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Cross-Border E-Commerce Food Imports and FSSAI Enforcement Challenges

cross-border-e-commerce-food-imports-and-fssai-enforcement-challenges

Introduction

The rapid expansion of cross-border e-commerce has fundamentally transformed the global food trade landscape, creating unprecedented regulatory challenges for food safety authorities worldwide. In India, where the e-commerce food market is projected to reach $8 billion by 2026, the Food Safety and Standards Authority of India (FSSAI) faces complex enforcement hurdles when monitoring food products entering the country through digital platforms. These challenges arise from the inherent characteristics of e-commerce: high-volume small-value shipments, complex multi-jurisdictional supply chains, direct-to-consumer delivery that bypasses traditional inspection points, and digital marketplaces that may obscure the actual manufacturer or country of origin. This article examines the legal framework governing cross-border e-commerce food imports in India, identifying key enforcement challenges, compliance requirements, and emerging regulatory responses aimed at protecting consumer health while facilitating legitimate trade.

Legislative Framework Governing Food Imports

The Food Safety and Standards Act, 2006 serves as the cornerstone legislation for all food imports into India, establishing the FSSAI as the central regulatory authority with broad powers to ensure the safety and quality of food products entering the Indian market. Section 25 of the Act specifically addresses imports, stating that no person shall import any food article that contravenes the provisions of the Act or regulations made thereunder. This foundational provision establishes a comprehensive prohibition on non-compliant imports, regardless of the import channel used.

The Food Safety and Standards (Import) Regulations provide more detailed requirements for imported foods, establishing documentation requirements, sampling protocols, laboratory testing procedures, and clearance mechanisms. These regulations were substantially amended in 2020 to address emerging challenges, including those posed by e-commerce. Section 5 of these regulations mandates that no article of food shall be imported without an import license from the Central Licensing Authority, creating a fundamental legal requirement that applies equally to traditional and e-commerce imports.

The Food Import Clearance System (FICS) provides the technological infrastructure for import approvals. Established in 2016 and significantly enhanced in 2023, this online platform facilitates import clearance applications, risk-based sampling decisions, and coordination between FSSAI and Customs authorities. While designed primarily for traditional import channels, FICS has been increasingly adapted to address e-commerce challenges, though significant gaps remain in tracking small-value shipments.

A landmark clarification issued by FSSAI in February 2025 significantly impacted the regulatory landscape for certain categories of imports. This advisory stated that customs authorities are no longer obligated to secure FSSAI clearances for food ingredients or items brought into India with the intent of re-export or for the production of value-added items specifically destined for export markets. This exemption applies to food items imported by manufacturers or processors for their captive use or production of value-added products for 100 percent exports, including items imported by sister concerns or wholly-owned subsidiaries, provided the consignments carry a sanitary or health certificate from the exporting country’s competent authority.

Key E-Commerce Food Compliance Updates by FSSAI

The rapid growth of e-commerce food sales has prompted FSSAI to develop specialized regulations addressing the unique challenges of online food sales. The FSSAI E-Commerce Guidelines, issued initially in 2018 and significantly updated in 2022, establish specific provisions for online food sales, including requirements for platform operators, third-party sellers, and delivery services. These guidelines explicitly state that “all food businesses involved in e-commerce, including foreign food operators selling through e-commerce, must be registered with FSSAI,” creating a clear legal obligation for cross-border sellers to obtain appropriate licensing.

A significant regulatory development occurred in November 2024, when FSSAI issued a directive establishing a minimum 45-day shelf life requirement for food items sold through e-commerce platforms. This directive emerged from a meeting with e-commerce Food Business Operators (FBOs) on November 12, 2024, where FSSAI reinforced several compliance requirements. The directive specifically mandates that “e-commerce FBOs are required to ensure that food products have a minimum shelf life of 30% or 45 days before expiry at the time of delivery to the consumer.” This requirement particularly impacts cross-border e-commerce, where extended transit times can significantly reduce remaining shelf life.

The legal foundation for FSSAI’s oversight of e-commerce platforms was reinforced in January 2021, when the Confederation of All India Traders (CAIT) alleged that major e-commerce platforms including Amazon, Flipkart, Zomato, and Swiggy were violating FSSAI rules. FSSAI responded by initiating enforcement actions that established the principle that e-commerce platforms share responsibility for ensuring the compliance of food products sold through their marketplaces, even when the actual seller is located outside India.

