Directive 27/CT-TTg on management of scrap import, use of imported scrap

THE PRIME MINISTER

Directive No.27/CT-TTg dated September 17, 2018 of the Prime Minister on a number of urgent solutions for enhancement of management of scrap import and use of imported scrap for production purpose

For the past few years, in addition to waste recycling and use of scrap generated from domestic activities, the State has granted approval for scrap import under particular regulations in the Law on Environmental Protection and Decree No.38/2015/ND-CP dated April 24, 2015 of the Government on management of waste and scrap in order to satisfy the demand for materials in production.

However, scrap import and use of imported scrap, if not strictly managed and controlled, may be used as a means to transport waste into Vietnam which causes environmental pollution. Facing the fact that some countries which are major scrap importing market in the world have limited or prohibited import of certain scrap which lead to movement of a large number of scrap into Asian counties, including Vietnam, and control of import, transshipment and transit of scrap are not strict enough causing unidentified scrap shipment backlogged in our seaports, especially Hai Phong port and Tan Can port in Ho Chi Minh City, Moreover, export of scrap, production and recycling technology line, if not strictly controlled, may turn Vietnam into a dump for waste and outdated production recycling technology of the world which leads to environmental pollution.

For the purpose of enhancing management of scrap import and use of imported scrap for production purpose and efficiently taking safeguard measures, strictly controlling scrap import and minimizing risk of environmental pollution, below are directives from the Prime Minister:

1. The Ministry of Natural Resources and Environment shall:

a) be responsible to the Government and Prime Minister for state management in environmental protection for scrap import and use of scrap imported for production purpose;

b) not grant a new certificate of conformity to environmental protection regulations for scrap import for production purpose (hereinafter referred to as "the certificate of conformity") or not extend such certificate for the importer of scrap under an authorization contract and only consider whether to grant the certificate of conformity to the importer of scrap for production purpose after the demand and capacity for scrap use of such importer is proved;

c) continue to review and amend legislative documents on environmental protection applied to scrap import with the aim of imposing strict regulations on environmental pollution on users of imported scrap for production purpose and submit such documents to the Government and Prime Minister or issue the aforesaid documents as authorized, not grant permit for import of scrap for the purpose of processing and re-sale to production facilities and make registration of import deposit for scrap before such scrap is imported into territorial seas and territory of Vietnam. review international practice on environmental protection to which Vietnam is a signatory and regulations on management of scrap import in Vietnam to ensure such regulations are not against the international practice;

d) review, amend and issue national technical registrations on environment in quarter III of 2018 which are applied to import of scrap for production purpose in order to strictly manage quality of imported scrap and facilitate assessment of imported scrap;

dd) take charge and cooperate with relevant agencies in assessing the demand for use of imported scrap for production purpose, capacity for domestic material supply and demand for scrap import into Vietnam for production purpose. Accordingly, send a report to the Prime Minister for consideration and revision of the list of scrap permitted for import with the aim of not approving import of scrap that may cause environmental pollution and available scrap and submit the adjusted list of scrap permitted for import to the Prime Minister in quarter IV of 2018;

e) take charge and cooperate with local authorities in regularly and timely updating and publishing the list of organizations and individuals issued with a certificate of conformity, participants in certification of conformity with technical regulations on environment applied to scrap import for production purpose and notification of imported scrap shipment posted on the portal of the Ministry of Natural Resources and Environment and national single-window system;

g) take charge and cooperate with relevant ministries and local government authorities in carrying out comprehensive inspection and assessment of issuance of the certificate of conformity; compliance with the law on environmental protection in scrap import and use of imported scrap for production purpose performed by organizations holding a certificate of conformity; compliance with the law on environmental protection, technical standards and regulations performed by participants in certification of conformity with technical regulations and standards for environment applied to scrap imported for production purpose and take legally accepted actions against violations (if any);

h) strengthen cooperation among local and central authorities in prevention, detection and handling of violations relating to scrap import and use of imported scrap committed by agencies, organizations or individuals;

i) take charge and cooperate with the Ministry of Finance and relevant ministries in studying and proposing methods for settling scrap shipment backlogged in seaports as per provisions of the law on environmental protection and the customs law.

