office
(UK-IPO). While the European Union also issues a community trademark through its Office of
Harmonization in the Internal Market (OHIM), a business should consult with an English intellectual
property solicitor or trade mark attorney when deciding which type of IP protection is best for the
business. These same concerns will apply for each country in which the business sells its products.
GUIDE TO LEGAL ISSUES
RELEVANT TO TEA BUSINESSES
RELEVANT TO TEA BUSINESSES
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