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Overview of Plastic Trading License

Plastic is a polymer, and it cannot be decomposed naturally. A plastic waste recycling plant is set up to convert plastic scrap into a useful product. Plastic waste harms the environment. Most countries have restricted the Trade of plastic waste to reduce its adverse effect on the environment. There is no such restriction in India, but a Plastic Trade License is provided to the entity involved in the Trade of plastics. A plastic Trade license means a license or a valid certificate required to start a business or carry-on Trade of plastic waste. The plastic trade license is granted by the State Pollution Control Board of such state or the Pollution Control Committee of the respective Union Territory. 

In India, every state has its Pollution Control Board which aims to make people aware and educate them on sustainable development plans to enhance the environmental quality of the respective states. The Central Pollution Control Board guides and supervise these State Pollution Control Boards. The Central Board grants all its power and function to the concerned state board to execute waste management rules & regulations within the jurisdiction of the state. 

The objective of the Plastic Trading License is to make plastic waste useful. It promotes the use of plastic waste in road construction or for any other profit-making use. It also addresses the issues related to plastic waste disposal. The Plastic Trading License also entrusts other responsibilities such as paying user fees, collecting and transferring waste, etc. 

Any person producing the plastic/plastic waste, recycling the plastic waste, or being involved in packaging has to obtain a Plastic Trading License from the appropriate Pollution Control authority. 

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Necessary Papers required for Plastic Trading License

The Necessary Papers required at the time of applying for the Plastic Trading License are as follows:

  • Aadhar Card of the authorised person
  • PAN Card of the authorised person
  • GST Certificate of the business entity/organisation
  • Electricity bill
  • Proof of ownership
  • Proof of rent or lease (in case of rented property)
  • Factory License/Trade License
  • Plan of Unit
  • Certificate of Incorporation (in case of a company/LLP)
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Board Resolution for the appointment of such authorised person

The Procedure for Plastic Trading License 

To obtain Plastic Trading License or for renewal of such license, one has to apply before the concerned Pollution Control Authority. There are different Forms mentioned in the Plastic Waste Management Rules for a different type of businesses: 

  1. Producer: Form I
  2. Recyclers: Form II
  3. Manufacturers: Form III

The procedure for obtaining the Plastic Trading License is as follows:

  • The applicant has to fill the appropriate Forms according to their business with all the required attachments/necessary papers. 
  • The authorised person must sign the necessary papers submitted along with the Form.
  • The applicant shall submit the appropriate Form to the concerned Pollution Control authority. 
  • If the Form submitted is proper and satisfactory, then the appropriate Department issues the Plastic Trading License.  

The Concern department issues the license for five years, and then it can be renewed for the next five years. The Pollution Control Board or Pollution Control Committee renews the Plastic Trading License of the producer unless such producer possesses an action plan signed by the Secretary of Urban Development of such state or UT for settling the Plastic Waste Management System. 

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Frequently Asked Questions

Plastic Pollution results from plastic products in the environment that harms humans, wildlife and the environment.

The Plastic Waste Management Rules, 2016 defines the EPR (Extended Producer's Responsibility) as the responsibility of the producers to manage products in an environmentally sound manner until the end of life of such product.

Any individual or entity is eligible to take a license to trade in plastic in India.

The plastic Trading License is required by:
  • Producers and the Brand owners of Plastic products
  • Plants/Units established for Processing or Recycling the plastic wastes
  • Manufacturers of the plastic/ plastic raw materials

The plastic bags or multi-layered packaging must have information related to the manufacturer's name, registration number of the manufacturer, the thickness of the carry bag, name and certificate number in case of compostable plastic.

Every manufacturer, producer, brand owner and recycler of plastic/plastic waste has to obtain the Plastic Trading License.

The State Pollution Control Board issues the Plastic Trading License if the plastic waste management business operates in one or two states, but if it is operating in more than two states, then the Central Pollution Control Board issues the Plastic Trading License.

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