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The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production,
Supply and Distribution), Bill, 2001
Arrangement of Clauses


   

TO BE INTRODUCED IN THE RAJYA SABHA

Bill No. XXIX of 2001

clauses

 

1.      Short title, extent and commencement.

2.      Definitions.

3.      Prohibition of smoking in a public place.

4.      Prohibition of advertisement of tobacco products.

5.      Prohibition on sale of cigarette or other tobacco products to a person below the age of eighteen years.

6.      Restrictions on trade and commerce in, and production, supply and distribution of cigarettes and other tobacco products.

7.      Manner in which specified warning shall be made.

8.      Language in which the specified warning shall be expressed.

9.      Size of letters and figures.

10.  Testing laboratory for nicotine and tar contents.

11.  Power of entry and search.

12.  Power to seize.

13.  Confiscation of package.

14.  Power to give option to pay costs in lieu of confiscation.

15.  Liability to pay penalty.

16.  Confiscation or penalty not to interfere with other punishments.

17.  Adjudication.

18.  Giving opportunity to the owner of seized packages.

19.  Appeal.

20.  Punishment for failure to give specified warning and nicotine and tar contents.

21.  Punishment for smoking in certain places.

22.  Punishment for advertisement of tobacco products.

23.  Forfeiture of advertisement and advertisement material.

24.  Punishment for sale of cigarettes or any other tobacco products in certain places or to persons below the age of eighteen years.

25.  Prevention, detention and place of trial of offences under sections 3 and 5.

26.  Offences by companies.

27.  Offences to be cognizable and bailable.

28.  Composition of offences.

29.  Protection of action taken in good faith.

30.  Power to add any tobacco products in the Schedule.

31.  Power of the Central Government to make rules.

32.  Power of the State Government to make rules.

33.  Act not to apply to cigarettes which are exported.

34.  Repeal and savings. 

 

 

THE SCHEDULE.

 

to prohibit the advertisement of, and to provide for the regulation of trade and commerce in, and production, supply and distribution of, cigarettes and other tobacco products and for matters connected therewith or incidental thereto.

 

whereas it is expedient to prohibit the consumption of cigarettes and other tobacco products which are injurious to health and with a view to achieving improvement of public health in general as enjoined by article 47 of the Constitution;

 

and whereas it is expedient to prohibit the advertisement of, and to provide for regulation of trade and commerce, production, supply and distribution of, cigarettes and other tobacco products and for matters connected therewith or incidental thereto;

 

and whereas in pursuance of clause (1) of article 252 of the Constitution resolutions have been passed by all the Houses of the Legislatures of the States of Goa, Punjab, Uttar Pradesh and West Bengal to the effect that the tobacco products other than cigarettes should be regulated in those States by Parliament by law.

 

be it enacted by Parliament in the Fifty-second Year of the Republic of India as follows:—

1. CO This Act may be called the Cigarettes and Other Tobacco Products (Prohibition Short title, extent

of Advertisement and Regulation of Trade and Commerce, Production, Supply and commencement

Distribution) Act, 2001.

(2) It extends—

(a) in so far as it relates to cigarettes, to the whole of India;

(b) in so far as it relates to tobacco products other than cigarettes, in the first instance, to the whole of the States of Goa, Punjab, Uttar Pradesh and West Bengal and to all the Union territories; and

 

(c) it shall also extend to such other State as may adopt this Act by resolution passed in that behalf in pursuance of clause (1) of article 252 of the Constitution.

 

(3) It shall come into force—

 

(a)   in so far as it relates to cigarettes, on such date as the Central Government may, by notification in the Official Gazette, appoint; and       

 

(b) in so far as it relates to tobacco products other than cigarettes in a State or Union territory to which it extends, or may be extended in future, on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act or for different States or Union territories.                                                                   

 

Definitions. 2. In this Act, unless the context otherwise requires,—

 

(a)   "advertisement" includes any visible representation by way of notice, circular, label, wrapper or other document and also includes any announcement made orally or by any means of producing or transmitting light, sound, smoke or gas;

 

(b) "cigarette" includes,— ,

 

(i)                  any roll of tobacco wrapped in paper or in any other substance not containing tobacco,

 

(ii)        any roll of tobacco wrapped in any substance containing tobacco, which, by reason of its appearance, the type of tobacco used in the filler, or its packaging and labelling is likely to be offered to, or purchased by, consumers as  cigarette, but does not include beedi, cheroot and cigar;

 

(b)   "distribution" includes distribution by way of samples, whether free or otherwise;

 

