DGFT License to Import of Plastic Scrap & Waste

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DGFT / Public Notice No. 392 dated 1^st January 1997

Attention is invited to Para 27(2) of the Handbook of Procedures (Vol. I), 1992-97(Revised Edition: March, 1996) according to which import of all types of plastic wastes/ scrap (except PET bottle waste/scrap) and animal dung or animal excreta shall not, be permitted, except against a licence. The matter relating to grant of licenses for import of such plastic wastes/scrap has been examined in consultation with the Deptt. of Chemicals & Petrochemicals and other Ministries and it has been decided to prescribe the following guidelines/ conditions for consideration of applications for import of plastic wastes/ scrap. Applicants who wish to submit applications to the Directorate General of Foreign Trade, Udyog Bhawan, New Delhi, for grant of licence for import of plastic wastes/ scrap are required to strictly comply with these guidelines/ conditions.

(i) Import of plastic waste/ scrap (except PET bottle waste/ scrap) shall be permitted only against a licence. The description/ definition of the plastic waste/ scrap for this purpose would be:

�Plastic scrap/ waste constitute those fractions of plastics generated by various plastic processing operations or those fractions generated in the production process of plastics in a plant, which have not been put to any use whatsoever and as such can be termed as virgin or new material which can be recycled into viable commercial products using standard plastic processing techniques but without involving any process of cleaning, whereby effluents are generated.�

(ii) Such virgin/ new Plastic scrap/waste shall be permitted for import in the following forms i.e. compressed, films in cut condition, cut tape soft waste, flakes, powders, pieces or irregular shape(not exceeding the size of 3� x 3�).

(iii) Any other category of plastic scrap/waste, which are not covered by the description/ definition, as given in sub-para (i) and (ii) above shall not ordinarily be permitted.

(iv) Applications for import licences would be received in the Headquarter of the DGFT as per procedure prescribed in this regard. DGFT would obtain comments on each application from the Deptt. of Chemicals & Petrochemicals and Ministry of Environment & Forests. Based on the comments of Deptt. of Chemicals & Petrochemicals and the Ministry of Environment & Forests, the individual cases shall be put up to the Special Licensing Committee (SLC) of DGFT for consideration.

(v) The plastic scrap/wastes conforming to the description indicated in sub-paragraphs (i) and (ii) above would be permitted only to the actual users who have the required facility for recycling such scrap/ waste and who are duly registered with the competent State/ Central authority and also possess clear pollution clearance certificate from the concerned State Pollution Board where the unit is located, as well as a capacity assessment certificate.

(vi) Each consignment of plastic scrap/wastes imported against an import licence issued in this regard shall be accompanied with a certificate from the factory in which it was generated to the effect that it conforms to the description/ definition as given in sub-paragraph (i) above. The importer of the plastic scrap/waste would also be required to furnish a declaration to the Customs authorities at the time of clearance of goods certifying that the plastic scrap/ wastes imported by him and for which clearance is being sought, strictly conforms to the description/ definition as given in sub-paragraph (i) and (ii) above and that it is free from any kind of toxic/non-toxic contamination and has not been put to any previous use, whatsoever.

(vii) Before the clearance of the plastic waste/scrap, all imported consignments of such plastic scrap/waste shall be subjected to scrutiny and testing of samples.

Customs authorities shall for this purpose draw a sample and send the same to the nearest laboratory/Office of the Central Institute of Plastic Engineering & Technology (CIPET) with a view to having the same analysed and verified that such imported consignments are in conformity with the description/definition as given in sub-paragraphs (i) and (ii) above.

(viii) Special Licensing Committee while considering import take into account, the quantity and value of plastic wastes/ scrap imported by the applicant during the previous licensing years.

(ix) In case of misdeclaration regarding the material being free from any toxic/hazardous substances by the importer, action as per laws of Ministry of Environment and Forests applicable under the Environment (Protection) Act for committing offences leading to damage of environment and increase in pollution in the country, as modified and in force from time to time, would be taken by the competent authority.

For any other misdeclaration, laws formulated by the Directorate General of Foreign Trade, in force from time to time, would also apply and action as per Foreign Trade (Development and Regulation) Act, 1992 shall be initiated by the competent authority.

(x) Import licences issued in accordance with this Public Notice shall be subject to Actual User condition and any other such condition as may be imposed by the Special Licensing Committee.

2. The guidelines and conditions contained in Para 1(i) (ii)(iii)(v)(vi)(vii)(ix) shall also be applicable to the imports made under the Duty Exemption Scheme against Advance Licence. Applications for Advance Licences for the import of plastic wastes and scrap shall in this case be considered by the Advance Licensing Committee DGFT (H.Q.) in accordance with the guidelines laid down in Paras 1(iv) and 1 (viii) above, and licences issued subject to Actual User condition.

3. While imports of plastic wastes and scrap by 100% EOUs and units in the EPZ shall continue to be governed by the provisions of para 94 of the Export and Import Policy, the parameters for import of plastic wastes/ scrap as specified herewith.

This Public Notice shall however be kept in view by the Board of Approval concerned while approving such units under the Scheme.

4. The import PET bottle waste/scrap shall continue to be freely importable as hitherto.