In India, the FSSAI establishes food standards and oversees e-commerce food business.
E-commerce means selling and buying goods and services online. Food products can also be sold and bought using the e-commerce or internet.
FSSAI has made it compulsory for all e-commerce food companies to obtain FSSAI food license for their entire supply chain.
Nutraceuticals, Health Supplements, FSDU, FSMP, Prebiotics, and Probiotics are also covered under these regulations.
Hence, brand owners, manufacturers and sellers involved in e-commerce business need to comply with the same.
What is the importance of the FSSAI food license for e-commerce in India?
Under the Food Safety and Standard Act, 2006 (FSS Act), e-commerce businesses cannot deal in any type of food product without an FSSAI license.
The e-commerce businesses have to apply for an FSSAI Central License irrespective of their capacity or turnover threshold limit.
What are the types of e-commerce business models?
The FSSAI has defined the e-commerce business models as follows:
- Inventory-Based Model: The e-commerce business/company owns the inventory and food services in this type of model. They sell food directly to the consumers.
- Marketplace-Based Model: In this model, an e-commerce company is a facilitator of a web-based platform for the buyers, sellers, marketers and manufacturers of food products. The sellers, manufacturers and marketers sell food to the buyers through the platform provided by the e-commerce companies.
- Hybrid Model: The e-commerce companies function as a marketplace and as a retailer or wholesalers in this type of model. They get revenue from service charges and income from the sale of goods.
Who are e-commerce food business operators?
The following e-commerce FBOs are covered under FSSAI and need to obtain FSSAI License:
- E-commerce businesses providing listing services and thereby providing platform for commerce to manufacturers, restaurants, sellers, etc.
- Manufacturers, brand owners, sellers, or producers who display their products or services (processing, catering, or packaging) for direct sale to customers through a marketplace-based e-commerce model or an inventory-based e-commerce model.
- E-commerce businesses that provide transportation to the seller, vendor, brand owner or manufacturer, who lists their food products online to the consumer directly.
- E-commerce businesses that provide the facility of storage and distribution services to their sellers for their food are listed on the online portal.
What are FSSAI licensing and registration requirements for doing e-commerce business in India?
According to the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulation, 2011, all e-commerce FBOs must obtain a Central FSSAI license.
- They need to get an FSSAI license for the entire supply chain, including manufacturers, registered offices, storage places, transporter, distributor, etc.
- All e-commerce FBOs should enter into an agreement with manufacturers, sellers, brand owners, or vendors to follow the FSSAI regulations.
- They must ensure that trained personnel deliver the food products.
- They must maintain food quality and food safety at the time of delivery.
- All food articles delivered to the consumers by the e-commerce FBOs must have a shelf-life of at least 30% or 45 days before expiry on the date of delivery to the consumers.
- In the case of restaurants or caterers selling products online, they must ensure that only fresh food items are delivered to the consumers.
The e-commerce FBOs are required to comply with the following guidelines:
- Not providing any misleading information or false claims relating to the brand owners, sellers, manufacturers, retailers, vendors, distributors, or other importers.
- Not displaying any misleading images of food-related services or food products.
What are the food product listing guidelines for e-commerce FBOs?
E-commerce FBOs, including sellers, vendors, brand owners, manufacturers etc. involved in selling pre-packed food to customers, are required to comply with the following listing guidelines:
- Ensure the display of a legible and clear image of the principal display panel of the food product.
- Clearly show the display panel containing the lot or batch number, expiry date, and the maximum retail price of the food product.
- Provide an indicative image of the food product that is offered for sale through their e-commerce platform.
- Display their FSSAI license number obtained under the FSS Act and the hygiene grading of the FBO rated by FSSAI.
- Display the FSSAI license/registration of all the food business entities listed on their e-commerce platform.
- Provide other information regarding the food product available on the e-commerce website.
- Every e-commerce FBO should comply with the Food Safety and Standards (Licensing and Registration of Food Businesses), Regulations 2011 to maintain the basic hygiene and quality of the food products and services.
- E-commerce FBOs have to immediately communicate any complaints relating to product quality, efficacy, or other issues to sellers, importers, brand owners, or manufacturing companies for speedy and immediate resolution.
What are the documents required for FSSAI registration and license?
- ID proof of the e-commerce FBO.
- Proof of possession of premises (registered office of the e-commerce business) such as sale deed, electricity bill, rent agreement, etc.
- List of company directors with address and contact details.
- Partnership deed, self-declaration for proprietorship or certificate of incorporation.
- Import/Export Code (IEC).
- Food safety management system plan or certificate.
- List of food products.
- Trade license, panchayath license, corporation license or municipality license.
Where to register FSSAI License Registration Process for E-Commerce Business?
- FSSAI’s e-commerce central license is obtained by applying at FoSCoS website.
- FBOs need to complete all the steps required for application submission like documents and fees.
- The FSSAI authorities will issue the FSSAI License Registration Certificate after satisfying the e-commerce business meets all the required criteria. The e-commerce business can download the FSSAI license registration certificate from the FoSCoS portal.
Click to learn more about FSSAI Food License and Registration Process
What are the benefits of an FSSAI License for E-commerce?
- FSSAI license makes consumers more confident about goods and services offered by the FBOs.
- FSSAI logo on the products helps in building brand value and credibility.
- FBOs can claim benefits from government schemes and policies.
Conclusion
FSSAI Central license is essential for an e-commerce food business operator in India. A valid FSSAI logo and license number not just fulfil the required compliance but also enhance consumer trust in the product and service.
Feel free to reach out at regulatory@shauryam.co.in for FSSAI food regulatory advisory.
