Import Refurbished Electronics - Overview

Surprisingly, India's market for used electronics, especially mobile phones, grew by 14%. Thus, the Directorate General of Foreign Trade (DGFT) allowed the import of refurbished electronics in India by imposing certain conditions. As per the guidelines, the import of second-hand electronics will remain subject to clearance from the DGFT and the Bureau of Indian Standards (BIS) or on a specific exemption letter from the Ministry of IT and Electronics (MeitY). Add to it MoEF Clearance and EPR Authorisation for refurbishers. Here are the complete details.

E-waste Management Rules, 2016

EWM Rules, 2016 apply to every refurbisher involved in refurbishing e-waste or second hand Electrical and Electronic Equipment along with their consumables, components, parts, and spares, making the product operational, but don’t apply to -

• radio-active wastes stated in the Atomic Energy Act, 1962 and guidelines created there under;
• micro-enterprises as highlighted in the MSME Development Act, 2006 ;
• used lead acid batteries as covered in the Batteries (Management & Handling) Rules, 2001, made under the Act.

EPR Authorisation does NOT apply to -

1. EEE Manufacturers, if they are importing or manufacturing for selling, only to EPR-authorised producers. Given that the manufacturer presents the documents listed below to Port/Customs Authorities -

• i. letter from EPR Authorised producers quoting that the EEE is manufactured/imported on his behalf;
• ii. copy of EPR Authorisation of the producer(s) for whom it is imported/manufactured; and
• iii. copy of agreements with EPR Authorised producers for whom it is manufactured/imported.

2. The EEE (along with their spare components/consumables) not listed in Schedule - I of EWM Rules, 2016.

3. Import of spares (new/old) from OEM (original equipment manufacturers) by actual users for warranty replacement, given that an equal count of defective or non-functional parts is exported back within one year according to the document verification by Custom Authorities as listed in Schedule VIII (4-e) of HWM Rules, 2016.

EPR Authorisation is NOT required in the cases given below -

i. EEE import is purposeful for selling to EPR Authorised Producers. Given that the importer files the documents listed below to Port Authorities/Customs;

• (a) copy of agreements with EPR Authorised Producers for whom the importer is importing;
• (b) letter from EPR Authorised Producers that the EEE importer is importing on his behalf; and
• (c) copy of EPR Authorisation of the Producer(s) for whom the importer imports.

ii. Consumers/bulk consumers if they import electronics for captive/self-use. Given that the consumer or bulk consumer files self-declaration on stamp paper quoting that EEE items being imported are purposeful for captive/self-use and not for sale to Port/Customs Authorities.

Instructions to follow concerning Import of Hazardous & Other Wastes under Hazardous and Other Wastes (Management, Handling and Trans-boundary Movement) Rules, 2016

Import of refurbished parts/spare/components for warranty replacement and to be re-exported after one year

Form 5 of HOWM Rules, 2016

If being imported on a returnable basis, then undertaking for re-export

Justification for import

If refurbished components are being imported as replacements for defective parts, then undertaking for export of an equal quantity of defective components

Acknowledgement for receipt of a copy of the application from the concerned PCC/SPCB

Information of previous import, if there has been any and confirmation regarding their re-export

Certification from exporting company for accepting the re-export of defective parts/spares/components/ consumables after the given time.

Document stating the employment generation status showcasing the no. of people who benefited

EPR Authorisation as producer under EWM Rules, 2016, if the EEAs to be imported are mentioned in Schedule I of the said rules

Document on the declared policy regarding the use of refurbished or second-hand spare parts of EEE repairs during the warranty period, if applicable

Copy of the previous latest permission issued by this Ministry

Note - imported for warranty replacements provided an equal count of defective or non-functional parts are exported back within three sixty-five days of the import are in Schedule III D of HOWM Rules, 2016, and so are exempt from the requirement of Ministry's clearance, subject to the condition mentioned within the rules.

Electronics & IT Goods (Requirements for Compulsory Registration) Order, 2012

Here’s the Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order. MeitY notified the order in 2012. It highlights the following points -

No person must by himself or through any person on his behalf store or manufacture for import items that don’t conform to the respective standard and don’t bear the words “Self-declaration — Conforming to IS (relevant Indian Standard) on such things after obtaining BIS registration.

The Appropriate Authority (AA) or a person authorised by him, intending to secure compliance with this Order, need any person involved in the store for the sale, manufacture, sale or distribution of any items to furnish such information as he deems necessary relating to the import of any items or needs any such person to provide him samples of things.

