All Indian association of plastic industries is incorporated in 1982,plastic industries association of India is a leading Association of SSI and Medium Scale plastic processing units and related interests in the country. As on date Association has 662 Life Members with a total registration of 2461 spread all over the country. Right from its inception, Plastic association of India has been one of the most active Associations of plastic processing industry which has been known as alive to the various areas of problems/concerns of the industry with regard to government duties, policy of raw – materials suppliers, pollution potential of processing of plastic products, categorization of plastic products under Green category, Green category/permissible list ,non-biodegradable plastic bags, recycling of non-biodegradable materials, biodegradable plastic bags, environmental friendly plastic bags, recycle plastic bags, reusable plastic bags, all weather proof recyclable plastic bags, India customs & duty tariff codes, Indian customs duty and environmental effects of plastic production etc.it has been actively following up with various agencies to obtain satisfactory resolution of industries multifarious problems.
A LEADING ASSOCIATION OF MSMEs OF PLASTIC PROCESSING INDUSTRY AND RELATED INTERESTS
(Association completes 35 years of its establishment in 2017)
Incorporated in 1982, All India Plastic Industries Association (AIPIA) is a leading Association of SSI and Medium Scale plastic processing units and related interests in the country. As of now Association has 662 Life Members with a total registration of 2461 spread all over the country.
Right from its inception AIPIA, being one of the most active Associations of plastic processing industry, has been alive to the various areas of problems / concerns of the industry with regard to government duties, policy of raw material suppliers, etc. It has been proactively following up with various agencies to obtain satisfactory resolution of multifarious problems with promptitude.
ACHIEVEMENTS OF AIPIA
Over a period of past 35 years, AIPIA has taken significant actions and has many achievements to its credit. On persistent representations and follow-ups with the concerned authorities of Government of India and Government of NCT of Delhi, the association has been able to achieve the following:
1. PROBLEMS RELATING TO RAW-MATERIAL SUPPLIES
AIPIA has been a Member of the Public Grievance Committee and Regional Advisory Committee of Central Excise for the past many years wherein issues of concern are raised for satisfactory redressal.
4% Special Additional Duty on Imports (SAD): We have a long pending issue of SAD, which is ultimately refunded to traders. We have sent several communications to the Govt. in this regard. In our latest communication to the Chairman, CBEC, we have mentioned that in the light of introduction of GST and also under “Ease of Doing Business”, the Govt. must withdraw this 4% SAD.
IV- MINISTRY OF ENVIRONMENT, FOREST & CLIMATE CHANGE (MoEF&CC):
Plastic Waste Management Rules, 2016
Government of India has always allowed manufacturing of Plastic Carry Bags of a controlled thickness. As per Plastic Waste Management Rules, 2016, the MoEF&CC has increased thickness of plastic carry bags from 40 to 50 microns. In the light of this notification issued by Govt. of India, we have requested the Delhi Government to withdraw its notification of 2012 banning plastic carry bags in Delhi.
V- GOODS & SERVICES TAX (GST):
We have been in favour of early introduction of GST in the country. Many taxes, service tax, central excise, SAD, VAT etc. will replace / subsume in the GST and the Government is in the process of finalization of exact percentage of GST. Earlier, the Government proposed to switch over to GST system with effect from 1st April, 2017, but because of certain objections from some states, the Government now proposes to introduce it with effect from 1st July, 2017. Regarding rate of GST, we have written to the Government and are also hopeful that GST rates will not be more than 18%.
VI- DECLARATION OF BANK HOLIDAY ON 2nd AND 4th SATURDAY:
The Government declared Bank Holiday on 2nd Saturday and 4th Saturday Nationalized & private banks. Association requested the Ministry of Finance & RBI to review the the decision, as it was causing huge inconvenience to the customers and widespread disruption to the business environment. We have requested the Government to ensure that banks do not remain closed for more two days at a stretch.
