INDUSTRIAL PRODUCTS

(1) There may be appointed, by name or by office, a Controller of Industrial Products, a Deputy Controller of Industrial Products, and such number of Assistant Controllers of Industrial Products and other officers as may be necessary for the purposes of this Act.

(2) The Deputy Controller and each Assistant Controller shall, subject to the directions of the Controller, exercise all or any of the powers vested in the Controller by this Act.

(1) There shall be established an ” Industrial Products Regulation Board” consisting of the Controller who shall be the ex officio chairman of the board, and not more than five other members appointed by the Minister.

(2) Subject as hereinafter provided, each member of the board shall ordinarily hold office for a period of three years unless he is appointed to be a member of the board for some shorter period ;

Provided that any member or members of the board may at any time resign from the board or be removed therefrom by order of the Minister.

(3) Regulations may be made providing for the conduct of the business of the board and the procedure to be observed at meetings of the board;

Provided that the board may regulate its own procedure in any matter not provided for by regulation.

(4) Where the board has by resolution determined that information on any matter is necessary for the purposes of this Act, the chairman of the board may, at any time after the passing of such resolution, exercise in respect of any such matter any power conferred on the Director of Statistics by or under the Statistics Ordinance; and that Ordinance shall, for such purpose, be read and construed, and shall have effect, as though-

(1) It shall be the duty of the board to discharge such functions as are assigned to the board under this Act and to advise the Minister from time to time on the following matters;-

(2) The board shall also perform such functions, discharge such duties, and exercise such powers, as may be assigned or entrusted to or vested in the board by this Act or by any regulation.

(1) Any person who has furnished a return relating to any industrial product under section 6 may apply to the Controller for registration as a manufacturer or as a stockiest of that industrial product.

(2) Every application for registration as a manufacturer or as a stockist of an industrial product shall be made in the prescribed form and shall contain a declaration by the applicant that the particulars stated in the application are, to the best of his knowledge and belief, true and accurate.

(3) Where the Controller is satisfied that the particulars stated in any application for registration are true and accurate and that the quality of the industrial product manufactured or stocked by the applicant is of reasonable standard, he shall register the applicant as a manufacturer or as a stockist of that industrial product and shall issue to the applicant a certificate of registration in the prescribed form. Every person to whom a certificate of registration is issued is hereinafter referred to as a registered manufacturer or as a registered stockist.

(1) The Minister, after consulting the board, may, by Order published in the Gazette, apply the provisions of this Act, with effect from a specified date, to any industrial product specified in that Order, and may, in like manner, vary or revoke any such Order.

(2) An industrial product specified in an Order under subsection (1) is hereinafter referred to as a ” regulated product” and shall continue to be a regulated product for the purposes of this act until that Order is revoked as hereinbefore provided.

(3) Every Order shall, in addition, specify the local product which an importer must purchase in order to obtain a licence to import the regulated product.

(4) An Order may be made in respect of any industrial product notwithstanding the revocation of any previous Order made in respect of the same product.

(1) The Minister, after consulting the board, may, by Notification published in the Gazette, prescribe-

(2) The price to be prescribed by a Notification under subsection (1) in respect of any local product shall not be less than the cost (including all connected charges and expenses) at which that local product can be obtained by the Controller.

(3) Any ratio, price or grade, specified in a Notification published under subsection (1) is hereinafter referred to as the standard ratio, the standard price, or the standard grade, as the case may be.

(1) No consignment of any quantity of any regulated product shall be imported into Ceylon unless the importation of a consignment of that quantity of that regulated product is authorized by an import licence issued by the Controller under this Act.

(2) A separate import licence shall be necessary in respect of each consignment of any quantity of any regulated product imported into Ceylon .

(3) Every import licence issued under this section shall cease to be valid on a date which shall be fixed by the Controller and inserted by him in the licence at the time the licence is issued;

Provided that the Controller may by endorsement made on the licence extend the period of the validity of the licence if he is satisfied that there are sufficient grounds for such extension.

(4) For the purposes of the application of the Customs Ordinance, a regulated product shall be deemed to be an article the importation of which is restricted by Ordinance.

(1) No person shall be entitled to receive a licence authorizing the importation of a consignment of any quantity of any regulated product unless he has paid to the Controller the standard price for delivery of that quantity of the standard grade of the corresponding local product which bears the standard ratio to the quantity of the regulated product sought to be imported or unless security for the payment of the standard price has been tendered and accepted by the Controller in accordance with regulations made under subsection (2).

(2) Regulations may be made prescribing the circumstances and cases in which and the conditions subject to which the Controller may accept security for the payment referred to in subsection (1).

