Draft Notification for EPR Implementation- Role of Importer (Part-4)

In today’s article, we’d be sharing about the notifications for Importers as mentioned in the Draft Notification published by the Ministry of Environment, Forest and Climate Change on 6th October 2021.

Photo by Nareeta Martin on Unsplash

1. Coverage of EPR- This includes the categories and types of plastic packaging with examples that are eligible for EPR.

The following Categories and Plastic Packaging Items are eligible for EPR

• Category I: Rigid Plastic Packaging like PET bottles, shampoo bottles, etc.
• Category II: Flexible Plastic Packaging like LDPE sheets for industrial use, grocery bags, etc.
• Category III: Multi-Layered Plastic Packaging like packets of chips, biscuits, etc.

2. Targets: For Importers, there are 4different types of Targets under EPR, they are as follows:

The following parameters will be considered for the calculation of quantity

• The average weight of plastic packaging material and/or plastic packaging of imported products imported and sold in the last two financial years.
• The average quantity of pre-consumer plastic packaging waste in the last two financial years.

Target Quantity: The target quantity can be calculated using this formula,(A+B)-C, where A is the weight of fresh plastic packaging material purchased and introduced in the market (category-wise and state-wise) and B is the average quantity of pre-consumer plastic packaging waste and C is the annual quantity supplied to registered Brand Owners in the previous financial years. Both these quantities from the last two financial years.

Annual targets: The Importers of plastic packaging have to manage the following quantity of waste in the respective financial years.

• FY 21–22: 35% of Target Quantity
• FY 22–23: 70% of Target Quantity
• FY 23–24: 100% of Target Quantity

Recycling targets: Recycling is mandated as a method of scientific disposal and will be effective from FY 2023–24 onwards.

Targets for Use of Recycled Plastic Content: The document mandates the use of recycled plastic (granules) in plastic packaging for all three categories i.e. Rigids, Flexible, and multi-layered and this target will also be effective from FY 2023–24 onwards.

State and Type of Plastic: The targets need to be completed state-wise and category-wise and a deviation of 25% is allowed for State Specific targets but the overall annual target must be achieved.

3. Surplus EPR Credits and offsetting: The importer can use the surplus after completion of the annual targets for covering the shortfalls for the previous year, carry forward for use in upcoming years, or sell it to other PIBOs. This can be done through the online portal of CPCB.

4. Violations and Penalty: Entities that do not meet the annual target, have to pay a fine. The violations and penalties mentioned in the document are as follow:

• Violations include doing business without registration under PWM Rules 2016, providing false information/willful concealment of material facts, and Submission of forged/manipulated documents.
• Penalty, CPCB shall prepare the guidelines for imposition and collection of environmental compensation.
• Fulfillment of EPR:

1. Even after paying the penalty, the importer needs to fulfill the EPR obligation and collect the plastic waste as per the target which was missed.
2. If the targets are fulfilled within 1 year, 75% of the penalty will be reimbursed, for 2 years 60% and for 3 years 40%.

6. Other important points: Apart from the above-mentioned targets, there are some miscellaneous points mentioned in the document, they are as follows:

1. Compostable plastic packaging is included under EPR.
2. Biodegradable plastic packaging is not included under EPR.
3. For any entity (producer, brand owner) to do business, it is compulsory to register under the Plastic Waste Management Rules.

This is a draft notification, and comments on this can be submitted to satyendra.kumar07@nic.in and amit.love@nic.in before 6th December 2021.

Contributed by- Shailesh Shinde, Director at Social Lab

Social Lab Environmental Solutions is a waste management company, which helps brands take back and scientifically dispose of post-consumer plastic waste of their products. Brands take our services to fulfill Extended Producer Responsibility (EPR) obligation under Plastic Waste Management Rules, 2018.

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