VII. SPECIFIC COMPLIANCE AUDIT BY CAG IN RESPECT OF UNITS ENGAGED IN (PLASTICS AND ARTICLES)
The Comptroller and Auditor General of India (CAG) wrote a letter to the Commissioner (Central Excise) regarding specific compliance audit of units engaged in ‘plastics and articles’. We took up the matter with the Hon’ble Minister of State for MSMEs and with Hon’ble Speaker, Delhi Vidhan Sabha stating that such type of audit should not be conducted as regular audits is already being done by the Excise Department and such an action will only create an atmosphere of fear in the industry. We were given to understand that the matter has since been dropped and no such audit shall be carried out by CAG.
Members brought to our notice that Inspectors from various departments of the Government of NCT of Delhi were conducting surprise visits without any rhyme or reason and also without any authorization from their seniors. The association took up the matter at the level of Chief Minister, GNCTD and requested him to issue instructions that “Inspectors of various departments of Govt. of NCT of Delhi should not visit factories / business establishments without carrying authorization letters by higher authorities”.
Rain water Harvesting is mandatory for all property owners having commercial/industrial plot size of 500 sq.mtrs. or more. We informed this to our members / readers through special columns printed in our monthly journal. In order to avoid penalty or higher water tariff by Delhi Jal Board, we request members, who own commercial / industrial properties of 500 sq.mtrs. or above to install rain water systems in their premises.
Trade & Taxes Department:
We requested the VAT department that “Demands raised by them for the same year for which VAT refunds are pending with the department should be adjusted and refunds to assessees may be made after necessary adjustments”. After continued correspondence with the department, we were able to get the issue resolved. VAT department replied that “Recovery of demand is a separate process while refund is processed after seeking information the dealer. However, while processing of refund, demand outstanding on that date can be adjusted out of the refund provided the refund becomes due”.
VAT department issued notices under Section 59(2) to assessees, mentioning that, “Dealers from whom you have purchased goods, have NOT deposited VAT due to them with the VAT department”. We took up the matter with the VAT department stating, “Consequent upon depositing VAT by the seller and duly verified by the VAT department, then such demand from Assessee (Buyer) should be withdrawn”.
VAT on Polythene Packing Material was being charged @ 12.5% instead of 5%. This happened because of change of computerized Code Numbers by the VAT Department. The association pursued the matter with the VAT department on war footing and delegations from the association met the concerned Special Commissioner (VAT) and the issue was resolved with the introduction of proper Code Number for Polythene Packing Material. Upon filing online VAT returns and clicking the particular Code Number, the manufacturers of Polythene Packing Material were able to file VAT returns @ 5%. This was a matter of great relief for the whole plastic industry as buyers and sellers both were affected.
Delhi Pollution Control Committee (DPCC):
Through a public notice issued by DPCC, dated 24th July, 2015, manufacturers of plastic carry bags were required to register themselves with the DPCC and submit applications for issue / renewal of license in a prescribed form. Members reported to us that they have applied for the required license with the DPCC long back, but have not been granted license. The Member Secretary, DPCC ensured in a meeting that such cases should be brought to his notice. DPCC, in response to an RTI application has stated that from July, 2015 to March, 2016, 40 units have applied for registration in Form 1, but none of them have been granted registration. We are pursuing the matter further.
AIPIA’s suggestions/comments to Govt of NCT of Delhi
We offered our comments / suggestions to the Govt. of NCT of Delhi on “Setting up of Recycling Units for Plastic in Industrial Areas of Delhi”. They should ensure safe collection, storage, segregation, transportation, processing and disposal of plastic waste and also see that no damage is caused to environment during this process. Open burning / littering of plastic waste should not be permitted. We have always emphasized that Civic Agencies / Municipal Authorities should be asked to discharge their duties sincerely and act as per the guidelines contained in Ministry of Environment & Forest MSW (Management & Handling) Rules 2011.
Minimum Wages of Industrial Workers:
Chief Minister, Govt. of NCT of Delhi, while delivering his speech on the occasion of Independence Day, announced hike of over 40% in minimum wages in Delhi. The association strongly protested against this announcement and wrote strong worded letters to the Chief Minister, GNCTD & Lt. Governor of Delhi. In addition, we also joined hands with the Apex Chamber of Commerce and filed a case in Delhi High Court against Delhi Government on minimum wages.
