FSSAI Introduces a new Kind of Business (KoB) for Direct Sellers under FoSCoS.

The Food Safety and Standards Authority of India (FSSAI) on July 16th 2024 issued a notification regarding the introduction of a new Kind of Business (KoB) for Direct Sellers under FoSCoS.

A new Kind of Business (KoB) in FoSCoS for Direct Sellers has ben introduced to differentiate between a Retailer and a Direct Seller.

A Direct Seller is someone who is appointed or authorized, either directly or indirectly, by a Direct Selling Entity through a legally binding written contract. This person carries out direct selling activities on a principal-to-principal basis, as defined by the Consumer Protection Act 2019 and the Direct Selling Rules 2021, including any later amendments.

Principal-to-Principal Basis: This indicates that the Direct Seller operates as an independent business entity, rather than as an employee of the Direct Selling Entity.

Eligibility:

  1.  Registration: Annual Turnover up to Rs.12 Lakhs
  2. State License: Annual Turnover more than Rs.12 Lakhs and up to Rs.20 Crore
  3. Central License: Annual Turnover more than Rs.20 Crore

Food Categories (FC) allowed:

  1. Dairy products and analogues (excluding products of food category 2.0): This includes milk, cheese, yogurt, and similar products that are derived from dairy, but excludes any specific items listed under category 2.0.
  2. Fats and oils, and fat emulsions: This category includes products like butter, margarine, vegetable oils, and any mixtures or emulsions made primarily from fats and oils.
  3. Cereals and cereal products: This includes products derived from cereal grains (like wheat, rice, barley), roots and tubers (like potatoes), pulses (like lentils and chickpeas), legumes, and the pith or soft core of palm trees. It excludes bakery wares (like bread, cakes, pastries) that fall under food category 7.0.
  4. Bakery products: This encompasses all types of baked goods, such as bread, cakes, pastries, cookies, and similar items.
  5. Salts, spices, soups, sauces, salads, and protein products: This category includes table salt, various spices and seasonings, prepared soups, sauces and dressings, salads (both vegetable and other types), and products that are primarily protein-based (like tofu, meat substitutes, etc.).
  6. Foodstuffs intended for particular nutritional uses: Specifically includes subcategories 13.1 (infant formulae), 13.5 (dietary foods for special medical purposes), and 13.6 (dietary foods for weight control).
  7.  Beverages, excluding dairy products: This includes all types of drinks such as water, juice, soda, tea, coffee, alcoholic beverages, and other non-dairy liquid refreshments.
  8. Ready to eat savouries: This category includes snack foods that are typically savory rather than sweet, such as chips, pretzels, popcorn, and other similar items that are ready for immediate consumption.
  9. Prepared foods: This includes foods that have been pre-cooked or pre-prepared and are ready for consumption with little to no additional cooking required. Examples include frozen meals, pre-packaged salads, and canned soups.
  10. Indian Sweets and Indian Snacks and Savouries products: This category includes traditional Indian confectioneries and snack items. Examples of Indian sweets include ladoo, jalebi, and gulab jamun, while Indian snacks and savouries include items like samosas, pakoras, and bhujia.

Products falling under Food Category restricted for sale or marketing or distribution or promotion by Direct Sellers under IMS Act,1992 and FSS Act, Rules and Regulations:

  1. 13.1 – Infant formulae –Infant milk formula, Soy-based infant formula, Hydrolyzed protein infant formula
  2. 13.2 – Follow-up formulae –Follow-up milk formula, Follow-up soy-based formula
  3. 13.3 – Formulae for special medical purposes for infants-Hypoallergenic infant formula, Lactose-free infant formula, Anti-reflux infant formula, Preterm infant formula, Amino acid-based formula

Details with regard to documents required for Registration/Licensing and Annual Fees for License/Registration is mentioned in the notification.

This notification will come into effect from July 10th 2024

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