Environmental Compensation Assessment for Waste Generators, Manufacturers, Producers, Importers and Brand Owners

Environmental Compensation Assessment for Waste Generators, Manufacturers, Producers, Importers and Brand Owners

By Dr. Yashpal Singh

Chairman, The Wealthy Waste School India

In compliance to the directions of the Honourable NGT as given in the matter of OA No. 247/2017 dated 10-09-2020, the CPCB has published, in August 2024, the “Revised guidelines for Assessment of Environment Compensation to be levied for violation of the plastic waste management rules 2016”. The guidelines have taken into account all amendments to the Plastic Waste Management Rules in India up to 2022, except the amendments to the rules in 2024, an understanding of which is significant from the view of implementation of these guidelines. As per the Plastic Waste Management Rules as amended up to 2022 the following definitions were provided for producers, importers, brand owners and manufacturers.

As per G.S.R 320(E) dated 27th March, 2018.

1. “Manufacturer” means and includes a person or unit or agency engaged in production of plastic raw material to be used as raw material by the producer.

 As per G.S.R. 133(E) dated the16th February, 2022.

1. “Brand Owner” means a person or company who sells any commodity under a registered brand label or trade mark.
2. “Importer” means a person who imports plastic packaging product or products with plastic packaging or carry bags or multilayered packaging or plastic sheets or like.
3. “Producer” means person engaged in manufacture or import of carry bags or multilayered packaging or plastic sheets or like, and includes industries or individuals using plastic sheets or like or covers made of plastic sheets or multilayered packaging for packaging or wrapping the commodity.

The amendments to the Plastic Waste Management Rules in 2024 through G.S.R. 201(E) dated 14-03-24 make some significant changes in the definitions given above (the term Brand Owner remains unchanged) and now provide as follows.

1. “Importer” means a person who imports for commercial use, any plastic packaging or any commodity with plastic packaging or carry bags or plastic sheets or like material, or plastic raw material including in the form of resin or pellets, or intermediate material to be used for manufacturing plastic packaging such as films or preforms.
2. “Manufacturer” means and includes a person engaged in production of plastic raw material, including compostable plastics and biodegradable plastics.
3. “Producer” means a person engaged in manufacturing of plastic packaging and includes a person engaged in manufacture of intermediate material to be used for manufacturing plastic packaging, and also the person engaged in contract manufacturing of products using plastic packaging or through other similar arrangements for a brand owner.

These are drastically different from the definitions as given in the amendments up to 2022

The Rules had earlier defined Producer to mean persons engaged in manufacture or import of carry bags or multilayered packaging or plastic sheets or like, and included industries or individuals using plastic sheets or like or covers made of plastic sheets or multilayered packaging for packaging or wrapping the commodity.

The rule as amended in march 2024 (GSR no. 201 E dated 14-03-2024 however now defines producers to mean a person engaged in manufacturing of plastic packaging including a person engaged in manufacture of intermediate material to be used for manufacturing plastic packaging, and also the person engaged in contract manufacturing of products using plastic packaging or through other similar arrangements for a brand owner.

The new definition does not make a mention of persons using plastic sheets or multi layered packaging for packing these commodities being included as producers.

Similarly, with reference to Importers the rules defined Importers to mean a person who imports plastic packaging product or products with plastic packaging or carry bags or multilayered packaging or plastic sheets or like  but the new definition as per the amendment of 2024 defines it to mean a person who imports for commercial use, any plastic packaging or any commodity with plastic packaging or carry bags or plastic sheets or like material, or plastic raw material including in the form of resin or pellets, or intermediate material to be used for manufacturing plastic packaging such as films or preforms.

The term manufacturer has also been amended in 2024 to now include a person engaged in production of plastic raw material, including compostable plastics and biodegradable plastics.

The applicability of the guidelines on manufactures, producers, importers and brand owners needs to be examined by individuals on the basis of their being covered or not covered as PIBO’s under the definitions.

