Waste oil producer, manufacturers, importers, and recyclers are now subject to EPR regulations. If you operate in this industry, it’s essential to obtain EPR authorization for Waste Oil and comply with used oil standards. CertificationsBay offers expert consultancy and support to help you navigate these obligations.
Talk to our EPR Used Oil Authorization Consultant.
Among India's Top Consulting Firms, delivering excellence in legal and compliance services.
CertificationsBay Offers the lowest fees without compromising on service, ensuring affordability for all.
A trusted platform, renowned for reliability, integrity, and client satisfaction. Rated 5- Stars by 100s of Clients.
Providing round-the-clock support, because your business success is our priority, every hour of every day.
The cost of EPR Used Oil Certificate varies significantly, depending on a range of factors, such as:
Offering all-inclusive business setup services, we understand these complexities and offers a comprehensive cost calculator. This tool provides a transparent estimation of all expenses involved in getting your EPR Used Oil Certificate in India. With CertificationsBay cost calculator, you can strategically plan your investment, making the journey toward business Regulation more transparent and manageable.
The Central Government, acting through the Ministry of Environment, Forest, and Climate Change (MoEFCC), has issued a draft amendment to the Hazardous Waste Management Rules. This amendment introduces new provisions related to Extended Producer Responsibility (EPR) for Used Oil, which will take effect on April 1, 2024. These provisions will govern the activities of waste oil manufacturers, importers, and recyclers. Notably, in a prior amendment to these rules, the Central Government implemented EPR for Tyre Waste in 2022. By incorporating additional waste categories into India’s EPR framework, the government reaffirms its commitment to environmental protection, recognizing EPR as a viable and effective approach to managing industrial waste and mitigating environmental pollution.
While the fundamental premise of the EPR policy is straightforward, the implementation of such a policy necessitates distinct regulations for various waste streams, thereby justifying the need for separate rules concerning EPR for Used Oil. The Central Government derives its authority to establish pollution control regulations from the Environment Protection Act of 1986. Exercising this authority, the government has released the draft amendment. Prior to its final implementation, the draft must be published in the Gazette of India. During the interval between the draft’s release and its formal adoption, stakeholders are invited to submit objections or feedback regarding the notification. The government is obligated to consider any suggestions received during this period, provided they are deemed appropriate.
However, with the new amendment to the EPR waste guidelines, a distinct waste category for used oil has been introduced under the Extended Producer Responsibility framework, specifically targeting manufacturers, importers, and recyclers. Consequently, EPR compliance for used oil is now mandatory, requiring all relevant manufacturers, importers, and recyclers to obtain EPR certification for their operations from the Central Pollution Control Board (CPCB) or the State Pollution Control Board (SPCB), as applicable.
The rationale behind expanding the EPR regime to encompass new waste categories stems from the characteristics of waste generated during both the pre-consumer and post-consumer stages of the product lifecycle. Let us delve further into this article to explore the details of EPR registration for used oil and the associated certification process.
Used Oil is defined under Rule 3 of the Hazardous Waste Management Rules, 2016. According to Sub-rule 36 of Rule 3:
“Used oil means any oil, (i) derived from crude oil or mixtures containing synthetic oil, including spent oil, used engine oil, gear oil, hydraulic oil, turbine oil, compressor oil, industrial gear oil, heat transfer oil, transformer oil, and their tank bottom sludges; and (ii) suitable for reprocessing, if it meets the specifications laid down in Part A of Schedule V, but does not include waste oil.”
Part A of Schedule V of the Hazardous Waste Management Rules, 2016, sets forth specific limits and parameters that an oil must meet to be classified as used oil. These parameters include permissible levels of Polychlorinated Biphenyls (PCBs), Lead, Arsenic, Cadmium, Chromium, Nickel, and Polyaromatic Hydrocarbons (PAHs).
Prior to the introduction of these rules, the central government had already established Extended Producer Responsibility (EPR) regulations for the management of E-Waste, Plastic Waste, Tyre Waste, and Battery Waste. With the recent amendment to the Hazardous Waste Management Rules, India now has five distinct EPR policies aimed at managing various types of waste.
The new EPR regulations for Used Oil are designed to enhance the management of used oil and to better regulate the activities of relevant stakeholders. These rules are expected to contribute significantly to environmental protection by establishing a comprehensive process for the proper handling and disposal of used oil. Additionally, this initiative supports India’s broader goals of advancing towards a circular economy and achieving sustainable development.
