EPR Plastic Waste Rules And Penalties: What Every Business Should Know

The Plastic Waste Management Rules, 2016 provides a statutory framework for creating an environmentally sound plastic management system and disposal of plastic waste. It stipulates mandatory targets on Extended Producer Responsibility (EPR), promotes recycling of plastic garbage, rigid plastic packaging reuse, and use of recycled plastic back into the business. The guidelines aim to promote sustainable plastic usage and reduce the footprint of plastic on the earth.

EPR compliance plastic waste rules set forward certain obligations like maintenance of records of plastic used and sold and filing of annual returns on plastic waste collected post-consumer use. Non-compliance to these can put businesses in troublesome situations. They may be subjected to environmental compensation charges, legal action under environmental laws, and increased targets as penalties.

This comprehensive piece outlines the important provisions under EPR, penalties that can arise due to non-compliance, categories, and others.

Regulatory Provisions Under Extended Producer Responsibility

EPR authorization is mandatory for plastic packaging, E-waste, waste tyre, battery waste, and used oil. Companies undertaking business in any of these products must be verified by Pollution Control Committees (PCC) and State Pollution Control Board (SPCB) before registering under EPR. In addition, the following provisions are mentioned in the EPR norms:

● To ensure greater EPR compliance plastic waste, the Central Pollution Control Board/ SPCB/PCC can undertake audits of producers, importers, brand owners (PIBOs), and plastic waste processors (PWPs).
● Recyclers must upload EPR Certificate at respective EPR portals.
● CPCB or any agency designated by the government can conduct an inspection and audit of PIBOs. Compliance with PWPs is also verified through this procedure.
● PIBOs must file annual returns and report how much packaging raw material was procured and how much plastic packaging was sold.
● EPR certificates can be traded for the fulfillment of EPR obligations.

Further, the PWM, 2016 specifies some rules that need to be followed for plastic carry bag producers. These are:

● With effect from 30th September 2021, the government has increased the thickness of carry bags to stop littering in the environment.
● The thickness is increased from 50 microns to 75 microns.
● However, from 31st December 2022 onwards, producers have to increase this thickness from 75 microns to 125 microns.
● This will enable the reuse of plastic carry bags as a higher micron level makes these bags durable.

EPR Compliance Plastic Waste Penalties

The Central Pollution Control Board monitors and oversees several activities of plastic waste generators and processors. As per the EPR in Sustainable Plastic Waste Management, generators of plastic waste have to take certain steps to minimize their plastic waste generation, ensure that waste is segregated at source, plastic is not being littered or dumped in landfills to avoid any obligations, and segregated waste is processed properly.

Failure to comply with EPR rules leads to severe environmental compensation by the CPCB. The fines can go in thousands depending on the frequency and intensity of violation. These violations are as follows:

● For Manufacturers: If plastic manufacturers are found selling raw materials to unregistered entities, the fine can range between ₹2,500 to 10,000 per ton.
● For Local Bodies: These bodies must manage their plastic waste effectively. Any mismanaged plastic waste will attract a penalty of Rs. 5,000 per ton, to be increased for every repeated violation.
● Non-Compliance with labelling or marking: This will lead to cancellation of registration with CPCB, or make CPCB certification void, and a fine of up to Rs. 2,000 for the first violation. For the second violation, it will increase to Rs. 5,000 and Rs. 10,000 for the third.
● If PIBOs are found misreporting their packaging quantities or recycled volume of plastic, their EPR target will be increased and they could face fines up to 1 Lakh rupees.
● Plastic Waste Processors and Producers, Importers, and Brand Owners who do not follow the EPR rules may end up losing their registration.

Further, CPCB/ SPCBs also impose penalties if any manufacturer or producer is found littering or using banned single-use plastic items.

● For waste generators: Spot fine of Rs.500/-
● For institutional waste generators: Spot fine of Rs. 5,000/-

What are the Categories of Plastic Under EPR

Different types of plastic comprise different qualities and characteristics. The PWM, 2016 rules identify 7 categories of plastic based on its recyclability. These are as follows:

● PET – Polyethylene Terephthalate
● HDPE -High-Density Polyethylene
● PVC – Poly Vinyl Chloride
● LDPE – Low-density polyethylene
● PP – Polypropylene
● PS – Polystyrene resins
● Multi-materials like poly-phenylene oxide, polycarbonate, Acrylonitrile, Poly-butylene terephthalate

In addition, to ensure EPR Compliance Plastic Waste, the plastic packaging must have certain specified information printed on it in English. These are the name and registration number of the PIBOs, the thickness of the carry bag, and if the carry bag is made of compostable plastic then the name and certificate number of the producer.

