Rules 1 and 3 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 1 gives the short title and the start date of the Packaged Commodities Rules. Rule 3 says which packages Chapter II, the chapter that carries the retail declaration rules, does not apply to: very large packages, certain bulk bags and packages meant for industrial or institutional consumers. Rule 3 has been rewritten more than once, so the version in force matters. The text we use is as amended up to G.S.R. 226(E) of 28 March 2022; later amendments are not in it, so check them.
The Rules were made on 7 March 2011 (G.S.R. 202(E)) and came into force on 1 April 2011. Under rule 3 (as substituted with effect from 1 January 2018), Chapter II does not apply to: (a) packages of more than 25 kg or 25 litre; (b) cement, fertilizer and agricultural farm produce sold in bags above 50 kg; and (c) packaged commodities meant for industrial or institutional consumers. Rule 3 switches off Chapter II only; it does not say that the rest of the Rules or the Act stops applying. Check later amendments after March 2022.
Rule 1: title and commencement
- Rule 1(1): the rules may be called the Legal Metrology (Packaged Commodities) Rules, 2011.
- Rule 1(2): they come into force on 1 April 2011.
The preamble records that the Central Government made them by G.S.R. 202(E) at New Delhi on 7 March 2011, "in exercise of the powers conferred by sub-section (1) read with clause (j) and (q) of sub-section (2) of section 52" of the Act. Clause (j) is the power to prescribe standard quantities and the manner of declarations; clause (q) is the power to prescribe the error in net quantity. See sections 52 and 53. The Act itself commenced on 1 March 2011; the Rules started a month later.
The Rules are delegated legislation under section 52, a different layer from the Act and from State rules under section 53. They are not the place for State licence fees, which are not in our sources.
How the Rules are laid out
| Chapter | Subject | Rules |
|---|---|---|
| I | Preliminary | 1, 2 |
| II | Packages intended for retail sale | 3 to 23 |
| III | Wholesale packages | 24 |
| IV | Export of packaged commodities | 25 |
| V | Exemptions | 26 |
| VI | Registration of manufacturers, packers and importers | 27 to 30 |
| VII | General | 31 (omitted), 32, 32A, 33, 34 |
The Rules have been amended several times; the text in our source carries footnotes for G.S.R. 359(E) (6 June 2013), G.S.R. 385(E) (14 May 2015), G.S.R. 629(E) (23 June 2017, effective 1 January 2018), G.S.R. 779(E) (2 November 2021) and G.S.R. 226(E) (28 March 2022). To see how the Rules fit with food labels, read our overview of the Packaged Commodities Rules and, for food packages, our page on FSSAI label compliance.
Rule 3: what Chapter II does not apply to
Rule 3 is headed "Applicability of the Chapter" (later "Application of Chapter"). Its text has had three stages, which matter for an old case.
| Stage | Text |
|---|---|
| As first made (2011) | Chapter II does not apply to (a) packages containing more than 25 kg or 25 litre, excluding cement and fertilizer sold in bags up to 50 kg; and (b) packaged commodities meant for industrial or institutional consumers. An Explanation defined institutional and industrial consumers |
| After G.S.R. 359(E) of 6 June 2013 | The Explanation defining institutional and industrial consumer was omitted from rule 3 |
| After G.S.R. 629(E) of 23 June 2017 (w.e.f. 1 January 2018), the current wording in our source | Chapter II does not apply to: (a) packages of commodities containing more than 25 kilogram or 25 litre; (b) cement, fertilizer and agricultural farm produce sold in bags above 50 kilogram; and (c) packaged commodities meant for industrial consumers or institutional consumers |
The footnotes show which wording is current: the 2017 substitution. Compare the two versions: the 2011 version carved cement and fertilizer out of the 25 kg exemption for bags up to 50 kg; the 2017 version has a separate clause (b) for bags above 50 kg, and adds agricultural farm produce. Read carefully when dealing with old periods.
Who is an industrial or institutional consumer
These terms are defined in rule 2 (see rule 2):
- Industrial consumer (rule 2(bb)): a consumer who buys packaged commodities directly from the manufacturer, or from an importer or a wholesale dealer, for use by that industry, and the package shall have the declaration "not for retail sale".
- Institutional consumer (rule 2(bc)): an institution that buys packaged commodities bearing the declaration "not for retail sale" directly from the manufacturer, importer or wholesale dealer, for use by that institution and not for commercial or trade purposes.
The definitions in our source carry footnotes for 2015 and 2017 versions; we quote the later wording, and you should check the gazette text. The key practical point is the declaration "not for retail sale" on the package: rule 3(c) lets a pack meant for such a consumer stay outside Chapter II, but the definitions tie that to the declaration.
