With the FSS Act, 2006, and its tardy implementation across the country coming under fire from various sections of the industry, Nagendra Bhargava, chairman, The Midland Fruit & Vegetable Products (I) Pvt Ltd, and former chairman, the Processed Food Export Promotion Council [replaced by the Agricultural and Processed Food Products Export Development Authority (APEDA)], has come out with some suggestions to make the enforcement better.
For example, The Act defines food as any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food (an article of food, being a produce of agriculture or horticulture or aquaculture in its natural form, resulting from the growing, raising, cultivation, picking, harvesting, collection in the hands of a person other than a farmer) including water used into the food during its manufacture, preparation or treatment.
According to Bhargava, the FSSAI should exclude primary foods from this bracket.
This is because all primary foods are sold in the mandis and the sales are made on cash basis and are unrecorded and unbilled.
Is it practical for any commission agent; wholesaler or sub-wholesaler to ensure that the retailer; hawker or rediwala who is buying from him has a valid licence or registration number?
Water, another important clause in the definition, would need an in-depth analysis. Probably a separate standard would be needed for water alone given the complex water supply structure the country currently has.
Bhargava explains: Take the example of Delhi Jal Board under the Delhi Government which sells water to all those engaged in food business operations. An advisory to the Delhi Jal Board would be needed to obtain a licence needed for supplying water for food businesses. The same holds true for all metropolitan towns, cities and union territories where municipal corporations supply water.
Time limit for conversion of existing licence
There is no time limit for conversion of existing licence after submission of application for conversion. A time frame for issuance of converted licences needs to be specified.
Though the Act says that a licence shall, subject to the provisions of these Regulations, be issued by the concerned licensing authority within a period of 60 days from the date of issue of an application ID number, but whether it is applicable for conversion of licences also and whether the deadline is being adhered to by the Authority?
Validity and renewal of Licence/Registration (Reg 2.1.7)
It stipulates that “Registration or Licence granted under this regulation can be valid for a period of 1 to 5 years as chosen by the FBO, from the date of issue of licence.”
Bhargava suggests: Validity of licence or registration should be from FY April 1 to March 31 or calendar year January 1 to December 31.
The FSSR mentions, “No license fee will have to be paid for the remaining period of the validity of the earlier licence or registration granted under any of the said Acts or Orders.”
An erstwhile FPO licence which is valid up to 31.12.2012 when applied for conversion together with 1 year licence fee on 13.03.2012 has been issued valid till 13.03.2013. Whereas, it should have been valid till 31.12.2013 as no licence fee was payable till 31.12.2012 (Regulation 2.1.2(1).
Reg 2.1.2(1) of Chapter-2 of Licensing and Registration of Food Business
This rule says that no person shall commence any food business unless he possesses a valid licence.
It stipulates, “Non-compliance with this provision by a FBO will attract penalty under Sec-55 of the Act.”
Bhargava points out a probable technical error in this clause and has asked the FSSAI to re-examine this clause. According to him, it should be Section-63 and not Section-55. Section 55 talks about “Penalty for failure to comply with the directions of Food Safety Officer” while Section 63 talks about “Punishment for carrying out a business without licence.”
Condition of Licence (Annex 3 of Reg)
It stipulates, “All FBOs shall ensure that all 14 stipulated conditions are complied with at all times during the course of food business.”
Bhargava suggests: Conditions No 4 to 12 of this Annexure cannot be complied with by re-labellers, importers, storage/warehouse/cold storage, retail trade, wholesale trade, distributors/suppliers and transporters.
Hence, they should be exempted.
Condition of Licence (Condition – 14 of Annex 3 of Reg)
Every Food Business Operator is to take either a licence (Central or state) or registration from the local Authority as the case may be, depending on the type of business and turnover.
The manufacturer; importer or distributor shall buy and sell food products only from OR to licensed/ registered vendors and maintain record thereof.
Bhargava says: There are more than five crore Food Business Operators in the country. Issuance of licence to them by the Central Licensing Authority or State Licensing Authority may not be completed by August 5, 2012.
He cites the example of Delhi’s licensing authority. On being contacted, it informed that it was yet to develop infrastructure, only then licence / registration applications would be entertained.
“It is, therefore, essential that to comply with the Condition No 14 for licence the date be deferred by at least another one year,” says Bhargava.
Transfer of registration certificate or licence in case of death (Reg 2.1.11)
There is no clear procedure defined for transfer of licences. For example, in the event of the holder of Registration Certificate or licence not having any legal representative or any family member and if he wants to retire by selling of the business to some other entity, what is the procedure to be adopted for transfer?
