Sunday, 23 February 2014

Packaged Commodity Rules for Indian Importer




Important points.
01.   Provided that if a commodity specified in the Third Schedule is packed in a size other than that prescribed in that Schedule, a declaration that 'Not a standard pack size under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977' or 'non standard size under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977' shall be made prominently on the label of such package.'. 


02.   Declarations to be made on every package
(a)   the name and address of the manufacturer, or where the manufacturer is not the packer, the name and address of the manufacturer and packer and for any imported package the name and address of the importer
(b)   the common or generic names of the commodity contained in the package *and in case of packages with more than one product, the name and number or quantity of each product shall be specified on the package. *[ amended vide GSR 425(E)dt 17.7.06]
(c)    the net quantity, in terms of the standard unit of weight or measure, of the commodity contained in the package or where the commodity is packed or sold by number, the number of the commodity contained in the package;
(d)   (d) the month and year in which the commodity is manufactured or pre-packed * or imported;
(e)    
03.   Provided further that where any commodity manufactured outside India is packed in India, the package shall also contain on the principal display panel the name and complete address of the packer or the importer in India.

04.   An export package shall not be sold in India unless the manufacturer or packer has re-packed or relabeled the commodity in accordance with the provisions contained in Chapter II, and where any export package is sold in India without such re-packing or re-labeling, such package shall be liable to be seized in accordance with the provisions of the Act.
05.   CHAPTER VI
REGISTRATION OF MANUFACTURERS AND PACKERS
**'35. Registration of manufacturers, packers and importers.
(1) Every individual, firm, Hindu undivided family, society, company or corporation who or which pre-packs or imports any commodity for sale, distribution or delivery shall make an application, accompanied by a fee of rupees *five hundred, [* substituted vide GSR No 16(E) Dated 12.1.05] to the Director for the registration of his or its name and complete address; and every such application shall be made
(i) in the case of an applicant pre-packing or importing any commodity at the commencement of these rules, within ninety days from such commencement; or
(ii) in the case of any applicant who or which commence pre-packing or importing of any commodity after the commencement of these rules, within ninety days from the date on which he or it commences such pre-packing.
(2) Every application referred in sub-rule (1) shall contain the following particulars, namely:-
(a) the name of the applicant;
(b) the complete address of the premises at which the pre-packing or import of one or more commodities is made by the applicant; and
(c) the name of the commodity or commodities pre-packed or imported by the applicant.

06. Our company is engaged in the import and sale of goods. The imported goods are required to carry MRP and other details on the attached label. Due to constant fluctuations in the demand of the product, we desire to change the price of the products. Is relabeling (change in MRP) of such products allowed? Kindly clarify.
The relevant legislation dealing with labeling of products and requirements for declaring MRP is the Legal Metrology Act, 2009 (‘LMA’) and the Rules made thereunder. Typically, the LMA (and the Rules made thereunder) do not allow relabeling of products for subsequent change in MRP. However, relabeling for reduction in MRP is permitted.


07.  Who is the competent Authority for grant of Licence to Packer/Manufacturer/ Dealer/Repairer in Weights & Measures?
The Controller, Weights & Measures is the competent Authority to grant Licence for Manufacturer/ Dealer/ Repairer in Weights & Measures. Registration as Packer/Manufacturer/Importer of packaged commodities is also done by the controller.


08.      What are the requirements while purchasing the IMPORTED Items?
The followings are the compulsory declaration required on a packet which have been imported and available for sale:
a. Name and complete address of the Manufacturer, Packer and / or importer of the packaged commodities.
b. Net contents in terms of weight, volume or number.
c. Date of manufacture/packing/import of the commodity (month and year).
d. Maximum Retail Price (inclusive of all taxes).
e. Generic name of the commodity.
f.          Customer Care Number with name, address, Telephone No. of the person/office which can be contacted in case of consumer complaints.
g. Size, if applicable

09.     Who is the competent authority to register any person who intends to import or export any Weights & Measures?
Registration of importer is done by the Director Legal Metrology, Govt. of India.

10.   What is the procedure to lodge complaint against the officials of the Weights & Measures Department and against the business establishments for violation of the provisions of Weights & Measures laws ?
Complaints against the officials of the Weights & Measures Department and against the business establishments can be lodged at the office of the Controller (W&M) by letter, telephone (Ph. 23379266), Fax (23379267) or through e-mail at cwmd@nic.in.


11.      Requirement of registration for warehouses issuing negotiable warehouse receipts.
3. (1) No person shall commence or carry on the warehousing business unless he has obtained a registration certificate in respect of the concerned warehouse or warehouses granted by the Authority under this Act:
                http://wdra.nic.in/default.htm

12.   e) The retail sale price of a packaged should be declared as “Max. Retail price” or “MRP Rs….. incl. of all taxes.” There should be no deviation. The retail sale price once declared should not be altered by affixing a sticker or an additional label. In the event of any increase in the Government levies, the retail price could be revised to the extent of increase in the levies and the retail dealers could be asked to set all the revised price by giving them the necessary price list. It is not necessary to alter the price on the package. However, in the event of any increase in the Central Levy, the revision in the retail sale price should be notified in minimum two newspapers and the Director of Legal Metrology, Government of India and the Controllers of Legal Metrology of all the States and Union Territories should be intimated of the increase in retail sale price. In case of increase in State Levy, it is not necessary to notify in the press but the Director of Legal Metrology, Government of India and the Controllers of Legal Metrology of the States and Union Territories should be intimated. The Director of Legal metrology, Government of India, in his letter No.WN-9-(7)/93 dated 14.9.1993, addressed to the President, Marking Systems Association of India, New Delhi, has clarified that there is no bar on the manufacturer to blank out the earlier declaration and re-print the revised declaration before packaging. The revised price should not be printed over and above the blanked out price. 

 
13.   Imported Packages The importer of the packages is deemed to be the manufacturer and he is responsible to make all the mandatory declarations on the packages before such packages are stored in the depot or warehouses. 

14.  All packaged products which are subject to the provisions of the Standards and Measures (Packages Commodities) Rules (1977), as replaced by the Legal Metrology (Packaged Commodities) Rules 2011, must be labelled with the Maximum Retail Price (MRP), already before being imported to India. This requirement considerably increases the importers’ burdens, as calculations are normally based on several factors including freight, insurance and internal taxes.
However, through a Customs Circular dated 15th April 2011, India decided to allow labelling of certain imported goods, which are "small sized and sensitive to heat and dust" in bonded warehouses subject to certain procedural conditions.
As per the procedures laid down in the Customs Circular, the importer will need to check whether a marking/labelling facility is available in the warehouse. The importer may require to file a warehousing Bill of Entry. The assessing group will give suitable directions to dock staff to allow bonding of the goods without labelling and with endorsement on the warehousing Bill of Entry that verification of compliance of DGFT Notification No.44 (RE-2000)/1997-2002 is to be done prior to de-bonding by the bond superintendent. The goods will be labelled in the bonded premises and compliance with DGFT Notification No.44 (RE-2000)/1997-2002 will be ensured at the time of ex-bonding of the goods, by the bond officer, by examining the goods again and endorsing the examination report on the ex-bond Bill of Entry. It is provided that 100% examination at the time of ex-bond clearance of goods should be done to ensure compliance with DGFT Notification No. 44 (RE-2000)/1997-2002. It is also clarified that this facility is applicable only to goods that cannot be easily labelled in ports/Container Freight Stations, having regard to their size and other factors such as sensitivity to temperature and dust



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