Note on licences needed for a warehouse storing cosmetics under the drugs

and cosmetics act

Under the Drugs and Cosmetics Act, 1940; under section 3(aaa), Cosmetic “means any
article intended to be rubbed, poured, sprinkled or sprayed on, or introduced into, or
otherwise applied to, the human body or any part thereof for cleansing, beautifying,
promoting attractiveness, or altering the appearance, and includes any article intended for use
as a component of cosmetic.”

Under Section 18(c) of the Drugs and Cosmetics Act, 1940; a valid licence is to be obtained
by the licensee in order to manufacture, stock or sell drugs or cosmetics. Further the Central
Government had notified the Cosmetics Rules, 2020 (“Rules”) which shall be applicable to
the cosmetic as defined in clause (aaa) of section 3 of the Drugs and Cosmetics Act, 1940.
Under Rule 2(o) of the said rules, a licence means a licence granted by the State Licensing
Authority under rule 25. It is pertinent to note that Rule-25 of the said rules, deals only with
the form of licence to manufacture cosmetics for sale or distribution. Under Rule-4 of the said
rules, the competent authority as authorized by the Central Government or the State licensing
authority shall be competent to enforce the said rules. Hence, the rules are silent on obtaining
licence from the State Licensing Authority for the purposes of stocking or sale. The rules
only speak about the obtaining licence as a pre-requisite for manufacturing cosmetics.

The only excerpt of the rules which deals with sale and distribution of cosmetics is
CHAPTER VI. Under Rule 33 of the said chapter, cosmetics cannot be sold or distributed
unless they are obtained from a licensed manufacturer.

Further, in the instant case, as the cosmetics are stored in a warehouse, the warehouse is
bound by the general conditions for warehouse under the Drugs and Cosmetics Rules, 1945.
The conditions are available at Pg. 429 of the rules attached.