FEBRUARY 22, 2023: Tax India Online

By Anshul Mittal, Partner, RSA Legal Solutions

OVERVIEW

THE E-Waste (Management) Rules, 2022, will be enacted from 1st April 2023 to regulate the disposal, recycling, and management of e-waste. These rules will apply to every manufacturer, producer, refurbisher, dismantler, and recycler involved in the production, sale, transfer, purchase, refurbishment, dismantling, recycling, and processing of e-waste, including components, consumables, parts, and spares that make the product operational. The rules do not apply to waste batteries covered under the Battery Waste Management Rules, packaging plastics covered under the Plastic Waste Management Rules, micro-enterprises defined in the Micro, Small and Medium Enterprises Development Act, 2006, and radioactive wastes covered under the Atomic Energy Act, 1962.

The rules define various terms, including bulk consumer, business, component, consumables, dismantler, disposal and treatment, end-of-life, environmentally sound management of e-waste, electrical and electronic equipment, e-retailer, e-waste, extended producer responsibility, facility, historical e-waste, manufacturer, orphaned products, part, portal, and producer. These definitions provide clarity on the scope and applicability of the rules and ensure that all stakeholders follow the same interpretation.

One of the key provisions of the rules is the extended producer responsibility, which makes it mandatory for every producer of electrical or electronic equipment listed in Schedule-I to meet recycling targets specified in Schedule-III and Schedule-IV through registered recyclers of e-waste. The rules aim to ensure that e-waste is managed in an environmentally sound manner, protecting health and the environment from adverse effects resulting from e-waste.

The rules also specify the responsibilities of bulk consumers, who are required to ensure that their e-waste is collected and disposed of through authorized mechanisms. The rules mandate producers to file an annual report on e-waste generated, collected, and recycled through the portal. Producers are also required to maintain records of e-waste generated and recycled for three years and submit the same to the State Pollution Control Board (SPCB) or Pollution Control Committee (PCC).

EPR FRAMEWORK

The Extended Producer Responsibility (EPR) Framework is a set of rules and guidelines for managing electronic waste in India. It requires all entities involved in the production, sale, or disposal of electronic equipment to register on a central portal and fulfil specific responsibilities.

The categories for registration include manufacturers, producers, refurbishers, and recyclers. Any entity that falls under more than one category must register separately for each. Registered entities cannot do business with unregistered ones. The Central Pollution Control Board (CPCB) may revoke the registration of any entity that provides false information or violates any rules.

Categories for registration and responsibilities of the stakeholders

– Manufacturers must register on the portal, collect e-waste generated during the manufacture of any electrical or electronic equipment, and ensure its recycling or disposal. They must also file annual and quarterly returns in the prescribed format.

– Producers of electronic equipment listed in Schedule I must register on the portal, obtain and implement extended producer responsibility targets as per Schedule III and IV, create awareness about e-waste management, and file annual and quarterly returns.

– Refurbishers must register on the portal, collect e-waste generated during the process of refurbishing, and ensure that the refurbished equipment complies with the standards laid down by the Ministry of Electronics and Information Technology and Bureau of Indian Standards. They must also file annual and quarterly returns.

– Bulk consumers of electronic equipment listed in Schedule I must ensure that e-waste generated by them is handed over only to registered producers, refurbishers, or recyclers.

– Recyclers must register on the portal, ensure that their facilities and recycling processes comply with the standards laid down by the CPCB, ensure that non-recyclable e-waste is disposed of in an authorized treatment storage disposal facility, maintain records of e-waste collected, dismantled, recycled and sent to registered recyclers, and file annual and quarterly returns. They must also create awareness about e-waste management and accept waste electronic equipment or components not listed in Schedule I for recycling, provided they do not contain any radioactive material. Recyclers must account for and upload information about any non-recyclable e-waste or any quantity that is not recycled and disposed of. Recyclers can also take help of dismantlers for recycling purposes.

– State governments or Union territories must earmark or allocate industrial space or sheds for e-waste dismantling and recycling in existing and upcoming industrial parks, estates, and industrial clusters. They must also enforce the rules and guidelines and act against entities that violate them.

Electronic waste (e-waste) and solar photo-voltaic (PV) modules, panels, or cells

The proper management of electronic waste (e-waste) and solar photo-voltaic (PV) modules, panels, or cells is critical in promoting sustainable development and reducing the adverse impact of electronic waste on the environment.

According to the rules, every manufacturer, producer, refurbisher, and recycler can store the e-waste for a maximum of 180 days and maintain a record of its storage. The storage of e-waste must be done according to the applicable rules or guidelines. However, in certain cases where the e-waste needs to be stored for developing a recycling or reuse process, the CPCB can extend the storage period up to 365 days.

