Obligated Entities and their Obligations

Under the Extended Producer Responsibility (EPR) framework for non-ferrous metal scrap under Chapter VIII of the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2025, notified via G.S.R. 438(E) on July 1, 2025, though not explicitly defined, the obligated entities are as under:

1. Producers
2. Manufacturer

The producers and the manufacturers have registration, recycling and refurbishment obligations. In addition to manufacturers and producers, the following entities also have registration and reporting obligations.

1. Collection Agent
2. Refurbisher
3. Recycler
4. Central Pollution Control Board
5. State Governments or Union territories or Municipalities or local bodies or the State Pollution Control Board.

According to Schedule X of the said rules, the following products made out of non-ferrous metals are subject to extended producer responsibility –

1. Cans for beverages, aerosols and other such product
2. Packaging Foils for food, pharma and other such product
3. Doors, windows, shutters
4. Aluminium Composite Panel
5. Aluminium partitioning, grills and other such product
6. Utensils (cookware, canisters, storage and other such product)
7. Furniture tables, chairs, benches, ladders etc. including doorknobs, handles, hardware's
8. Roofing and Ceiling sheets
9. Motors, pumps, alternators and other such product (other than automobile grade)
10. Conductor cables and Wires, strips (other than automobile grade)
11. Sanitary ware and fittings
12. Electrical fittings (other than automobile grade)
13. Aluminium Alloy Bicycle
14. Transformer (other than automobile grade)
15. Electric Generator sets
16. Centralized air conditioning plants
17. Apparel products e.g. Belt Buckles, Zip, Shoes
18. Toys

The obligated entities are required to meet their recycling. refurbishing obligations with respect to these products.

Rule 45 – Registration

The primary obligation of all entities covered under these rules is to get themselves registered on the common portal notified by the Central Pollution Control Board.

Rule 45 mandates the following entities to get registered on the CPCB Portal - 

• Manufacturer
• Producer
• Collection agent
• Refurbisher
• Recycler

If an entity falls under more than one category mentioned above, it will have to obtain separate registration for each such category.  The entities should file an online application and the CPCB shall issue a certificate of registration post the applicant.

The CPCB may charge registration fees and annual maintenance charges from the entities seeking registration under these rules based on the capacity of scrap of non-ferrous metals generated, recycled refurbished or handled by them as laid down by the Central Pollution Control Board.

In case any information provided at the time of obtaining registration is found to be false or misleading or wilfully concealing information, the CPCB, after providing the registered entity sufficient and reasonable opportunity of being heard, has the right to revoke the registration so granted for a period up to five years and also levy Environment compensation charges as per Rule 60 of these rules. 

In addition to mandatory registration, the registered entities are only permitted to carry out business only with fellow registered entities.

 
Rule 46 and 52: Obligations of a Producer

Definition & Inclusions:

Producers, as defined in Rule 44(o) means any person or entity, irrespective of the selling technique used such as dealer, retailer, e-retailer, who, –

1. manufactures and offers to sell products made up of non-ferrous metals and their components or consumables or parts or spares under its own brand, using non-ferrous metals; or
2. offers to sell under its brand products made up of non-ferrous metals and their components or consumables or parts or spares produced by other manufacturers or suppliers, using non-ferrous metals; or
3. offers to sell imported products made up of non-ferrous metals and their components or consumables or parts or spares under their own brand or original brand, using non-ferrous metals; or
4. who imports used devices or products or scrap of non-ferrous metals.

All producers fulfilling any of the above criteria have to mandatorily get registered on the CPCB portal in accordance with Rule 52(1).

Recycling obligations

These entities have the responsibility of recycling of the scrap of non-ferrous metals and are required to meet the extended producer responsibility target specified in Schedule-XI for the products listed in Schedule-X.

The producers are also permitted to take the help of third parties such as collection agents or dealers of non-ferrous scrap. Since the recycling of scrap comes with a risk of operational losses, and the CPCB permits for a reduction in the targets at predetermined factors.
The producers can also fulfil / meet their targets by purchasing extended producer liability certificates through the online portal from registered recyclers. These purchases and sales of EPR credits are cross verified on the online portal and in case of any discrepancy observed, the lower quantum will be considered to fulfil the obligation/ target of the producer.

Further, (Rule 49(1) permits producers to purchase certificates limited to:

• Current year liability
• Any leftover liability from prior years
• Plus 10% of current year liability

The producers are also obligated under Rule 49(2) to purchase certificates proportionately every half year to meet targets.

Return Filing

According to Rule 52(2) Producers must file half-yearly returns by 31^st October and annual returns by 30 June of the subsequent financial year. The return should declare all the details of the products placed on market, scrap collected, and certificates purchased.

 The Producers are also required under rule 52(4) to ensure environmentally sound collection and transportation of scrap.

Compliance Failures and EC

In case the producers face a shortfall in EPR recycling target, they will be liable to pay environment compensation in accordance with Rule 60.

The payment of EC does not tantamount to fulfilment of obligations. The producers, after payment of EC would still be required to make good the shortfall in EPR Recycling targets. The producers will be permitted to carry forward the obligation to the next year so on up to 3 years.

If a producer addresses shortfalls within 3 years, a portion of EC is refunded:

• Shortfall addressed within 1 year: 85% of EC paid refunded
• Shortfall addressed within 2 years: 60% of EC paid refunded
• Shortfall addressed within 3 years: 30% of EC paid refunded
• Shortfall addressed After 3 years: No refund

 If the producer furnishes any false information resulting in over generation of extended producer responsibility certificates by recycler and such excess is above five per cent of the actual recycled scrap of non-ferrous metals, it may result in revocation of registration temporarily and imposition of environmental compensation on the producer.

