India Regulatory News

On 30 September 2023, India’s Central Board of Indirect Taxes and Customs (CBIC) issued a new Circular (No. 23/2023) regarding mandatory additional qualifiers in import/export declarations in respec...

On 30 September 2023, India’s Central Board of Indirect Taxes and Customs (CBIC) issued a new Circular (No. 23/2023) regarding mandatory additional qualifiers in import/export declarations in respect of certain products. This Circular amends a precious Circular (No.15/2023) dated 7 June 2023 following consideration of various representations and consultations with stakeholder. The Circular will enter into force on 15 October 2023, two weeks later than originally planned.

The amendment primarily affects paragraphs 4.1 and 4.2 of Circular No. 15/2023. The key changes are described below.

Chemical Category Details

The orginal Circular No. 15/2023, introduced changes that required additional qualifiers in import/export declarations for certain products. The Circular required these qualifiers for goods imported under chapters 28, 29, 32, 38, and 39. In the amended circular only heading 3808 of Chapter 38 ‘Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles’ is included.

For goods imported under the above-mentioned chapters, importers will now be required to provide additional details in the following categories:

Declaration of Non-Availability

In cases where importers are unable to obtain information on even one ingredient due to supplier confidentiality, a declaration of non-availability of CAS and IUPAC details must on the Bill of Entry as follows:

I certify that the information related to IUPAC & CAS number is not in my possession as the same is not provided by my supplier due to confidentiality.

Effective Date and Implementation

The revised requirements specified in Circular No. 23/2023 will be mandatory for imports under the mentioned chapters for all bills of entry filed on or after 15 October 2023. These additional qualifiers will supplement the existing declaration made by importers. 

It is important to note that the mandatory additional qualifiers for exports under the specified Customs Tariff Headings (CTHs) of the mentioned chapters will remain the same, with effect from 1 October 2023.

On 13 September 2023 the Department of Chemicals and Petrochemicals, Government of India notified the World Trade Organisation (WTO) of a new Quality Control Order (QCO),  Diesel Engines — NOx Redu...

On 13 September 2023 the Department of Chemicals and Petrochemicals, Government of India notified the World Trade Organisation (WTO) of a new Quality Control Order (QCO),  Diesel Engines — NOx Reduction Agent AUS 32 (Quality Control) Order, 2023. The purpose of the QCO is to ensure that diesel engines comply with the Indian standard as amended from time to time with respect to the -  NOx reducer AUS 32. The deadline for comments is 60 days from the date of notification. 

Conformity to standard and compulsory use of Standard Mark 

The purpose of the order is to ensure that locally manufactured or imported goods conform to the Indian standard IS 17042 (Part I) 2020/ISO 22241-1:2019 and bear the standard mark under license from the Bureau of Indian Standards (BIS) as per Schedule II of the Bureau of Indian Standards (Conformity Assessment) Regulations 2018. The use of the standard mark is governed by the Bureau of Indian Standards Act, 2016 and the rules and regulations made thereunder. The Bureau of Indian Standards is the certification and enforcement agency. 

NOx Reduction Agent AUS 32  

The NOx reduction agent AUS32 is an aqueous urea solution which is used as a NOx reduction agent in the selective catalytic reduction (SCR) converter system of a motor vehicle powered by a diesel engine. SCR converter systems are used to selectively reduce nitrogen oxide (NOx) emissions from diesel engines. 

Aqueous solution of urea or diesel engines - NOx Reduction Agent AUS 32 is technically pure urea and pure water with a urea content of 32.5% (mass fraction), which is used as a NOx reduction agent in the SCR converter system. Technically pure urea is an industrially produced urea with CAS number 57-13-6, which has the following characteristics: 

• contains only small amounts of biuret, ammonia, and water 

• does not contain aldehydes or other substances such as anti-caking agents 

• does not contain pollutants such as sulfur and its compounds, chloride, nitrate or other compounds  

The manufacturer produces the final AUS 32 product by diluting virgin urea, concentrated urea solution or by dissolving solid urea. 

Timeline 

The proposed date for adoption of the QCO is not yet decided. It will enter into force 180 days from the date of its publication in the Official Gazette. 

On 13 September 2023, the Indian Department of Chemicals and Petrochemicals notified the World Trade Organization (WTO) of Quality Control Orders (QCOs) for eight substances. The final day for comment...

On 13 September 2023, the Indian Department of Chemicals and Petrochemicals notified the World Trade Organization (WTO) of Quality Control Orders (QCOs) for eight substances. The final day for comments is 60 days from the notification.

