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The Central Pollution Control Board (CPCB) has recently issued a show-cause notice to 479 brand owners for their failure to comply with the Plastic Waste Management Rules, 2016. This article explores the implementation of the Extended Producer Responsibility (EPR) regime, the guidelines for registration, and the actions taken by the CPCB against non-compliant entities.

The implementation of the Extended Producer Responsibility (EPR) regime is underway as per the Plastic Waste Management Rules, 2016. According to these rules, it is the responsibility of Producers, Importers, and Brand-owners to ensure the proper management of their plastic packaging waste through processes such as recycling, re-use, or appropriate end-of-life disposal methods like co-processing, waste-to-energy, plastic-to-oil, roadmaking, or industrial composting.

To facilitate the effective implementation of the EPR framework, the Ministry of Environment, Forest, and Climate Change, Government of India, introduced the Fourth Amendment to the Plastic Waste Management Rules on February 16, 2022.

In this amendment, the “Guidelines on Extended Producer Responsibility for Plastic Packaging” were incorporated into Schedule II of the Rules. These guidelines require Producers, Importers, and Brand Owners (PIBOs) to complete the registration process through a centralized online portal developed by the Central Pollution Control Board (CPCB).

The guidelines necessitated the registration of specific entities, including brand owners, on the EPR portal. These entities were prohibited from engaging in any business activities without obtaining this registration. Moreover, they were restricted from engaging with unregistered entities.

However, upon reviewing the transaction details provided by Producers, Importers, and Brand Owners (PIBOs), the CPCB discovered certain transactions that had taken place with unregistered Brand Owners, in direct violation of the Plastic Waste Management Rules, 2016.

Consequently, the CPCB issued directives on April 19, 2023, mandating the affected entities to register themselves on the EPR portal by May 4, 2023. Regrettably, it has been observed that none of these entities have applied for registration as required. Therefore, the CPCB has initiated a show-cause notice against these entities, with the following actions to be taken:

1. Closure of operations for the non-compliant unit.

2. Imposition of environmental compensation for the failure to comply with the provisions of the Plastic Waste Management Rules, 2016.

We strongly encourage all businessmen to give serious consideration to the EPR Registration requirements and take the necessary steps to register themselves accordingly.

Conclusion: The CPCB’s show cause notice highlights the importance of complying with the Plastic Waste Management Rules, 2016. Non-compliant brand owners face the risk of closure of operations and environmental compensation. Businesses are urged to understand the EPR registration requirements and take the necessary steps to register themselves. Expert guidance and support are available to ensure a successful registration process.

******

Central Pollution Control Board (CPCB)

File No: CP-20/80/2021-UPC-II-HO-CPCB-HO-Part(1)

Date: 9-07-2023

Sub: Show cause notice Under Section 5 of the Environment (Protection) Act, 1986 for Non-compliance of Plastic Waste Management Rules, 2016 (as amended)- reg.

Whereas, the Ministry of Environment, Forest and Climate Change (MoEF&CC) has notified Plastic Waste Management Rules, 2016, in exercise of powers conferred under sections 3, 6, & 25 of the Environment (Protection) Act, 1986 vide Notification No. G.S.R 320 (E) dated March 18, 2016; and

Whereas, Guidelines for Extended Producers Responsibility for Plastic Packaging were notified by MoEF&CC on February 16, 2022 in Schedule II of the 4th amendment of Plastic Waste Management Rules, 2016; and

Whereas, as per section 6.1(a) of the above Guidelines, “The following entities shall register on the centralized portal developed by Central Pollution Control Board namely: – (i) Producer (P); (ii) Importer (1); (iii) Brand owner (BO); (iv) Plastic Waste Processor engaged in (a) recycling, (b) waste to energy, (c) waste to oil, and (iv) industrial composting; and

Whereas, as per section 6.2 of the above guidelines, The entities covered under clause 6.1 shall not carry any business without registration obtained through online centralized portal developed by Central Pollution Control Board’; and

Whereas, as per section 6.3 of the above guidelines, `The entities covered under clause (6.1) shall not deal with any entity not registered through on-line centralized portal developed by Central Pollution Control Board’; and

Whereas, as per section 10.1 of the above guidelines, ‘The Producers, Importers & Brand-Owners shall have to register through the online centralized portal developed by Central Pollution Control Board. The certificate of registration shall be issued using the portal; and

Whereas, CPCB has developed the Centralized EPR Portal for registration of Producers, Importers and Brand owners (PIBOs) and Plastic Waste Processors (PWPs) that has been formerly launched on April 05, 2022; and

Whereas, 9174 PIBOs (Brand-owner 1541; Producer 2444 & Importer: 5189) and 1875 Plastic Waste Processors (PWPs) have already been registered on the EPR Portal; and

Whereas, as per transaction details provided by PIBOs (both registered & those who have applied for registration) on the Centralized EPR portal, it has been observed that you have carried out transactions (procurement / sales) of plastic packaging as Brand owner without obtaining Registration on the Centralized EPR portal which is in violation of Plastic Waste Management Rules, 2016 (as amended).

Whereas, Directions dated April 19, 2023 was issued to your unit to submit complete application for Registration as Brand Owner on the Centralized Extended Producers Responsibility Portal for Plastic Packaging within 15 days of issuance of the Direction; and

Whereas, application for registration as Brand Owner has not been submitted by your unit/organization on the Centralized Extended Producers Responsibility Portal till date; and

Whereas, continuing operations as Brand owner and introducing plastic packaging in the economy without obtaining Registration on the Centralized EPR Portal for Plastic Packaging is in violation of PWM Rules 2016 ( as amended) ;and

Whereas, CPCB has recently taken several measures for “Removal of Difficulties” in implementation of EPR Guidelines. The details such measures are included in the five Notices dated 3.4.23, 19.4.23, 9.5.23, 19.5.23 & 7.6.23 issued by CPCB has been uploaded on the Centralized EPR Portal for Plastic Packaging (eprplastic.cpcb.nic.in) in the ” Important Documents” section;

Now therefore, in compliance of above and in exercise of powers vested under Section 5 of Environment (Protection) Act, 1986 to the Chairman, CPCB, Show cause Notice is hereby issued as to why the following action should not be taken against your unit for not complying with Plastic Waste Management Rules, 2016 (as amended):

i. Closure of operations of the Unit

ii. Levying of Environment Compensation for non-compliance of provisions of Plastic Waste Management Rules, 2016 (as amended)

Your unit is hereby given an opportunity to submit its reply within 10 days from the issuance of the Show Cause Notice, failing which appropriate action will be taken against it under the provision of Environmental (Protection) Act, 1986.

Yours faithfully,

(Tanmay Kumar)
Chairman

To,
The Unregistered BOs
(As per list)

List of Unregistered Brand Owners

*****

Don’t hesitate to reach out to us at team@taxtru.in/+91 9953357935 for expert guidance and support in completing the EPR Registration successfully.

Author Bio

Associate Member of the Institute of Chartered Accountants of India having more than 7 years of experience in Indirect Tax Advisory & Litigation. Abundant expertise over the years in GST, Customs Laws & Foreign Trade Policy-related issues. Has argued a large number of cases before Reven View Full Profile

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