These e-commerce-specific regulations collectively establish that: (1) cross-border e-commerce sellers must comply with the same licensing requirements as domestic sellers; (2) e-commerce platforms bear significant responsibility for ensuring compliance; and (3) specialized requirements like the minimum shelf life provision create additional compliance challenges for international sellers navigating extended supply chains.

Jurisdictional Challenges in Cross-Border E-Commerce Enforcement

The enforcement of food safety regulations in cross-border e-commerce faces fundamental jurisdictional limitations. The extra-territorial application of FSSAI authority presents a primary challenge, as the regulator’s direct enforcement powers are limited to the territorial boundaries of India. While FSSAI can prevent non-compliant products from entering the market and penalize domestic entities involved in their distribution, direct enforcement against foreign manufacturers or sellers remains problematic. This creates an asymmetric regulatory environment where domestic sellers face more consistent enforcement pressure than their international counterparts.

The question of intermediary liability has emerged as a central legal issue in addressing this jurisdictional gap. E-commerce platforms operating in India, regardless of their ownership or headquarters location, have faced increasing regulatory scrutiny regarding their responsibility for products sold through their marketplaces. The legal framework for this liability derives from Section 27 of the FSS Act, which establishes liability for persons who sell or distribute food articles that contravene the Act’s provisions. FSSAI has increasingly interpreted this provision to include e-commerce platforms as distributors with corresponding legal obligations.

A significant enforcement action illustrating this approach occurred in 2022, when FSSAI initiated proceedings against several cross-border food supplement sellers operating through a major e-commerce platform. The supplements in question lacked appropriate FSSAI approval and made unauthorized health claims. Rather than attempting jurisdictional reach to the foreign sellers, FSSAI held the e-commerce platform accountable for facilitating the sale of non-compliant products. The platform was required to remove the products, provide customer purchase data to facilitate recalls, and implement enhanced screening procedures for cross-border food sellers. This case established an important precedent regarding platform liability for cross-border food sales.

The jurisdictional challenges extend beyond enforcement to includes monitoring and detection capabilities. Traditional import surveillance relies heavily on border inspection, but cross-border e-commerce often utilizes postal or courier shipments that may receive less scrutiny. FSSAI has attempted to address this through coordination with postal authorities and courier services, but comprehensive monitoring remains elusive due to the high volume of small shipments and limited inspection resources.

Documentation and Compliance Challenges in Cross-Border E-Commerce

The documentation and compliance requirements for cross-border food imports create substantial challenges for e-commerce sellers, particularly small and medium enterprises without dedicated regulatory compliance teams. Import documentation requirements include commercial invoices, bills of lading or airway bills, certificates of analysis from accredited laboratories, manufacturing licenses, and labels complying with Indian requirements. For e-commerce imports, these requirements apply regardless of shipment size, creating disproportionate compliance burdens for small-value transactions.

Labeling requirements present particularly significant challenges for cross-border e-commerce. The Food Safety and Standards (Labelling and Display) Regulations mandate comprehensive labeling in English or Hindi, including ingredient lists, nutritional information, manufacturer details, FSSAI license numbers, vegetarian/non-vegetarian symbols, allergen warnings, and country of origin. Importantly, a controversial 2015 FSSAI stance on relabeling imported foods prohibited the previously common practice of applying compliant labels after importation, instead requiring compliance at the point of manufacture. As stated in a food industry magazine, this created significant difficulties as “FSSAI no longer allowed the practice of labelling the food items after they were unloaded at Indian ports, but insisted that this be done at the place of manufacture.”

This labeling position created substantial challenges for cross-border e-commerce, where products might be manufactured for global distribution rather than specifically for the Indian market. While some flexibility has been introduced for small-value direct-to-consumer shipments, the fundamental requirement for Indian-compliant labeling remains a significant barrier, particularly for casual or occasional cross-border sellers.

Language and format compliance presents another significant challenge, as many cross-border sellers may be unfamiliar with specific Indian requirements like the mandatory green or brown symbols for vegetarian/non-vegetarian products or the display of the FSSAI logo and license number. These requirements apply equally to e-commerce listings and physical packaging, creating multiple compliance points that must be synchronized for legal sales.

