Regulations on deposit on environmental protection during import of scrap from abroad as raw materials for production in Vietnam

Regulations on deposit on environmental protection during import of scrap from abroad as raw materials for production in Vietnam (Internet image)

Purposes and methods for payment of environmental protection deposit during import of scrap from abroad as raw materials for production in Vietnam

According to Clause 27, Article 3 of the Law on Environmental Protection 2020, scrap means any material recovered, classified and selected from materials or products left over from production, business operation, service provision or consumption to be used as raw materials for another production process.

According to Clause 1, Article 46 of Decree 08/2022/ND-CP, purposes and methods for payment of environmental protection deposit during import of scrap from abroad as raw materials for production:

- The payment of environmental protection deposit during import of scrap usable as raw materials for production is to ensure that every importer of scrap assumes their responsibility for handling risks and risks of environmental pollution that may arise from shipments of imported scrap;

- The importer of scrap shall pay deposit to the Vietnam Environment Protection Fund (VEPF) or provincial environment protection fund or credit institution where the importer opens their account (hereinafter referred to as “deposit receiving organization”). The deposit shall apply to each shipment or each contract specifying information and value of the imported scrap shipment;

- The deposit shall be paid or refunded in Vietnamese dong and the deposit interest shall be earn as agreed as per the law.

Deposit on environmental protection during import of scrap from abroad as raw materials for production in Vietnam

According to Clause 2, Article 46 of Decree 08/2022/ND-CP, the deposit on environmental protection during import of scrap from abroad as raw materials for production:

- The importer of scrap iron and steel shall pay a deposit on environmental protection during import of scrap from abroad as raw materials for production as follows:

Regarding an imported quantity of less than 500 tonnes, it is required to pay a deposit of 10% of total value of 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 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 imported scrap shipment;

- The importer of scrap paper and plastic shall pay a deposit on environmental protection during import of scrap from abroad as raw materials for production as follows:

Regarding an imported quantity of less than 100 tonnes, it is required to pay a deposit of 15% of total value of imported scrap shipment;

Regarding an imported quantity ranging from 100 tonnes to less than 500 tonnes, it is required to pay a deposit of 18% of total value of imported scrap shipment;

Regarding an imported quantity of 500 tonnes or more, it is required to pay a deposit of 20% of total value of imported scrap shipment;

- An importer of scrap other than that specified in points a and b of this clause shall pay a deposit on environmental protection during import of scrap from abroad as raw materials with an amount of 10% of total value of imported scrap shipment.

Procedures for paying environmental protection deposit during import of scrap from abroad as raw materials for production in Vietnam

According to Clause 3, Article 46 of Decree 08/2022/ND-CP, procedures for paying environmental protection deposit during import of scrap from abroad as raw materials for production is as follows:

- The importer of scrap shall pay a deposit before the scrap is unloaded in case of import through seaway checkpoint or import to Vietnam’s territory in other cases;

- Immediately after receiving the deposit, the deposit receiving organization shall confirm the deposit payment by the importer of scrap in the written request for deposit payment. The confirmation of deposit payment shall at least contain: name of the escrow account; total deposit calculated as prescribed in this Decree; time limit for refund of the deposit after the goods are granted customs clearance; time limit for account freezing (if any);

- The deposit receiving organization shall send the importer of scrap 02 originals of confirmation of deposit payment on imported scrap. The importer of scrap shall send 01 original of the confirmation of deposit payment to the customs authority where the customs clearance procedures are followed.

In addition, according to Clause 4, Article 46 of Decree 08/2022/ND-CP, management and use of deposit on environmental protection during import of scrap from abroad as raw materials for production:

- The deposit receiving organization to which the importer of scrap pays the deposit on environmental protection during import of scrap from abroad as raw materials for production shall freeze the deposit as prescribed by law;

- The deposit receiving organization shall refund the deposit to the importer of scrap after receiving the written request of such importer enclosed with information about number of customs declaration associated with the imported scrap shipment which is granted customs clearance or information about cancellation of import customs declaration by the customs authority or completion of compliance with the decision on re-export or destruction as prescribed by regulations of law on waste management;

- 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.

- 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 depo

Nguyen Pham Nhut Tan

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