Overview of EPR credits from Tyre Waste Recyclers

EPR credits, or certificates that are supplied by recognized waste management or recycling organizations, essentially prove that the producer has met its regulatory obligations in managing their post-consumer waste. In tire waste re-users, these credits are given when a re-user processes the discarded tires into reusable products such as crumb rubber, steel, or fuel oil. Producers of tires or connected products buy the credits to compensate for their legal responsibility for waste management under EPR regulations. This system creates an enabling environment for the recycling industry and individual accountability for manufacturers while promoting the concept of sustainability through waste minimization practices. This will help in reducing landfill waste, combating illegal dumping, and minimizing the impact of non-biodegradable tire wastage on the environment. EPR credits from tyre waste recyclers stand as an innovation in the management of waste tires while promoting environmental sustainability. The regulation of EPR certificate generation and transfer has been developed into a comprehensive framework stipulated under the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022, by the Central Pollution Control Board (CPCB).

Advantages of EPR Credits from Tyre Waste Recyclers

• Environmental Sustainability: EPR credits have benefits constituting responsible recycling, which minimizes undesirable consequences of the disposal of used tyres through the MCP by discouraging its disposal on the environment, keeping it out of waste lands and unlawful disposal sites.
• Circular Economy Promotion: Promotes the recycling materials such as rubber, steel and oil, and reinjecting them into production cycles, making it a circular economy business.
• Regulatory Compliance: Another policy effectively makes it easier for producers to address EPR compliance requirements by purchasing credits from certified recyclers.
• Incentive for Recycling Innovation: Proposes improvement and innovation on recycling technology concerning the processing of tyres.
• Economic Support for Recyclers: Allows recyclers to have another type of income to develop and grow their companies and in the process improve the standard of recycling in the society.
• Reduction in Carbon Footprint: Reduces harm caused by traditional waste handling processes like, Burning of tyres.
• Resource Conservation: As a material recycling service Centre it assists in preserving the environment by replacing virgin material used in businesses with recycled materials.
• Waste Management Accountability: Encourages cooperation between producers and recyclers of tyre waste making sure they deal with the wastes properly.
• Market Development: Gives incentives and stimulate the demand for recycled end tyre products ranging from crumb rubber for roads or playgrounds etc.
• Public Awareness: Inclines towards sustainable industrial as well as consumer waste disposal and what people ought to do in relation to them.

How EPR Credits Work?

Waste tyre recyclers can generate EPR credits by:

• Recycling waste tyres into valuable end products
• Maintaining detailed records of procurement and sales
• Uploading documentation to the Waste Tyre EPR Portal

Eligible end products include:

• Crumb Rubber
• Reclaim Rubber
• Recovered Carbon Black
• Crumb Rubber Modified Bitumen (CRMB)
• Pyrolysis oil and Char

Credit Generation Mechanism

The CPCB uses a complex calculation to determine EPR credits:

• Credits are based on the quantity of end products sold
• Conversion factors and weightage are applied to each product type
• Credits have a two-year validity from the end of the financial year of generation

Key Requirements for Recyclers

Recyclers must:

• Maintain accurate procurement and sales records
• Upload GST-linked invoices
• Ensure proper waste disposal
• Comply with environmental standards
• Submit annual and quarterly returns
• Important Restrictions:
• Recyclers cannot sell more than their registered recycling capacity
• Environmental audits can verify credit legitimacy
• False information can result in prosecution and environmental compensation

Responsibilities of the Producer

• According to the legislation, the producer is supposed to meet extended producer responsibility by obtaining extended producer responsibility certificates only from registered recyclers.
• The producer has to file their annual and quarterly returns in the formats which have been prescribed by the Central Pollution Control Board through the prescribed portal of the government for waste management no later than the end of the month following such quarter. Every registered entity also needs to file the quarterly return.

Responsibilities of the Recycler

• Each recycler is obligated to provide monthly updates regarding the quantity of waste tyres processed, the end products generated, the extended producer responsibility certificates sold, and any other pertinent information on the portal.
• Each recycler must file annual and quarterly returns in the specified format on the portal, ensuring submission by the end of the month following the quarter to which the return pertains.

EPR (Extended Producer Responsibility) targets for manufacturers and importers of new tyres

• For year 2022-2023: 35% of the quantity of new tyres manufactured or imported in year 2020-2021
• For year 2023-2024: 70% of the quantity of new tyres manufactured or imported in year 2021-2022
• For year 2024-2025: 100% of the quantity of new tyres manufactured or imported in year 2022-2023
• After 2024-2025: The EPR obligation will be 100% of the quantity of new tyres manufactured or imported in the year (Y-2), where Y is the current year

Required Documents for EPR credits from tyre waste recyclers

• Company's PAN Card
• Company's GST Number
• Company's CIN Number
• Company's IEC Number (for imports only)
• Aadhar Card of the authorized representative
• Address of the company's head office within the country
• Cover letter
• A commitment to provide genuine information
• Tire Composition (in Excel format)
• Submission of manufacturing data from the plant (in Excel format)

Procedure of getting EPR credits from tyre waste recyclers

Step 1: Registration

• Recyclers must register on the CPCB portal
• Cannot conduct business without registration
• Must not deal with unregistered producers or recyclers

Step 2: Documentation

Record waste tyre procurement details including:

• Supplier information
• Source (domestic/import)
• Quantity in tonnes
• Invoice numbers
• Purchase dates
• Upload supporting documents for both procurement and sales
• All sales invoices must be GST-linked

Step 3: Credit Transfer

• Credits valid for two years from end of generation financial year
• Recyclers transfer credits through portal wallet system

Step 4: Verification:

• EPR certificates are subject to environmental audit
• Cross-checking of details provided by producers and recyclers occurs on the portal
• In case of discrepancy, the lower figure is considered for fulfilling EPR obligations

Penalties for Non Compliance

• Environmental compensation may be levied for non-fulfilment of obligations
• False information or misuse can lead to prosecution under Section 15 of the Act
• Payment doesn't exempt producers from EPR obligations
• Unfulfilled obligations carry forward up to 3 years

How Whizseed can help you?

• Regulatory Compliance Simplified: We help with keeping track of the records, documentation and providing the reports for the producers to the EPR portal without much worries on how to get it done.
• Transparency and Reliability: This is achieved through real-time updates and documented coverage to ensure customers trust and legitimacy of the platform.
• End-to-End Support: We offers comprehensive assistance, helping both recyclers and producers streamline their processes for a smooth experience.
• Market Access and Growth: We bridges the gap between recyclers and producers, creating a thriving marketplace for EPR credits.