The management of solar PV modules, panels, or cells is covered under Chapter V of the e-waste management rules. The rules mandate every manufacturer and producer of solar PV modules, panels, or cells to register themselves on the portal and ensure the proper storage of the waste generated up to the year 2034-2035 as per the guidelines laid down by the CPCB. They must file annual returns in the prescribed format on the portal and maintain an inventory of solar PV modules, panels, or cells distinctly on the portal. The recyclers of solar PV modules, panels, or cells must recover the materials as per the guidelines laid down by the CPCB.The management of e-waste and solar PV modules, panels, or cells is critical to reduce the environmental impact and promote sustainable development.

EXTENDED PRODUCER RESPONSIBILITY (EPR)

All producers are responsible for fulfilling their extended producer responsibility obligation as per Schedule III and Schedule IV. They can seek assistance from third-party organizations such as producer responsibility organizations, collection centers, and dealers. However, the responsibility for extended producer responsibility lies entirely on the producer.

The extended producer responsibility certificate is generated through the portal in favour of a registered recycler by the CPCB. The certificate’s validity is two years from the end of the financial year in which it was generated. Each certificate has a unique number containing the year of generation, code of end product, recycler code, and a unique code. The certificates come in denominations of 100, 200, 500, and 1000 kg or other denominations approved by the CPCB.

A producer may purchase extended producer responsibility certificates limited to its extended producer responsibility liability of the current year plus any leftover liability of preceding years plus 5% of the current year liability. The obligation must be fulfilled by purchasing extended producer responsibility certificates on a quarterly basis. The purchased certificates are automatically adjusted against the producer’s liability, and the priority in adjustment is given to the earlier liability. Producers must record and submit all transactions under these rules on the portal at the time of filing quarterly returns.

REDUCED USE OF HAZARDOUS SUBSTANCES

These rules also have provisions so as to reduce the use of hazardous substances in the manufacture of electrical and electronic equipment, as well as their components, consumables, parts, and spares. Producers of these products listed in Schedule I are required to ensure that new products do not contain lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls, and polybrominated diphenyl ethers beyond a maximum concentration of 0.1% by weight in homogenous materials for most substances and 0.01% by weight in homogenous materials for cadmium.

Only new electrical and electronic equipment that is compliant with the provisions may be imported or placed in the market. Producers are required to provide detailed information on the equipment and their components, as well as a declaration of conformance to the reduction of hazardous substances provisions in the product user documentation.

Manufacturers are required to use technology or methods to make the end product recyclable and ensure that components or parts made by different manufacturers are compatible with each other to reduce the quantity of e-waste. The CPCB will conduct random sampling of electrical and electronic equipment to verify compliance with these provisions, and the cost of sample and testing will be borne by the producer. The Board will also lay down the methods for sampling and analysis of hazardous substances as listed in rules and enlist labs for the said purpose.

If a product does not comply with the hazardous substance reduction provisions, the producer is obligated to take corrective measures to bring the product into compliance and withdraw or recall the product from the market within a reasonable period, as per the guidelines laid down by the CPCB.

Exceptions

Components or parts or spares required for electrical and electronic equipment that were placed in the market prior to May 1, 2014, may be exempted from the provision related to reduce use of hazardous substance if compliant parts and spares are not available.

Certain type of applications listed in Schedule II are exempted from abovesaid requirement, but producers of these applications must comply with the hazardous substance limits listed therein.

Manufacturers of electrical and electronic equipment used for defense and other strategic applications are excluded from the abovesaid requirement.

Transportation

Transportation of e-waste generated from manufacturing or recycling for final disposal must follow the provisions under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. In the event of an accident during the processing or transportation of e-waste, the relevant parties must immediately inform the SPCB.

AUTHORITIES’ COMPLIANCE

Authorities responsible for e-waste management under the new e-waste management rules are required to follow the duties specified in Schedule-V. The CPCB is required to submit an annual report on the status of e-waste management rules and provide qualitative and quantitative analysis along with recommendations to the Ministry of Environment, Forest, and Climate Change within a month of the financial year-end.

PENAL PROVISIONS

Any person providing false or incorrect information, using or causing to be used false or forged certificates, failing to comply with regulations or cooperate with verification or audit proceedings, may be prosecuted under section 15 of the Act, 1986, and punished under Rule 22. The Steering Committee, under the Chairmanship of the CPCB, will oversee the implementation of these rules, with representatives from other ministries.

Appeal against an order

Aggrieved parties may appeal within 30 days of receiving an order from the CPCB to the Additional Secretary or Joint Secretary of the Ministry of Environment, Forest, and Climate Change. Environmental compensation may be imposed and collected for violations of these rules and must not absolve the producer from extended producer responsibility. The funds collected as environmental compensation must be kept in a separate Escrow account by the CPCB and used for waste management projects, research and development, incentivising recyclers, and other approved expenses.

CONCLUDING REMARK:

In conclusion, the E-Waste (Management) Rules, 2022, are a significant step towards managing e-waste in an environmentally sound manner. These rules aim to ensure that e-waste is recycled and the resources used in the production of electrical and electronic equipment are conserved. These rules provide clarity on the roles and responsibilities of stakeholders and mandate producers to take responsibility for the e-waste generated by their products. The implementation of these rules will go a long way in mitigating the adverse effects of e-waste on health and the environment.