Benefits of a Legal Metrology License in India

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Benefits of a Legal Metrology License in India

A legal metrology license is a way to stop businesses from misleading customers. This license acts to protect the rights of the consumer and safeguards them against unfair trade practices by implementing transparent labelling. Also, the businesses must follow the set guidelines of legal metrology. All of this benefits the businesses and customers as well. In this article, the benefits of an LMPC license are shared.

What is a Legal Metrology License?

The LMPC is an important license that all manufacturers or importers of packaged commodities in India require. However, the import commodities must confirm the rules and regulations of the Legal Metrology Act, 2009 and Legal Metrology (Packaged Commodities) Rules, 2011.

As per rule 11 of the LMPC, 2011, any importer who is engaged in pre-packaging the commodities for sale or distribution must have an importer license. Mostly the manufacturer and seller of the commodity are the same. 

Who Needs an LMPC License?

In India, the Legal Metrology Packaged Commodities (LMPC) license is mandatory for several businesses that are involved in the trade and packaging of pre-packaged commodities. 

• Manufacturers: Any entity that produces, processes, packages, labels or re-rebels the products. Examples are food producers, pharmaceutical companies, cosmetic brands, etc.
• Importers: Commodities imported to India for sale and distribution require a license but the products must comply with the Indian legal metrology standards.
• Packers and Labelers: If you only pack or label the products without the manufacturing, then also you need an LMPC license. This is for the companies that provide services on a contract basis.
• Distributors and Traders: Some states mandate an LMPC license for businesses involved in selling and distributing pre-packed commodities.
• Exemption: Pre-packaged commodities such as agricultural produce directly from farms or unpackaged goods for personal use don’t require an LMPC license.

Why Legal Metrology Certificate is Important?

The LMPC license is crucial for fair trade, consumer protection, and economic growth in India. Below are some other benefits of legal metrology:

Reduce Transaction Costs

• Through license, the conflict between the buyer and seller on inaccurate measurements gets reduced. As they have the standardised weights and measurement instruments. This also reduces the cost of legal procedures and settlements.
• Accurate labelling and packaging on the products eliminates the chances of misleading the customer or overcharging the prices. So, no refunds or chargeback saves the transactional cost for both consumers and businesses.

Saves Time

• Streamline process of measurement, saves time and resources as compared to the inconsistent and disputed methods.
• Right and transparent information on labels and packaging reduces the inquiries and clarifications from customers.

Increased Customer Trust

• The customers purchase products that are approved by the legal authorities or follow a certain set of guidelines and standards. So, while applying for the legal metrology certificate, your products need to go through product tests, that increase the trust of customers in a brand.
• Better inventory management and resource allocation because of fixed pricing.

Reduced Technical Obstacles

• Adopting technologies like digital scales, and online product registration is included in the legal metrology regulations. This helps in reducing manual errors, simply data management, and increasing technical efficiency.
• Now, a farmer can measure the produce accurately at a local market through the government-provided calibrated scale, and show the right quantity without error. dispute.

Increased Government Revenue

• The process of packaging, measurement and standardization is harder, so the businesses cannot declare wrong quantities or include in wrong practices. This leads to a more accurate tax assessment and reduces tax evasion.
• For non-compliance of regulations, the government take penalties that boost their revenue.

Important Guidelines to Follow for LMPC Certificate

Below are the rules that manufacturers and importers are required to follow to register their businesses. As per Section 47 of the Standing of Weights and Measures Act, 1976, guidelines are provided for the measurement of weight.

• Pay a fee for registration of one hundred rupees to the “Pay and Accounts officer” at the Department of Consumer Affairs in New Delhi.
• The General Rules list the objects that measure or weigh under the LMPC Act. Only these items require registration. 
• The Controller of Legal Metrology must return the application within seven days if there is any incomplete information.
• After ten days of receiving the application, the Controller is obligated to provide the LMPC certificate to the applicant.

Conclusion

The license of legal metrology must be obtained by every manufacturer, seller, and importer of pre-packaged commodities. After obtaining the license, you must follow the standards such as weights, volumes, and units used on packaged goods. The information used on products must be accurate and transparent to get the trust of customers and also fulfil the regulations.

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