2. The Ministry of Finance shall:

a) instruct customs authorities to arrange customs officials for clearance of scrap shipment imported by the importer with unexpired certificate of conformity and import quota;

b) take charge and cooperate with the Ministry of Resources and Environment, Ministry of Industry and Trade, Ministry of Transport, Ministry of Public Security, Ministry of National Defense, Ministry of Foreign Affairs and People s Committees of provinces and centrally-affiliated cities (hereinafter referred to as "provinces") in which provincial border checkpoints are imposed upon regulations on inter-sector cooperation in management of scrap import through such border checkpoints;

c) instruct General Department of Customs to adopt methods for early prevention of scrap shipment imported against Vietnam’s law provisions, instruct the shipping line or shipping agent to provide sufficient information on the goods owner in Vietnam in case of scrap import (including name of the importer, tax code, address, number of the certificate of conformity) when they declare information on the e-manifest system in such a way that the goods description must be clearly provided to indentify whether the scrap imported is on the list of scrap permitted for import for production purpose and instruct the customs authority to notify the shipping line or shipping agent, port operator and port management agency that they are not allowed to discharge the scrap shipment at the port if the goods owner cannot be found on the list of enterprises holding an unexpired certificate of conformity with import quota and not make an import deposit for scrap as per law provisions;

d) cooperate with the Ministry of Industry and Trade in reviewing and amending regulations on suspension of temporary import for re-export, transit and transshipment of scrap into the territory of Vietnam as per law provisions;

dd) compel re-export of shipment that took advantage of scrap import to carry waste into Vietnam and take legally accepted actions;

e) enhance information exchange with the Ministry of Natural Resources and Environment and relevant ministries on scrap import as regulated;

g) cooperate with the Ministry of Resources and Environment, Ministry of Transport, Ministry of Industry and Trade, Ministry of Public Security and People s Committee of provinces in which scrap shipment are left backlogged in provincial ports in working out methods for settling scrap shipment backlogged in seaports and send reports on settlement results to the Prime Minister before October 31, 2018. To be specific:

- The customs authority at the checkpoint in which scrap is left backlogged shall send a written notification to request the importer to receive the shipment according to the declaration on e-manifest system;

- Local Customs Departments shall instruct the customs sub-department in which the scrap shipment is left backlogged to immediately review and re-establish the ownership of such scrap under the guidance provided in Decree No.29/2018/ND-CP dated March 05, 2018 of the Government on procedures for establishment of people’s ownership rights for properties and settlement of properties with established people s ownership right, take charge of scrap classification by its type, quantity, quality, components and characteristics and send a consolidated report to the General Department of Customs which is then submitted to the Ministry of Finance and Ministry of Natural Resources and Environment for settlement as per law provisions.

3. The Ministry of Industry and Trade shall:

a) take charge and cooperate with relevant agencies in reviewing and assessing the actual demand for use of scrap and materials for production of paper, plastic, iron, steel, cement and non-ferrous metal in Vietnam as the basis for determining volume of additional scrap imported as production materials which is on the list of scrap permitted for import;

b) review international practice to which Vietnam is a signatory in order to work out methods for management of scrap imported into Vietnam in conformity with such international practice and timely publish documents on management enhancement and limit on scrap import into Vietnam in accordance with regulations provided by the World Trade Organization (WTO);

c) take charge and cooperate with relevant ministries and agencies in reviewing and applying or proposing adoption of the method for suspension of temporary import for re-export, transit and transshipment of scrap into the territory of Vietnam according to the reality;

d) take charge and cooperate with relevant ministries and agencies in studying to adopt safeguard measures in conformity with WTO’s regulations on scrap import;

dd) instruct the market surveillance authority to promote inspection of sale and use of imported scrap as authorized;

e) notify scrap importers through mass media that they are not allowed to import scrap into Vietnam through checkpoints by roads or railroads from October 01, 2018;

g) study, review and amend current regulations with the aim of making a list of scrap prohibited from being temporarily imported for re-exported, transited and transshipped and take over and cooperate and urge ministries in charge of professional management to promulgate and publish the list of goods prohibited for import as per regulations in Article 5 of Decree No.69/2018/ND-CP dated May 15, 2018 of the Government on elaboration of a number of articles of the Law on Foreign Trade Management;

h) take charge of revisions of Circular No.12/2018/TT-BCT and Decree No.69/2018/ND-CP with the aim of including additional used goods to the list of goods prohibited for import in order to prevent false declaration of goods name, purpose, HS code in pursuit of importing goods not subject to the scrap import policy but such goods may be used as scrap afterwards.