With the particular Order each time of authority at an appropriately senior level nominated by the Secretary in the DeitY, the AA or person authorised by him, intended to secure compliance with this Order may also-

(a) cause to be inspected or inspect any books/other document and other items/the components/materials of any goods kept by/belonging to/in the possession/under the control of any person involved in the import of items;

However, there are certain exemptions for the same -

• I. Exemption up to five numbers/R & D/model for testing /demonstration purposes.
• II. Exemption for the HSE (Highly Specialised Equipment) category, which also lists the rule for declaring an electronic product as HSE.
• III. It has been represented that the customs authorities have been suggesting importers approach DeitY to get NOC when any of the above exemptions are claimed.

The DeitY exempts the products given below from the ambit of the Order:

3D printers are used in additive manufacturing to mould machines/fabrication.

Interactive White Boards are only USB powered and have no other facility for power supply. Goods for Crime Prevention, Security Installations and Strategic Applications for use by the strategic sector, law enforcement agencies and security organisations, given that these are linked to the equipment supplier's Purchase Orders or Letter Of Intent or Contract Agreement. These types of equipment must comply with MIL Std/another relevant standard.

Goods being imported by any company as a part of shifting of its facilities from an overseas location to India and if such goods were procured to establish such facilities abroad prior to coming into effect of the Order. Such exemption must be available to individual users, also shifting their base to India. However, the clearances required from other Ministries to import old/refurbished electronics must apply.

The import of refurbished electronic parts of personal computers, including laptops, desktop computers and all electronic and IT goods, is now allowed subject to authorisation. MeitY has also been strict, stating any refurbished or second-hand electronic goods without valid BIS registration will be re-exported by the importer, failing customs to deform the goods and dispose of them as scrap.

The refurbisher importing EEE must -

(1) register on the portal;

(2) ensure that the refurbished electronic must be as per the Compulsory Registration Scheme (CRS) of the Ministry of Electronics & Information Technology and BIS norms for this purpose;

Definitions

Refurbisher is defined as any firm or undertaking registered in the Companies Act, 1956 or the Factories Act, 1948 or both or a district industries centre (DIC) involved in the refurbishment of used EEE;

E-waste stands for EEE, in part or whole, disposed of as waste by the bulk consumer or consumer and also rejected from refurbishment, manufacturing and repair processes; and Extended Producer Responsibility - Authorisation means permission that CPCB gives to a producer for managing EPR with implementation targets and plans quoted in such authorisation, including information on an e-waste exchange and PRO, if applicable.

Responsibilities of the Refurbisher

1. collect e-waste generated during refurbishing and direct it to the authorised recycler or dismantler via its collection centre;

2. apply in Form 1(a) as per the process listed in sub-rule (4) of rule 13 to the specific SPCB for obtaining one-time authorisation;

• (a) the authorised refurbisher must submit information on e-waste produced to the particular SPCB annually; and
• particular SPCB annually; and (b) the related SPCB must authorise the e-waste refurbisher on one time basis according to Form 1 (bb). However, the authorisation is deemed as considered if not objected to within one month;

3. to be sure that the refurbishing e-waste doesn't adversely affect the environment and health of the people;

4. to make sure that no harm is caused to the environment while storing and transporting EEE or electronic waste;

5. retain records of handled e-waste in Form-2 and present it for scrutiny by the appropriate authority;

6. to be sure that the e-waste thus produced is securely transported to authorised dismantlers/collection centres/recyclers;

7. submit annual returns in Form-3 to the specific SPCB on or before the last day of June (30th) following the financial year to which that return relates; and

8. suppose an accident happens during the transportation of e-waste or at the facility processing e-waste. In that case, the refurbisher must report immediately to the related SPCB about such a mishap via e-mail and telephone.

Liability of Electronics Refurbisher

• The person aspiring to import refurbished electronics must pay a fine as imposed for not adhering to the guidelines by the SPCB with the prior consent of the CPCB.
• The electronics refurbisher is liable for all harm done to the third party or the environment due to improper management and handling of the e-waste;
• The importer and refurbisher must pay financial penalties as levied under the Environment (Protection) Act, 1986, & rules made thereunder for any violation of these rules by the SPCB with the prior approval of the CPCB.

Procedure to grant EPR Authorisation to a Refurbisher

1. The entities must register on the official portal as a refurbisher;

2. every e-waste refurbisher must submit, within four months, in Form 1 (a) in triplicate to the related SPCB along with a copy of the given below documents for issuing or renewal of authorisation, namely:-

• (a) consent to establish (CTE) issued by the specific SPCB;
• (b) certificate of registration issued by DIC or any other authorised government agency; &
• (c) proof of the installed capacity of plant & machinery issued by the DIC or any other official government agency;

