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Industry opposes insistence on place of mfg on products
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SME Times News Bureau | 14 Jun, 2010
The Associated Chambers of Commerce and Industry of (ASSOCHAM ) Sunday urged the government not to insist on companies printing the place of manufacture on product labels as it would increase inventory and logistic costs.
"Declaration of factory address would require increased and separate inventory and logistic control in respect of each packer or factory location. Besides increasing the inventory costs and logistic control cost, this will greatly affect the manufacturerâs flexibility, economy and growth of business," said ASSOCHAM Secretary General D.S. Rawat.
In a note submitted to the Ministry of Consumer Affairs, which had recently issued a notification making mandatory for industry to declare the place of manufacturing of their product with immediate effect, ASSOCHAM said "It will not only cause tremendous hardships to the industry but will take away the level playing field between the indigenous and imported packages.
Maufacturers pack their products at various factory premises located at different places in the country through third parties for various commercial reasons, primarily to reduce the cost of the products, the industry body pointed out.
The industry body further stated it is necessary for manufacturers to maintain business secrecy with regard to business operations. It is precisely for this reason that manufacturers will not like to disclose the name and address of third party manufacturer on package.
Rawat said, "The interest of the ultimate consumers remains more protected by declaring factory address on the package since the entire responsibility for the genuineness of quality of a product lies with the brand owner".
The latest amendments which has affected lakhs of manufacturers take away the level playing field between indigenous and imported packages because in the case of imported packages declaration of factory address is not possible since the location is outside country and therefore out of reach to enforcement authorities, ASSOCHAM said.
The industry body added it would be increasingly confusing for products whose individual components are manufactured elsewhere and assembled into a unit at a location in the absence of any clarity in this situation.
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Insistence on place of mfg. on products
Rajeev Tiwari | Thu Jun 17 14:10:08 2010
This is straight way a game of MNCs to harass the indigenous enterprises. The consumer care numbers are put on the products and ultimately the brand owner is responsible for the product. The place of mfg. is already known to the govt. agencies, so why declare it on the product?
Revealing place of manufacture
Santhosh Mallya | Wed Jun 16 05:45:15 2010
This is a very good step by the giverment. I have come across Mobile handset manufacturing companies such as Nokia and Sony Ericsson operating with many companies, different one for manufacturing, imports, marketing, distribution, servicing, offering warranty etc. without revealing addresses and contact details of any of these companies. In case of problem with the product / service, many a times, it becomes difficult for the consumer to decidehold the company responsible and take it to court. For the consumer, place of manufacture may also reveal the product quality and if child labour is involved, etc.
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