Article begins:
The Central government of India recently submitted to the Delhi High Court that all e-commerce entities must ensure the mandatory declaration of the ‘country of origin’ for any imported goods they sell. This legislation is a part of the Consumer Protection Act 2019, which requires e-commerce entities to display the ‘country of origin’.
Background of the Affidavit
This affidavit was a response to a Public Interest Litigation (PIL) that sought directives to the Centre to ensure that the manufacturing country’s name is displayed on products sold on e-commerce websites. The petitioner asked for the implementation of the Legal Metrology Act of 2009 and the Legal Metrology (Packaged Commodities) Rules of 2011. Both laws mandate that the ‘country of origin’ be displayed on products offered by e-commerce websites.
The Role of State and Union Territory Governments
The enforcement of the Act and Rules mentioned above falls under the jurisdiction of the State and Union Territory governments. The petitioner argues that enforcing these laws aligns with the current ‘Vocal for Local’ and ‘Atma Nirbhar’ movements pushed by the Indian government.
Previous Mandates by the Central Government
In addition to this, the Central government has previously mandated that all sellers on the Government e-Marketplace (GeM) must state the Country of Origin when registering new products. The GeM is a platform specifically designed for public procurement.
The Dilemma of E-commerce Entities
E-commerce entities typically operate under a ‘marketplace-based’ business model where they act as intermediaries. In other words, they offer their technology platform to third-party sellers to connect with potential consumers. Conversely, an ‘inventory-based’ model sees entities selling goods or services from their own inventory. E-commerce platforms say that they have made provisions for a ‘country of origin’ data field, giving sellers the option to fill it when listing a new product. However, it isn’t a requirement as the law doesn’t mandate the declaration of the ‘country of origin/manufacture/assembly’, for India-manufactured goods.
Complexities in Defining the ‘Country of Origin’
Determining the ‘country of origin’ can be complicated when finished goods sourced from various countries are packed together or assembled in a third country before being shipped to India. It isn’t evident whether the rules mean that the last country to export the goods should be declared as the ‘country of origin’. This could only be confirmed if the current law is either modified or expressly clarified.