Requirement of LMPC Regn for Importing Packaged Commodity in India- Legal Metrology & Packaged Commodity Rules

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Dated: 15.02.2020

Requirement of LMPC Registration by India Customs to clear Packaged Commodities IN/TO India- under the Metrology provisions

All pre-packaged commodities imported into India shall confirm to the requirements of the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules, 2011.

Under the Legal Metrology (Packaged Commodities) Rules, 2011, the importer of pre-packaged commodity should be registered under Rule 27. The registration will be done by the Director or controller of Legal Metrology of the State and the registration Fees is INR 500 only however the other incidental expenses are additional.

Wherever the requirements of labeling are given in FSSA (Food Safety & standards Act 2006) in respect of food items, the labeling requirements under FSSA shall prevail over labeling requirements of Legal Metrology. Important sections of legal metrology Act 2009. Every unit of weight or measure shall be in accordance with the metric system based on the international system of units.

The base unit of –
(i) Length shall be the meter;
(ii) Mass shall be the kilogram;
(iii) Time shall be the second;
(iv) Electric current shall be the ampere;
(v) Thermodynamic temperature shall be the Kelvin;
(vi) Luminous intensity shall be the candela; and
(vii) Amount of substance shall be the mole.

The specifications of the base units mentioned sub-section, derived units and other units shall be such as may be prescribed. The base unit of numeration shall be the unit the international form of Indian numerals. Every numeration shall be made in accordance with the decimal system. The decimal multiples and sub-multiples of the numerals shall be of such denominations and be written in such manner as may be prescribed.

No person shall, in relation to any goods, things or service,-
a. Quote, or make announcement of, whether by word of mouth or otherwise, any price or charge, or
b. Issue or exhibit any price list, invoice, cash memo or other document, or
c. Prepare or publish any advertisement, poster or other document, or
d. Indicate the net quantity of a pre-packaged commodity, or
e. Express in relation to any transaction or protection, any quantity or dimension, otherwise than in accordance with the standard unit of weight, measure or numeration.

The provisions of sub-section (1) shall not be applicable for export of any goods, things or service. Whoever manufactures, packs, imports, sells, distributes, delivers or otherwise transfers, offers exposes or possesses for sale, or causes to be sold distributed, delivered or otherwise transferred offered exposed for sale any pre-packed commodity which does not conform to the declarations on the package as provided in this act, shall be punished with fine which may extend to twenty-five thousand rupees, for the second offence, with fine which may extend to fifty thousand rupees and for the subsequent offence, with fine which shall not be less than fifty thousand rupees but which may extend to One Lakh Rupees or with imprisonment for a term which may extend to one year or with both.

Whoever manufactures or packs or imports or causes to be manufactured or packed or imported, any pre-packaged commodity, with error in pet quantity as may be prescribed shall be punished with fine which shall not be less than ten thousand rupees but which may extend to fifty thousand rupees and for the second and subsequent offence, with fine which may extend to One Lakh Rupees or with imprisonment for a term which may extend to one year or with both.

The provisions of this Act, in so far as they relate to verification and stamping of weights and measures, shall not apply to any weight or measure,-

(a) Used in any factory exclusively engaged in the manufacture of any arms, ammunition or both, for the use of the Armed Forces of the Union;
(b) Used for scientific investigation or for research:
(c) Manufactured exclusively for export.

Important Extract from Legal Metrology (Packaged Commodities) Rules, 2011 (MRP Declaration)

“retail package” means the packages which are intended for retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein and includes the imported packages- Provided that for the purposes of this clause, the expression ‘ultimate consumer’ shall not include industrial or institutional consumers

Declarations to be made on Every Package- 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 shall be mentioned on every package.

Explanation – III

In respect of packages containing articles, the provisions of this sub rule shall not and instead, the requirement of the Prevention good Adulteration Act, 1954 (37 of 1954) and the made there under shall apply.

The common or generic names of the commodity contained in the package and in case of packages more than one product, the name and number of quantity of each product shall be mentioned on package.
The net quantity, in terms of the standard unit of light or measure, of the commodity contained in package or where the commodity is packed or by number, the number of the commodity contained in the package shall be mentioned.
(d) The month and year in which the commodity is manufactured or pre-packed or imported shall be mentioned in the package.

