EPR For Waste Tyre

Overview of EPR for Waste Tyres

The term EPR for Waste Tyres refers to the obligation placed on tyre producers to ensure that end of life tyres are managed in an environmentally responsible manner to safeguard the health and environment from any negative impacts that may arise from such waste tyres. The Hazardous and Other Wastes Amendment Rules, 2022 for "Extended Producer Responsibility (EPR) for Waste Tyre" were introduced by the Ministry of Environment, Forest, and Climate Change. This amendment, which became effective on July 21, 2022, includes a new Schedule IX that outlines the provisions for utilising and managing waste tyres by producers, recyclers, and retreaders.

Under the EPR for Waste Tyres regime, producers, importers and brand owners dealing with the manufacture and sale of new tyres, and those importers who import waste tyres would be required to follow the Extended producer’s responsibilities that include a network of collection, transport, and recycling or disposal of end-of-life tyres. This system has been designed to ensure that waste tyres generated or imported into the country are managed in an environmentally sound manner. Retreaders who replace a tyre's worn tread with a new tread have also been covered under the Amendment Rules. This write-up will guide all the concerned entities in the tyre manufacturing and management sector in the registration process and identify their responsibilities with respect to post-compliance on the centralised CPCB portal.

Benefits of EPR for Waste Tyres

The benefits of EPR are valuable for all of India. They should not just be seen as a mandatory requirement to obtain EPR certification or search for EPR certificates for rubber/waste tyres. The benefits are as follows:

• Reduces reliance on other waste disposals methods like burial or burning.
• EPR minimises the burden on local municipalities to manage waste physically and financially.
• Ensures proper recycling and refurbishment of products and their parts.
• Facilitates easier and quicker disassembly of products.
• Encourages conservation of natural resources.
• Decreases the amount of waste generated.

Documents required for EPR for Waste Tyres

The following are the Documents that may be required in the EPR registration process from CPCB for Waste Tyre Management:

1. Pan card of the company - This is required to verify the company's legal identity.
2. GST number of the company - This is required to verify the tax registration status of the company.
3. IEC number of the company (in case of import) - This is required if the company is involved in importing waste tyres and needs to comply with the import-export regulations.
4. CIN number of the company - This is required to verify the company's registration details with the Ministry of Corporate Affairs.
5. Aadhar number of the authorised person - This is required to verify the identity of the authorised person who is responsible for the waste tyre management activities.
6. Covering letter – As per Annexure A (given in the official Instruction Sheet)
7. Undertaking – As per Annexure B (given in the official Instruction Sheet)
8. Tyre Composition- As per Annexure C (shown in the official Instruction Sheet)
9. Submission of Plantwise manufacturing Data – As per Annexure D (given in the official Instruction Sheet)

The applicant will also be required to submit other relevant Documents for fulfilling EPR for Waste Tyres, such as:

1. Proof of ownership / lease of premises where waste tyre management activities will be carried out.
2. Details of the proposed EPR plan, including the collection, storage, transportation, processing, and disposal of waste tyres.
3. Environmental clearances or NOCs from the relevant authorities.

Requirement for EPR for Waste Tyres

The Amended Rules contain the following key requirement:

Registration of Entities under EPR for Waste Tyres

All entities must register on the portal developed by the CPCB before commencing or continuing their business activities.

Modality in the EPR for Waste Tyres

 The Extended Producer Responsibility (EPR) obligation imposed under the Amendment Rules has been bifurcated based on the entity's registration on the CPCB portal as follows:

• Producers of New Tyres: The EPR obligation imposed on producers (manufacturers or importers) of new tyres is as follows:

1. In the year 2022-2023 (the year in which this Schedule comes into force), the EPR obligation is 35% of the quantity of new tyres manufactured or imported in the year 2020-2021.
2. In 2023-2024, the EPR obligation is 70% of the weight of tyres manufactured / imported in 2021-2022.
3. In 2024-2025, the EPR obligation is 100% of the weight of new tyres manufactured/imported in 2022-2023.
4. After the year 2024-2025, the EPR obligation will be 100% of the weight of new tyres that was manufactured or imported in the year (Y-2).
5. Units established after April 1, 2022, will have a deferred EPR obligation that starts after two years and will be 100% of the weight of new tyres manufactured / imported in the year (Y-2).

• Importers of Waste Tyres: The EPR obligation imposed on importers of waste tyres is 100% of the tyres imported in the preceding year (Y-1).
• Retreading: The EPR obligation on waste tyres that have been retreaded shall be deferred for one year.

Producer Responsibility under EPR for waste tyres

 The term "producer" refers to any person or entity that:

• Manufactures and sells new tyres domestically
• Sells domestically under its own brand, new tyres manufactured by other manufacturers or suppliers
• Sells imported new tyres
• Imports vehicles fitted with new tyres
• Automobile manufacturers importing new tyres for use in new vehicles sold domestically
• Imports waste tyres

Producers must fulfil their obligation under EPR for Waste Tyres by purchasing the EPR certificate from registered recyclers and submitting it on the portal through quarterly returns, as per Rule 7 of the Amendment Rules.

