Govt likely to make packaging norms stiff for importers

In a move to save the domestic industries from the onslaught of increasing imports, the government is likely to come out with a stiff packaging norms for import of all packaged goods into the country.

From April 2009, the government is expected to make rules, which will make it a binding on the exporters of packaged goods to India to send the consignment only after packaging them, according to sources.

At present, Indian importers can do packaging after arrival of goods at ports under the Standard of Weights and Measures (Packaged Commodities) Rules, 1977.

Accordingly, importers keep the goods in a Customs-bounded area and comply with the provisions like labelling, after which the packaged goods are cleared by the officials.

The sources said the move was aimed at preventing dumping of cheap goods into India, causing damage to domestic industries, which was facing demand slowdown and was forced to resort to production cuts.

The government is worried over the impact of dumping on the growth of domestic industry and its adverse impact on the employment scenario. With the government disallowing unpackaged goods, subject to provisions of Standard of Weights and Measures (Packaged Commodities) Rules, 1977, the landed cost of imported goods would increase, thus improving their competitiveness with domestic industry.

India's imports have gone up from $112 billion in 2004-05 to $251 billion in 2007-08. Imports in October were valued at $23.3 billion, an increase of 10.6 per cent over the imports of $21.12 billion in the same month last year.

The second stimulus package being worked upon by the government at the highest level is also intended to "ring-fence" the Indian industry from cheap imports, especially from China.