Entities involved in the manufacturing, production, or importation of used oil or industrial waste oil are required to obtain EPR (Extended Producer Responsibility) registration for used oils. The primary objective of implementing EPR for used oil is not only to manage the production of hazardous substances but also to promote an economically sustainable, environmentally friendly industry.
1. Producers: Any entity that produces, manufactures, or offers for sale base oil or lubrication oil within the country is considered a producer under these rules. This includes oil sourced from foreign markets or other manufacturers and distributors. The selling methods may include dealership retailing or e-retailing.
2. Importers: Entities that import used oil or waste oil from international markets are required to obtain EPR registration.
3. Collection Agents: These are entities that collect waste oil from various sources and supply it to registered recyclers for proper disposal or recycling.
4. Recyclers: Entities engaged in the process of recycling used oil are also required to obtain EPR registration to ensure compliance with the regulations governing waste oil management.
By mandating EPR registration, the government aims to create a comprehensive framework for the proper management of used oil, thereby contributing to environmental protection and the promotion of a circular economy.
Applicants seeking EPR (Extended Producer Responsibility) certification for used oils must provide a comprehensive set of documents. This certification process is not a simple submission of forms but part of a broader regulatory framework requiring adherence to specific responsibilities and conditions. Below are the key documents required:
1. ID and Address Proof of the Authorized Person: Proof of identity and address for the individual authorized to act on behalf of the entity.
2. Business Registration Certificate: Relevant documentation, such as the Certificate of Incorporation (CIN), Memorandum of Association (MoA), Partnership Deed, or MSME registration, as applicable to the business structure.
3. PAN and GST Details: Copies of the entity’s Permanent Account Number (PAN) and Goods and Services Tax (GST) registration details.
4. Import Export Code (IEC) Certificate: Required for entities involved in the importation of used oil.
5. Details of Manufacturing: Information regarding the entity’s manufacturing processes, particularly for manufacturers or producers of used oil.
6. EPR Action Plan: A detailed plan outlining how the entity intends to meet its EPR targets, including strategies for managing used oil.
7. Annual Return Details: Records of the entity’s annual returns, providing a historical overview of its financial and operational activities.
8. Data Regarding the Generation of Used Oil: Information on the amount and source of used oil generated by the entity.
9. Import Details for Used Oil: Specific details required for importers, including the quantity and origin of the imported used oil.
Additional Documentation: Depending on the nature and capacity of the business, other important documents may be required at various stages of the EPR compliance process, including registration, certification, and return filings.
These documents form the basis of the EPR compliance framework for used oils, ensuring that entities fulfill their regulatory obligations and contribute to the environmentally responsible management of hazardous waste.
The 2023 amendment to the Hazardous Waste Management Rules introduces a detailed process for Extended Producer Responsibility (EPR) compliance concerning Used Oil. The process outlines specific tasks and stages that producers, importers, collection agents, and recyclers must fulfill to comply with these regulations.
Producers, importers, collection agents, and recyclers must register on the Central Pollution Control Board (CPCB) web portal. EPR Registration is mandatory before conducting any business, and entities are prohibited from dealing with parties that do not hold EPR Authorization. The CPCB imposes annual maintenance charges, and entities performing multiple roles must register separately for each role.
Producers and importers are assigned EPR Targets based on the amount of used oil sold or imported during a specific financial year. These targets are designed to ensure efficient recycling and prevent the accumulation of waste oil. The EPR for Used Oil will be enforced starting April 1, 2024, coinciding with the beginning of the new financial year. The targets, which start at 10% and gradually increase to 60%, are determined based on sales or imports from two years prior, as shown in the table below:
| Year | Recycling Target |
|---|---|
| 2024 – 2025 | 10% of 2022 – 2023 Sales or Import |
| 2025 – 2026 | 20% of 2023 – 2024 Sales or Import |
| 2026 – 2027 | 30% of 2024 – 2025 Sales or Import |
| 2027 – 2028 | 40% of 2025 – 2026 Sales or Import |
| 2028 – 2029 | 50% of 2026 – 2027 Sales or Import |
| 2029 – 2030 | 60% of 2027 – 2028 Sales or Import |
The CPCB accounts for material losses during the production process by adjusting the EPR Target, factoring in the operational inefficiencies that reduce the yield of base oil.
Importers of used oil face a 100% EPR Obligation for the previous year’s imports. They must recycle the entirety of their 2023-2024 imports during the 2024-2025 financial year. Importing used oil is strictly limited to re-refining purposes, and any deviation from this may result in the cancellation of the importer’s registration by the CPCB, along with potential legal action.