3. submit relevant documents such as-

• Memorandum of Association (MoA)
• Information of EEE placed on the market in previous years - code wise
• CTO issued by SPCB
• Estimated collection target for the forthcoming year and estimated production of E-waste item-wise
• EPR Plans
• The channelisation of e-waste and its flow-chart
• Certificate of incorporation
• Agreement copies with dealers, collection centres, recyclers, TSDF
• Copy of the consent from the relevant Ministry/Department for selling their product
• Details for RoHS compliance
• Identity proof
• GST registration
• IEC
• Copy of agreement with PRO [if applicable]
• Self-declaration regarding Reduction of Hazardous Substances provision;
• Copy of Directorate General of Foreign Trade (DGFT) license/permission as appropriate;
• Hazardous Waste Authorisation
• Information on the collection mechanism/centre, including the state-wise setup
• Website information
• Types & quantity of e-waste stored
• Types & quantity of e-waste refurbished
• Types & quantity of e-waste Transported
• Types & quantity of handled or produced waste
• Types & sent amount of e-waste to the collection centre

4. on being satisfied that the complete application complies with the norms set up by CPCB, the related SPCB grants one-time EPR authorisation for refurbisher in Form 1 (bb) stipulating therein mandatory conditions as deemed necessary for conducting refurbishing operations at the authorised site only;

5. the specific SPSCB disposes of the authorisation within four months from the date of receiving the complete application;

6. the refurbisher must maintain records of the refurbished and purchased e-waste in Form-2 and file annual returns of its activities of the previous year in Form-3 to the specific SPCB on or before the last day of June (30th) annually; and

7. the SPCB can cancel, refuse, or suspend an authorisation if there are reasons to believe that the authorised e-waste refurbisher doesn't comply with any of the norms of authorisation or with any standards of the Act or rules made thereunder after giving a chance to the refurbisher to be heard & after recording the reasons thereof.

Procedure for storage of e-waste

Every refurbisher must store the imported refurbished electronics for up to six months and retain a record of waste collection, sale, transfer and storage. Moreover, the authorised refurbisher has to make these records available for inspection. The respective SPCB can extend the said period up to three sixty-five days if the waste needs to be stored for process development for reuse or recycling.

EPR Certificate Generation for Refurbishing

• Based on the information provided by a refurbisher importing electronics, a refurbishing certificate is issued in favour of a registered refurbisher.
• On producing the refurbishing certificates purchased from the registered refurbishers, the producer's EPR is deferred by the duration as stated by the CPCB for the corresponding quantity of e-waste. Moreover, it gets added to the producer's EPR on the expiry of the extended life of the refurbished item.
• To incentivise refurbishing, only 75% of the deferred quantity is added to the producer's EPR for recycling upon the expiry of the extended life of the refurbished product.
• The EPR obligation is terminated only after end-of-life disposal via a registered recycler and producing an EPR certificate, not by refurbishing certificate.

Transaction of Extended Producer Responsibility Certificates

(1) A producer may buy EPR certificates limited to its EPR liability of the present year (Year Y) and any excess liability of preceding years plus 5% of the current year's liability.

(2) The producer must fulfil the EPR obligation by proportionately buying the EPR certificate quarterly.

(3) As soon as the producer buys refurbishing certificates, its EPR liability is automatically deferred for the relevant product quantity for the duration mentioned by the CPCB.

(4) As soon as the producer buys the EPR certificate, it shall be automatically adjusted against its liability. Priority in adjustment will be given to earlier liability, and the EPR certificate so revised will be terminated and cancelled automatically.

(5) The requirement, availability and other information on the refurbishing and EPR certificates for every refurbisher must be available on the portal.

(6) All the transactions under these rules must be submitted and recorded by the recyclers or producers on the portal while filing quarterly returns.

Environmental Compensation

Environmental compensation is imposed on unregistered refurbishers and any facility which helps or abets the violation of these norms.

Verification and Audit

The CPCB, by itself or through a delegated agency, can verify compliance with these guidelines by refurbisher via periodic audits and random inspection, as deemed fit, to take action against violations of the norms of these rules.

Refusal of EPR Authorisation

CPCB can refuse an EPR authorisation to an e-waste refurbisher. The application will be returned if a refurbisher can't furnish the necessary information within forty-five days of receiving the letter from CPCB. However, a chance will be given to hear from the refurbisher within one month of the application's return date.

Notably, in case of EPR Authorisation refusal by CPCB, the refurbisher forfeits his right to place any EEE in the market till EPR Authorisation is issued.

Cancellation of EPR Authorisation

CPCB also holds the right to cancel or suspend the EPR authorisation if the refurbisher fails to comply with any rules, instructions, or norms during the authorisation period. If any refurbisher doesn't adhere to the regulations, CPCB issues a notice within 25 days. However, a chance will be given to hear from the e-waste refurbisher within one month from the date of issuance of notification.

Appeal

Any refurbisher, if discontented by the order of refusal/cancellation/suspension of authorisation or its renewal issued by the CPCB, s/he can use Form 7 to appeal the Appellate Authority, i.e. the Secretary or nominee of Secretary, MoEF, GOI, New Delhi against the Order within thirty days from the day on which the Order is notified.

Frequently Asked Questions