Why Must Business Owners Comply to EPR Norms?

● Demonstrate Responsibility: EPR demonstrates the environmental responsibility of producers, importers, brand owners, plastic waste processors, and other entities involved in the product’s lifecycle. It reshapes the core of the manufacturing and production phase and goes beyond just recycling and disposal of plastic waste.
● Avoid Penalties: If producers fail to meet the legal requirements of the EPR, they could face penalties. However, it can also lead to cancellation of registration, legal action in the form of a lawsuit, reputational damage, and restriction on selling the products from the onwards. As the Scope of EPR for Plastic Packaging Waste is enormous, producers must comply with all the norms diligently to avoid impacting their business funds, profits, and normal operations in the long run.
● Improve Brand Image: Companies diligently complying with EPR norms are likely to create a positive perception of their brand in public. Brands that show dedication to environmental sustainability are also bound to attract consumers who are environmentally conscious.
● Promote Circular Economy: EPR incentivizes the manufacturers who create plastic products that are easy to sort, collect, recycle, and reuse. It facilitates the economy to shift from linear to circular where plastic stays longer in use and lessens the plastic waste generation.
● Increase Profitability: PIBOs who comply with EPR regulations draw the attention of those investors who wish to channel their funds into green projects. It improves transparency and enables PIBOs to gain financial benefits. Further, products labelled as eco-friendly and sustainable attract international markets and open up new markets for expanding the business.

Therefore, EPR compliance plastic waste is necessary to Meet EPR Targets and Manage Plastic Waste Effectively. However, in case PIBOs or other entities fail to meet the EPR targets in the current financial year, they will be subject to penalties and obligations will get carried forward to next year. This means that even if one pays the fines, they will still be liable to meet the targets. CPCB provide a concession of three consecutive years to fulfil the missed target and return a portion of the compensation paid by PIBOs.

Steps To Be Followed By PIBOs For EPR Certificate

Producers, Importers, and Business owners along with Plastic Waste Processors (PWPs) must follow the below-mentioned steps to obtain their EPR certificate:

● Registration: For plastic packaging, the Central Pollution Control Board has developed a centralized online EPR portal where PIBOs can get themselves registered.
● Determination of EPR Targets: EPR targets are the plastic waste of PIBOs introduced by them in the market.
● Recycling Obligation: The EPR guidelines mention a minimum amount of plastic packaging waste that must be recycled in the given year. For 2024-25, this minimum amount as a percentage of EPR must be between 30 to 50.
● Reuse Obligation: EPR compliance plastic waste guidelines also specify targets for the reuse of plastic packaging that has gone through the recycling process.
● Fulfilment of EPR Obligations: The PIBOs are mandated to register for EPR certification as they cannot carry any business without the CPCB’s EPR registration. Further, they must fulfil all the obligations and targets specified under the rule as a violation can lead to cancellation or severe penalties.
● Filing of Annual Returns: PIBOs must file annual returns on the quantity of plastic waste processed through PWP or other agreements. They must also pay annual fees as specified in the EPR regulations.

Inculcating Strategic Approaches to EPR Compliance for Plastic Waste in the business is important in both the short and long run. Thus, adopt strategies that ease up the processing and compliance burden, spearhead innovation through technology-backed production, and diligently submit your annual returns to avoid any legal repercussions.

Final Thoughts

In this business and commerce era, extended producer responsibility emerges as a pivotal tool in revolutionizing production and consumption. The strategy shifts the responsibility of managing post-consumer plastic waste from municipalities to producers. EPR sets targets for PIBOs to ensure that plastic waste is collected, recycled, and disposed of in an environment-friendly manner. Thus, adherence to EPR compliance plastic waste is necessary to create an image where producers acknowledge their responsibility towards the environment.

With Legal Raasta, understand the Scope of EPR for Plastic Packaging Waste and receive comprehensive support at every step in your EPR registration journey. Avail professional advice and consistently fulfil your EPR liability at the best and lowest rates. Our services for EPR in Sustainable Plastic Waste Management have reportedly been the best for several decades, where we have served over 15,000+ clients, including producers, importers, brand owners, and plastic waste processors. Do not hesitate to reach out to us, because we are just a call away!