COMPLIANCE FOR WHOLESALERS AND PACKERS UNDER LEGAL METROLOGY (PACKAGED COMMODITY) RULES 2011
Following are applicable for AHL under Legal Metrology Act:
- Dealer: An individual who carries on, directly or else, the business of selling, supplying, buying or distributing any weight or measure for a valuable consideration.
- “wholesale dealer” in relation to any commodity in packaged form means a dealer who does not directly sell such commodity to any consumer but distributes or sells such commodity through one or more intermediaries
- Importer: Any individual, firm or legal entity that brings products or causes products to be brought from a foreign nation into a customs territory.
- Packer: An individual or a firm, that pre-packs any commodity in any bottle, wrapper, tin, or otherwise, in units appropriate for sale, whether wholesale or retail.
The following are the mandatory compliance under Legal Metrology Act for AHL:
- Registration by Packer or Importer of Commodities: Every Packer, or Importer of Commodities who pre-packs or imports any commodity for distribution, sale, or delivery is required to get a Registration under the Legal Metrology (Packaged Commodities) Rules, 2011.
- Verification and Stamping: This is also an important compliance under Legal Metrology:
- Use or sale of any weighing or measuring instrument is not permitted without stamping & verification;
- Every individual using any weight, measure, or measuring instrument in any transaction have to get stamping & verification of weight & measure instruments;
- Re-verification is compulsory for continuous use of weight & measure for any transaction;
- The weight and measure which cannot be moved from its location are stamped and verified at its location itself.
- Maintain Records & Registers: Every Dealer of weight/measure shall maintain proper records & registers of Weight & Measure.
- Returns or Report: Every Licensed Dealer is required to submit monthly or quarterly returns or reports of weight & measure to the legal metrology controller. However, reporting & timelines requirements may vary from state to state.
- Use of Weight & Measure: Almost every entity, whether in business or services, uses standards of weights & measure, which may comprise, Length, Temperature, Volume, Unit, Mass, Capacity, and Area. Use of weight & measure in accordance with a standard unit of weight, measure, and numeration is compulsory for the following activities:
- Exhibit or issue any cash memo, price list, or invoices;
- Indicating net quantity of pre-packaged commodity;
- Announce or quote any products’ price;
- Publish any advertisement.
- Approval of Model of Weight & Measure: Every individual, before importing or manufacturing any weight or measure, shall get prior approval of Model of that weight/measure. Application for the approval of Model of weight/measure shall contain the following information:
- Full name & address of the applicant;
- Test procedure followed by the manufacturer;
- Where the Model is imported from other nations, the name & address of the manufacturer along with the dealer in India;
- A brief description of the weight/measure;
- Brand type & name of the weight/measure;
- Possible uses for which the weight/measure is aimed to be produced.
- Mandatory Declarations: This is the most vital compliance under Legal Metrology and this act imposes an obligation of declarations to pack, sell, deliver, offer, manufacture, expose, or possess for sale any pre-packaged commodity in standard quantities or number. Mandatory declaration to be made on every package or pre-package commodities aimed to be commercialised in India.
The following declarations are compulsory to put on the packages:
- Country of Origin;
- Retail Sale Price;
- The name & address of the manufacturer or importer or packer;
- Dimension or size of the commodity when relevant;
- Month & year of manufacturer or import or packing;
- Best before, or expiration date, month, and year of a commodity;
- The generic name of the commodity;
- The net quantity of the content.
- Licensing of Repairer, Dealer, and Manufacturer of weight & measure:
- An application is required to be filed with name, address of premises, commodity name and the requisite fee, which may vary from state to state;
- Every Dealer, Manufacturer, or Repairer of weights & measures is needed to get a license under by Controller of Legal Metrology.
The below provisions under the LMA can be referred for the above .
COMPLIANCE FOR WHOLESALER
Relevant Definitions
RULE 2(p): “wholesale dealer” in relation to any commodity in packaged form means a dealer who does not directly sell such commodity to any consumer but distributes or sells such commodity through one or more intermediaries;
RULE 2(q): “wholesale package” means a package containing-
- a number of retail packages, where such first mentioned package is intended for sale, distribution or delivery to an intermediary and is not intended for sale direct to a single consumer; or
- a commodity sold to an intermediary in bulk to enable such intermediary to sell, distribute or deliver such commodity to the consumer in smaller quantities; (iii) ten or more than ten retail packages provided that the retail packages are labeled as required under the rules.
