Vietnam: Importing scrap for production: Must deposit for environmental protection

The Decree detailing a number of articles of the recently promulgated Law on Environmental Protection stipulates that, from January 10, 2022, importing scrap from abroad for use as production materials must sign an Environmental Protection Fund. This regulation aims to ensure that organizations and individuals importing scrap are responsible for handling risks of environmental pollution that may arise from imported scrap shipments.

Deposit 10-20% of total shipment value

Decree No. 08/2022 detailing a number of articles of the Law on Environmental Protection stipulates: Organizations and individuals that import scrap from abroad for use as production materials must deposit at the Vietnam Environmental Protection Fund, the Environmental protection Fund at the provincial level or a credit institution receiving the deposit. Deposits are made for each shipment or for each contract.

Importing scrap

The deposit level for imported iron and steel scrap under 500 tons is 10%; from 500 tons to less than 1 thousand tons is 15%; over 1,000 tons is 20% of the total value of imported goods. For paper and plastic scrap, imported under 100 tons must make a deposit equal to 15%; from 100 tons to less than 500 tons must make a deposit equal to 18%; over 500 tons must make a deposit equal to 20% of the total value of the imported scrap shipment. Scraps that do not belong to the two groups above, the deposit is equal to 10% of the total value of the imported shipment.

Encourage recycling activities

Director of Dong Nai Environmental Protection Fund Hoang Thi Nhung said that currently, Dong Nai Environmental Protection Fund has not received instructions to implement this new regulation. If the same applies to other trades and goods being deposited, enterprises must deposit before the shipment is imported. The Provincial Environmental Protection Fund receives the deposit and returns it after the goods have been cleared. In case the imported scrap is not cleared for customs clearance because it does not meet the national technical standards on the environment for imported scrap and cannot be re-exported, the deposit will be used to pay the handling costs, destroying. During the deposit period, organizations and individuals are entitled to interest rates as prescribed.

Environmental experts said that the regulation of depositing the Environmental Protection Fund for imported scrap is to ensure that organizations and individuals are responsible for handling risks of environmental pollution that may arise from imported scrap shipments. Limiting the backlog of scrap containers at seaports without anyone taking responsibility for handling, reducing waste with harmful environmental elements entering Vietnam.

In addition to the above reasons, promoting the responsibility of handling risks for the import of scrap paper, plastic, iron and steel as production materials is one of the forms of facilitating the development of the recycling industry. domestic waste processing. At that time, businesses must consider each shipment, each import contract, consider finding a source of raw materials on the spot to reduce transportation costs, reduce procedures and time related to escrow. Encourage businesses to actively seek new sources of raw materials that can replace imported scrap.

Deputy Director of the Department of Natural Resources and Environment Nguyen Ngoc Thuong said that, under the direction of the provincial leaders, the Department is looking for an area to plan a waste recycling industrial cluster. Establishments operating in the field of waste recycling are given priority in infrastructure and land tax. Complying well with regulations on emissions, wastewater, solid waste, recycling facilities are supported to connect with businesses in industrial zones/clusters to provide products for the manufacturing industry.