Provided that for packages containing food articles, provisions of the Prevention of Food Adulteration Act 1954 (37 of 1954) and the rules made there under shall apply;

Provided further that nothing in this sub-clause shall apply in case of packages containing seeds which be labeled and certified under the provisions of the seeds Act 1966 (54 of 1966) and the rules made there under;

Provided that a manufacturer may indicate the month and year using a rubber stamp without overwriting.

Provided also that for packages containing cosmetic products, the provisions of the Drugs and Cosmetics Rules, 1945 shall apply.

(e) The retail sale price of the package;

Provided that for packages containing alcoholic averages or spirituous liquor, the State Excise Laws and the rules made there under shall be applicable within the state in which it is manufactured and where the state excise laws and rules made there under do not provide for declaration of retail sale price, the provisions of these rules shall apply.

(f) Where the sizes of the commodity contained in a package are relevant, the dimensions of the commodity contained in the package and if the dimensions of the different pieces are different, the dimensions of the each such different piece shall be mentioned.

(g) Such other matter as are specified in these rules:

Provided that:

(A) No declaration as to the month and year in which the commodity is manufactured or pre-packed shall be required to be made on-

i) Any package containing Bidis or incense sticks;

ii) Any domestic liquefied petroleum gas cylinder 14.2 kg or 5 kg, bottled and marketed by a public sector undertaking;

(B) Where any packaging material bearing thereon the month in which any commodity was expected to have been pre-packed is not exhausted during that month, such packaging material may be used for pre-packing the concerned commodity produced or manufactured during the next succeeding month and not thereafter, but the Central Government may, if it is satisfied that such packaging material could not be exhausted during the period aforesaid by reason of any circumstance beyond the control of the manufacturer or packer as the case may be extend the me during which such packaging material may be used and where any such packaging material is exhausted before the expiry of the month indicated thereon, the packaging material intended to be used during the next succeeding month may be used for pre-packaging the concerned commodity.

Provided that the said provision shall not apply to the packages containing food products, where the ‘Best before or Use before’ period is ninety days or less from the date of manufacture or packing.’

i) Any package containing Bidi;

ii) Any domestic liquefied petroleum gas cylinder of which the price is covered under the Administrative Price Mechanism of the Government.

Explanation I: The month and the year in which commodity is pre-packed may be expressed either in words, or by numerals indicating the month and the year, or by both.

Explanation II: Liquid milk does not include condensed milk.

(2) Every package shall bear the name, address, telephone number, e-mail address, if available, of the person who can be or the office which can be, contacted, in case of consumer complaints.

(3) It shall not be permissible to affix individual stickers on the package for altering or making declaration required under these rules:

Provided that for reducing the Maximum Retail Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer, as the case may be, on the label of the package.

(4) It shall be permissible to use stickers for making any declaration other than the declaration required to be made under these rules.

(5) Where a commodity consists of a number of components and these components are packed in two or more units, for sale as a single commodity, the declaration required to be made under sub-rule (1) shall appear on the main package and such package shall also carry information about the other accompanying packages or such declaration may be given on individual packages and intimation to that effect may be given on the main package and if the components are sold as spare parts, all declarations shall be given on each package.

(6) Any packaging material or wrapper which could not be exhausted by the manufacturer or packer, may be used for packing of the material up to 30th September, 2011 or till such date the packaging material or wrapper is exhausted, whichever is earlier, after making corrections required under these rules by way of stamping, or putting sticker or on-line printing, as the case may be.

(7) Declaration of Name and Address of the Manufacturer, etc.

(1) Subject to the provisions of rule 6, every package kept, offered or exposed for sale or sold shall bear conspicuously on it, the name and complete address of the manufacturer, or where the manufacturer is not the packer, the name and address of the manufacturer and the packer and in case of imported packages, the name and address of the importer:
Provided that for packages of capacity 5 cubic cm or less, it shall be a sufficient compliance of this sub- rule, if a mark or inscription which would enable the consumer to identify the manufacturer or packer or the importer, as the case may be, is made on the package:
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.

Explanation – In this sub-rule, ‘complete address’ means, the postal address at which the factory is situated, and in any other case, the name of the street, number (if any) assigned to the premises of the manufacturer or packer and either the name of the city and State where the business is carried on by the manufacturer or packer or the Postal Index Number [PIN] Code so that a consumer can identify and locate the manufacturer or packer or importer, as the case may be.

(2) The name of the manufacturer or packer or importer shall be the actual corporate name, or if not incorporated, the name under which the business is conducted by such manufacturer or packer or importer in India.

