In a crucial update for micro and small plastic producers, the Central Pollution Control Board (CPCB) has provided much-needed clarity on Extended Producer Responsibility (EPR) obligations under the Plastic Waste Management (PWM) Rules, 2016. The amendment dated March 14, 2024, has introduced significant relief for smaller businesses in this sector, bringing fresh hope for a more streamlined compliance process.
Key Highlights of Rule 4(a) - PWM (Amendment) Rules, 2024
According to Rule 4(a) of the PWM (Amendment) Rules, 2024, micro and small producers of plastic products are no longer required to procure EPR certificates for managing their plastic waste. This exemption alleviates financial and logistical challenges that have historically burdened these businesses.
However, initial ambiguity surrounded the effective financial year (FY) for this exemption. Micro and small producers, along with industry stakeholders, sought clarification on whether the rule would apply retroactively or begin from a specific fiscal year.
CPCB's Recent Clarification – October 22, 2024
To address this concern, the CPCB issued a directive on October 22, 2024, confirming that the exemption from EPR obligations applies starting from the Financial Year 2023-24. This means that businesses falling under the micro and small producer category are exempt from procuring EPR certificates and fulfilling related EPR obligations for plastic waste management.
However, it is essential to note:
- While the exemption applies to EPR obligations, filing Annual Returns (AR) remains mandatory for the FY 2023-24 to maintain transparency and accountability.
- Filing ARs ensures responsible reporting of plastic production and waste management practices.
Challenges Persist on the EPR Portal
Despite this clarification, businesses attempting to file on the EPR Portal are reporting a persistent issue. The system is still levying Environmental Compensation (EC) charges for micro and small producers, causing confusion and tension.
- What’s the dilemma? The concern lies in whether these EC charges will affect future EPR target calculations, creating uncertainty about compliance trajectories for subsequent fiscal years.
This technical gap in the EPR Portal has added a layer of complexity, raising questions about how these levies will be reconciled with the new exemptions. Stakeholders are hopeful that CPCB will address this issue promptly to ensure the smooth implementation of the exemption.
What Does This Mean for Micro & Small Producers?
The exemption from EPR obligations offers considerable relief to micro and small producers, enabling them to allocate resources more efficiently while focusing on their core business goals. However, compliance with reporting requirements, particularly the timely submission of ARs for FY 2023-24, is still critical.
Here’s what producers need to keep in mind:
- Submit Annual Returns on Time: Ensure ARs are filed to avoid penalties and maintain compliance.
- Monitor Portal Updates: Stay informed about changes to the EPR Portal and how EC levies might impact future targets.
- Stay Proactive: Keep track of any further amendments or notifications by the CPCB to adapt seamlessly to regulatory changes.
The exemption from EPR obligations starting FY 2023-24 is a welcome step that supports micro and small producers in their sustainability journey. By reducing administrative burdens, this change allows smaller businesses to thrive while maintaining transparency through mandatory reporting.
Disclaimer: Above content does not constitute any legal advice and is only provided for educational purpose.
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