(d) "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India;

 

(e) "foreign language" means a language which is neither an Indian language nor the English language;

 

(f) "import", with its grammatical variations and cognate expressions, means bringing into India from a place outside India;

 

(g) "Indian language" means a language specified in the Eighth Schedule to the Constitution, and includes any dialect of such language;

 

(h) "label" means any written, marked, stamped, printed or graphic matter, affixed to, or appearing upon, any package;

 

(i)      "package" includes a wrapper, box, carton, tin or other container;

 

(j) "prescribed" means prescribed by rules made under this Act;

 

(j)      "production", with its grammatical variations and cognate expressions, includes the making of cigarettes, cigars, cheroots, beedis, cigarette tobacco, pipe tobacco, hookah tobacco, chewing tobacco, pan masala or any chewing material having tobacco as one of its ingredients (by whatever name called) or snuff and shall include—

 

(i)      packing, labeling or re-labeling, of containers;

 

(ii) re-packing from bulk packages to retail packages; and

 

(iii) the adoption of any other method to render the tobacco product marketable;

 

(/) "public place" means any place to which the public have access, whether as of right or not, and includes auditorium, hospital buildings, health institutions, amusement centres, restaurants, public offices, court buildings, educational institutions, libraries, public conveyances and the like which are visited by general public but does not include any open space.

 

(m) "sale", with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another, whether for cash or on credit, or by way of exchange, and whether wholesale or retail, and includes an agreement for sale, and offer for sale and exposure for sale;

 

(n) "smoking", means smoking of tobacco in any form whether in the form of cigarette, cigar, beedis or otherwise with the aid of a pipe, wrapper or any other instruments;

 

(o) "specified warning" means such warnings against the use of cigarettes or other tobacco products to be printed, painted or inscribed on packages of cigarettes or other tobacco products in such form and manner as may be prescribed by rules made under this Act;

 

(p) "tobacco products" means the products specified in the Schedule.

 

3. No person shall engage in smoking in a public place where smoking is prohibited and such prohibition is displayed or conveyed through any audio or visual medium.

 

4. (1) No person engaged in, or purported to be engaged in the production, supply or distribution of cigarettes or any other tobacco products shall advertise and no person having control over a medium shall cause to be advertised cigarettes or any other tobacco products through that medium and no person shall take part in any advertisement which directly or indirectly suggests or promotes the use or consumption of cigarettes or any other tobacco products.

 

(2) No person, for any direct or indirect pecuniary benefit, shall—

(a) display, cause to display, or permit or authorise to display any advertisement of cigarettes or any other tobacco product; or

(b) sell or cause to sell, or permit or authorise to sell a film or video tape containing  advertisement of cigarettes or any other tobacco product; or

(c) distribute, cause to distribute, or permit or authorise to distribute to the public any leaflet, hand-bill or document which is or which contains an advertisement of cigarettes or any other tobacco product; or

 

(d) erect, exhibit, fix or retain upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or shall display in any manner whatsoever in any place any advertisement of cigarettes or any other tobacco product:

 

Provided that this sub-section shall not apply in relation to—

(a) an advertisement of cigarettes or any other tobacco product in or on a package containing cigarettes or any other tobacco product;

(b) advertisement of cigarettes or any other tobacco product which is displayed at the entrance or inside a warehouse or a shop where cigarettes and any other tobacco products are offered for distribution or sale.

 

(3) No person, shall, under a contract or otherwise promote or agree to promote the use or consumption of—

 

(a) cigarettes or any other tobacco product; or

 

(c)   any trade mark or brand name of cigarettes or any other tobacco product in exchange for a sponsorship, gift, prize or scholarship given or agreed to be given by another person.

 

5. No person shall sell, offer for sale, or permit sale of, cigarette or any other tobacco products to any person who is under eighteen years of age.

 

6. (1) No person shall, directly or indirectly, produce, supply or distribute cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products  produced, supplied or distributed by him bears thereon, or on its label, the specified warning.

 

(2) No person shall carry on trade or commerce in cigarettes or any other tobacco products unless every package of cigarettes or any other tobacco products sold, supplied or distributed by him bears thereon, or on its label, the specified warning.

 

(3) No person shall import cigarettes or any other tobacco products for distribution or supply for a valuable consideration or for sale in India unless every package of cigarettes or any other tobacco products so imported by him bears thereon, or on its label, the specified warning.

 

(4) The specified warning shall appear on not less than one of the largest panels of the package in which cigarettes or any other tobacco products have been packed for distribution, sale or Supply for a valuable consideration.