Given that an individual or an agency is covered within the definition of manufacturers, producers, importers, or brand owner the following provisions may apply as per the guidelines

1. Obligations as Manufactures
   
2. Provision

The manufacturers or seller of compostable plastic and biodegradable plastics carrybags or commodities or both shall obtain a certificate from the Central Pollution Control Board before marketing or selling; and

Violation Category

Certificate not obtained and/or not complying with conditions specified in Certificate issued by CPCB

Compensation

EC to be levied @ Rs.7900/- per ton of compostable and biodegradable plastic produced from the date of inception of the unit or date of notifications of PWM Rules (March 18, 2016 and July 06,2022 respectively) whichever is later

Cancellation of CPCB Certificate and closure of Unit

Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023as applicable

EC to be levied @ Rs.7900/- per ton of compostable and biodegradable plastic produced for the period of violation or from the date of issue of certificate under 4(h) PWM Rules. (EC to be levied @ Rs.15800/- per ton for 2nd violation and @ Rs.23700/- per ton for 3rd violation)

2. Provision

13(4) Every manufacturer engaged in manufacturer of plastic to be used as raw material by the producer shall make an application to the State Pollution Control Board or the Pollution Control Committee of the Union territory concerned, for the grant of registration or for the renewal of registration, in Form III.

Violation Category

Unit operating without Registration

Compensation

Closure of unit ii. EC to be levied @ Rs.2500/- per ton of plastic raw material manufactured from the date of inception of the unit or date of notification of PWM Rules (March 18, 2016) whichever is later (EC to be levied @ Rs.5000/- per ton for 2nd violation and @ Rs.10000/- per ton for 3rd violation & violation thereafter) iii. Penalty as per Section 15 of EPA 1986 / The Jan Vishwas (Amendment of Provisions) Act, 2023as applicable

3. Provision

4(e) The manufacturer shall not sell or provide or arrange plastic to be used as raw material to a producer, not having valid registration from the concerned State Pollution Control Boards or Pollution Control Committee;

Violation Category

Raw material sold to producers not having registration from SPCB

Compensation

EC to be levied @ Rs.2500/- per ton of plastic raw material sold to unregistered producers from the date of notification of PWM Rules (March 18, 2016) whichever is later (EC to be levied @ Rs.5000/- per ton for 2nd violation and @ Rs.10000/- per ton for 3rd violation & Closure of unit thereafter)

2. Obligations as Waste Generator

1. Provision

The waste generator shall take steps to minimize generation of plastic waste and segregate plastic waste at source.

Violation Category

Waste not segregated

Compensation

Institutional Waste Generator: Spot fine Rs.5000/- (I violation); Rs. 10,000/- (II violation); Rs. 20,000/- (Third violation & thereafter) Above is minimum EC to be levied for the said violation by the Local body. Local bodies already imposing fine to continue doing so; if the fines are more than the minimum specified fines as per details given above

 Penalty as per Section 15 of EPA 1986 / *The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable.

Waste Littered

Compensation

Institutional Waste Generator: Spot fine Rs.5000/- (I violation); Rs.10,000/- (II violation); Rs. 20,000/- (Third violation & thereafter) Above is minimum EC to be levied for the said violation by the Local body. Local bodies already imposing fine to continue doing so; if the fines are more than the minimum specified fines as per details given above

 Penalty as per Section 15 of EPA 1986 / *The Jan Vishwas (Amendment of Provisions) Act, 2023 as applicable

*15A. Penalty for contravention by companies.

 (1) Where any company contravenes any of the provisions of this Act, the company shall be liable to penalty for each such contravention which shall not be less than one lakh rupees but which may extend to fifteen lakh rupees.

 (2) Where any company continues contravention under sub-section (1), the company shall be liable to additional penalty of one lakh rupees for every day during which such contravention continues.

3. Obligation as Producer/Brand Owner, Importer and Manufacture as Applicable
   
4. Provision

Marking or labelling. -(1) Each plastic carry bag “plastic packaging” and multi-layered packaging shall have the following information printed in English namely, – a. name, registration number of the producer or brand owner and thickness in case of carry bag and plastic packaging. b. name and registration number of the manufacturer producer or brand owner in case of multi-layered packaging, excluding multi- layered packaging used for imported goods: and c. name and certificate number of producers [Rule 4(h)] in case of carry bags made from compostable plastic d. the importer or producer or brand owner of imported carry bags or multi-layered packaging or plastic packaging, alone or along with the products shall adhere to clause (a) and (b).

