Official Dispatch No. 4202/TCHQ-PC dated July 17, 2018 of the General Department of Customs on management of import of scrap into Vietnam

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Official Dispatch No. 4202/TCHQ-PC dated July 17, 2018 of the General Department of Customs on management of import of scrap into Vietnam
Issuing body: General Department of CustomsEffective date:
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Official number:4202/TCHQ-PCSigner:Nguyen Van Can
Type:Official DispatchExpiry date:
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Issuing date:17/07/2018Effect status:
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THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF VIETNAM CUSTOMS

Official Dispatch No. 4202/TCHQ-PC dated July 17, 2018 of the General Department of Customs on management of import of scrap into Vietnam

To: Customs Departments of provinces and cities

Recently, trading and import of scrap in our country have been on a sharp increase, changed complicatedly and caused annoyance to the public. Through monitoring, inspection, supervision and investigation of goods, it has been found that importing enterprises carry out certain fraudulent acts and schemes upon import of scrap such as falsifying, erasing or altering documents and certificates of conformity to environmental protection regulations for import of scrap for production purposes (hereinafter referred to as “certificates of conformity”) in order to legalize the documents required for import of scrap, providing names and HS codes of goods inconsistent with those of scrap in the list issued together with Decision No.73/2014/QD-TTg dated December 19, 2014 of the Prime Minister and collecting, at their discretion, samples used for testing to obtain the testing results proving that the imported goods are not scrap in pursuit of evading scrap management policies or importing waste shipments into Vietnam but refusing to receive such shipments and leave them backlogged in the seaports for gain from overseas entities (by turning Vietnam into a waste dump). As for that reason, for the purpose of preventing the above-mentioned acts, not letting Vietnam become the landfill of the world, saving costs of disposal of scrap and waste imports and implementing the regulation on customs inspection as prescribed in Article 31, 32, 33 and 34 of the 2014 Customs Law, sanctions prescribed in Decree No.45/2016/ND-CP on amendments to Decree No.127/2013/ND-CP which prescribes penalties for administrative violations and enforcement of administrative decisions on customs and the law on environmental protection, and following the guidelines of the Prime Minister given in Official Dispatch No.5290/VPCP-KTTH dated June 05, 2018 regarding strict management of scrap imported into Vietnam, the General Department of Vietnam Customs instructs Customs Departments of provinces and cities to carry out the following tasks:  

I. Legislative bases for management of waste and scrap imports into Vietnam

1. A kind of materials discharged in production, business, service, daily human and other activities is considered waste as prescribed in clause 12 Article 3 of the Law on Environmental Protection dated June 23, 2014.

Apart from scrap mentioned in clause 2 in this Section, waste shall be prohibited from being imported and transit in any form as prescribed in clause 9 in Article 7 of the Law on Environmental Protection.

2. Materials that are available after collection, sorting and selection of materials or products discarded during production or consumption activities for use as materials for another manufacturing process are considered scrap as prescribed in clause 16 Article 3 of the Law on Environmental Protection.

Scrap materials subject to customs clearance procedures for import must conform to the following requirements:

-  They must be in the list of scrap permitted for import issued by the Prime Minister (as prescribed in clause 1 in Article 76 of the Law on Environmental Protection). This requirement is now subject to the Prime Minister’s Decision No.73/2014/QD-TTg dated December 19, 2014 prescribing the list of scrap permitted for import as materials for production purpose;

- The national technical regulations on environment for these scrap materials (as prescribed in clause 1 in Article 76 and clause 2 in Article 141 of the Law on Environmental Protection) must be made available. This requirement is now subject to the Circular No.43/2010/TT-BTNMT dated December 29, 2010 of the Ministry of Natural Resources and Environment on national technical regulations on environment;

- They must be imported within the import quota by enterprises holding the certificate of conformity (as prescribed in clause 2 Article 76 of the Law on Environmental Protection)

II. Actions taken by customs authorities upon implementation of entry procedures applied to means of transport carrying scrap and used goods characterized as scrap 

The customs sub-department receiving and carrying out customs handling of vessel documents on entry shall analyze the information about goods on the e-manifest system as per clause 1 Article 67 of the Government’s Decree No.08/2015/ND-CP dated January 21, 2015 prescribing details and methods for enforcement of the Customs Law regarding customs procedure, inspection, supervision and control which is amended or supplemented in clause 38 Article 1 of the Government’s Decree No.59/2018/ND-CP dated April 20, 2018 with special attention paid to strict inspection of the followings:

1. On completing the declaration on the e-manifest system, all detailed information on the importing enterprise, including its name, tax code, address, number of certificate of conformity, etc and information on goods such as type of scrap, HS code containing at least 4 digits must be provided For instance, declaring “plastic scrap” or “paper scrap” instead of "scrap" having general meaning; avoid using the following terms having general meanings such as general cargo, freight of all kinds, FAK, said to contain, STC, etc

In case of failure to do so, such declaration shall be rejected and the requesting customs declarant shall be informed of reasons for such rejection and requested to submit an additional declaration through the national single-window portal.

2. Information declared on the e-manifest system must be reviewed and analyzed within 4 working hours of receipt of information declared on the e-manifest system, and then processed as follows:

a) If having grounds for determining that goods aboard the vessel are scrap as prescribed in clause 12 Article 3 of the Law on Environmental Protection, the customs sub-department shall immediately notify the shipping line and port operator that they are not allowed to discharge those goods at the port and request the shipping line to take those goods out of the Vietnamese territory, and then any take legally prescribed action against violations;
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