EPR Plastic Waste Obligations For Manufacturers And Importers

The Plastic Waste Management Rules, 2016 mandates all Producers, Importers, and brand Owners (PIBOs) to register on the EPR (Extended Producer Responsibility) portal developed by the CPCB. The portal consists of modules for registration, filing for annual returns, settlement and trading for EPR obligations, and Third Party Audits.

Plastic packaging waste EPR includes manufacturers of plastic packaging waste. It also covers importers of various items, such as chemicals, machinery, primary products, textiles, etc., which are not plastic but are packed or wrapped in plastic packaging. The EPR norms also classify plastic under several different categories namely, rigid plastic packaging, flexible plastic packaging, multi-layered packaging, plastic sheet, etc.

Through this comprehensive blog, let’s find out specified entities under the EPF framework, their obligations, the formula for quantifying these obligations, and many more.

Which Entities Are Registered Under EPR?

The Importance Of EPR In Reducing Plastic Waste Pollution involves several obligations and several stakeholders. The guidelines apply to the following entities:

● Producer of Plastic Packaging: A producer is a person engaged in the production or import of plastic sheets, carry bags, or multi-layered packaging. It also includes individuals and industries who use plastic sheets or covers made of plastic sheets or plastic for wrapping a product.

● Importer: It includes those people who import products with plastic packaging, carry bags, plastic sheets, etc.

● Brand Owner: A brand owner is a person or a company that sells any commodity under a trademark or brand label. It includes online platforms, marketplaces, retail chains, and supermarkets, excluding those who are micro and small enterprises.

● Plastic Waste Processors (PWPs): PWPs are the recyclers and entities involved in plastic processing. They convert plastic waste for energy, such as waste to energy, waste to oil, road making, industrial composting, etc.

What are Extended Producer Responsibility Obligations?

EPR obligations or EPR targets establish provisions and Strategic Approaches to EPR Waste Compliance for Plastic Waste. The targets streamline the overall plastic waste management and keep an account of the plastic waste generated, collected, transported, recycled, and disposed of.
As per the EPR rules, PIBO obligation targets are calculated by adding the average weight of virgin plastic material (new plastic, ever used or recycled before) bought and sold in the market in the last two financial years with an average amount of pre-consumer packaging in preceding two years. From this added value, the quantity of plastic material supplied to brand owners is deducted. Thus EPR target as a percentage of the total quantity in metric tonnes is as follows:
● 2021-22: 25%
● 2022-23: 70%
● 2023-24: 100%

Initially, the target set is kept lower to allow PIBOs to focus on strengthening participation with stakeholders. Later on, it is increased to enable higher recycling and reuse of plastic to bring circularity to the system.

The formula for Quantifying EPR Obligations

EPR is Shaping the Future of Plastic Waste Management by specifying mandatory targets on minimum level of recycling of plastic waste, minimum level of reuse and usage of recycled plastic in the fresh production process. Further, the targets set for manufacturer, importer, and brand owner are as follows:

● For Manufacturer:

The formula used for quantifying the EPR target for the Manufacturer is (A+B) – C where:

(i) A is the average weight of category-wise virgin plastic packaging material sold in the last two years.

(ii) B is the average quantity of pre-consumer plastic in the previous two financial years.

(iii) C is the quantity supplied to brand owners excluding micro and small enterprises in the last financial year.

● For Importer:

To quantify the EPR target for importers, the same (A+B) – C formula is followed where:

(i) A is the average weight of category-wise virgin plastic packaging material imported and sold in the last two years.

(ii) B is the average quantity of pre-consumer plastic in the previous two financial years.

(iii) C is the quantity supplied to brand owners excluding micro and small enterprises in the last financial year.

● For Brand Owners:

The EPR target gauging formula is slightly different. It is (A+B) where:

(i) A is the average plastic packaging material sold in the last two years;

(ii) B is the Pre-consumer plastic waste in the preceding two years.