Violation Category

Packaging Material not suitably marked

Compensation

Cancellation of Registration/CPCB certificate. ii. Fine Rs.2000/- (I violation); Rs.5000/- (II violation); Rs. 10,000/- (Third incident)

2. Provision

Every producer or Importer or brand-owner shall, for the purpose of registration or for renewal of registration, make an application as per the guidelines specified in Schedule -II in Form-I to the concerned State Pollution Control Board or Pollution Control Committee of the Union territory, if operating one or two States or Union Territories or to the Central Pollution Control Board, if operating in more than two States or Union Territories.

Violation Categories

Registration not obtained, shortfall in EPR Target, misreporting in quantity of plastic packaging placed on market and use of recycled plastics, not filing Annual returns, submission of false information, non-compliance of conditions stipulated in Certificate.

Compensation

1. Submission of false information

Cancellation of Registration and & EC of double of Application fees. Proportionate Penalty up to Rs. 1,00,000/- (For 2nd time default EC of four times the application fees and 3rd time default EC of eight times the application fees)

1. Do not get registered on Centralised Portal

EC to be levied considering plastic produced from the date of inception of the unit or date of notification of PWM Rules (March 18, 2016) whichever is later. EC will be levied as per below: Cat I: Rs.2900 / Ton, Cat II: Rs.5000 / Ton, Cat III & IV: Rs.7900 / Ton

1. Shortfall in EPR Target in following types 1. Recycling 2. End of Life Recycling 3. Mandated Use of recycled plastic 1. Reuse of Plastic (Cat I)

EC to be levied considering the category wise shortfall in EPR target, as per below: Cat I: Rs.2900 / T, Cat II: Rs.5000 / T, Cat III & IV: Rs.7900 / T. For 2nd time default EC to be levied 2x times per ton in each category and for 3rd time default EC to be levied 3x times per ton in each category. EC can be carried forward up to 3 years as per EPR guidelines.1

1. Non-Filing of Annual Returns

Notice will be issued for 5 days after the last date of AR Filing; ii. Thereafter Rs. 5000/ – as EC shall be levied for next 5 days (Rs.10000/- for 2nd time default and Rs.20000/- for 3rd time default) iii. Rs. 10,000/- as EC shall be levied for next 10 days (Rs.20000/- for 2nd time default and Rs.40000/- for 3rd time default) iv. Thereafter Annual Report to be Auto filed on the EPR Portal and EC to be levied on shortfall in fulfilling EPR target, if any. If due to force majeure conditions, the PIBOs are not able to file Annual Report during the aforementioned (Point i-iv) period of 20 days after the last date of AR filing, then the final decision regarding levying of EC shall be taken by the Committee constituted by CPCB for the purpose.

1. Misreporting in quantity of plastic packaging placed on market and use of recycled plastics

Increased EPR target and EC proportional to the Penalty up to Rs 1,00,000/- (For 1st default – EC of double of application fees, for 2nd time default -EC of four times the application fees and 3rd time default -EC of eight times the application fees)

1. Non -compliance of conditions stipulated in the registration certificate.

Cancellation of Registration

1. Non-Compliance of Environmental Norms

EC to be levied based on “Report of the CPCB In-house Committee on Methodology for Assessing Environmental Compensation and Action Plan to Utilize the Fund”

3. EC CHARGES AND FINANCIAL PENALTY W.R.T. NON-TIMELY SUBMISSION OF PENALTIES
4. Provision

Within one month from the stipulated time period as directed by CPCB/SPCB/PCC

Compensation

Original amount with interest @ 12% per annum for number of days delayed after the stipulated date of amount deposition

2. Provision

After one month but within 03 months after the stipulated time period as directed by CPCB/SPCB/PCC

Compensation

Original amount with interest @ 24% per annum for number of days delayed after one month of the stipulated date of amount deposition.

3. Provision

After 03 months

Compensation

Closure of unit/facility, Seizure of trade documents, Action as per Section 15 (1) of EPA. Action, as applicable, to be taken by Local bodies for Clause 8(1)(a), 8(1)(b) and 14(1) and for the remaining clauses action has to be taken by the concerned SPCB/ PCC/ CPCB

Also See:

• A note on the Plastic Waste Management Rules 2016 as amended. (India)
• Guidelines for the implementation of Extended Producers Responsibility for Plastic Packaging
• Need to address to certain anomalies in the Plastic Waste Management Rules 2016 as amended
• Advantages of Recycling Plastic
• Use of Plastic Wastes in the Construction of Roads
• Plastic Recycling Techniques
• The Plastics Waste Management Rules in India as amended 2024. Some frequently asked questions