RULE 18 – Provisions relating to wholesale dealer
- 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.
- The wholesale dealer shall be allowed to sell the pre-packaged commodities directly to the industrial and institutional consumers.
- No wholesale dealer shall make any sale of any commodity in packed form at a price exceeding the retail sale price thereof.
- No wholesale dealer 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.
RULE 24 – Declarations applicable to be made on every wholesale package
Every wholesale package shall bear thereon a legible, definite, plain and conspicuous declaration as to –
- The name and address of the manufacturer or importer or where the manufacturer or importer is not the packer, of the packer;
- the identity of the commodity contained in the package; and
- 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.
COMPLIANCES FOR PACKERS
Relevant Definitions
RULE 2(g): “packer” means a person who, or a firm or a Hindu undivided family, which pre-packs any commodity, whether in any bottle, tin, wrapper or otherwise, in units suitable for sale whether wholesale or retail.
RULE 6: Declarations to be made on every package
- Every package shall bear thereon or on the label securely affixed thereto, a definite, plain and conspicuous declaration made in accordance with the provisions of this chapter as, to – 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.
- Nothing in this rule shall preclude a manufacturer or packer or importer to declare the following on the package, in addition to the mandatory declarations- (a) Barcode or GTIN or QR Code; (b) ‘e-code’ for net quantity assurance of the commodity and other required declarations, after obtaining the same in the manner as specified by the Central Government; (c) logos of Government schemes, such as Swatch Bharat Mission, where such use is authorised by the Central Government.
RULE 12 – Manner in which declaration of quantity shall be
- Where the declaration of quantity has been made in terms of mass, the packer may, at his option make an additional declaration on the package as to the number of commodities contained in the package.
RULE 18 – Provisions relating to wholesale dealer and retail dealers
- 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.
- Unless otherwise specifically provided under any other law, no packer shall declare different maximum retail prices on an identical pre-packaged commodity by adopting restrictive trade practices or unfair trade practices as defined under clause (41) and (47) of section 2 of the Consumer Protection Act, 2019.
- it shall be, the duty of the manufacturer or 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:
- The manufacturer or packer or the importer shall not alter the price on the wrapper once printed and used for packing.
RULE 29 – Registration of manufacturers and packers, etc
The Director or the Controller shall enter in a register, to be maintained by him for the purpose, the name and complete address of each manufacturer or packer by whom application for such registration has been made to him under rule 27.
RULE 27 – 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 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.
Explanation: In this sub-rule, ‘complete address’ has the meaning assigned to it in the explanation to sub-rule (1) of rule 10.’
(3) For making any alteration in the registration certificate issued under sub rule (1), a fee of rupees one hundred shall be paid by the concerned manufacturer or packer or importer to the Director or Controller.
(4) On receipt of the application made under sub-rule (1), the Director or Controller, who shall be the Registering Authority, shall-
(a) if the application is not complete in all respects, return the same to the applicant within a period of seven working days from the date of receipt of the application;
(b) if the application is complete in all respects, register the applicant and grant a registration certificate to the applicant to that effect.
LICENSING COMPLAINCE
Licensing of Repairer, Dealer, and Manufacturer of weight & measure:
Legal Metrology Act 2009 lays out the requirement for licensing. An application is required to be filed with name, address of premises, commodity name and the requisite fee, which may vary from state to state. Every Dealer, Manufacturer, or Repairer of weights & measures is needed to get a license under by Controller of Legal Metrology.
SECTION 23 of Legal Metrology Act 2009
- No person shall manufacture, repair or sell or offer, expose or possess for repair or sale, any weight or measure unless he holds a valid license issued by the Controller under sub-section (2). Provided that no license to repair shall be required by a manufacturer for repair of his own weight or measure in a State other than the State of manufacture of the same.
- For the purpose of sub-section (1), the Controller shall issue a license in such form and manner, on such conditions, for such period and such area of jurisdiction and on payment of such fee as may be prescribed.