Illustration photo. Photo: N.Linh

Accordingly, the environmental protection deposit aims to ensure that individuals and organizations importing scrap must take responsibility in handling environmental risks arising from imported scrap.

Organizations and individuals importing scrap shall make deposits at the Vietnam Environment Protection Fund, or local Environment Protection Fund or credit institutions where transaction accounts were opened (organization receiving deposit). The deposit will be carried out for each shipment or each transaction with information and value on the imported scrap.

The deposit must be submitted and refunded in Vietnamese Dong and enjoys the interest rate in agreement in accordance with the law.

Organizations and individuals importing steel scrap must make environmental protection deposits in the import of raw materials from abroad for manufacturing with a fixed amount as follows: Import volume less than 500 tons must make a deposit of 10% of the total value of imported raw materials; import volume from 500 tons to less than 1,000 tons must pay a deposit of 15% of the total value of exported goods; import volume of 1,000 tons or more must make a deposit of 20% of the total shipment value.

Organizations and individuals importing papers and plastic scrap must make an environmental protection deposit with the specified amount as follows: Import volume less than 100 tons must make a deposit of 15% of the total value of the imported shipment; import volume from 100 tons to less than 500 tons must make a deposit of 18% of the total value of export shipments; import volume of 500 tons or more must make a deposit of 20% of the total shipment value.

Organizations and individuals importing scrap that is not specified above shall make an environmental protection deposit with an amount defined as 10% of the total value of the shipment.

Managing environmental protection deposit

The Decree also manages regulations and uses of environmental protection deposits for imported scrap. Specifically, the organization receiving the deposit is responsible for blocking the deposit in accordance with legal regulations.

The deposit-receiving organization is responsible for returning the deposit to the importing organization or individual after receiving a request from the importing organization or individual, together with information on the customs declaration number of the imported shipment that already cleared or information about the cancellation of the import customs declaration of the customs authority, or accepted to complete the decision on re-export or destruction in accordance with the provisions of the law on scrap management.

The treatment and destruction of imported scrap in violation must comply with regulations on waste management. Violating organizations and individuals are responsible for reaching an agreement with competent units to treat and destroy infringing waste and scrap; the unit handling and destroying imported scrap in violation must be recorded in the sanctioning decision of the person competent to sanction administrative violations as prescribed by law.

In case it is not possible to identify the violating organization or individual importing scrap, the handling and destruction of the scrap shall be carried out by the State in accordance with the law.

In case the deposit is left over after payment for handling the infringing shipment of imported scrap, within 5 days from the date of receiving the opinion on the completion of the treatment and destruction process for scraps of the sanctioned competent authority in accordance with the provisions of the law on sanctioning of administrative violations in the field of environmental protection, the organization receiving the deposit is responsible for returning the remaining deposit to the organizations and individuals importing scrap.