India exempts MSMEs from plastic packaging EPR with latest amendment

India’s Ministry of Environment, Forest and Climate Change of India (MoEFCC) has published the Plastic Waste Management (Amendment) Rules, 2024 on March 14, 2024, amending the Plastic Waste Management Rules, 2016, effective immediately. The most important change is that the Extended Producer Responsibility (EPR), which has been in effect since 2022 for the recycling, reuse and use of recycled materials for plastic packaging, is now fully exempted for producers and brand owners that fall under the micro, small and medium enterprises (MSMEs). In addition, including changes in the definition of terms, EPR obligations of manufacturers and importers of plastic raw materials, labeling, and the establishment of maximum and minimum price range for EPR certificates.

Biodegradable plastics

• (Before Revision) plastics, other than compostable plastics, which undergoes degradation by biological processes under ambient environment (terrestrial or in water) conditions, without leaving any micro plastics, or visible, or distinguishable or toxic residue, which has adverse environment impacts, adhering to laid down standards of Bureau of Indian Standards and certified by the Central Pollution Control Board
• (After Revision) plastics, other than compostable plastics, which undergo degradation by biological processes in specific environments such as soil, landfill, sewage sludge, fresh water, marine, without leaving any micro plastics or visible or distinguishable or toxic residue, which has adverse environmental impact.

Importer

• (Before Revision) a person who imports plastic packaging or products with plastic packaging or carry bags or multilayered packaging or plastic sheets or like
• (After Revision) 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.

Manufacturer

• (Before Revision) a person or unit or agency engaged in production of plastic raw material to be used as raw material by the producer
• (After Revision) a person engaged in production of plastic raw material, including compostable plastics and biodegradable plastics

Producer

• (Before Revision) persons engaged in manufacture of plastic packaging
• (After Revision) 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 owners

Exemption of EPR obligations of MSME producers & brand owners, now owed by manufacturers and importers of plastic raw materials

EPR obligations including recycling, use of recycled material and reuse of plastic packaging have now been exempted for those who satisfy the following criteria as MSMEs.

The exempted portion will instead be borne by manufacturers or importers who supply plastic raw materials to such MSME producers and brand owners. However, only the EPR obligation of recycling is stipulated. The EPR target for each plastic packaging category is shown below.

I: Rigid plastic packaging

II: Flexible plastic packaging of single layer or multilayer (more than one layer with different types of plastic), plastic sheets or like and covers made of plastic sheet, carry bags, plastic sachet or pouches

III: Multi Layered plastic packaging (at least one layer of plastic and at least one layer of material other than plastic)

Marking and Labeling

The amendment rules further stipulated the following marking obligations for each plastic packaging and commodity. Wording in brackets [] should be filled with specified information.

• Recycled plastic packaging or commodity: bear a label “recycled having [specify percentage] of recycled plastic” and a mark as shown below, while conforming to the Indian Standard IS 14534: 2023
• Plastic packaging or commodity made from compostable plastics: bear a label “compostable only under industrial composting” while conforming to the Indian Standard IS/ISO 17088:2021
• Plastic packaging or commodity made from biodegradable plastic: bear the label “Biodegradable in [ specify number of days] only in the [specify recipient environment such as soil, landfill, water etc.”
• All packaging bags of plastic raw material: Not to be used in the manufacture of single use plastic items prohibited under the Plastic Waste Management Rules, 2016 including plastic sheets < 50 micron thickness, non-woven carry bags < 60 GSM, Carry bags < 120 micron thickness”

Trading of EPR Certificates

Under the many EPR for different wastes in India, PIBO (producers, importers & brand owners) are able to offset the respective EPR targets by purchasing EPR certificates. The amendment rules have now specified the maximum and minimum price of EPR certificates, calculated according to the environmental compensation leviable on the buyer’s non-fulfilment of EPR obligations. The price should start from 30% and be capped at 100%, and all purchases should be done within that range.