Post Registration Obligations of PIBOs

Understanding The Scope of EPR for Plastic Packaging Waste is vast, benefiting each stakeholder in the ecosystem. Once PIBOs register on the centralized EPR portal of the Central Pollution and Control Board (CPCB), they are required to carry out certain tasks. These are divided into the following categories:

● Recording Procurement and Sales Transaction: The manufacturers and importers are required to provide information on raw material procurement and sales transactions of the current financial year. Brand Owners are required to provide only the procurement information on plastic packaging.

● Transfer of EPR Certificates and Wallet: As per the rules, PIBOs can procure certificates from plastic waste processors (PWPs). PWPs, also known as recyclers, process plastic waste and issue certificates against the amount of plastic waste processed. PIBOs can use these certificates to meet their Plastic Packaging Waste EPR obligations. The exchange of these certificates between PWPs and PIBOs is done in module three of the EPR portal. PIBOs can also generate certificates if they provide their plastic waste for road construction through a self-declaration. Generation and transfer of certificates are carried out in the wallet of the CPCB portal.

● Certificate Generation: Different types of certificates are exchanged and created for the fulfilment of EPR targets. Certification can be generated through a self-declaration for road making and also to show the use of recycled plastic applicable to producers and brand owners. Brand owners can also generate certification on Reuse of rigid plastic.

● Annual Submissions: Entities under the plastic waste management EPR framework have to provide information on their category-wise annual plastic consumption, annual plastic waste generation, and annual report.

● Credit Exchange and Consolidated Report: Often questions arise on How to Meet EPR Targets and Manage Plastic Waste Effectively as meeting the EPR obligations could be a cumbersome process. To facilitate greater compliance with these norms, the government introduced a credit exchange mechanism. Under this, EPR certificates available in the wallet are used for offsetting the unfulfilled EPR targets. It also enables PIBOs to convert their reuse category certificates into recycle and end-of-life certificates.

What Needs to Be Filed in the Annual Report?

The EPR Plastic Waste Rules lays down provisions for filing annual reports for the given financial year. However, if PIBOs fail to do so, the CPCB can levy Environmental Compensation (EC) on these entities. The report must mention the following information:

● Overview of Sales: PIBOs are required to mention raw material or plastic packaging procurement, sales made, quantity of plastic reused, etc.

● Compliance Status: As per the EPR Plastic Waste Rules and Penalties What Every Business Should Know, this section includes information and compliance with EPR targets, EPR certificates achieved, and EC that might be levied. PIBOs can procure additional certificates from PWPs to reduce their portion of EC and fill the shortfall gaps.

● Next Year Targets: On the basis of sales and procurement of plastic packaging of the PIBOs during the given financial year, EPR targets category-wise are required to be generated for the next financial year.

● Confirmation of Annual Report and Processing Fees Payment: Once the PIBOs submit their annual report after the EPR target fulfilment, they have to make payment in the form of annual processing fees. This fee is around 25% of the application fees for both PIBOs and PWPs.

What is Post-Consumer Plastic Waste under EPR?

Pre-consumer plastic packaging waste refers to plastic waste that gets discarded or rejected at the stage of manufacturing. It also includes the plastic waste generated while packaging the final product and all the plastic waste that arises before reaching the consumer.

Contrary to this, post-consumer plastic waste is the generated waste after the intended use of the product is completed. It is the plastic content left with the consumer once they are done using the product and it is no longer a use for them.

As per the provisions, PIBOs are required to create a waste collection mechanism, minimize their plastic waste during production, and promote reuse and recycling in the process. The Role of EPR in Sustainable Plastic Waste Management encompasses both pre and post-consumer plastic waste, which spans from the sourcing of raw materials to final product entering into the market.

Conclusion

Producers, Importers, and Brand Owners under the EPR framework are required to obtain EPR registration and prepare an action plan. Further, they are mandated to fulfil obligations regarding recycling, use of recycled content, reuse, and end-of-life disposal. They are also required to maintain records and file annual returns at the CPCB portal. One cannot carry out business without obtaining EPR registration. In case these entities fail to meet the stipulated targets, Environmental Compensation is levied where targets remain active and get carried forward next year.

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