Display of Licence on the Label [Packaging & Labeling Reg 2.2.1.(7)]
As per Draft Notification dated December 29, 2011, mentioning of licence number on the label is mandatory. Final notification is yet to come.
Bhargava has asked the authority to advise whether display of registration number on the label is mandatory?
For example, The Act defines food as any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food (an article of food, being a produce of agriculture or horticulture or aquaculture in its natural form, resulting from the growing, raising, cultivation, picking, harvesting, collection in the hands of a person other than a farmer) including water used into the food during its manufacture, preparation or treatment.
According to Bhargava, the FSSAI should exclude primary foods from this bracket.
This is because all primary foods are sold in the mandis and the sales are made on cash basis and are unrecorded and unbilled.
Is it practical for any commission agent; wholesaler or sub-wholesaler to ensure that the retailer; hawker or rediwala who is buying from him has a valid licence or registration number?
Water, another important clause in the definition, would need an in-depth analysis. Probably a separate standard would be needed for water alone given the complex water supply structure the country currently has.
Bhargava explains: Take the example of Delhi Jal Board under the Delhi Government which sells water to all those engaged in food business operations. An advisory to the Delhi Jal Board would be needed to obtain a licence needed for supplying water for food businesses. The same holds true for all metropolitan towns, cities and union territories where municipal corporations supply water.
Time limit for conversion of existing licence
There is no time limit for conversion of existing licence after submission of application for conversion. A time frame for issuance of converted licences needs to be specified.
Though the Act says that a licence shall, subject to the provisions of these Regulations, be issued by the concerned licensing authority within a period of 60 days from the date of issue of an application ID number, but whether it is applicable for conversion of licences also and whether the deadline is being adhered to by the Authority?
Validity and renewal of Licence/Registration (Reg 2.1.7)
It stipulates that “Registration or Licence granted under this regulation can be valid for a period of 1 to 5 years as chosen by the FBO, from the date of issue of licence.”
Bhargava suggests: Validity of licence or registration should be from FY April 1 to March 31 or calendar year January 1 to December 31.
The FSSR mentions, “No license fee will have to be paid for the remaining period of the validity of the earlier licence or registration granted under any of the said Acts or Orders.”
An erstwhile FPO licence which is valid up to 31.12.2012 when applied for conversion together with 1 year licence fee on 13.03.2012 has been issued valid till 13.03.2013. Whereas, it should have been valid till 31.12.2013 as no licence fee was payable till 31.12.2012 (Regulation 2.1.2(1).
Reg 2.1.2(1) of Chapter-2 of Licensing and Registration of Food Business
This rule says that no person shall commence any food business unless he possesses a valid licence.
It stipulates, “Non-compliance with this provision by a FBO will attract penalty under Sec-55 of the Act.”
Bhargava points out a probable technical error in this clause and has asked the FSSAI to re-examine this clause. According to him, it should be Section-63 and not Section-55. Section 55 talks about “Penalty for failure to comply with the directions of Food Safety Officer” while Section 63 talks about “Punishment for carrying out a business without licence.”
Condition of Licence (Annex 3 of Reg)
It stipulates, “All FBOs shall ensure that all 14 stipulated conditions are complied with at all times during the course of food business.”
Bhargava suggests: Conditions No 4 to 12 of this Annexure cannot be complied with by re-labellers, importers, storage/warehouse/cold storage, retail trade, wholesale trade, distributors/suppliers and transporters.
Hence, they should be exempted.
Condition of Licence (Condition – 14 of Annex 3 of Reg)
Every Food Business Operator is to take either a licence (Central or state) or registration from the local Authority as the case may be, depending on the type of business and turnover.
The manufacturer; importer or distributor shall buy and sell food products only from OR to licensed/ registered vendors and maintain record thereof.
Bhargava says: There are more than five crore Food Business Operators in the country. Issuance of licence to them by the Central Licensing Authority or State Licensing Authority may not be completed by August 5, 2012.
He cites the example of Delhi’s licensing authority. On being contacted, it informed that it was yet to develop infrastructure, only then licence / registration applications would be entertained.
“It is, therefore, essential that to comply with the Condition No 14 for licence the date be deferred by at least another one year,” says Bhargava.
Transfer of registration certificate or licence in case of death (Reg 2.1.11)
There is no clear procedure defined for transfer of licences. For example, in the event of the holder of Registration Certificate or licence not having any legal representative or any family member and if he wants to retire by selling of the business to some other entity, what is the procedure to be adopted for transfer?
Display of Licence on the Label [Packaging & Labeling Reg 2.2.1.(7)]
As per Draft Notification dated December 29, 2011, mentioning of licence number on the label is mandatory. Final notification is yet to come.
Bhargava has asked the authority to advise whether display of registration number on the label is mandatory?
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