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Muskaan Verma
| Updated: 30 Aug, 2022 | Category: Compliances

Environmental Compliance for Plastic Toy Manufacturers

Plastic Toy manufacturers
Reading Time: 5 minutes

The toys industry is one of the most plastic-intensive industries that use 40 tons of plastic for every 1 million dollars in revenue. Around 90 per cent of toys are made of plastic containing heavy metals like cadmium, lead or other toxic chemicals like dioxins. Because of this reason plastic toy industry is also one of the highest contributors to the increase in plastic waste. These toys are also very harmful to the environment as well as children’s health as children may often put them into their mouths or suck on them, which exposes them to harmful chemicals. Some of the harmful substances that are found in plastic toys are Phthalate, Bisphenol A, Polystyrene, Polyvinyl Chloride etc. This blog will explain the Environmental Compliance for Plastic Toy Manufacturers.

Market Overview of Plastic Toy Manufacturing Market

The Indian Toy industry comprises 90 per cent of toys made from plastic. While analysing the Market Overview of the Plastic Industry in India, it is valued that the Plastic toy industry is currently worth 1.5 billion dollars, comprising 0.5 per cent of the world toy industry. It is also estimated that by 2024 it will reach 2-3 billion dollars. Domestic toy industry demand is projected to be 10 to 15 per cent growth every year, while the Compound Annual Global Growth rate is 5 per cent.

According to the general secretary of the Toy Association, the Indian Toy industry employs 2.5 million workers, and 50% of them are women. The domestic production value is only 6000 crores. Of total toy manufacturing in India, 75% is from micro industries, 22% from MSMEs, and 3% from large manufacturers.

Year Predicted Market Size
2022 159
2023 168
2024 176
2025 185
2026 193
2027 200

Authorisation/licenses that are needed by Plastic Toy Manufacturers 

For starting any Plastic Toy Manufacturer, the industry owner has to obtain a few authorisations and licenses as specified under the E-Waste (Management) Rules, 2016/Plastic (Management) Rules, 2016 or Hazardous Waste Rules and the implementation guidelines of Management Rules prescribed by the Central Pollution Control Board[1] or State Pollution Control Board. These licenses are granted by the Central Pollution Control Board or State Pollution Control Board, or other government authorities are mostly regulated under the Ministry of Environment, Forest and Climate change.

General Business Setup Licenses

Before acquiring and compiling environmental authorisation, the business has to acquire general licenses and authorisation from the concerned governmental authorities. Some of these licenses are: –

Company license

Documents required for establishing the company

  • PAN Card;
  • Address Proof such as
    • Passport;
    • Election Card or Voter Identity Card;
    • Ration Card;
    • Driving License;
    • Electricity Bill;
    • Telephone Bill;
    • Aadhaar Card;
  • Residential, Proof such as
    • Bank Statement
    • Electricity Bill
    • Telephone Bill
    • Mobile Bill
  • GST Registration Certificate;
  • MOA (Memorandum of Association);
  • AOA (Article of Association);

Udyog Aadhaar MSME Registration

For acquiring MSME (Micro, Small and Medium Enterprise) registration, one has to apply through the online portal of the authority and upload the mandated documents. 

Documents needed for MSME registration

  • ApplicantOfficial Name
  • Name and type of enterprise
  • Aadhar Card
  • PAN Number 
  • The NIC Code
  • Account Details
  • The social category of the applicant
  • The business operations of the enterprise
  • Date of Incorporation of a business
  • Details related to employment

BIS Certificate

BIS Certificate is required to ensure that the products do not adversely affect public health. As per the Bureau of Indian Standards, the manufacturer has to fill out the application form along with the mandated documents and send the test reports of the samples that are tested at the BIS recognised lab, the report of which will be analysed and scrutinised by the authorised personnel. Once the report is reviewed, the BIS certificate is granted.

