Suppose your proposed business idea involves you importing pre-packaged products from a foreign land(s) for its sales and distribution in the country. In that case, you must obtain legal approval from the Department of Legal Metrology. This legal approval is known as the Import license. The Legal Metrology Department issues the required LMPC (Legal Metrology Pre-packaged Commodities) Certificate for the necessary importer license. The Department also observes strict vigilance on the Importer license holders to see whether they follow the regulations defined in the LMPC rules and submit the required compliances periodically to the authorities. We have discussed some of these regulations in this article, so read carefully.
Importer License Compliances
No importer must sell, distribute, deliver, display or store for sale any commodity in the packaged form unless the package complies with in all respects with the provisions of the LMPC Act and rules.
Retail Pricing of the Commodity
No importer must make any sale of any commodity in the packed form at a price exceeding the retail sale price. After the importer pre-packs the commodity for sale, he must revise the tax payable in relation to such commodity. Also, the importer must not make any sale of a such commodity at a price exceeding the revised retail sale price. The importer must communicate the revised rates to the manufacturer or the packer where the manufacturer is not the packer but the packer.
It must be the duty of the manufacturer or packer to indicate by not less than two advertisements in one or more newspapers and also by the circulation of notices to the dealers and the Director in the Central Government and Controllers of Legal Metrology in the States and Union Territories, the revised prices of such packages. Still, the difference between the price marked on the package and the revised price must not be higher than the extent of the increase in the tax. Also, they must contain the difference in the imposition of a fresh tax more elevated than the new tax.
Also Read: Trademark Infringement
The publication in any newspaper of such revised price must not be necessary. It is not necessary where such revision is due to an increase in, imposition, or tax payable under any State laws.
Exceptions to Rate Revisions
The importer must not charge any revised prices in relation to any packages. The only exception is packaged with marking indicating that the manufacturers pre-packed them in the month. The importer can charge if one revises such taxes or imposes a fresh tax. Or in the month immediately following the month aforesaid.
The revised prices must be lower than the price marked on the package. The retail dealer or another person must not charge any price in excess of the revised price. This must be irrespective of the month the manufacturer pre-packed the commodity.
Price Alteration of a Packaged Commodity
No wholesale, retail, or other people must obliterate, smudge, or alter the retail sale price. The importer must indicate, as the case may be, on the package or the label affixed. The importer must not alter the price on the wrapper once printed and used for packing.
Also Read: Insurance Web Aggregator: Renewal of Registration
Importer License: Metrological Accuracy
All importers must maintain an electronic weighing machine of some accuracy. The Department of Legal Metrology must cover such importers under the Value Added Tax VAT or Turn Over Tax (TOT). Also, they must deal in packaged commodities whose net content declaration is by weight, volume, or combination. This accuracy must be with the minor division of at least 1g, with the facility to issue a printed receipt. This receipt must indicate the gross quantity and price at a prominent place in their retail premises to benefit consumers. Then, the consumers can check the weight of their packaged commodities purchased from the shop on such a machine.