Department of Urban Development
Urban Development Departments of all states / union territories are supposed to implement and monitor Ministry of Environment & FA’s “Plastic Waste Management Rules, 2016” in their respective states / UTs. As a result of our continuous follow up, you will be glad to know that our association has been nominated as a Member of the Advisory Committee set by the Govt. of NCT of Delhi under Urban Development Department to monitor implementation of the above rules. Delhi Government is in the process of finalizing Delhi Municipal Plastic Waste Management Rules, 2016, which shall be notified after clearance by the Advisory Committee.
VIII. CURRENT ISSUES OF CONCERN BEING PURSUED FOR SATISFACTORY RESOLUTION
Frequent revision of Polymer Prices by Major Domestic Polymer Producers
The association raises this issue with the Government authorities in seminars, industry meet, meetings etc. Time and again we have been requesting the domestic polymer companies to update this association regarding their productions, plant shut down information, discount policies and availability of raw materials in market.
Fictitious demands raised by VAT department
All dealers / assessees are now required to file VAT returns online under ‘Ease of Doing Business”. But some of our members informed that VAT department creates fictitious demands, due to which the assessees cannot get statutory forms on time and they are thus forced to approach the officers of the department directly or through their representative / legal counsel. We have brought this to the notice of VAT commissioner and are pursuing it further.
Association suggests non-imposition of Anti Dumping Duty on Raw Materials, like Polymer:
Association is totally against the concept of imposition of Anti Dumping Duty on raw materials as the same hurts the downstream industry. It has been noticed that major polymer producers approach the Government for imposition of anti dumping duty on polymers (like PP/PVC) on the ground of injury when international prices tend to be lower. We have requested the Chairman, CBEC to withdraw this 4% SAD early, in the light of GST being introduced by the Government with effect from July, 2017. The Association is therefore, of the view that no anti dumping duty should be imposed on raw materials like polymers as it hinders growth and increases cost of production. It makes sense to impose it on import of finished products.
Matter regarding Ban on Plastic Bags pending with the Delhi High Court/Supreme Court:
The matter was pending in Delhi High Court for more than 4 years. The Hon’ble High Court transferred the case to National Green Tribunal as per its decision dated 5th December, 2016, mentioning that,
“Having regard to the fact that the impugned Notification has not yet been enforced, we direct that the respondents shall not take any coercive steps for implementation of the said Notification for a period of eight weeks from today or till appropriate order is passed by NGT”. However, the association disagreed with this decision, as in our opinion NGT was not empowered to take up the matter and, therefore, we filed an appeal in the Supreme Court saying that the High Court should decide and deliver final judgment. The matter was listed before the Supreme Court for 20th January, 2017, who after a long hearing ordered : “We find that no case for interference in the impugned order is made out at this stage. However, the observations made by the High Court will not come in the way to the petitioner to raise the question of jurisdiction before the National Green Tribunal when the case is taken up by it for hearing and final disposal”.Hearing in the case took place on 13th February, 2017 in NGT and the case further listed for 14th March, 2017.
Formation of Sub-committees
In order to have smooth functioning and prompt action on members’ grievances, the association constituted seven sub-committees. These are: (1) Taxation, (2) Public Relations, (3) Industrial Affairs, (4) Legal Affairs, (5) P4 Expo India 2017, (6) Directory – 2017 and (7) Purchase Committee.
Registration under UDYOY AADHAAR & MSME DATA BANK
The association organized a camp in association’s office on 23rd February, 2017 to enable members to register their units in Udyog Aadhaar and MSME Data Bank. Officers from the Ministry of MSME came to association’s office and assisted members in doing online registrations.
THE MONTHLY JOURNAL “PLASTIC WORLD” & “PLASTIC WORLD ANNUAL DIRECTORY”
Association regularly publishes its Monthly Journal ‘Plastic World’ which has a readership of 10,000 spread all over the country.
“Plastic World Directory” is published every year, which contains names of members with their addresses etc. listed under categories like life members, state-wise alphabetical list of members and trade-wise categorization. This is a popular Manual which is used by members/others for reference.
OFFICE OF THE ASSOCIATION
Association has its own premises in the Central Market, Ashok Vihar, Phase – I, Delhi – 110 052, where its office is located having modern facilities like computer, fax, etc. Association’s monthly meetings are held on the 10th of every month (or on11th, in case 10th happens to be a holiday / Sunday).
