By Rupin Chopra and Vidhi Oberoi
Duty free shopping has been a traveler’s delight, offering an array of products at potentially reduced prices. Yet, amid the attraction of duty-free goods, understanding the labelling norms governing duty free products is crucial. In India, the labelling norms for imported products are governed by the Legal Metrology Act, 2009[1] and the Legal Metrology (Packaged Commodities) Rules, 2011[2], while the Food Safety and Standards (Food Import) Regulations, 2016[3] provide the labelling norms for imported food products, thereby ensuring compliance with international regulations while maintaining consumer trust and transparency. These regulations play a pivotal role in ensuring that imported products meet the required standards, providing the consumers with confidence in the authenticity and quality of their purchases. In this article we will delve into the whether these labelling norms are applicable on the duty free products.
Whether the labelling norms are applicable on the duty free products?
Although the Legal Metrology Act, 2009, the Legal Metrology (Packaged Commodities) Rules, 2011 and the Food Safety and Standards (Import) Regulations, 2017 provide the labelling norms for imported products.
But duty-free products are exempted from these requirements. As goods sold in duty free shops are intended for consumption outside the country where they are purchased and they are not subject to the same labelling mandates as products designed for domestic markets.
Similarly, the Food Safety and Standards Authority of India (FSSAI) released a notification dated June 3, 2016, wherein it had clarified that the Food Safety and Standards (Import) Regulations, 2017 will not be applicable on the duty free shops.
In one of the recent development, the Hon’ble Calcutta High Court has reaffirmed the stand in the case of M/S. Flemingo Duty Free Shops Pvt. Ltd. & Ors. Vs Shri Kaushik Bhattacharya & Anr.[4] In the present case, the legal metrology inspector as part of the inspection program entered the premises of the petitioner and inspected the Marlboro Filter Cigarettes (hereinafter referred to as “product”) for inspection. During the course of inspection, it was found that the certain mandatory declarations required to be made under the Legal Metrology (Packaged Commodities) Rules, 2011 were missing on the product. The inspector initiated proceedings against the petitioner under Legal Metrology (Packaged Commodities) Rules, 2011 and the Legal Metrology Act, 2009.
The Hon’ble Calcutta High Court in the present case held that the Legal Metrology (Packaged Commodities) Rules, 2011 and Legal Metrology Act, 2009 are applicable to the whole of India.
However, since the duty free shops operating in the airports are out of the customs frontier of the country, therefore, the products being sold in such shops are exempted from the labelling requirement under the Legal Metrology (Packaged Commodities) Rules, 2011 and Legal Metrology Act, 2009.
Conclusion
In conclusion, India’s labelling norms regulated by the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules, 2011 and Food Safety and Standards (Import) Regulations, 2017 serve as essential safeguards for consumer right, providing important information on product contents, origin and safety. However, duty free shops, are exempted from the stringent labelling requirement, typically imposed on consumer products, as they are beyond the customs frontier of the country. This exemption poses challenge, as duty free shops deal with wide array of products, including consumables, where labelling is crucial for consumer awareness and protection. Therefore, the policy makers should address these loopholes by either extending labelling regulations to duty free shops or implementing alternative measures to ensure consumers receive adequate information.
Ritvik Kashyap , Intern at S.S. Rana & Co. has assisted in the research of this article.
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[1] Available at: https://www.indiacode.nic.in/bitstream/123456789/4892/1/legalmetrology_act_2009.pdf
[2] Available at: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/8.pdf
[3] Available at: https://www.fssai.gov.in/upload/uploadfiles/files/Compendium_Food_Import_Regulations_26_04_2018.pdf
[4] CRR 819 of 2019