Journal of continuing Education and Extension, 2015; 6(1): 902-910Mibwa forest plantation. hereafter referred to simply as Mtibwa plantation was established in 1944. and is currently owned by Tanzania Forest Services (iTS) under Government Notice 269 of 2010. The plantation was gazette through the Government Notice number 213 of 1944 (CRT. 2013). Mtibwa plantation has about 3.115.6 ha of land. out of this 2068 ha are suitable for teak production. The main species grown was Tectona grandis, which constituted 95% while Cedrella odorala (3%), Milicia excelsa and Khuya anthotheca together (2%) were planted as alternative species (CRT. 2013). Timber for logs and building poles are the main forest products from Mtibwa plantation which arc traded within and outside the country. The plantation also generates some income through sales of teak stumps. and Firewood which are sold or given for free to nearby villages. Tree seeds from the plantation are collected for free by the Tanzania Tree Seed Agency (TTSA) and the community living adjacent to the plantation. The auction system and private agreements are currently used for selling standing teak from. Auctioning is the public sale of goods or properties to the highest bidder (Chamuva. 2007). In implementing the Bing Results Now (BRN) in Tanzania. the main focus of the Ministry of Natural Resources and Tourism (MNRT) is to promote sustainable production, utilization and marketing of forest resources to achieve the national social economic objectives as well as the protection of natural forest resources. Tanzania. like other countries in Africa sets forest charges using market mechanisms and calculations that are based on market information (Chamuva. 2007). The main challenge of using market mechanisms is that they work well where there is genuine competition in the market (FAO. 1979). If the number of buyers is small they tend to collude. offering low prices. "[he Tanzania National Forest policy statement stipulates that 70% of forest 902 Practices and Challenges of Selling System for Teak... products should be sold using the auction system while the remaining 30% is to be sold through allocation. The policy is supported by the Forest Act Cap 323 IRE. 2002] of 2002 (URT, 2002).