Packaged Commodities Rules

Amendments incorporated

Provisions of Legal Metrology Act 2009 regarding Packaged Commodities

Section 2(l) of the Legal Metrology Act, 2009 defines "pre-packaged commodity" as a commodity which without the purchaser being present is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre-determined quantity.

It shall be illegal to manufacture, pack, sell, import, distribute, deliver, offer, expose or possess for sale any pre-packaged commodity unless the package is in such standard quantities or number and bears thereon such declarations and particulars in such manner as may be prescribed.
[Section 18 (1)]

It is required that any advertisement mentioning the retail sale price of a pre-packaged commodity shall also contain a declaration as to the net quantity or number of the commodity contained in the package.
[Section 18(2)]

It shall be punishable if any pre-packaged commodity with error in net quantity as prescribed in the Legal Metrology (Packaged Commodities) Rules, 2011.
[Section 36(2)]

View the provisions relating to Net Content in a package

The manner and form of declaration is prescribed in the Legal Metrology (Packaged Commodities) Rules, 2011 made under section 18 of the LM Act with effect from the 1st April 2011.

An overview of the Legal Metrology (Packaged Commodities) Rules, 2011

Important Definitions

Maximum permissible error

Error in deficiency in the quantity contained in an individual package, permissible up to the limit specified in the First Schedule

Net Quantity

Commodity contained in a package, means the quantity by weight, measure or number of such commodity contained in that package, excluding the packaging or wrapper.

Principal Display Panel

the total surface area of the package where the information required under these are grouped together and given at one place; or where the pre-printed information are grouped together and given in one place and on line information grouped together in other place;

Retail Sale Price

The maximum price at which the commodity in packaged form may be sold to the consumer. The manner of declaring MRP will be 'Maximum or Max. retail price Rs/ .......inclusive of all taxes or in the form MRP Rs/ .........incl., of all taxes after taking into account the fraction of less than fifty paisa to be rounded off to the preceding rupees and fraction of above 50 paise and up to 95 paise to the rounded off to fifty paise;

Items Exempted from the provisions of the Packaged Commodities Rule.

Rule 26

Packages containing

Chapter II: Applicable to packages intended for retail sale

Rule 3: The provisions of Chapter II [Rules 4 to 23] will not be applicable in following cases:-

Rule 4 and 6: Pre-packages must bear specified declarations

Pre-packed Commodity for sale, distribution or delivery must bear thereon or on a label securely affixed thereto, the following declarations:

  1. 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.
  2. 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. 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.
  4. 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;
  5. the month and year in which the commodity is manufactured or pre-packed or imported.
  6. the retail sale price of the package
  7. where the sizes of the commodity contained in the 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 each such different piece.

Important Exceptions

    For packages containing food articles,
  • Clause 1 will be replaced by provisions of Food Safety and Standards (Packaging and labelling) Regulations, 2011.
  • Clause 5 will be replaced by provisions of Food Safety and Standards (Packaging and labelling) Regulations, 2011.
    • For packages containing cosmetic products, instead of clause 5, the provisions of the Drugs and Cosmetic Rules, 1945 shall apply.
  • The declaration regarding retail sale price of alcoholic or spirituous liquor, will be as per Laws of the state of origin. In case of no such laws in that state, the provisions of Clause 6 will apply.

How to declare Retail Sale Price -

The price should be printed on the package in the manner "'Maximum or Max. retail price Rs.......inclusive of all taxes or MRP Rs/.........incl., of all taxes."

The fraction of less than fifty paise to be rounded off to the preceding rupees and fraction of above 50 paise and up to 95 paise to the rounded off to fifty paise. However, it is permitted to write 96 to 99 paise without any rounding.

Stamping, on-line printing or putting stickers are permitted to declare MRP in the prescribed format up to 31.03.2012 in cases where packaging materials already printed are not exhausted.

Added provisions

Rule 6(B): Stock of label depleted or saved?

  • When any packaging material carrying the month of packing does not exhaust in that month, the leftovers may be used in the next month. Using them beyond that will require the permission from the Director.
  • When any packaging material is exhausted before the expiry of the month printed thereon, the stock for the next month may be used.
  • The 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.