What rule 3 does and does not do
It does:
- Remove Chapter II (rules 3 to 23) from the listed packages: the declarations in rule 6, the principal display panel in rule 7, and the inspection and error rules in rules 19 to 22 fall inside Chapter II.
- Set the 25 kg or 25 litre threshold by the quantity "containing", so a 30 kg sack is outside but a 25 kg sack is not (the text says "more than").
It does not:
- Say that the other Chapters stop applying. Wholesale packages have their own declaration rule in Chapter III (rule 24: name and address, identity of the commodity, and the total number of retail packages or the net quantity), with a proviso for similar declarations required by another law. Export packages have rule 25, registration has Chapter VI.
- Switch off the Act. Section 18 of the Act on declarations on pre-packaged commodities is read with the rules; see section 18. Whether a particular duty of the Act survives for an excluded package is not answered by rule 3, so take advice.
- Decide food packages by itself. The Rules defer to the Food Safety and Standards Act, 2006 for some declarations; for example the proviso to rule 2(k) says the definition of "retail food package" in the rules or regulations under that Act applies for "retail food package". See rule 6 on name and address and our page on FSSAI label compliance.
The three layers
| Layer | Status |
|---|---|
| Act (parent) | Section 18 and section 36; see the penalty articles |
| Packaged Commodities Rules (Central, section 52) | Rules 1 and 3 as above, as amended up to March 2022 |
| State rules (section 53) | Not relevant to rule 3; not in our sources |
The Jan Vishwas Acts of 2023 and 2026 amend the Act; they do not amend these Rules. The 2026 Act's new section 36(1) on non-conforming pre-packaged commodities (not in force until notified) names e-commerce sales, which ties to the declarations required under the Rules.
Who is exposed in practice
| Package | Chapter II? (on the current rule 3) |
|---|---|
| 1 kg retail pack of rice | Yes |
| 25 kg sack of rice | Yes (25 kg is not "more than 25 kg") |
| 30 kg sack of sugar sold to a hotel as "not for retail sale" | No: over 25 kg, and meant for an institutional consumer |
| 40 kg bag of cement | On the face of clause (a), outside Chapter II (more than 25 kg); see the note below |
| 60 kg bag of fertilizer | No: clause (b) (bag above 50 kg) |
| Drum of industrial chemical sold to a factory, marked "not for retail sale" | No: clause (c) |
Source note. As printed, clause (a) of the current rule 3 already covers every package of more than 25 kg or 25 litre, so clause (b) (cement, fertilizer and agricultural farm produce in bags above 50 kg) overlaps it and its separate purpose is not explained in the text. The 2011 version had an express carve-out bringing cement and fertilizer bags up to 50 kg back inside Chapter II. We cannot tell from our source whether the 2017 rewrite meant to keep that position; check the gazette text before relying on either reading for cement or fertilizer.
Example 1. A manufacturer supplies 50 kg sacks of flour to a restaurant chain under contract and marks them "not for retail sale". The chain uses the flour in its own kitchens. Clause (c) of rule 3 fits.
Example 2. The same manufacturer sells 10 kg packs to shops. Those are retail packages within Chapter II.
Need help deciding which Rules apply to your pack?
Whether a pack falls inside Chapter II depends on quantity, buyer and the declaration it carries. Our FSSAI label compliance team can help check your labels against both the Packaged Commodities Rules and the food rules. Bring a sample pack, the sales channel and the buyer type.
Key takeaways
- The Rules were made on 7 March 2011 and came into force on 1 April 2011.
- Current rule 3 (from 1 January 2018): Chapter II does not apply to packages over 25 kg or 25 litre, cement, fertilizer and agricultural farm produce in bags above 50 kg, and packs for industrial or institutional consumers.
- Rule 3 switches off Chapter II only; wholesale, export and registration rules have their own chapters.
- Industrial and institutional consumer status is tied to the "not for retail sale" declaration.
- The source is as amended up to March 2022; check later amendments.
Read next
- Rule 2 of the Legal Metrology (Packaged Commodities) Rules, 2011: Definitions
- Section 18 of the Legal Metrology Act, 2009: Declarations on pre-packaged commodities
- Section 36 of the Legal Metrology Act, 2009: Penalty for non-standard packages
- Exemptions Under Packaged Commodities Rules
Disclaimer: Based on the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended up to G.S.R. 226(E) of 28 March 2022; later amendments are not reflected) read with the Legal Metrology Act, 2009 (Act 1 of 2010), as amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force) and subject to the Jan Vishwas (Amendment of Provisions) Act, 2026 (in force only from the date the Central Government notifies); neither Jan Vishwas Act amends rules 1 or 3, as on 30 September 2026. State Legal Metrology rules, later amendments and notifications change; verify the current position before acting.