Kerala Legal Metrology seized Imported fruit packages worth more than a Crore rupees

Inspector of Legal Metrology on 5th April 2013 made a surprise raid at a refrigerated godown located at Aroor in Alappuzha district of Kerala and seized false packages worth more than a Crore rupees. The huge cold storage is having four floors and each floor has three Chambers named A,B & C. During the Inspection, the storage has a stock from 20 different firms and the packages numbers more than 30000. The pack size is of 5/10/15/20/30 kg and the packaged goods are Apple, Orange, dates, dry fruits, spices and raw materials for manufacturing food items. The fruits were imported from Iraq, Iran, Dubai, Egypt and China and the imported packages lacks the mandatory declarations as per rule 6 of the Legal Metrology (Packaged Commodities) Rules, 2011 and is punishable under Sec 36(1) of the Legal Metrology Act, 2009.

For importing packages, importer need Import licence from Legal Metrology. Importing packages without licence is an offence punishable under rule 32 of the Legal Metrology (Packaged Commodities) Rules, 2011.

Lucky Star Fuji Apple 20 kg and Egyptian Orange package without Net Weight marking were opened and net content inspection was performed. Both packages were having less net content of the order of 400 to 1000 g, which is far beyond the permitted Maximum Permissible Error. Importing packages having less net content is punishable under Sec 36(2) of the Legal Metrology Act, 2009.

When a package is exported to India, the exporter has to label the packages according to the rule of the land. If the imported packages were not labelled, it has to be kept in the custom bonded warehouse and be labelled. Then only the packages can be released by the Customs Department after collecting the Customs Duty and endorsing it on the third copy of Bill of Entry (kept with the importer).

DGFT Notification No 44 (RE-2000)/1997-2002 dated 24.11.2000 directs Customs officials to ensure the Legal Metrology
(Packaged Commodities) Rules related declarations on the import packages before giving clearance for domestic consumption.

Consequences

1. If food poisoning occurs, the importer cannot be traced. Pesticides are applied on Fruits at different occasions. Many apples are wax coated and Genetically Modified. Which can cause severe health problems.

2. Date of Packing/Import is mot marked : The user is unable to know about the freshness of the food item. He is not knowing about the Use by date. These two are mandatory as per Food and Safety (Packaging and labeling) rules made under Food Safety and Standards Act, 2006 in India.

3. The importer is not marking the price of the packages imported. Thus Customs duty can be reduced to a large extend leading to heavy revenue loss to the Government. The packages were kept in refrigerated warehouses for selling the product when there is demand in the market. The importer can black market the item and regulate the market price.

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Sec 2 of Legal Metrology Act, 2009

(e) "import" with its grammatical variations and cognate expressions, means bringing into India from a place outside India;

(n) "premises" includes

(i)a place where any business, industry, production or transaction is carried on by a person, whether by himself or through an agent, by whatever name called, including the person who carries on the business in such premises,

(ii) a warehouse, godown or other place where any weight or measure or other goods are stored or exhibited,

(iii) a place where any books of account or other documents pertaining to any trade or transaction are kept,

(iv) a dwelling house, if any part thereof is used for the purpose of carrying on any business, industry, production or trade,

(v) a vehicle or vessel or any other mobile device, with the help of which any transaction or business is carried on;

Sec 36(1) : 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-packaged 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.

Sec 36(2) : 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-packaged commodity which has less net content, shall be punished with fine which may extend from 10000 to fifty thousand rupees, for the second offence, with fine which may extend to one lakh rupees.

Warehouse

Public Warehouse are very important in the marketing of agricultural products. A public warehouse is also known as 'duty paid warehouse'. Such warehouses provide storage facilities to small manufacturers and traders at low costs. They provide facilities for the inspection of goods by prospective buyers.

Bonded Warehouses

These warehouses are licenced by the Government to accept imported goods for storage until the payment of customs duty. They are located near the ports. They are either operated by the Government or work under the control of customs authorities. The warehouse is required to give an undertaking or 'Bond' that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty. Such warehouses are very helpful to importers and exporters. If an importer is unable to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately. Goods lying in a bonded warehouse can be packaged,graded and branded for the purpose of sale.

The warehousing of dutiable goods in a customs declared area on execution of a bond without payment of duty for a stipulated or required period is known as bonding of imported goods.

Bill of Entry for Bond/Warehousing:

A separate form of bill of entry is used for clearance of goods for warehousing. All documents as required to be attached with a Bill of Entry for home consumption are also required to be filed with bill of entry for warehousing. The bill of entry is assessed in the same manner and duty payable is determined. However, since duty is not required to be paid at the time of warehousing of the goods, the purpose of assessing the goods at this stage is to secure the duty in case the goods do not reach the warehouse. The duty is paid at the time of ex-bond clearance of goods for which an ex-bond bill of entry is filed. The rate of duty applicable to imported goods cleared from a warehouse is the rate in-force on the date on which the goods are actually removed from the warehouse.

The importer clearing the goods for domestic consumption has to file bill of entry in four copies; original and duplicate are meant for customs, third copy for the importer and the fourth copy is meant for the bank for making remittances.

Kochi Customs

[email protected]
Ph : 0484-2666328, 2666422, 2666778, 2666774 to 2666776

O/o The Joint Director General of Foreign Trade
5th Floor, A-Block, Kendriya Bhawan,
Kakkanad, Cochin – 682 037
TeleFax No. 0484-2427069
EPABX No. 0484-2426378/2427397
e-mail addres: [email protected]

Thanks for sharing....
many people don't know their legal rights.

The Consumer Protection Act, 1986

The Act (applicable in India) ensures consumer rights - right to know, right to safety, right to be heard, right to choose etc. We are all from one time to another is a consumer. A person who avails service/goods on payment of money is a consumer. If one doesn't get the assured quality/quantity, he may approach the District level Consumer redressal forums to get compensation.

Legal Metrology (Packaged Commodities) Rules, 2011 ensures the consumer rights by enforcing mandatory labeling on packages.