 

(5) No person shall, directly or indirectly, produce, supply or distribute cigarettes unless every package of cigarettes produced, supplied or distributed by him indicates thereon, or on its label, the nicotine and tar contents per cigarette:

 

Provided that the nicotine and tar contents shall not exceed the maximum permissible quantity thereof as may be prescribed by rules made under this Act.

 

7. (1) The specified warning on a package of cigarettes or any other tobacco products shall be—

 

(a)   legible and prominent;

 

(b)   conspicuous as to size and colour;

 

(c)   in such style or type of lettering as to be boldly and clearly presented in distinct contrast to any other type, lettering or graphic material used on the package or its label and shall be printed, painted or inscribed on the package in a colour which contrasts conspicuously with the background of the package or its labels.

 

(2) The manner in which a specified warning shall be printed, painted or inscribed on a package or tobacco products shall be such as may be specified in the rules made under this Act.

 

(3) Every package containing tobacco products shall be so packed as to ensure that the specified warning appearing thereon, or on its label, is, before the package is opened, visible to the consumer.

 

8. (1) Where the language used on a package containing cigarettes and any other tobacco products or on its label is—

 

(a)   English, the specified warning shall be expressed in the English language;

 

(b) any Indian language or languages, the specified warning shall be expressed in such Indian language or languages;

 

Testing labora­tory for nicotine and tar contents.

Power of entry and search.

 

(c)both English and one or more Indian languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages;

 

(d)   partly English and partly any Indian language or languages, the specified warning shall be expressed in the English language as well as in such Indian language  or languages;

 

(e) any foreign language, the specified warning shall be expressed in the English language;

 

(f) partly any foreign language and partly English or any Indian language or languages, the specified warning shall be expressed in the English language as well  as in such Indian language or languages.

 

(2) No package of cigarettes or any other tobacco products or its label shall contain any matter or statement which is inconsistent with or detracts from, the specified warning.

 

9. No specified warning or indication of nicotine and tar contents in cigarettes shall be deemed to be in accordance with the provisions of this Act if the height of each letter or figure, or both used on such warning and indication is less than the height as may be prescribed by rules made under this Act.

10. For purposes of testing the nicotine and tar contents in cigarettes the Central Government shall by notification in the Official Gazette grant recognition to such testing laboratory as that Government may deem necessary.

20 11. (1) Any police officer, not below the rank of a sub-inspector or any officer of State Food or Drug Administration or any other officer, holding the equivalent rank being not below the rank of Sub-Inspector of Police, authorised by the Central Government or by the State Government may, if he has any reason to suspect that any provision of this Act has been, or is being, contravened, enter and search in the manner prescribed, at any reasonable

25      time, any factory, building, business premises or any other place,—

(a) where any trade or commerce in cigarettes or any other tobacco products is carried on or cigarettes or any other tobacco products are produced, supplied or distributed; or

(b) where any advertisement of the cigarettes or any other tobacco products 30 has been or is being made.

2 of 1974. (2) The provisions of the Code of Criminal Procedure, 1973, shall apply to every search and seizure made under this Act.

12. (1) If any police officer, not below the rank of a sub-inspector or any officer of    Power to seize. State Food or Drug Administration or any other officer, holding the equivalent rank being 35      not below the rank of Sub-Inspector of Police, authorised by the Central Government or by the State Government, has any reason to believe that,—

(a) in respect of any package of cigarettes or any other tobacco products, or (b) in respect of any advertisement of cigarettes or any other tobacco products,

the provisions of this Act have been, or are being, contravened, he may seize such package 40      or advertisement material in the manner prescribed,

(2) No package of cigarettes or any other tobacco products or advertisement material

seized under clause (a) of sub-section (1) shall be retained by the officer who seized the package or advertisement material for a period exceeding ninety days from the date of the seizure unless the approval of the District Judge, within the local limits of whose jurisdiction such seizure was made, has been obtained for such retention.

 

Confiscation of package.

Power to give option to pay costs in lieu of confiscation.

Liability to pay penalty.

Confiscation or penalty not to interfere with other punish­ments.

Adjudication.

Giving opportu­nity to the owner of seized pack­ages.

13. Any package of cigarettes or any other tobacco products or any advertisement material of cigarettes or any other tobacco products, in respect of which any provision of this Act has been or is being contravened, shall be liable to be confiscated:

Provided that, where it is established to the satisfaction of the court adjudging the confiscation that the person in whose possession, power or control any such package of 5 cigarettes or any other tobacco products is found is not responsible for the contravention of the provisions of this Act, the Court may, instead of making an order for the confiscation of such package, make such other order authorised by this Act against the person guilty of the breach of the provisions of this Act as it may think fit.