Violation of provisions of these rules for three times or more shall result in permanent revocation of registration over and above the liability to pay the environmental compensation charges.

 
Rule 51 Obligations of Manufacturers

Every manufacturer – a person or entity manufacturing any product or component or spare part of non-ferrous metals as specified in Schedule-X of these rules must obtain a registration under Rule 51(1) in accordance with Rule 45.

The Manufacturers are required to collect all the non-ferrous scrap generated during the manufacturing process and are responsible for recycling the same or ensuring its safe disposal.

 
Use of Recycled materials

The manufacturers are obligated to use domestically recycled materials in the manufacture of new non-ferrous metal products. The minimum mandated use of recycled products is given as a % of the weight of the new product manufactured and is as under:

• Aluminium: 5% (2028–29) to 10% (2029–32)
• Copper: 5% (2028–29) to 20% (2031–32)
• Zinc: 5% (2028–29) to 25% (2031–32)

However, an exemption from using the minimum recycled non-ferrous metals is granted by the CPCB on a case by-case basis.  These are either statutory requirements where their law does not permit the use of recycled materials or technical requirements where the use of recycled materials renders the end product unfit for its intended use.

The manufacturer has to fulfil the use of minimum recycled materials in the manufacturing process by purchasing the same only from registered recyclers only.

Return Filing

They are also obligated to file half-yearly returns by 31^st October and annual returns by 30^th June of the subsequent financial year.

The returns must also contain information of the domestically recycled content used in the manufacturing process (Rule 51(4)).

Compliance Failures and EC

In case the manufacturers face a shortfall in EPR recycling target, they will be liable to pay environment compensation in accordance with Rule 60.

The payment of EC does not tantamount to fulfilment of obligations. The manufacturers, after payment of EC would still be required to make good the shortfall in EPR targets. The manufacturers will be permitted to carry forward the obligation to the next year so on up to 3 years.

If a manufacturer subsequently makes good the obligation, a portion of EC is refunded:

• Shortfall addressed within 1 year: 85% of EC paid refunded
• Shortfall addressed within 2 years: 60% of EC paid refunded
• Shortfall addressed within 3 years: 30% of EC paid refunded
• Shortfall addressed After 3 years: No refund

Rule 53 Obligation of Collection Agents

A collection agent who collects non-ferrous scrap has to mandatorily register on the register on the CPCB online portal.

They are required to collect end-of-life scrap of non-ferrous metals from manufacturers, producers, and bulk consumers and subsequently supply them to registered recyclers.

The quantity of scrap collected and supplied to registered recyclers should be uploaded on the online portal.

They have to file half-yearly returns by 31^st October and annual returns by 30^th June of the subsequent financial year.

In case of any deviation from the rules the collection agents will also be liable to pay environment compensation charges.

Rule 54 Obligation of Refurbisher

Any person or entity repairing or assembling used product made of non-ferrous metals as with a view to extend its working life over its originally intended life and for the same use as originally intended, and selling it in the same market under the same or under a new brand name (A refurbisher) must register on the CPCB online portal.

Refurbisher collect and refurbish used non-ferrous metal products listed in Schedule XII (doors, windows, furniture, motors, etc.) to extend their working life.

They are liable to ensure that the refurbishing is done in an environmentally sound manner.

They must hand over waste generated during refurbishing process to registered recyclers or disposal facilities.

Refurbisher must file half-yearly returns by 31^st October and annual returns by 30^th June of the subsequent financial year.


Rule 55 Obligations of Recyclers

Any person or entity engaged in the process of recycling scrap of non- ferrous metals is required to register on the CPCB online portal.

The recycler has to ensure that the facility and recycling process comply with these rules and applicable environmental standards. The recycling process must prevent environmental damage during storage, transportation, and recycling of non-ferrous metal scrap.

The recycler has to ensure that the residue generated during recycling process is disposed off in accordance with applicable rules and regulations.

They have to mandatorily maintain the detailed records of:

• Scrap received (by source, type, quantity)
• Scrap recycled
• Scrap not recycled
• Scrap disposed
• Upload records on portal on regular basis

The recycler Generates EPR certificates based on actual recycled quantities, using the CPCB formula. They can also forward Unsegregated Material - fractions/materials that are not recyclable in their facility to other registered recyclers.

Similar to other obligated entities, registered recyclers must file half-yearly returns by 31^st October and annual returns by 30^th June of the subsequent financial year.

In case of any deviation from the rules the recyclers will also be liable to pay environment compensation charges.

Rule 47 - Generation of extended producer responsibility certificate. 

The CPCB portal generates EPR certificates in favour of registered recyclers based on the formula:

Q_EPR = Q_p × C_f, where:

Q_EPR = quantity eligible for certificate generation

Q_p = quantity of end-product produced

C_f = conversion factor (determined by CPCB based on technology and other factors – In case of multiple end products the factor is determined accordingly)

Each certificate generated is assigned a unique serial number containing – the year, product code, recycler code, unique identifier, and validity. They are denominated in units of 100 kg, 200 kg, 500 kg, 1000 kg or 10,000 kg.

Each certificate generated is valid for a period of 2 years from the end of the financial year in which it is generated unless it is used by the producers to set off or meet their targets in accordance with these rules.

Rule 56 Obligations of Bulk Consumers

Any entity/ies using at least one thousand tons of non-ferrous metal products listed in Schedule-X , at any point of time in the particular financial year, including e-retailer - Bulk consumers – are required to set up collection points to facilitate collection agents in collection and transportation of non-ferrous metal scrap from their premises.

They have to ensure that they handover non-ferrous metal scrap generated only to registered recyclers, refurbishers, producers, or collection agents.