Bombay High Court Allows Import of Used Tyres for Recycling Subject to Compliance with Hazardous Waste Rules and Customs Procedures. The court held that used tyres, whether single cut or multiple cut/shredded, fall under Entry B3140 of the Hazardous Wastes Rules, 2008, requiring prior permission from the Ministry of Environment and Forests.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioners, Royal Carbon Black (P) Limited and another, operate a factory in Raigad manufacturing carbon black, fuel oil, and other products using used cut rubber tyres as raw material. They claimed to have permission from the Maharashtra Pollution Control Board dated 14 January 2011 and an import licence from the Director General of Foreign Trade dated 20 April 2011 for 20,000 M.Tons of used tyres, subject to conditions including validity of PCB permission and non-contamination. The petitioners imported both single-cut tyres (freely importable under OGL, Customs Tariff Item 4004) and multiple-cut/shredded tyres (restricted, requiring licence). The customs authorities (Chief Commissioner of Customs and Commissioner of Customs, JNPT) created obstacles, insisting that the goods fall under Entry B3140 of Part B of Schedule III of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008, requiring permission from the Ministry of Environment and Forests. The petitioners filed a representation on 15 June 2011 arguing no such permission was needed. The court considered the legal issue of whether used tyres, whether single cut or multiple cut/shredded, are hazardous waste requiring MoEF permission. The court held that both categories fall under Entry B3140 and require prior permission from the Ministry of Environment and Forests. The court directed the petitioners to obtain such permission and allowed the customs authorities to draw samples and test the goods as per public notice No. 22/2009 dated 21 April 2009. The petition was disposed of with these directions.

Headnote

A) Environmental Law - Hazardous Waste Import - Entry B3140 of Schedule III - Used tyres, whether single cut or multiple cut/shredded, fall under Entry B3140 of Part B of Schedule III of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008, and require prior permission from the Ministry of Environment and Forests for import. The court held that the customs authorities were justified in insisting on such permission. (Paras 1-3)

B) Customs Law - Import Licence - Conditions - The import licence issued by the Director General of Foreign Trade is subject to the condition that the item should not be contaminated with other waste and that the Maharashtra Pollution Control Board permission is valid. The court directed the petitioners to obtain necessary permission from the Ministry of Environment and Forests and allowed the customs authorities to draw samples and test the goods as per public notice. (Paras 2-3)

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Issue of Consideration

Whether import of used tyres (single cut and multiple cut/shredded) requires permission from the Ministry of Environment and Forests under the Hazardous Wastes Rules, 2008, and whether the customs authorities can impose additional conditions beyond the import licence.

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Final Decision

The court held that used tyres, whether single cut or multiple cut/shredded, fall under Entry B3140 of Part B of Schedule III of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008, and require prior permission from the Ministry of Environment and Forests. The petition was disposed of with a direction to the petitioners to obtain such permission and to the customs authorities to draw samples and test the goods as per public notice No. 22/2009.

Law Points

  • Interpretation of Hazardous Wastes (Management
  • Handling and Transboundary Movement) Rules
  • 2008
  • Entry B3140
  • Open General License
  • Customs Tariff Item 4004
  • Requirement of permission from Ministry of Environment and Forests
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Case Details

2011 LawText (BOM) (10) 30

Writ Petition No.1452 of 2011

2011-10-17

Dr. D.Y. Chandrachud, A. A. Sayed

Mr. M.M. Vashi i/b M/s. M.P. Vashi & Associates for the Petitioners, Mr. R. Ashokan for Respondents 1 and 2, Ms. Naveena Kumai for Respondent No.3

Royal Carbon Black (P) Limited and another

Chief Commissioner of Custom, Mumbai and others

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Nature of Litigation

Writ petition challenging obstacles by customs authorities in import of used tyres for recycling.

Remedy Sought

Direction to customs authorities to allow import of used tyres without insisting on permission from Ministry of Environment and Forests.

Filing Reason

Customs authorities insisted on permission from Ministry of Environment and Forests under Hazardous Wastes Rules, 2008 for import of used tyres.

Issues

Whether used tyres (single cut and multiple cut/shredded) fall under Entry B3140 of Hazardous Wastes Rules, 2008 requiring MoEF permission. Whether customs authorities can insist on MoEF permission despite import licence from DGFT.

Submissions/Arguments

Petitioners argued that single-cut tyres are freely importable under OGL and multiple-cut tyres have a licence; no MoEF permission required. Respondents argued that all used tyres fall under Entry B3140 of Hazardous Wastes Rules, 2008 and require MoEF permission.

Ratio Decidendi

Used tyres, whether single cut or multiple cut/shredded, are hazardous waste under Entry B3140 of the Hazardous Wastes Rules, 2008, and their import requires prior permission from the Ministry of Environment and Forests. Customs authorities are justified in insisting on such permission.

Judgment Excerpts

The Petitioners have a factory at Raigad which manufactures carbon black, fuel oil and other products. The licence which has been issued on 20 April 2011 inter alia contains the following endorsement : 'This import is permitted through Nhava Sheva Port, subject to the condition that the permission for import is valid till the validity of the authorisation issued by the Maharashtra State PCB and the item of import should not be contaminated with any other waste...' The relief that has been sought in the Petition is that (i) The First and Second Respondents... have created obstacles in the import of both sets of goods on the ground that the Petitioners do not have permission / licence required for goods falling under entry B3140 of Part B of Schedule III of the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules 2008.

Procedural History

The petitioners filed a writ petition in the Bombay High Court challenging the obstacles by customs authorities. The court heard the matter and disposed of it on 17 October 2011.

Acts & Sections

  • Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008: Entry B3140 of Part B of Schedule III
  • Customs Tariff Act, 1975: Item 4004 of Chapter 40
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