FSSAI introduced a new Kind of Business (KoB) category for ‘Direct sellers’ under FoSCoS

This new category defines the scope of direct sellers, eligibility criteria, permissible food categories, inspection checklists, license fees, and more. The order came into effect on July 10, 2024.

In order to guarantee conformity to regulatory standards, this legislation is now mandatory for all direct dealers of food items.

In reference to FSSAI orders number 15(6)2018/FLRS/RCD/FSSAI, dated 08.07.2019 and 19.09.2019, which exempt direct sellers from registration under certain conditions when the main entity has responsibility for regulatory compliance.

If not, Direct Sellers have to meet the eligibility requirements outlined in the “Retailer” KoB and get an FSSAI License/Registration.

It was observed that the direct seller model differs from typical retail business, based on statements received from industry stakeholders.

Therefore, Food Authority has chosen to create a new Kind of Business (KoB) in FoSCoS for Direct Sellers with the following requirements in order to distinguish between a Retailer and a Direct Sellers

• Article Outline

  KoB Name

Direct Sellers [under Group name Trade/ Retail]

• Definition

Direct Seller means a person appointed or authorized, directly or indirectly, by a Direct Selling Entity through a legally enforceable written contract to undertake direct selling business on principal to principal basis as defined in Consumer Protection Act 2019/(Direct Selling) Rules 2021 and subsequent amendments thereof

• Eligibility

  a. Registration: Annual Turnover up to Rs. 12 Lakhs

  b. State License: Annual Turnover more than Rs. 12 Lakhs and up to Rs. 20 Crore

  c. Central License: Annual Turnover more than Rs. 20 Crore.

• Food Categories (FC) allowed

  a. 01: Dairy products and analogues, excluding products of food category 2.0

  b. 02: Fats and oils, and fat emulsions

  c. 06: Cereals and cereal products, derived from cereal grains, from roots and tubers, pulses, legumes and pith or soft core of palm tree, excluding bakery wares of food category 7.0

  d. 07: Bakery products

  e. 12: Salts, spices, soups, sauces, salads and protein products

  f. 13: Foodstuffs intended for particular nutritional uses Only 13.4., 13.5 and 13.6.

  Note: Products falling under the food category 13.1. 13.2 and 13.3 are restricted for sale or marketing or distribution or promotion by Direct

  Sellers under IMS Act, 1992 and FSS Act, Rules and Regulations.

  g. 14: Beverages, excluding dairy products

  h. 15: Ready-to-cat savouries

  1. 16: Prepared Foods

  1. 18: Indians Sweets and Indian Snacks and Savouries products

• Inspection checklist

Same as applicable for the ‘Retailer’ category

• Documents required for Registration/licensing

a. Registration 02 documents (photo and Govt ID)

b. License 05 documents as per FSSAI order dated 19.03.2021. Additionally, direct sellers are required to submit copy of agreement with the Direct Selling Entity.

• Annual Fee for License/Registration:

a. Registration Rs. 100-GST

b. State License Rs. 2000+GST

c. Central License Rs. 7500+ GST

This is now in force as of July 10, 2024. The Tatkal plan has also permitted the ‘Direct Seller’ KoB. Soon, the User Manual Video Tutorial will be accessible on the FoSCoS Homepage’s “User Manual Section.”

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