Documents required for BIS Certificate needed by Plastic Toy Manufacturer

  • The list of raw materials that are being used during production 
  • A detailed layout/site plan  
  • Description of the industrial procedure 
  • Information on the types of machinery being operated 
  • layout of the Plant 
  • The Test Reports of the toy sample sent by the plastic toy manufacturer that is to be issued strictly by a BIS Recognised Laboratory 
  • Photographs of the plastic toy
  • A duly signed Undertaking 
  • Identification Proof like PAN Card or Aadhar Card
  • Factory Registration Documents 
  • The authorisation form which is correctly filled and signed by the official personnel 

GST Certificate

Document required for GST Certificate

  • PAN Card
  • the Ministry of Corporate  Affairs authorised Incorporation Certificate
  • MOA
  • AOA
  • Aadhar Card of the applicant
  • Address proof
  • Bank Details

Trade license by Plastic Toy Manufacturer                      

A trade license is granted by Municipal Corporation which depends on the rules and regulations set by the state. The documents required for Trade licenses are submitted along with the application.

Documents required for trade license

  • Address proof (Electricity bill or water bill)
  • Aadhaar card
  • PAN
  • Memorandum of Association (MOA)
  • Certification of incorporating (CIN) in case of Companies
  • A latest municipal property tax receipt in case the premises are owned, else lease document or consent letter of the owner of the property where the business is registered.
  • NOC of the neighbours (nearby property owners)
  • Layout plan/Site plan of the office

Environmental Compliance

Along with acquiring the general licenses and authorisation, Plastic toy manufacturers also have to file for Environmental compliance that are governed by the Ministry of Environment, Forest and Climate Change.

EPR Authorisation needed for Plastic Toy Manufacturer

EPR Authorisation for Plastic Toy manufacturer are governed under Plastic Waste Management Rules, 2016. Manufacturers have to file the application under Form I from the online portal of The State Pollution Control Board, which is again submitted with the mandated documents. Once the application is submitted, it is reviewed and scrutinised by authorities, following which the Manufacturer is provided with the authorisation. 

Documents required for acquiring EPR Authorisation

  • EPR plan;
  • Financial breakup for EPR;
  • Self-declaration under RoHS;
  • Copy of authorisation issued by Pollution Control Committee/State Pollution Control Board earlier in case of those manufacturers who are working in the country prior to 01-10-2016;
  • Details of future awareness programmes and associated initiatives;
  • Copy of the approval from the applicable state authority for marketing various products or for doing the business as given below:
    • TIN details;
      • PAN details;
      • Incorporation certificate;
      • Copy IEC;
  • Copies of agreement document with other Stakeholders like dealers, collection centres, dismantlers, Manufacturer, treatment, storage and disposal facilities (TSDFs) etc.   

Consent Certificates

  1. Consent to Establish (CTE) under the Air and Water (Prevention and Control of Pollution) Act
  2. Consent to Operate (CTO) under the Air and Water (Prevention and Control of Pollution) Act

The process of both the consent certificate is mandated under the Air and Water Act, which follows the similar steps of filing the application through the online portal of The State Pollution Control Board with prescribed documents which are followed by a review of an application. After that site, an inspection takes place by the authorised personnel who make the report according to the inspection and at last, the certificate is granted.

Documents required for consent certificate

  • SSI Certificate;
  • Industry Department Certificate;
  • The layout plan/Site plan;
  • Details on channelisation;
  • Total open land
  • Total constructed area
  • The project report
  • Water usage breakdown
  • DG Specifications
  • Raw material list with daily MTD/monthly quantity
  • Effluent / Sewage Treatment Plant Flow Diagram
  • Boiler type, fuel used, and quantity
  • Specifics on air pollution controls
  • Product/by-product list with daily MTD/monthly quantity
  • Permission from the state’s groundwater authority.
  • Factory/Trade License
  • Authorisation Letter
  • Pan Card
  • The Aadhar Card
  • Municipality or Industry license
  • Registration Proof of unit
  • Site Plan
  • Water Bill

Conclusion

Increase in public awareness and the critical condition of the environment Plastic Toy Industry in recent years has taken a lot of heat for its impact on the environment and children’s health. By acquiring environmental authorisation from the Ministry of Environment, Forest and Climate Change, the plastic toy manufacturers can escape this criticism by showing their commitment to saving the environment and decreasing plastic waste.

Read our Article:BIS License for Toys- Everything you Need to Know!

Muskaan Verma

Muskaan has completed her BA.LLB and LLM, gaining vast legal knowledge and expertise. She has keen interest in legal research and content writing, having prior experience of publishing numerous research papers in international journals on Environmental Laws and Corporate Laws.

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