The producers will have to provide the details about the composition of the tyres, including the details shown i.e.

• Average Weight of one Tyre
• Natural Rubber
• Synthetic Rubber
• Process Oil
• Steel Wire
• Textile Fibres
• Carbon Black
• Silica Antioxidants, Anti-ozonants, Curing System
• Other Material (If any)
• Total weight of materials used

Recyclers' responsibility under EPR for Waste Tyres

A recycler is a person responsible for converting waste tyres into end products in an environmentally friendly way, such as the end products include reclaimed rubber, crumb rubber modified bitumen, crumb rubber, recovered carbon black and pyrolysis oil / char.

A tyre pyrolysis plant will be able to recycle waste tyres into carbon black and fuel oil. it will also process rubber, oil sludge, and plastic. It's among the most environmentally sound methods. Recovered carbon black can be used as a raw material to make new tyres.

Responsibility of retreaders

Retreading of waste tyre have been allowed, but the retreaders will first have to get registered on the CPCB portal to issue retreading certificates. On production of this certificates, the EPR obligation for the retreader was deferred by one year (till 2023), provided that the obligation is extinguished after end-of-life disposal through a registered recycler.

Procedure of applying for EPR for Waste Tyres

• Submit an application form in the portal to get the login credentials.
• The applicant then needs to log in using the login credentials.

• Fill out the online registration form with the required information, including the details of the applicant, the activity details, and the proposed EPR plan.
• Attach all Documents, such as the proof of ownership, the proposed EPR plan details, and any other relevant information.
• Submit the online application form along with the Documents within 30 days.
• Once the application is received, CPCB will review it and provide the registration number within 15 days.
• The authorised person must comply with all the EPR regulations and submit regular reports to CPCB on the progress of their waste tyre management activities.
• If the application is approved, the applicant will receive an EPR authorisation certificate, valid for two years.

Transaction of extended producer responsibility certificates

A producer can purchase extended producer responsibility certificates limited to its extended producer responsibility liability of the current year (Year Y) plus any leftover liability of preceding years plus 10% of the current year's liability. However, the obligation can be fulfilled by the producers by proportionately purchasing extended producer responsibility certificates on a quarterly basis. All the availability, requirement and other details data will be updated regularly on the portal.

Provision for Post Compliance and Inspection of Producers

CPCB has the authority to verify compliance of producers or recyclers through inspection and periodic audit, as deemed appropriate and the actions against violations and for non-fulfilment of extended producer responsibility target, obligations and responsibilities.

Penalties for Non-Compliance

If an entity covered under the rules provides false information in order to obtain an EPR certificate by generating more than 5% excess EPR certificates compared to the actual waste recycled, or deliberately violates any provisions of the HWM Rules, may face prosecution and penalties in the form of Environmental Compensation. Failure to adherere with the amendmentslaid out for registration and compliance with EPR targets can result in producers, recyclers and retreaders being held accountable for violation under the Environment (Protection) Act. In case the shortfall of EPR obligation is addressed in subsequent years within three years, the applicant will be entitled to a refund. The entities can be held liable for environmental compensation in the following manner.

• on the recyclers for providing false information or issuing false extended producer responsibility certificates
• on unregistered producers, recyclers and any entity that aids a violator in the violation of the provisions

Note: The payment of compensation will not absolve the entities from the EPR obligation or unfulfilled EPR targets obligation as the shortfall will be carried forward to the consequitive year and up to three years. However, he following criteria for refund will be applicable.

In conclusion, the regulation of EPR for waste tyres will ensure that producers, recyclers, and retreaders are regulated under the EPR regime and fulfil the responsibility for the proper management of waste tyres and their disposal. However, the 2022 Amendment has been advantageous for the entities. It has provided a boost towards a responsible recycling market and will lead to a shift towards organising the waste tyre recycling sector. As per some market experts, these changes will lead to better-quality retreading also. As retreaders will be allowed to issue retreading certificates after registering on the centralised CPCB portal, they will now be identified as a crucial link in the EPR regime for Waste tyre management in the country. Penalties and compensation for non-fulfilment of EPR for Waste Tyres have also been introduced to ensure strict adherence to registration modalities and ensure compliance with the regulations.

How does Corpbiz help for EPR for Waste Tyre?

Corpbiz can help with various aspects related to EPR for Waste Tyre, including:

• EPR Registration: Corpbiz can assist entities in the registration process for EPR with CPCB.
• Compliance Management: Corpbiz can help in managing the compliance requirements related to EPR, including quarterly returns and maintaining records.
• EPR Certificate: Corpbiz can assist entities in obtaining EPR certificates from registered recyclers.
• Documentation: Corpbiz can provide guidance on the Documents required for obtaining EPR certification and can assist in preparing them.
• Penalties and Compensation: Corpbiz can provide guidance on penalties and compensation related to non-compliance with EPR regulations.
• Advisory Services: Corpbiz can provide advisory services related to EPR and waste tyre management, including best practices, cost optimization, and sustainability initiatives.

Overall, Corpbiz can provide end-to-end support for EPR compliance and waste tyre management, enabling entities to focus on their core business activities.