11. Provisions Relating to Wholesale Dealer and Retail Dealers

(1) No wholesale dealer or retail dealer or importer shall sell, distribute, deliver, display or store for sale any commodity in the packaged form unless the package complies with in all respects, the provisions of the Act and these rules.

(2) No retail dealer or other person including manufacturer, packer, importer and wholesale dealer shall make any sale of any commodity in packed form at a price exceeding the retail sale price thereof

(3) Where, after any commodity has been pre-packed for sale, any tax payable in relation to such commodity is revised, the retail dealer or any other person shall not make any retail sale of such commodity at a price exceeding the revised retail sale price, communicated to him by the manufacturer, or where the manufacturer is not the packer, the packer, as the case may be, to indicate by not less than two advertisements in one or more newspapers and also by circulation of notices to the dealers and to the Director in the Central Government and controllers of Legal Metrology in the States and Union Territories, the revised prices of such packages but the difference between the price marked on the package and the revised price shall not, in any case, be higher than the extent of increase in the tax or in the case of imposition of fresh tax higher than the fresh tax so imposed;

Provided that publication in any newspaper, of such revised price shall not be necessary where such revision is due to any increase in, or imposition or, any tax payable under any law made by the State Legislation:

Provided further that the retail dealer or other person, shall not charge such revised prices in relation to any packages except those packages which bear marking indicating that they were pre-packed in the month in which such tax has been revised or fresh tax has been imposed or in the month immediately following the month aforesaid;

Provided also that where the revised prices are lower than the price marked on the package, the retail dealer or other person shall not charge any price in excess of the revised price, irrespective of the month in which the commodity was pre-packed.

Nothing in sub-rule (3) shall apply to a package which is not required, under these rules to indicate the month and the year in which it was pre-packed.

No wholesale dealer or retail dealer or other person shall obliterate, smudge or alter the retail sale price, indicated by the manufacturer or the packer or the importer, as the case may be, on the package or on the label affixed thereto.

The manufacturer or packer or the importer shall not alter the price on the wrapper once printed and used for packing.

All retailers who are covered under the Value Added Tax Vat or Turn Over Tax (TOT) and dealing in packaged commodities whose net content declaration is by weight or volume or a combination thereof shall maintain an electronic weighing machine of at least accuracy class III, with smallest division of at least 1g, with facility to issue a printed receipt indicating among other things, the gross quantity, price and the like at a prominent place in their retail premises, free of cost, for the benefit of consumers and the consumers may check the weight of their packed commodities purchased from the shop on such machine.

Declarations Applicable to be made on Every Wholesale package
every wholesale package shall bear thereon a legible, definite, plain and conspicuous declaration as to —

(a) The name and address of the manufacturer or importer or where the manufacturer or importer is not the packer, of the packer;

(b) The identity of the commodity contained in the package; and

(c) The total number of retail package contained in such wholesale package or the net quantity in terms of standard units of weights, measures or number of the commodity contained in wholesale package;

Provided that nothing in this rule shall apply in relation to a wholesale package if a declaration similar to the declarations specified in this rule, is required to be made on such wholesale packages by or under any other law for the time being in force.

Restrictions on Sale of Export Packages in India- An export package shall not be sold in India unless the manufacturer or packer has re-packed or re-labelled 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-labelling, such package shall be liable to be seized in accordance with the provisions of the Act.

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, to the Director or the Controller 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 commences pre-packing or importing of any commodity after the commencement of these rules, within thirty days from the date on which he or it commences such pre-packing.

Applications for registration as Packer, manufacturer and importer of packaged commodities are received in the concerned district offices of the Weights and Measures Dept and the registration will be done by the Department within 45 days of the date of receipt of the application if all the formalities are complete under the provisions contained in Rule 27 of the Legal Metrology (Packaged Commodities) Rules, 2011.

In case, the manufacturer/packer/importer which pre-packs or imports any commodity for sale, distribution or delivery fails to get itself registered under the above rule and prosecution is booked by the Department then the offence has to be compounded for which maximum fine prescribed under the Rules is Rs. 50000/- (Rupees Fifty Thousand only) per partner / Director of the firm/company as well as the firm/company itself.

If the accused fails to get its offence compounded then the case is referred to the Courts of law. Controller (W&M) is the final authority in the matters of issue of licenses and registration.