The Legal Metrology Act of 2009 forms an essential foundation of India’s regulatory system for weights and measures across the country. This extensive legal framework encompasses Rule 19. This section serves as an important provision that merits close examination. In this blog, we will shed light on the significance, components, who needs to have the registration, several benefits and procedures to ensure compliance with Section 19 of the LMPC Act.
Understanding Section 19 of the LMPC Act
Full disclosure of the requirement is made in section 19 of the LMPC Act. These are the mandatory declarations that must be present on packaged articles sold in India.
By making such necessary statements, transparency can be realised, consumers will become aware, and trade practices will be fair. The section stipulates the essential details that packaged commodity labels must display to prevent unfair commercial activities and safeguard consumer rights.
Consequences of the Non-compliance Under Section 19 of LMPC Act, 2009
Given below are the scope of the application and consequences of failure to comply with Section 19 of the LMPC Act, 2009-
1. Scope of the Application:
Rule 19 has a wide-ranging scope, covering numerous products and sectors. Every kind of packaged goods, from food commodities to electronic devices, needs to obey what it wants. In case one is purchasing a mobile phone, there are particular provisions in Rule 19 on how its elements and information should appear on the package.
2. The Consequences of Failure to Comply:
A failure to be guided by Rule 19 can have serious outcomes. Some possible legal punishments may include; financial fines, product recalls or brand image loss. For instance, a leading snack firm received hefty penalties and public condemnation for having wrong labelling, which actually shows practical consequences of infringing Rule 19.
Components of Section 19 of the LMPC Act
A number of important parts under section 19 of the LMPC Act are as follows:
- Packaging and Manufacturing Identification:
The name and address of the firm that packages or manufactures it must appear on the label. Consumers can thus trace products’ origin easily, as well as get in touch with those who made them if necessary.
- Net Quantity:
Product Label must indicate the net quantity or volume of product contained therein. It ensures buyers are not kept in the dark when purchasing their desired quantities.
- Maximum Retail Price (MRP):
These MRPs should be prominently shown on labels, inclusive of all applicable taxes. This will prevent overpricing and ensure transparency regarding the price consumers are expected to pay.
- Contact Information:
Manufacturers are required to provide a consumer helpline number or contact details on the label of the product that will be used for addressing any sort of inquiries and concerns consumers will have, if it arises. This facilitates seamless communication between consumers and manufacturers, which will ultimately enhance consumer protection.
- Regulatory License Number:
In the case of food products, the label must display the license number issued by the Food Safety and Standards Authority of India (FSSAI). This will signify compliance with the safety standards established by the regulatory body.
What are the Conditions for Registration under Section 19?
Given below are the mandatory requirements for registration under Section 19 of the LMPC Act:
- Individuals involved in importing, manufacturing, or packaging package goods.
- Importers of Weights and Measurements.
Hence, let’s delve into each point in detail:
Registration for Importers, Manufacturers, or Packagers of Packaged Goods:
Any individual or entity engaged in importing, retailing, or packing pre- packaged commodities must get registered under Rule 27 of the Legal Metrology (Packed and Commodities) Rules, 2011. The registration process can be completed with the Director of Legal Metrology at either the Federal or State Government level, where verifications and licenses are issued. Irrespective of the location of registration within the country, these registration procedures are applicable nationwide.
Registration for Importers of Weights and Measurements:
In accordance with Section 19 of the Legal Metrology Act, 2009, importers of weights and measurements are required to follow the prescribed procedures to register and obtain a license for selling or importing these products. Legal metrology registration is essential for those involved in weights and measures business.
Advantages of Section 19 of the LMPC Act
The various advantages that follow after registering under Section 19 of the LMPC Act are listed below:
- Legal Acknowledgement: A Company, by registering, gains official recognition under the LMPC Act, which will ultimately enhance its prudence and legitimacy.
- Rights Safeguard: The Companies which register have Legal Rights Protection as per the LMPC Act that includes Intellectual Property Rights.
- Government Help: Governments provide different support initiatives, incentives, and subsidies to registered businesses to help them develop and grow.
- Contractual Advantages: Registering in Section 19 indicates compliance with legal requirements, therefore potentially facilitating smoother contract negotiations and interactions with other parties.
- Improved Marketability: In addition, one can argue that registering is beneficial because it may enhance the marketability of a company by demonstrating conformity with regulatory standards and the development of trust among stakeholders like customers, suppliers, and investors, among others.
- Access to Financing: Registered companies, on the other hand, enjoy certain advantages as they may be able to access financing through banks, investors or government bodies since registration is a condition precedent for some sources of finance.
Compliance with Section 19 of the LMPC Act
To ensure adherence to Section 19, it is crucial for individuals and organisations to carefully study and understand the regulations outlined in this section. They should also establish appropriate policies and procedures and regularly monitor their activities to maintain compliance with the requirements set forth in the LMPC Act.
Instructions for Registration under Section 19 of the LMPC Act, 2009
When importing weights and measures, traders and importers must adhere to specific registration guidelines outlined in Section 47 of the Standards of Weights and Measures Act, 1976.