4. The Ministry of Transport shall:

a) take charge and cooperate with the Ministry of Resources and Environment, Ministry of Industry and Trade, Ministry of Finance and relevant facilities in finding causes and working out methods for taking action against transport or discharge of scrap shipment imported without any certificate of conformity or without any receiving address which is unloaded at the Vietnam s seaport and send a report to the Prime Minister in quarter IV of 2018;

b) instruct relevant agencies to notify the port operator, ship owner or shipping agent that they are only allowed to transport shipments with an unexpired certificate of eligibility for import to Vietnam for the purpose of preventing illegal scrap transport from outer boundary; the ship owner and shipping agent must take responsibility for the scrap shipment in transport owned by importer without any certificate of eligibility for import; the port operator shall not permit discharge of goods at the Vietnam s seaports if the ship owner and goods owner fail to present an unexpired certificate of conformity with import quota and fail to make an import deposit for scrap as regulated as well as take responsibility for permission for discharge of the aforesaid scrap shipment.

c) cooperate with the Ministry of Finance, Ministry of Resources and Environment, Ministry of Public Security, Ministry of National Defense and People s Committees of provinces in which scrap are left backlogged at provincial checkpoints in order to settle containers of goods backlogged as per law provisions.

5. The Ministry of National Defense shall:

a) instruct the Vietnam Coast Guard force, Vietnam Border Defense force and maritime force to cooperate with competent authorities affiliated to relevant ministries and local authorities in preventing, fighting against, checking and controlling illegal scrap import into the territory of Vietnam;

b) instruct agencies in charge of seaport infrastructure management not to allow goods discharge at the port if the ship owner and goods owner fail to present the certificate of conformity.

6. The Ministry of Public Security shall:

provide guidelines for prosecuting, investigating and hearing a number of cases related to commercial fraud and illegal import of scrap into Vietnam and cooperate with the Interpol to work out measures to prevent and fight against the use of scrap import as a method to carry waste into Vietnam or scrap import that fails to satisfy environmental protection requirements of Vietnam.

7. The Ministry of Foreign Affairs shall:

notify countries exporting scrap to Vietnam that the scrap importer must hold a certificate of conformity issued by Vietnam s state management agencies as regulated.

8. The Ministry of Science and Technology shall:

a) take charge and cooperate with the Ministry of Industry and Trade and Ministry of Resources and Environment in reviewing the production technology using scrap as production materials to ensure such technology is environmentally-friendly and satisfies conditions in Vietnam;

b) work out technical methods to ensure used and outdated technology lines for scrap recycling are not imported into Vietnam.

9. Provincial People s Committees shall:

a) only grant or re-grant the certificate of eligibility for import to the importer using scrap as production materials if such importer can prove his/her demand and capacity for use of scrap for production purpose. post the certificate of conformity and notification of scrap shipment imported on the portal of the Ministry of Natural Resources and Environment and national single-window system as authorized;

b) cooperate with the Ministry of Natural Resources and Environment in checking the compliance with the law on environmental protection performed by facilities issued with a certificate of conformity and issuance of the certificate of conformity as well as scrap import and use of imported scrap for production purpose, and send a report to the Ministry of Natural Resources and Environment which is then consolidated and submitted to the Prime Minister in quarter IV of 2018;

c) enhance inspection of scrap recycling villages, determine on suspension and suppression of operations of recycling villages that cause environmental pollution, prevent the provision of imported scrap for production or recycling facilities without any certificate of conformity in trade villages and take legally accepted actions against violations committed by importers of scrap for production purpose as authorized;

d) cooperate with the Ministry of Finance, Ministry of Resources and Environment, Ministry of Transport and Ministry of Industry and Trade in settling scrap containers backlogged in seaports under provincial management;

10. Ministers, Directors of ministerial agencies and Governmental agencies, Chairpersons of provincial People s Committees shall take responsibility to send notifications of imported scrap backlogged at checkpoints and annual report on compliance with this directive to the Ministry of Natural Resources and Environment which is then consolidated and submitted to the Prime Minister./.

The Prime Minister

Nguyen Xuan Phuc