Substances included in the QCOs

The table below lists the eight substances included in the notified QCOs. There are six chemicals, one insecticide, and one fungicide. The locally manufactured or imported quantities of the substances specified in column 1 of the table must comply with the corresponding Indian Standard listed in column 2 bearing the title of the Indian Standard listed in column 3. The substances must bear the Standard Mark under a licence from the Bureau of Indian Standards in accordance with Scheme-I of Schedule-II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018. The use of standard mark is governed by the provisions of Bureau of Indian Standards Act, 2016 and the Rules and Regulations made thereunder.

The QCOs do not apply goods or articles meant for export.

Timeline

The date of adoption of the 8 QCOs is yet to be determined. The QCOs will enter into force 6 months after the date of publication in the Official Gazette.

Areas of use

The table below shows the various applications and areas of use for the eight substances that are included in the notified QCOs.

On 17 August 2023, the Bureau of Indian Standards (BIS) published a Draft Indian Standard with the title Plastic Feeding and Drinking Containers Accessories and Cutleries for Infant and Child Use Spec...

On 17 August 2023, the Bureau of Indian Standards (BIS) published a Draft Indian Standard with the title Plastic Feeding and Drinking Containers Accessories and Cutleries for Infant and Child Use Specification. This is a new Draft Indian Standard which prescribes the requirements, methods of sampling, safety aspects and test method for feeding and drinking containers and accessories for infants and children. The draft is  open for comments until 16 October 2023. 

The standard does not apply to infant feeding bottles and teats for feeding bottles, as standards for those products are already covered under IS14625 and IS3565. The full text of the draft standard can be found here. 

Materials 

The material used for feeding and drinking containers, its accessories and cutleries for infants and child use shall be made of the following materials: 

• Thermoplastic elastomers (TPA) according with ISO 18064  

• Polyether sulfone (PES) complying with ISO 24025-1 

• Polypropylene (PP) complying with ISO 10910 

• Other olefin-based polymers 

• Other co-polyester materials 

• Raw materials like silicone rubber 

The standard recommends that the materials used must be free of bisphenol-A (BPA) and that  ISO 18857-2 or EN 13130-13 (European standards) is used to determine the absence of BPA. Furthermore, the standard prohibits the usage of polyvinyl chloride (PVC) and polyethylene terephthalate (PET) in the production of the mentioned products. 

Manufacturers must follow good manufacturing practices (GMP). 

Limits for heavy metals 

• The following table lists the permissible levels for heavy metals in plastic feeding and drinking containers set forth in the draft standard: 

For containers, accessories and cutleries made of silicone rubber the standard gives the specific migration of heavy metals listed in the table below. 

Categories of products 

The draft standard contains images of the commonly used designs, shapes and sizes. The products divided  into three categories as follows:  

• Containers: bowls, drinking tumbler/cups/mugs, double wall insulated sippy cups, drinking glass, container with breast pump, fresh fruit feeders, 360 degree magic cup, medicine feeders, plates, spout cups, sippy spout bottles, sippy straw bottle, water bottles. 

• Accessories: spoons, straws, spouts, pipes, air vent systems, handles, locking rings, sealing disks, protecting caps, breast shields, valves, slings. 

• Cutlery: spoons, forks. 

India is a party to the 1988 UN Convention against Illicit Traffick in Narcotic Drugs and Psychotropic Substances (NDPS). The convention regulates 33 chemicals, but so far India has only regulated 27 ...

India is a party to the 1988 UN Convention against Illicit Traffick in Narcotic Drugs and Psychotropic Substances (NDPS). The convention regulates 33 chemicals, but so far India has only regulated 27 of these for international trade under the Narcotic Drugs and Psychotropic Substances (Regulation of Controlled Substances) Order, 2013 (RCS). 

Chemicals not controlled under RCS  

The 6 chemicals that India does not regulate are: 

• Acetone 

• Ethyl Ether 

• Hydrochloric Acid 

• Piperidine 

• Sulfuric Acid  

• Toluene 

Since these chemicals are regulated internationally under the NDPS, many countries are getting no objection against Pre-Export Notifications (PENs) issued to them before issuing an Export Authorization, and in cases of import, some countries may reject the import consignment because they don't have a No Objection Certificate (NOC) from the exporting country. Consequently, trade may encounter numerous challenges when it comes to clearing import and export shipments containing these chemicals. 

Notice from Central Bureau of Narcotics 

To promote smooth trade involving these 6 chemicals around the world, the Central Bureau of Narcotics (CBN) released a public notice on August 08, 2023. In this notice, they suggested that companies that are encountering trade-related difficulties should adopt a voluntary code of approach by reaching out to the CBN via e-mail at narcommr@cbn.nic.in (with a copy sent to iccmumbai@iccmail.in). On a case-by-case basis, companies can provide minimal documentation, including the Know Your Customer (KYC) for to get a letter or communication saying these chemicals are not regulated in India. 