To prove that EPR Targets have been met, producers must purchase EPR Certificates from registered recyclers upon supplying used oil for recycling. These certificates, issued by CPCB-registered recyclers, document the quantity of waste oil recycled. The CPCB uses these certificates to audit and verify that producers are fulfilling their EPR obligations.
The CPCB conducts audits of EPR Certificates to ensure compliance. Producers and recyclers must submit quarterly and annual returns detailing their activities. Any discrepancies found in these reports will be scrutinized, with the lower figure being considered accurate. Environmental audits, conducted by the CPCB or authorized third parties, further verify the accuracy of reported data.
Producers cannot purchase more EPR Certificates than necessary to fulfill their obligations. The CPCB portal tracks all transactions, ensuring that producers meet their EPR requirements without exceeding them. If a producer has unmet EPR Obligations, they may purchase additional certificates, but only up to 10% of their current financial year’s EPR liability. All transactions are recorded and monitored by the CPCB’s web portal, allowing producers and importers to track and manage their compliance.
This comprehensive framework ensures that all parties involved in the production, importation, and recycling of used oil adhere to strict environmental standards, thereby supporting sustainable waste management practices in India.
The government application fee varies depending on the amount of waste generated by the applicant. The EPR license is valid for a block period of 1-5 years. Once the authorization is granted, all EPR certificate holders are required to meet their authorized EPR targets within the designated licensing period. Failure to comply with these targets may result in the cancellation of the license or penalties for the business.
The cost associated with EPR (Extended Producer Responsibility) Compliance for Used Oil is not a single fixed amount. Instead, it includes the cost of purchasing EPR Certificates and the annual maintenance fee paid to the Central Pollution Control Board (CPCB) for EPR Authorization.
EPR Certificate Purchase: Producers must acquire EPR Certificates, which document their compliance with recycling targets.
Annual Maintenance Fee: An annual fee is paid to the CPCB for the ongoing maintenance and oversight of EPR Authorization.
Validity and Renewal
The EPR certification is valid for a block period of 1-5 years. The CPCB reviews and updates EPR Targets annually. The new target for the subsequent year is based on several factors, including:
– Outstanding EPR Obligations from the previous year
– New sales made by the producer in the previous year
– EPR Certificates purchased during the year
The CPCB calculates the new EPR Target based on these factors, and the process of meeting these targets continues each year.
Environmental Compensation
Producers are subject to environmental compensation if they fail to adhere to the EPR regulations. Payment of this compensation does not absolve them of their EPR Obligations. Producers must still recycle used oil and meet their targets. If a producer fulfills their EPR Target, they may receive a partial refund of the compensation amount, depending on the time taken to meet overdue obligations.
Circumstances Requiring Environmental Compensation:
This structure ensures that EPR compliance is maintained, promotes environmental responsibility, and provides mechanisms for addressing non-compliance.
To apply for EPR (Extended Producer Responsibility) registration for used oil, follow these steps. This guide outlines the complete registration process, which you can complete within a few days:
Step 1: Assessment and Documentation
Step 2: Filing of EPR Registration form
Step 3: CPCB Assessment of Application
Step 4: Issuance of EPR authorization
Promoting Sustainable Waste Management: EPR registration encourages producers to design eco-friendly products and ensure effective disposal or recycling of used oils.
Economic Advantages: EPR stimulates economic growth by supporting recycling industries and reducing public resource burdens.
Environmental Benefits: EPR minimizes pollution and supports ecosystem health by promoting responsible handling and recycling of used oils.
Regulatory Compliance and Legal Protection: EPR ensures compliance with waste management regulations, protecting companies from legal issues.
Fostering Circular Economy: EPR drives the reuse and recycling of used oils, contributing to a circular economy and sustainable development goals.
Improved Brand Image: EPR registration enhances a company’s reputation by demonstrating commitment to environmental responsibility and sustainable practices.
EPR for used oil represents a legal obligation for businesses responsible for generating industrial oil waste. Non-compliance with EPR regulations set by the Central Pollution Control Board (CPCB) may result in penalties. The primary goal of EPR is to foster an environmentally friendly circular economy in India. Thus, it is both mandatory and crucial for manufacturers, importers, and recyclers to secure EPR certification for used oil waste in accordance with their respective eligibility.
We streamline Corporate and Legal Compliances.
Choose from 100s of our services. We provide all Corporate and Legal Services (CLS) and help business align with regulatory requirements.
Subscribe to our NewsLetter & Transform your Business. Keep yourself updated with latest regulations.
We make compliance certifications effortless and convenient. Our Team ensures that indian compliance certifications are both easy and convenient for our clients. We strive to simplify the process, making it effortless and hassle-free.