02/03/2021
The import and use of imported scrap if not strictly managed and controlled will lead to the risk of some organizations and businesses taking advantage of the import of scrap to bring waste into Việt Nam, adversely affecting human health and the environment. Therefore, the review and adjustment of the List of scrap permitted for import from overseas for use as production materials is necessary to strictly control imported scrap to meet environmental protection requirements, as well as strengthen the collection and recycling of scrap in the country, minimizing waste generated from production and business activities.
Over the past years, the demand for import of scrap as raw materials in the steel, paper, plastic, and cement industries... tends to increase. According to the General Department of Customs, the total volume of imported scrap in 2017 increased 2 times compared to 2016, only in the first 5 months of 2018, the volume of imported plastic scrap increased sharply, nearly 2 times as much as in 2017. The cause of the increase in the volume of imported scrap in recent years is due to the strong economic growth of Việt Nam, the development of industrial production, leading to the increasing demand for use of scrap as production materials. While the domestic supply is in short, businesses increasingly import for production. Therefore, there have been a number of businesses looking for ways to “dodge the law” to illegally import scrap that are ineligible to meet technical regulations on environmental protection for imported scrap into Việt Nam for use as production materials, leading to the risk of environmental pollution.
Therefore, in order to improve the effectiveness of the state management of environmental protection for imported scrap for use as production materials, the Ministry of Natural Resources and Environment (MONRE) has cooperated with line ministries, sectors and local authorities to focus on improving, supplementing, developing and submitting to the Government, the Prime Minister, or promulgated according to their authority legal documents on environmental protection in import of scrap in the direction of strictly stipulating environmental protection conditions for facilities using imported scrap as production materials; not licensing facilities importing scrap for only preliminary process, process of and reselling raw materials. MONRE also reviewed, amended, supplemented and promulgated new national technical regulations on environment for imported scrap for use as production materials to strictly manage the quality and types of imported scrap. In particular, MONRE has developed and submitted to the Prime Minister for promulgation of Decision No. 28/2020/QD-TTg dated 24 September 2020 on the List of scrap permitted for import from overseas for use as production materials (Decision No. 28/2020/QD-TTg).
Decision No. 28/2020/QD-TTg is developed on the basis of ensuring a number of objectives and principles to strictly implement the direction of the Prime Minister in Directive No. 27/CT-TTg on a number of urgent solutions strengthening the management of import and use of imported scrap as production materials as well as regulations on environmental protection, ensuring the consistency among relevant legal documents; proactively preventing, controlling types and quality of imported scrap and requirements in environmental protection; consistent with international practices and commitments in import and use of imported scrap as production materials as well as practical conditions of Việt Nam. The List of scrap permitted for import from overseas for use as production materials has met the requirements and criteria such as: Removing all types of scrap that are likely to pollute the environment in import of scrap (especially scrap recovered from domestic and agricultural waste...); no import of scrap with low recycling efficiency (Likely to pollute the environment, generate hazardous waste in the process of being used as production materials); limiting scrap that has little demand for import, or even not imported in recent years; limiting and proceeding to stop importing scrap that domestic raw materials can satisfy in the coming time.
Decision No. 28/2020/QD-TTg stipulates a number of types of scrap that are not permitted for import from overseas for use as production materials, including waste and scrap plastic from styrene polymers
In the Decision No. 73/2014/QD-TTg dated 19th December 2014 of the Prime Minister on the List of scrap permitted for import from overseas for use as production materials, there are 36 types of scrap permitted for import into Việt Nam. Decision No. 28/2020/QD-TTg is adjusted that includes only 23 types, which are permitted for import inherited from Decision No. 73/2014/QD-TTg. However, Decision No. 28/2020/QD-TTg has removed a number of types of scrap that were permitted for import for use as production materials such as: Gypsum (HS code: 2520.10.00); Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms (HS code: 3818.00.00); Waste and scrap of plastics of polystyrene (PS): Soft, not firm (HS code: 3915.20.10); Waste and scrap of plastics of polyvinyl chloride (PVC): Soft, not firm (HS code: 3915.30.10)... Adjustment of the List of scrap permitted for import is aimed at eliminating some types of scrap that do not have import demand, enhancing environmental protection for import of scrap, making use of domestic raw materials and promoting technology transformation of production and recycling facilities.
In addition, Decision No. 28/2020/QD-TTg also stipulates the roadmap for some types of scrap permitted for import from overseas for use as production materials until 31st December 2021, including: Recovered paper or paperboard (waste and scrap): Others, including also unsorted waste and scrap (HS code 4707.90.00); Granulated slag (slag sand) from the manufacture of iron or steel (blast furnace slag includes: granulated slag, slag sand from the manufacture of cast iron, iron, steel) (HS code 2618.00.00). The application of the roadmap will also give some businesses time to prepare and improve their capacity to invest in infrastructure, machinery and equipment to utilize domestic raw materials and minimize risks of polluting the environment in the process of importing and using these types of scrap.
Additionally, the Decision also has a transitional clause (Article 3), which clearly states the types of scrap permitted for import from overseas according to the Certificate of eligibility for environmental protection in import of scrap from overseas for use as production materials issued by the competent authority in accordance with the legal provisions to continue to import until the Certificate expires (including all types of imported scrap under Decision No. 73/2014/QD-TTg). This regulation aims to minimize the impact of the adjustment of the List of scrap permitted for import on the operations of facilities that use scrap as production materials and have been issued a Certificate of eligibility for environmental protection in import of scrap from overseas for use as production materials by the competent authority and currently importing scrap in accordance with Decision No. 73/2014/QD-TTg.
It can be said that the issuance of Decision No. 28/2020/QD-TTg has contributed to perfecting the legal corridor in environmental protection for imported scrap from overseas for use as production materials, minimizing the import of scrap that does not meet the requirements, regulations and standards on environmental protection into Việt Nam. This also contributes to promoting manufacturing businesses to transform, replace with advanced and environmentally friendly technologies, adjust raw material needs, increase the use of domestic scrap sources and promote the scrap recycling industry in the country.
Nguyễn Phạm Hà - Vice Director General
Vũ Tất Đạt
Department of Waste Management, Vietnam Environment Administration