Voluntary practice 

Members of the Indian Chemical Council are encouraged to adopt voluntary practice when it comes to importing and exporting these six chemicals, aiming to mitigate any potential challenges in the global trade of these substances. 

On 25 July 2023, a notification was disclosed by India’s Ministry of Environment, Forest and Climate Change amending the E-Waste (Management) Rules, 2022. The updated notification is cited as E-Wast...

On 25 July 2023, a notification was disclosed by India’s Ministry of Environment, Forest and Climate Change amending the E-Waste (Management) Rules, 2022. The updated notification is cited as E-Waste (Management) Second Amendment Rules, 2023 and came into force on the date of publication. The amendment involves updates in the exemption list of electrical and electronic equipment (EEE) items under the Restriction of Hazardous Substances (RoHS) rules. 

Products and their applications which was exempted from the requirements of sub-rule 1 of rule 16 of E-Waste (Management) Rules, 2022 are covered in Schedule-I and Schedule-II. 

The provisions of sub-rule 1 shall not apply to components or spares required for electrical and electronic equipment specified in Schedule – II B placed in the market on or before the 1st May 2014 and electrical and electronic equipment specified in Schedule – II C placed in the market on or before the 1st April 2025. 

Further details on exemption list of Schedule-II can be found in the E-Waste (Management) Rules, 2022: https://www.mppcb.mp.gov.in/proc/E-Waste-Management-Rules-2022-English.pdf 

In the E-Waste Management Rules, 2023 the following applications are exempted from the provisions of sub-rule 1 of rule 16 specific to medical devices and monitoring and control instruments including laboratory equipment. 

Further details on Schedule-II B and Schedule-II C can be found in the E-Waste (Management) Second Amendment Rules, 2023:  

http://www.indiaenvironmentportal.org.in/files/file/e%20waste%20second%20amendment%20rules%202023.pdf 

On 28 June 2023 the Indian Ministry of Power published a notice in the Gazette of India notifying the release of the Carbon Credit Trading Scheme, 2023. The Scheme came in to force on the day of publi...

On 28 June 2023 the Indian Ministry of Power published a notice in the Gazette of India notifying the release of the Carbon Credit Trading Scheme, 2023. The Scheme came in to force on the day of publication in the Gazette. 

The plan outlines each institution's specific responsibilities for putting the Indian carbon credit trading plan into action. Carbon credits certificates (CCCs) will be awarded to required entities that achieve their greenhouse gas emission objectives. Those that cannot make up the difference by buying carbon credit certificates.  

Below are the respective duties of each of the institutions. 

Governance: National Steering Committee for Indian Carbon Market 

The National Steering Committee for Indian Carbon Market was created when the Indian carbon market was formed. Representatives from the Ministry of Power, Ministry of Finance, Ministry of New and Renewable Energy, Bureau of Energy Efficiency, and several other ministries and organizations will sit on the committee. The Committee has the following functions: 

• Observe how the Indian carbon market operates. 

• Make recommendations to the Bureau of Energy Efficiency for the development of carbon market regulations and processes, greenhouse gas emission objectives, rules for selling carbon credit certificates outside of India, etc. 

• Determine the requirements and format for submissions, the validity of the CCC, the floor price, the forbearance price, and other associated compliance measures. 

Administrate: Bureau of Energy Efficiency  

As the administrator the Bureau of Energy Efficiency (BEE) oversees the following functions: 

• Determine which industries have the most potential to reduce greenhouse gas emissions. 

• Create targets and a compliance trajectory for entities. 

• Distribute CCCs 

• Set CCC achieving criteria for each industry by conducting studies. 

Registry: The Grid Controller of India 

The Grid Controller of India Limited shall be the Registry for the Indian carbon market. The Registry shall oversee the following functions as determined by the Central Government from time to time: 

• Keep a database of registration of CCC-related organizations 

• Keep track of CCC transactions. 

• Assist in the development of an information technology platform for maintaining a database of CCCs. 

Regulator: Central Electricity Regulatory Commission 

The Central Electricity Regulatory Commission shall be the regulator for the trading activities under the Indian carbon market. The regulator shall perform the following: 

• Regulate CCC trading-related issues 

• Regulate CCC trading frequency 

• Provide market monitoring, and take the appropriate precautions to avoid fraud or distrust. 

Furthermore, the Bureau of Energy Efficiency shall constitute one or more Technical Committees for different areas as required under compliance mechanisms for the purpose of the Scheme. 

 The full text of the Carbon Credit Trading Scheme 2023 can be found here.