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Notification on alcohol; Rs 100 cr. imported liquor stuck with Customs
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Saturday, 30 August, 2014, 08 : 00 AM [IST]
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Abhitash Singh, Mumbai
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fiogf49gjkf0d Even before the onset of the festive season, when the demand for alcohol peaks, importers and distributors of wines and liquors in the country are running 40 to 50 per cent out of stock as 100 containers of these beverages worth Rs 100 crore are stuck with the Customs.
In this regard, possible roadblock for them is a July 15, 2014, notification by Food Safety and Standards Authority of India (FSSAI) issued further to regulations that make it mandatory for all foods and alcoholic beverages in the country to mention on their labels all ingredients used either in English or Devnagri.
The notification applies to alcoholic beverages containing additives including colour, water, and preservatives. They need to carry labels mentioning the details of ingredients.
But most importers and distributors are finding it difficult to adhere to the notification as they cannot insist on the manufacturers to provide them detailed labelling, India being a small market for them. The result being importers and distributors are faced with consignments that are either stuck or rejected and mounting losses as they are not able to cash in on the festive demand.
A source from Mumbai-based Fine Wines n More India, on the condition of anonymity, lists out their difficulties, “All my global imports have halted. I was to get shipments from Argentina, Chile and Germany but we have had to put everything on hold because there is ambiguity and confusion on the new labelling norms by FSSAI.”
He adds, “The new rules which have been enforced by the food regulator require manufacturers to have labels in English or Hindi that list all ingredients. One of my shipments have been rejected for mentioning “Prodotto d’Italia” instead of “Product of Italy” and scotch whisky bottles were stopped at the Customs for not listing malted grain, water and yeast as ingredients.”
The source opines, “It will be very difficult to do business and import whisky and wines, if the dispute between FSSAI and alcohol importers, is not resolved.”
Meanwhile, Sanjay Dave, director (enforcement and surveillance), and advisor, FSSAI, explains the regulator’s point of view, “The FSSAI labelling regulations came into existence in August 2011 but were enforced in March 2014. And these regulations are in line with international norms.”
But reluctantly admits, “Yes, some of the rules are intricate. But some of the requirements have also been suspended like now there is no need for sticker mentioning veg or non-veg on alcohol.”
He adds, “And these rules are not only for foreign counterparts but also applicable for Indian alcohol manufacturers, so there is no discrimination.”
While Dave defends the notification, Aashish Kasbekar, specialist in clearing alcohol consignments through Indian Customs, points out, “In Mid-May and June, the issue which cropped up was about mentioning the list of ingredients on whisky, rum, wine and other alcoholic beverages.”
He explains, “Now due to these norms, importers are facing lots of problems. There stocks have been stuck at the Customs.”
He reasons, “The issue is that FSSAI has brought strict norms. Suppose a product named Cognac has been imported, which is Scotland brandy, the FSSAI will reject it on the ground that they don't identify Cognac, and hence, the shipment is kept on hold. Same way, the food authority says that they don't know what Tequila is and therefore manufacturers will have to explain in detail what it means.”
He states, “Importers are losing hope and FSSAI is very rigid and will not relax the norms further. So in the days to come the problem remains for alcohol importers and manufacturers.”
When asked how many shipments were on hold at the Customs, Kasbekar sums up, “Volume-wise there are around 100 containers and each container contains 700-800 cases. It means 7 lakh bottles of whisky, wine and other alcoholic beverages costing more than Rs 100 crore are stuck in Customs due to the strict norms and regulations by FSSAI.”
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