- First of all, the applicants must adhere to the general instructions for applying for weights and measures registration. The application needs to include important information such as the name of the organisation that intends to be licensed and all relevant documents. It is to be submitted to “Pay and Accounts Officer” D/o Consumer Affairs, New Delhi, with a demand draft (DD) for Rs. 10/- drawn in favour of State/UT’s Controller of Legal Metrology.
- It should be noted that only items designated as weights or measures under General Rules are eligible for registration.
- Should any necessary documents not be found accompanying this submission, keep in mind to return it to the applicant within 7 days of receipt, providing appropriate notice.
- If the application is submitted with all the required documents in order, the registration certificate will be granted to the applicant within 10 days of receipt, under the oversight of the Controller of Legal Metrology.
Procedure of Registering Under Section 19 of the LMPC Act
The stepwise guide to be followed for registration under Section 19 of the LMPC Act are as follows:
- The general procedure for registering weights and measures is outlined in Rule 15 of the Legal Metrology (General) Rules, 2011. The cost structure for registration is detailed in Schedule XII of the Rules, while the application format is provided in the 10th Schedule.
- It is permissible to import standard weights and measures or any of their components.
- Manufacturers and traders are required to register as importers with the Director of Legal Metrology, Government of India.
- The application for registration must be submitted to the Director of the Legal Metrology department in the prescribed form, as per the Act. It should be filed at least one month prior to the importation of weights and measures, along with the statutory fee of Rs. 100. The Controller will then review the application and move it forward to the appropriate authority. It will be accompanied by a report on the importer’s background and technical capabilities.
- Once granted, the registration is valid for 5 years and can be renewed according to business requirements.
What are the Documents Required for Registration?
To register under Section 19 of the Legal Metrology Act, 2009, the following documents are required:
- The applicant should provide proof of the applicant’s identity.
- Two passport-sized photographs should be provided by the applicant.
- The applicant needs to hand over a Certificate of Industry Registration.
- No Objection Certificate from SCPB needs to be provided if necessary.
- Documentation related to the business premises or Lease Agreement is also needed.
- Constitution certificate for sole proprietorship or partnership.
- For a company, a copy of the Articles of Association (AOA), Memorandum of Association (MOA), and a certificate issued under the Companies Act.
- Copies of employees’ appointment letters along with their photographs.
- A list of machinery, tools, accessories, and the invoice sheet.
- In case of a new verification certificate, a purchase bill for test weights has to be mandatorily provided.
- Goods and Service Tax Registration Certificate.
- Professional Tax Registration Certificate.
- The Labour license.
Some Instances Related to Section 19 of the LMPC Act, 2009
Some of the illustrations related to Section 19 of the LMPC Act, 2009 are as follows:
- Food and Beverage Sector: When it comes to the food and beverage industry, Section 19 plays a crucial role in guaranteeing that customers are provided with precise information regarding the quantity of a product.
To illustrate, a package of cookies must prominently display the count of cookies within and their total weight. Non-compliance with this requirement can lead to legal repercussions.
- Technology and Gadgets: In the realm of technology and gadgets, Rule 19 dictates the manner in which specifications and attributes are presented on product packaging. For instance, a notebook computer must offer accurate details about its processor, memory capacity, and storage space, empowering consumers to make well-informed decisions.
To Wrap Up
Section 19 of the LMPC Act is extremely important for ensuring fair trade practices and safeguarding consumer interests in India.
This particular clause mandates that specific details need to be displayed on the labels of packaged goods and products, thereby facilitating consumers to make well-informed decisions while purchasing any product. At the same time, it promotes transparency and accountability in the marketplace.
Businesses are obligated to comply with the regulations outlined in Section 19 of the LMPC to circumvent legal consequences and maintain the confidence among their customers. A comprehensive understanding of the provisions laid out in Section 19 is crucial for both commercial entities and consumers to participate effectively in the market while adhering to the established regulatory
Frequently Asked Question
What is Section 19 of the LMPC Act?
Section 19 of the Legal Metrology (Packaged Commodities) Act delineates the mandatory declarations that need to be present on packaged goods sold within India. It specifies the essential details that packaged commodity labels must display to ensure transparency, consumer awareness, and fair trade practices.
What are the key components of Section 19?
The key components of Section 19 include displaying the name and address of the packer/manufacturer, net quantity, Maximum Retail Price (MRP), consumer contact information, and regulatory license number (FSSAI) for food products.
Who needs to register under Section 19?
Individuals or businesses involved in importing, manufacturing, or packaging packaged goods, as well as importers of weights and measures, need to register under Section 19.
What are the consequences of non-compliance with Section 19?
Non- compliance with Section 19 can result in legal sanctions, product recalls, substantial fines, and damage to the brand’s reputation.
How can businesses ensure compliance with Section 19?
Businesses should carefully study and understand the regulations, establish appropriate policies and procedures, and regularly monitor their activities to maintain compliance.
Can you provide an example of Section 19 compliance in the food and beverage sector?
For packaged food items like cookies, the label must prominently display the count of cookies and their total weight to comply with Section 19.
How does Section 19 apply to the technology and gadgets sector?
In this sector, Section 19 dictates how specifications and attributes of products like laptops are presented on the packaging, including details like processor, memory capacity, and storage space.