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Basic contents of Decision 73/2014/QD-TTg regulating the list of scrap allowed for import as manufacturing materials

08/07/2016

   Basis for promulgation of the decision

   The Law on Environmental Protection (LEP) 2014 takes effective from 1 January 2015 with Article 76 regulating environmental protection in importing of scraps. Accordingly, organizations and individuals importing scraps must meet the    requirements regulated in clause 2, Article 76 and the imported scraps must meet regulations of clause 1 Article 76 on the list of scraps allowed for import promulgated by the Prime Minister and must meet the national environmental technical regulations promulgated by the Ministry of Natural Resources and Environment (MONRE). Based on this, the Prime Minister approved Decision No. 1338/QD-TTg dated 11/8/2014 assigning agencies to be responsible for drafting guiding documents of the laws enacted by the National Assembly Tenure XIII at the 7th meeting. Of which, MONRE takes lead and collaborates with other ministries, sectors and localities to develop the draft Prime Minister’s Decision on the list of scraps allowed for import.

The LEP 2014 regulates in detail organizations and individuals importing scraps and responsibility for imported scrap bonding

   Regarding environmental protection and management of scrap trade and import, the LEP 2005 and guiding documents play positive roles in state management of environmental protection and ensuring the implementation of legal regulations on environmental protection of these activities. However, one of the arising difficulties is environmental protection regulation application on the buying and selling scraps to manufacturing enterprises and enterprises in the free tax zone compared to other enterprises.

   On the other hand, the industrialization and urbanization process of the country have increased the demand of manufacturing materials and promoted the manufacturing and recycling technologies; the import demand of scraps into Viet Nam has increased in recent years in terms of numbers and types. Accordingly, environmental risks from the import of scraps have also increased. The LEP 2014 is enacted with detailed regulations on the requirements of organizations and individuals in scrap import and responsibility of imported scrap bonding, which are reflected in the Decree on waste management and scrap prepared by MONRE. At the same time, the LEP 2014 also regulates the mandate of the Prime Minister in promulgating the list of scraps allowed for import and assigns MONRE to develop the national environmental technical regulations on imported scraps.

   As a result, the promulgation of Decision No. 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister regulating the List of scraps are allowed for import to be used as manufacturing materials is necessary meeting the economic development demand and environmental protection.

   Basic content of the decision

   Decision No. 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister regulating the List of scraps allowed for import as manufacturing materials consists of 5 Articles and 1 Annex:

- Article 1 regulates the List of scraps allowed for import as manufacturing materials.

- Article 2 regulates 36 scraps allowed for import to be used directly for domestic production and do not apply for temporary re-export activities, transshipment and transit of scraps in the territory of Viet Nam.

- Article 3 regulates the responsibilities of MONRE in leading and collaborating with other relevant ministries and sectors to develop and promulgate the national environmental technical regulations for 36 scraps allowed for import to be used as manufacturing materials.

- Article 4 regulates on the effectiveness of the Decision from 5 February 2015.

- Article 5 regulates on responsibilities of MORNE in guiding, supervising and monitoring the implementation of this Decision.

- The Annex of this Decision is the List of 36 craps allowed for import used as manufacturing materials and goods import code (HS) according to the regulations of the Ministry of Finance promulgating the Table of preferential export tax and import tax for the list of goods that are subject to taxation.

LIST OF SCRAPS ALLOWED FOR IMPORT AS MANUFACTURING MATERIALS

(According to Decision 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister)

No.

Scraps

HS code

1

Plaster

2520

10

00

2

Small particle slag (sand slag) from iron or steel metallurgy industry.

2618

00

00

3

Mixed chemical elements used in electronics in plate, thin layer or similar types.

3818

00

00

4

Scraps and pieces of plastics from polymer ethylene (PE): porous type, non-hard.

3915

10

10

5

Scraps and pieces of plastics from polymer ethylene (PE): Other type.

3915

10

90

6

Scraps and pieces of plastics from polymer styrene (PS): porous type, non-hard.

3915

20

10

7

Scraps and pieces of plastics from polymer styrene (PS): Other type.

3915

20

90

8

Scraps and pieces of plastics from polymer vinyl chloride (PVC): porous type, non-hard.

3915

30

10

9

Scraps and pieces of plastics from polymer vinyl chloride (PVC): Other type.

3915

30

90

10

Scraps and pieces of plastics from other types.

3915

90

00

11

Discarded paper or cardboard (scrap and pieces): kraft paper or kraft cardboard or undyed cardboard.

4707

10

00

12

Discarded paper or cardboard (scrap and pieces): other paper or cardboard made mostly from paper pulp collected from the chemical process that are white dye, undyed fully.

4707

20

00

13

Discarded paper or cardboard (scrap and pieces): other paper or cardboard made mostly from paper pulp collected from the mechanical process (e.g, paper for newspaper, magazine or similar publications).

4707

30

00

14

Discarded paper or cardboard (scrap and pieces): other type, including unclassified scraps and pieces.

4707

90

00

15

Silk scrap (including cocoon unsuitable for silk reeling, scrap fiber and recycled fiber).

5003

00

00

16

Glass piece and glass scrap and other pieces; glass in block.

7001

00

00

17

Scrap and pieces of cast iron.

7204

10

00

18

Scrap and pieces of alloy steel: stainless steel.

7204

21

00

19

Scrap and pieces of alloy steel: other type (different from stainless steel).

7204

29

00

20

Scrap and pieces of iron or tin coated steel.

7204

30

00

21

Scrap and pieces of iron or steel: hobbed, planed, chop, scale and bavia iron shavings, not press into blocks or in package, bar, cluster.

7204

41

00

22

Scraps and other pieces of iron or steel: other type.

7204

49

00

23

Re-melt foundry pig (iron, steel, cast iron) scrap.

7204

50

00

24

Copper scrap and pieces

7404

00

00

25

Nickel scrap and pieces.

7503

00

00

26

Aluminum scrap and pieces.

7602

00

00

27

Zinc scrap and pieces.

7902

00

00

28

Tin scrap and pieces.

8002

00

00

29

Wolfram scrap and pieces.

8101

97

00

30

Molybdenum scrap and pieces.

8102

97

00

31

Magnesium scrap and pieces.

8104

20

00

32

Titanium scrap and pieces.

8108

30

00

33

Zirconium scrap and pieces.

8109

30

00

34

Antimony scrap and pieces.

8110

20

00

35

Manganese scrap and pieces.

8111

00

00

36

Chromium scrap and pieces.

8112

22

00

Note: HS code and scrap names in this list are used according to Circular No. 164/2013/TT-BTC dated 15/11/2013 by the Ministry of Finance promulgating the Table of preferential import and export tax for goods that are subject to taxation.

   Conclusion

   To ensure the limitation of environmental risks in scrap import activities, MONRE requests the Prime Minister to assign MONRE in collaboration with the Ministry of Industry and Trade, Ministry of Finance to regularly review, study and report to the Prime Minister for other scraps that have economic values in recycling, reusing and cause less negative impacts on the environment.

   Together with the promulgation of this Decision, the system of regulations on environmental protection in scrap import has established and there has been a significant difference compared the regulations of the LEP 2005, in order to enhance the effectiveness and efficiency of environmental protection and management in scrap import and create favorable conditions for manufacturing demands of enterprises. In addition, the regulation relating to environmental protection in scrap import according to the LEP 2014 is appropriate with international regulations and conventions that Viet Nam is a party to, particularly the regulation effectively supports the implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal.

Nguyen Duc Hung, Deputy Director

Pollution Control Department

Vietnam Environment Administration

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