Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
299-A, North Block, New Delhi,
30th August, 2011.
To
All Chief Commissioners / Commissioners of Customs / Customs (Prev.),
All Chief Commissioners / Commissioner of Customs & Central Excise,
All Directors General under CBEC.
Sir / Madam,
Subject: Export of Pan Masala-Gutkha packed in plastic sachet by 100% EOU
-Application of provisions of Plastic Waste Management and Handling Rules, 2011
- regarding.
Board has received references seeking clarification on the applicability of
the Plastic Waste (Management and Handling) Rules, 2011 to the export of pan
masala / gutkha packed in plastic sachets by Export Oriented Units.
- Some Chief Commissioners are of the view that whereas the manufactures of pan masala /gutkha shall be required to give an undertaking to comply with the
provisions of the Plastic Waste (Management and Handling) Rules, 2011 under no
circumstance should export of the goods in question be stopped or disallowed.
Other Chief Commissioners had a contrary view that allowing the export of pan
masala / gutkha packed in plastic sachets would be a contravention of the said
Rules of 2011. The Board has examined the matter in the background of the
Plastic Waste (Management and Handling) Rules, 2011 as well as the conflicting
views of Chief Commissioners.
- The Ministry of Environment and Forests notified the Plastic Waste
(Management and Handling) Rules, 2011 on 04.02.2011 and amended the same on
02.07.2011. Rule 3(b) earlier defined a carry bag to mean “all plastic bags used
to carry commodities, including self carrying features”. After 02.07.2007 this
definition has been changed as “bags made from all plastic material, used for
the purpose of carrying or dispensing commodities but do not include bags that
constitute or form an integral part of the packaging in which goods are sealed
prior to use”. On its part, Rule 3(k) earlier defined “multilayered packaging”
and w.e.f. 02.07.2007 this was changed to apply to “multilayered plastic pouch
or sachet” and corresponding changes have been made in Rule 3(m) and Rule 8.
- Rule 5 of the said Rules deals with the conditions to be met during the
course of manufacture, stocking, distribution, sale and use of carry bags and
sachets. Of particular relevance is Rule 5 (d) which states that “sachets using
plastic material shall not be used for storing, packing or selling gutkha,
tobacco and pan masala”. Further, Rule 5 (g), which is inserted w.e.f.
02.07.2011, states that “plastic material in any form, shall not be used in any
package for packing gutkha, pan masala and tobacco in any form”.
Rule 2, however, grants exemption from the application of Rule 5. Prior to
02.07.2011 the exemption was available to “the manufacture of carry bags
exclusively for export purposes, by export oriented units, against an order for
export…” whereas w.e.f. 02.07.2011 the exemption is available to “manufacture of
carry bags exclusively for export purposes, against an order for export…”.
- It is clear from the above that carry bags and sachets are two distinct
items. Also, the exemption from the requirement of Rule 5 is available only to a
manufacture of carry bags. Thus, a unit manufacturing pan masala / gutkha cannot
claim this exemption. Therefore, export of said goods in plastic sachets /
plastic material in any form would be in contravention of the provisions of
Plastic Waste (Management and Handing) Rules, 2011.
- Action in respect of all past cases may therefore be finalised in the light
of the aforesaid clarification. Suitable Public Notice / Standing Order may be
issued for guidance of all concerned in respect of all cases relating to past,
present and future.
(Subodh Singh)
OSD (Customs), Tariff Unit,
Fax-011-2309217
F.No. 528/69/2011-STO (TU)