IMPORTANT PROVISIOS

  • In case of food articles, the name of manufacturer etc. and month and year shall follow the provisions of Prevention of Food Adulteration Act, 1954 and Rules made thereunder. Proviso to Rule 6(1)(d)
  • The declaration regarding month and year of manufacture etc. shall not apply in case of packages containing seeds which are labeled and certified under the provisions of the Seeds Act, 1966 and the rules made there under. Proviso to Rule 6(1)(d)
  • In case of cosmetic products, the provision of the Drug and Cosmetic Rules, 1945 shall apply. Proviso to Rule 6(1)(d)
  • A manufacturer may indicate the month and year using a rubber stamp without overwriting. Proviso to Rule 6(1)(d). However, this proviso will stand deleted from 01.07.2012 vide 3rd amendment.
  • Specific commodities will be packed for sale in specific quantities
    as described in the Second Schedule. [Rule 5]

Making Statutory Declarations

  • All the information could be grouped together and given at one place on the surface of the package [Rule 2(h)(i)]
  • The pre-printed information could be grouped together and given in one place and on line information grouped together in other place. [Rule 2(h)(ii)], i.e. on the Principal Display Panel.
  • If a commodities is packed in a size not prescribed in the Second Schedule, a declaration that
    'Not a standard OR non-standard pack size under the Legal Metrology (Packaged Commodities) Rules, 2011' shall be made prominently on the label of the package. [Proviso to Rule 5].
    However, the proviso for making non-standard packages will be withdrawn from 01.07.2012 vide third amendment.

Declarations - how to be made

Retailers / Wholesalers / Importers / Manufacturers / Packers

  • 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. Rule 18(1)
  • 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. Rule 18(2)
  • No 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. Rule 18(5)
  • The manufacturer or packer or the importer shall not alter the price on the wrapper once printed and used. Rule 18 (6)
  • 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 a electronic weighing machine of at least accuracy class III, with smallest division of at least 1 g, 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. The consumers may check the weight of their packaged commodities purchased from the shop on such balances. Rule 18 (7)

Manufacturers / Packers

should note that

Rule 27: Manufacturer, Packer and Importer need to be Registered

Any one who pre-packs or imports any commodity for sale is required to be registered within 30 days of commencement of pre-packing or importing.

  • Registration will be done by the Director or Controller of Legal Metrology of the State.
  • The fee for registration is Rs. 500.
  • The application should be made in the prescribed format.
  • It is advisable to enclose a replica of label to be used with the application so that the authority may point out error, if any.

Download Format for application

Regulation on advertisement

Any advertisement where the sales price of the packaged commodities is mentioned, a declaration in the net content of the package should also be mentioned in the same font-size.

Who may be held responsible for any breach of Rules
  • Director of a company nominated under section 49(2) of the LM Act, 2009 [section 49(1)(a) (i)]
  • When no person is nominated under section 49(2), every person who at the time the offense was committed was in charge of and was responsible to the company for conduct of business of the company. [section 49(1)(a)(ii)]
  • Any director, manager or any other officer (even if not nominated) whose consent, connivance or negligence led to the offense. [section 49(4)]
  • the company itself. [section 49(1)(b)]
  • Under Rule 4 - the Packer.
  • Under Rule 18(1) - importers, wholesalers and retailers.

Penal Provisions

Offense Penalty / Fine
Violation of Rule 27 (Registration) Rs. 4000
Violation of Rule 32 (Advertisement) Rs. 4000
Violation of any other Rule. Rs. 2000
Violation of Section 18 of the LM Act, 2009 As may be determined under Section 36

Homeopathy Medicines etc. covered under the Rules

Order No: WM-26(1)/2007 dated 05.06.2007 of Department of CA, GOI

Medicines / Drugs containing scheduled formulations and non-scheduled formulations covered under the Drugs (Price Control) Order,1995 made under section 3 of the Essential Commodities Act, are exempted from the purview of the PC Rules. But, Homeopathy, Unani, Sidha and Ayurvedic systems of medicine are not covered under the DCPO 1995. So, such medicines have to comply with the provisions of the Rules.

CBEC Notification on application of Packaged Commodities Rules on imported items.

Circular No. 21/2008-Customs dated 18.12.2008 of the Central Board of Excise & Customs reiterates that the provisions of SoWM (PC) Rules, 1977 will be applicable to imported items.

View the circular