14. (1) Whenever any confiscation of any package of cigarettes or any other tobacco products is authorised by this Act, the court adjudging it may, subject to such conditions as may be specified in the order adjudging the confiscation, give to the owner thereof an option to pay, in lieu of confiscation, costs which shall be equal to the value of the goods confiscated.

(2) On payment of the costs ordered by the court, the seized packages shall be returned to the person from whom they were seized on condition that such person shall, before making any distribution, sale or supply of such packages of—

(a) cigarettes, get the specified warning and indication of nicotine and tar contents incorporated on each such package;

(b) other tobacco products, get the specified warning, incorporated on each such package.

15. Any person who carries on any trade or commerce in, or who produces, supplies or distributes, cigarettes or any other tobacco products, shall—

(a) if any package of cigarettes does not contain the specified warning and indication of the nicotine and tar contents; and

(b) if any package of any other tobacco products does not contain the specified warning,

be liable to pay a penalty not exceeding five times the value of the package of cigarettes or of any other tobacco products or one thousand rupees, whichever is more, whether or not such package of cigarettes or any other tobacco products, has been confiscated or is available for confiscation.

16. No confiscation made, costs ordered to be paid or penalty imposed under this Act shall prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.

17. Any confiscation of cigarettes or any other tobacco products may be adjudged or  costs may be ordered to be paid or penalty be imposed,—

(a) without any limit, by the principal civil court of original jurisdiction within the local limits of whose jurisdiction such confiscation has been made, costs have been ordered to be paid, or penalty has been imposed, as the case may be;

(b) subject so such limits as may be specified by the Central Government in this behalf, by such other court, not Below a civil court having pecuniary jurisdiction exceeding rupees five thousand, as the Central Government may, by notification in the Official Gazette, authorise in this behalf.

18. (1) No order adjudging confiscation or directing payment of costs or imposing penalty shall be made unless the owner or person in possession of the package of cigarettes or any other tobacco products has been given a notice in writing informing him of the grounds on which it is proposed to confiscate such package, and giving him a reasonable opportunity of making a representation in writing, within such reasonable time as may be

 

specified in the notice, against the confiscation or imposition of penalty mentioned therein, and, if he so desires, of being heard personally or through a representative in the matter:

Provided that, where no such notice is given within a period of ninety days from the date of the seizure of the package of cigarettes or of any other tobacco products, such  package shall be returned, after the expiry of that period, to the owner or the person from whose possession it was seized.

(2) Save as otherwise provided in sub-section (1), the provisions of the Code of 5 of 1908.       Civil Procedure, 1908, shall, as far as may be, apply to every proceeding referred to in sub-section (1).

19. (1) Any person, aggrieved by any decision of the court adjudging a confiscation, ordering the payment of costs or imposing a penalty, may prefer an appeal to the court to which an appeal lies from the decision of such court.

(2) The appellate court may, after giving to the appellant an opportunity of being heard, pass such order as it thinks fit confirming, modifying or reversing the decision or order appealed against or may send back the case with such directions as it may think fit for a fresh decision or adjudication, as the case may be, after taking additional evidence, if necessary:

Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating of goods of greater value shall not be made under this section unless the appellant has had an opportunity of making a representation and, if he so desires, of being 20 heard in person or through a representative in his defence.

(3) No further appeal shall lie against the order of the court of appeal. (1) Any person who,—

(a) sells, or distributes or supplies in the course of any trade or commerce, any package of cigarettes or any other tobacco products, which does not contain, either on the package or on its label, the specified warning and the nicotine and tar contents or, the specified warning, as the case may be;

(b) produces, or supplies or distributes in the course of any trade or commerce, any package of cigarettes or any other tobacco products which does not contain, either on the package or on its label, the specified warning and the nicotine and tar contents or, the specified warning, as the case may be,

shall in the case of first conviction be punishable with imprisonment for a term, which may extend to three years, or with fine which may extend to one lakh rupees, or with both, and, for the second or subsequent offences, with imprisonment for a term which may extend to three years, or with fine which may extend to two lakh rupees, or with both.

21. (1) Whoever contravenes the provisions of section 3 shall be punishable with fine which may extend to two hundred rupees.

(2) An offence under this section shall be compoundable and shall be tried summarily in accordance with the procedure provided for summary trials in the Code of Criminal 2 of 1974.       Procedure, 1973.