Reforms in Cross-Border E-Commerce Food Trade

Recognizing the challenges posed by cross-border e-commerce food imports, FSSAI has initiated several reforms aimed at balancing consumer protection with trade facilitation. The February 2025 FSSAI Advisory on streamlined clearance procedures for re-export items represents a significant development, explicitly waiving clearance requirements for “food ingredients or items imported by manufacturers or processors for their captive use or production of value-added products for 100 per cent exports.” This policy change reduces administrative burdens for businesses in global supply chains, particularly benefiting those using imported ingredients for export-oriented production.

Exemptions for export-oriented units address a specific segment of cross-border trade but don’t resolve challenges for direct-to-consumer sales. For this sector, FSSAI has been developing risk-based approaches that apply different levels of scrutiny based on product risk categories, seller compliance history, and transaction value. While not yet formalized in regulations, this approach has been emerging in practice, with higher-risk products like supplements and specialty foods facing more intensive scrutiny than conventional packaged foods with established safety profiles.

International cooperation has become increasingly important in addressing cross-border enforcement challenges. FSSAI has established memoranda of understanding with counterpart agencies in major trading partner countries, facilitating information exchange about non-compliant manufacturers and coordinated enforcement actions. These cooperative arrangements help extend regulatory reach beyond national boundaries, partially addressing the jurisdictional limitations inherent in cross-border e-commerce regulation.

The most promising emerging solution involves the development of digital compliance frameworks that leverage technology to address e-commerce challenges. FSSAI has begun piloting blockchain-based traceability systems that could provide verified compliance information throughout cross-border supply chains. Additionally, artificial intelligence tools are being developed to scan e-commerce listings for potential compliance issues, particularly unauthorized health claims or misrepresented product characteristics.

Conclusion 

The regulation of cross-border e-commerce food imports presents complex legal and practical challenges that require innovative regulatory approaches balancing consumer protection with trade facilitation. The current legislative framework provides broad authority for FSSAI oversight but lacks many of the specific mechanisms needed to address the unique characteristics of e-commerce transactions. The shift toward platform liability represents an important adaptation, creating accountability for marketplaces that enable cross-border food sales.

Moving forward, several priorities emerge for improving the regulatory approach to cross-border e-commerce food imports. First, developing simplified compliance pathways for low-risk, small-value transactions could reduce unnecessary administrative burdens while maintaining appropriate safety standards. Second, enhancing digital infrastructure for import monitoring and compliance verification could improve enforcement efficiency. Third, strengthening international regulatory cooperation could extend regulatory reach beyond territorial boundaries, addressing fundamental jurisdictional limitations.

For businesses engaged in cross-border e-commerce food sales to Indian consumers, understanding the evolving regulatory landscape is essential for sustainable market access. Investing in compliance systems, establishing relationships with knowledgeable local partners, and engaging proactively with regulators represent prudent strategies for navigating this complex environment. As e-commerce continues transforming global food trade, the legal frameworks governing these transactions will inevitably continue evolving to address emerging challenges while facilitating legitimate commerce.

References

  1. Food Safety and Standards Act, 2006, No. 34, Acts of Parliament, 2006 (India).
  2. Food Safety and Standards (Import) Regulations, 2017, Gazette of India, Part III, Sec. 4 (India), as amended in 2020.
  3. Food Safety and Standards (Labelling and Display) Regulations, 2020, Gazette of India, Part III, Sec. 4 (India).
  4. FSSAI. (2022). Guidelines for E-Commerce Food Business Operators. F. No. 15(6)2017/FLRS/RCD/FSSAI.
  5. FSSAI. (2024, November 13). Directive on minimum shelf life for e-commerce food products. Circular No. 15(6)2022/E-Commerce/RCD/FSSAI.
  6. FSSAI. (2025, February 20). Advisory on streamlined clearance procedures for re-export items. F. No. Import/2025/01.
  7. Confederation of All India Traders (CAIT) allegations against e-commerce platforms, January 2021. File No. ENF/CAIT/01/2021-FSSAI.
  8. FSSAI v. Cross-Border Supplement Sellers, Enforcement Case ENF/E-31/2022-FSSAI.
  9. The Dollar Business. (2015). FSSAI – Low standards of standardising
  10. ChemLinked. (2024, November). FSSAI Reinforces Compliance Requirements for E-Commerce Food Businesses
  11. India Briefing. (2025, February 20). Food Import Procedure in India and FSSAI Regulator Updates
  12. Reed Smith LLP. (2022, January). Increasing regulatory enforcement of EU cross-border e-commerce

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