(3) In any case where payment for any quantity of the local product has been made or secured under this section, and an import licence has been issued to any person authorizing the importation of any consignment of any regulated product, and it is subsequently proved to the satisfaction of the Controller that the consignment will not be imported owing to causes beyond the control of that person, the Controller shall, upon surrender of the import licence and of any coupon or delivery warrant which may have been issued to that person in respect of the local product, refund to him the sum so paid or, as the case may be, cancel the instrument by which the payment was secured.

(1) Where payment for any quantity of any local product is made or secured under section 12, the person making such payment or tendering such security, product shall be entitled to receive from the Controller a coupon for that quantity of that local product

(2) Where the Controller has, in his discretion, fixed the denominations of coupons to be issued in respect of any local product, a person entitled under subsection (1) to a coupon for any quantity of that local product shall be entitled to receive from the Controller on demand, instead of a single coupon, coupons of such denominations as will in the aggregate represent that quantity of that local product.

(3) Every coupon shall specify-

(4) At any time before the date specified in any coupon under paragraph (c) of subsection (3) the Controller may, by notice sent by registered post addressed to the person to whom that coupon was issued, direct that for the date so specified a later or an earlier date shall be substituted ; and that coupon shall accordingly cease to be valid on the date so substituted.

(1) Where an Order under section 8 is in force applying the provisions of this Act to any industrial product, the Controller may, upon application made in that behalf by any registered manufacturer or stockist of the local product specified under subsection (3) of the aforesaid section in that Order, undertake the disposal of the whole or any portion of the stocks of the local product in. the possession of that registered manufacturer or stockist.

(2) Where the Controller undertakes the disposal of any local product under subsection (1), he shall issue to the registered manufacturer or stockist of that local product a certificate in the prescribed form setting out the quantity, grade and description of the local product to which the undertaking relates.

(3) The Controller may require any person to whom a certificate has been issued under subsection (2) to deliver at any premises indicated by the Controller the whole or any portion of the quantity of the local product specified in that certificate.

(4) The stocks of any local product delivered at any premises by any registered manufacturer or stockist under subsection (3) shall, so long as such stocks are kept in such premises, be deemed to be kept at the risk of that registered manufacturer or stockist, and neither the Controller nor any of his officers shall be liable for any damage to, or deterioration in the quality of, the stocks of that local product unless such damage or deterioration is caused by the willful negligence of the Controller or any of his officers.

(1) Notwithstanding anything in section 14, any registered manufacturer or stockist to whom a certificate has been issued under subsection (2) of the aforesaid section may, with the prior approval in writing of the Controller, dispose by private treaty of the whole or any portion of the stocks of the local product to which the certificate relates.

(2) Where the whole or any portion of the stocks of any local product specified in a certificate issued under subsection (2) of section 14 has been disposed of by private treaty in accordance with the provisions of subsection (1) of this section, the Controller shall recall the certificate and shall cancel that certificate or, as the case may be, endorse thereon the quantity of the local product which remains unsold.

(1) Subject to the provisions Of section 17, the person to whom a coupon has been issued under section 13 or section 18A may, at any time before that coupon ceases to be valid, obtain from the Controller, in exchange for the coupon, a delivery warrant for the amount of the local product specified in that coupon.

(2) Every delivery warrant shall specify-

(3) The Controller shall send a copy of every delivery warrant issued under subsection (1) by registered post to the registered manufacturer or stockist whose name is specified in that warrant.

(4) A delivery shall be sufficient authority for any person, on surrender thereof, to obtain at the place specified therein delivery from the stocks of the registered manufacturer or stockist whose name is specified thereon, of such quantity of such grade of such local product as may be specified in that delivery warrant.

(5) Any person entitled to the delivery of any quantity of any local product, on surrender of a delivery warrant at the place of delivery specified in such warrant, shall be entitled, on such surrender, to have that quantity of that local product despatched to him from that place to any railway station named by him on payment to the registered, Manufacturer or stockist or the controler, as the case may be, of the freight and charges for the convenience of such goods to such railway station.

(1) Where stocks of any grade of any local product specified in a delivery warrant are kept in the factory or store of the registered manufacturer or stockist whose name is specified in that delivery warrant, that registered manufacturer or stockist shall , upon surrender to him of that delivery warrant by the person entitled thereto –

(2) Upon completion of the delivery of the quantity of the local product specified in the delivery warrant the registered manufacturer or stockist whose name is specified in that delivery warrant shall, on production to the Controller of that delivery warrant endorsed as required under subsection (i), and of the certificate issued to him under subsection (2) of section 14, be entitled to be paid the standard price for the quantity of the local product so delivered less an amount equivalent to two and half per centum of such price which amount shall be appropriated by the Controller towards the expenses of the administration of this Act.

