Are scrap importers required to pay deposits on environmental protection before scrap is imported into Vietnam?
- Are scrap importers required to pay deposits on environmental protection before scrap is imported into Vietnam?
- What is the deposit on environmental protection upon importing less than 500 tonnes of scrap iron from abroad as production materials in Vietnam?
- If the deposit remains after making payments for the treatment of imported scrap involved in the violation, shall the remaining deposit be refunded to the scrap importer in Vietnam?
Are scrap importers required to pay deposits on environmental protection before scrap is imported into Vietnam?
According to Point c, Clause 2, Article 71 of the Law on Environmental Protection 2020:
Environmental protection during import of scrap from foreign countries
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2. Entities are only permitted to import scrap from foreign countries as production materials for their manufacturing establishments and must:
a) have manufacturing establishments with technologies and equipment serving scrap recycling and reuse, warehouses and sites exclusively reserved for aggregation of scrap which satisfies environmental protection requirements; prepare a scheme to deal with impurities in the imported scrap;
b) have environmental licenses;
c) pay deposits on environmental protection as prescribed in Article 137 of this Law before scrap is unloaded in the case where it is imported through sea border checkpoint or before scrap is imported into Vietnam in other cases;
d) have a written commitment to re-export or treatment of scrap if the scrap is imported without satisfying environmental protection requirements.
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Thus, scrap importers must pay deposits on environmental protection before scrap is imported into Vietnam or before scrap is unloaded in the case it is imported through the sea border checkpoint.
What is the deposit on environmental protection upon importing less than 500 tonnes of scrap iron from abroad as production materials in Vietnam?
According to Point a, Clause 2, Article 46 of Decree 08/2022/ND-CP:
Payment of deposit on environmental protection during import of scrap from abroad as production materials
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2. The deposit on environmental protection during import of scrap from abroad as production materials:
a) The importer of scrap iron and steel shall pay a deposit on environmental protection during import of scrap from abroad as production materials as follows:
Regarding an imported quantity of less than 500 tonnes, it is required to pay a deposit of 10% of total value of the imported scrap shipment;
Regarding an imported quantity ranging from 500 tonnes to less than 1,000 tonnes, it is required to pay a deposit of 15% of total value of the imported scrap shipment;
Regarding an imported quantity of 1,000 tonnes or more, it is required to pay a deposit of 20% of total value of the imported scrap shipment;
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Thus, importers of less than 500 tonnes of scrap iron must pay a deposit of 10% of the total value of the imported scrap shipment upon importing scrap from abroad as raw production materials.
If the deposit remains after making payments for the treatment of imported scrap involved in the violation, shall the remaining deposit be refunded to the scrap importer in Vietnam?
According to Point d, Clause 4, Article 46 of Decree 08/2022/ND-CP:
Payment of deposit on environmental protection during import of scrap from abroad as production materials
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4. Management and use of deposit on environmental protection during import of scrap from abroad as production materials:
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c) If the imported scrap is not granted customs clearance and cannot be re-exported, the deposit shall be used to pay the cost incurred in connection with treatment and disposal of the violating scrap. If the deposit on imported scrap is not enough to fully pay the cost incurred in connection with treatment and destruction of the violating scrap, such cost shall be at the importer’s expense. Any value generated from the product after treatment and destruction imported scrap shall be confiscated as per the law (excluding the product made from materials, additives or other scrap mixed under production process of the unit assigned to treat the violating imported scrap) and such value may not be accounted for as cost incurred in connection with treatment and destruction of violating imported scrap.
The treatment and destruction of violating imported scrap shall be carried out as prescribed by regulations on waste management. The cost incurred in treatment and destruction of the waste and scrap involved in violation shall be agreed upon between the violating importer and the organization fully capable of treatment of waste and scrap; the unit in charge of treatment and destruction of scrap involved in violation shall be specified in the penalty decision issued by the person competent to impose penalties for administrative violations as per the law. If the violating importer is unidentifiable, the cost incurred in connection with treatment and destruction of scrap involved in violation shall be covered by the state as per the law.
d) If the deposit that remains after making payments for treatment of imported scrap involved in violation, within 05 days from receipt of a written opinion on the completion of treatment and destruction of scrap issued by the authority competent to impose penalty as per the law on penalties for administrative violations against regulations on environmental protection, the deposit receiving organization shall refund the remaining deposit to the scrap importer.
Thus, if the deposit remains after making payments for treatment of imported scrap involved in the violation, within 05 days from receipt of a written opinion on the completion of treatment and destruction of scrap issued by the authority competent to impose penalty as per the law on penalties for administrative violations against regulations on environmental protection, the deposit receiving organization shall refund the remaining deposit to the scrap importer.
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