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Request for reiteration of exemption available to Export-Oriented Units from Extended Producer Responsibility obligations
Request for reiteration of exemption available to Export-Oriented Units from Extended Producer Responsibility obligations

March 28, 2023

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As you may be aware, Plastic Waste management (Amendment) Rules, 2022 (amended rules) were introduced by the government to curb the use of single-use plastic. These apply to import of plastic packaging products as end products, as well as to import of products such as laptops, machinery, etc. packaged in plastic.

In this regard, Jawaharlal Nehru Customs House issued Standing order no. 03/2023 dated February 8, 2023 (Standing Order) which require importers importing raw materials or goods packed/ wrapped in plastic bags/ sheets to obtain EPR registration.

However, Question no. 26 of Frequently Asked Questions (FAQs) released by Central Pollution Control Board (CPCB) exempts Export Oriented Units (EOUs) from the EPR registration. Given that the amended rules and Standing Order are silent on this exemption, there is scope for ambiguity regarding the exemption available to the EOUs.

In this regard, we have made a representation to CPCB highlighting that Information Technology – Business Process Management (IT-BPM) is a USD 245 billion revenue industry, of which ~80% are exports (USD190 Bn). The ambiguity on the exemption from EPR registration for importing products packed in plastic material for rendering services to be exported is detrimental and can result in:

  1. Increase in cost on account of substituting the packaging.
  2. Avoidable time-consuming and expensive administrative burden.

Hence, we have requested the government to issue a clarification that export oriented units continue to be exempt from EPR obligations. This will provide clarity to the industry. 


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