(3) Where stocks of any local product specified in a delivery warrant are stored in any premises used or occupied by the Controller, the Controller shall, immediately after delivery to the person to entitled there to of such quantity of the local product as may be specified in that delivery warrant , notify the registered manufacturer or stockist whose name is specified in that delivery warrant that such delivery has been made, and thereupon that registered manufacturer or stockist shall, on production to the controller of the Certificate issued to him under subsection (2) of section 14, be entitled to be paid the standard price for the quantity of local product so delivered less an amount equivalent to two and half per centum of such price which amount shall be appropriated by the Controller towards the expenses of the administration of this Act.

(1) It shall be lawful for the Controller in his discretion to issue, in exchange for any coupon, separate delivery warrants for portions of the quantity of the local product specified in that coupon :

Provided that the aggregate of the quantities specified in such delivery warrants shall be equal to the quantity specified in the coupon.

(2) It shall be lawful for the Controller in his discretion to specify in any delivery warrant issued under this Act for any quantity of any local product that such local product shall be of a grade other than the standard grade.

(3) Where under subsection (2) any variation is made in the grade of any local product, the standard price of such local product may be varied and the price to be paid for such local product shall be such price as the Controller may have fixed for such other grade with the approval of the board.

(4) Where the price fixed under subsection (3) is lower than the standard price, the person to whom a coupon has been issued shall, at the time of issue to him of a delivery warrant in exchange for that coupon, be entitled to a refund of the amount by which the cost at the standard price of the quantity specified in such delivery warrant exceeds the cost of that quantity at the lower price so fixed.

(5) Where the price fixed under subsection (3) is higher than the standard price, the person to whom a coupon has been issued shall not be entitled to receive any delivery warrant in exchange for that coupon until he has paid to the Controller the amount by which the cost at such higher price of the quantity specified in any such delivery warrant exceeds the cost of that quantity reckoned at the standard price.

(6) No delivery of any quantity of any local product specified in any delivery warrant shall be made after the date on which that warrant ceases to be valid.

(7) Where delivery of any quantity of any local product specified in any delivery warrant is not taken before the date on which that warrant ceases to be valid, a quantity of that local product in the stocks of the registered manufacturer or stockist whose name is specified in that delivery warrant, corresponding to the quantity of that local product specified in the delivery warrant, shall be sold at the risk of the person to whom that warrant was issued.

(8) Where any quantity of any local product specified in any delivery warrant is sold under subsection (7), the person to whom the delivery warrant was issued may, on application made to the Controller and on surrender of that delivery warrant, be entitled to be paid the sum realized at such sale less-

and, upon payment of such sum to such person, the Government and the Controller shall be discharged from any liability to any person in respect of that delivery warrant.

(9) If no application is made under subsection (8) by the person to whom any delivery warrant was issued within a period of twelve months reckoned from the date of issue specified in that warrant, any sum’ which such person may have claimed under that subsection shall be credited to the Consolidated Fund; and the Government and the Controller shall thereupon be discharged from any liability to any person in respect of that delivery warrant or of any sum payable under subsection (8) to the person to whom that delivery warrant was issued.

(10)

(11) Subject to the provisions of this Act, the issue of a delivery warrant shall be deemed to constitute a contract between Government and the person to whom the delivery warrant is issued.

(a) enter the factory or store of such person or registered manufacturer or stockist, and

(b) inspect the quality of the stocks in such factory or store.

(1) Where any certificate has been issued under subsection (2) of section 14 in respect of any quantity of a local product, no person shall, so long as such quantity remains unsold by the Controller, remove or tamper with such quantity or any portion thereof without the approval of the Controller.

(2) Every person who does any act in contravention of the provisions of subsection (1) shall be guilty of an offence and shall be liable on conviction after summary trial before a Magistrate to a fine not exceeding five thousand rupees or to imprisonment of either description for a period not exceeding one year or to both such fine and imprisonment.

(3) Where any registered manufacturer or stockist is convicted before any court of an offence under subsection (2), the court may order that the certificate of registration issued to that registered manufacturer or stockist be cancelled.

(4) Any person whose certificate of registration is cancelled by an order of court under subsection (3) shall not be entitled to apply for a new certificate of registration until after the expiry of a period of twelve months from the date of such order.

(1) The Minister may make regulations for the purposes of carrying out or giving effect to the principles and provisions of this Act.

(2) In particular, and without prejudice to the generality of the powers conferred by subsection (1), such regulations may-

(3) No regulation shall have effect until it has been approved by the Senate and the House of Representation . Notification of such approval shall be published in the Gazette.

(4) Upon the publication in the Gazette of a notification to the effect that a regulation made by the Minister has been approved by the Senate and the House of Representations , that regulation shall be as valid and effectual as if it were herein enacted.