Importing scrap and related legal issues

Importing scrap is a business activity that brings many economic benefits but at the same time also has potential legal risks. Understanding the legal regulations on scrap import is a prerequisite to ensure smooth business operations and avoid legal violations. This article will provide customers with an overview of the conditions, categories, and procedures for importing scrap.

Conditions for importing scrap as raw production materials

According to the provisions of Article 71 of the Law on Environmental Protection 2020, imported scrap must meet the following conditions:

• Meets environmental technical regulations.
• Belongs to the List of scrap permitted for import.
• Imported scrap is only used as production materials for the importing facility itself.

In addition, organizations and individuals importing scrap must meet the following conditions:

• Have production facilities with recycling and reuse technology and equipment, warehouses and yards dedicated to gathering scrap to meet environmental protection requirements; Have a plan to handle impurities suitable for imported scrap;
• Have an environmental permit;
• Environmental protection deposit before the time the scrap is unloaded at the port in case of import through sea border gates or before the time of import into Vietnam in other cases;
• There is a written commitment to re-export or process scrap in case the imported scrap does not meet environmental protection requirements.

For more details on scrap import conditions, you can refer to the regulations in Article 45 of Decree 08/2022/ND-CP.

List of scrap allowed to be imported as production materials

The list of scrap allowed to be imported as production materials is specified in Decision 13/2023/QD-TTg, including 5 main groups:

• Group 1: Scrap iron, steel, cast iron.
• Group 2: Plastic scraps and scraps.
• Group 3: Paper scraps.
• Group 4: Scrap glass.
• Group 5: Non-ferrous metal scrap.

Customers should note that this list may be adjusted over time, so information needs to be updated regularly to ensure scrap import activities always comply with regulations.

Procedures for importing foreign scrap as production materials

Pursuant to Clause 8, Article 45 of Decree 08/2022/ND-CP, procedures for importing scrap include steps to prepare documents and carry out customs procedures.

Prepare documents

Customs documents include:

• Commercial invoice: 01 photocopy.
• Bill of lading (for shipping by sea): 01 photocopy.
• Scrap import deposit confirmation: 01 certified copy.
• Entrustment contract (in case of entrusted import): 01 copy.
• Results of inspection and analysis of imported scrap quality by the Inspection Organization designated by the Ministry of Natural Resources and Environment: 01 original copy (submitted after the Inspection Organization issues it for customs clearance).

In case the results of inspection and analysis of imported scrap quality are issued on the National Single Window Information Portal, the customs declarant does not have to submit this document.

In addition, scrap import documents must also contain the following documents:

• Quality certificate of the exporting country (if any); Certificate of origin (if any); photo or description of the scrap.
• Document confirming deposit has been made to secure imported scrap (scanned copy from the original with authenticated electronic signature of the importing organization or individual).
• Quality inspection certificate of imported scrap shipment.
• Written commitment to re-export or process scrap in case imported scrap does not meet environmental protection requirements.

Implementation steps

Based on the provisions in Section II of Official Dispatch 2188/TCHQ-GSQL of 2019, the order and customs procedures for imported goods as scrap for use as raw materials for production include the following steps:

Step 1: Customs declaration and document preparation

The customs declarant needs to conduct customs declaration and prepare the necessary documents.

Step 2: Register customs declaration

The customs authority will refuse to register the declaration if the enterprise does not declare information on the scrap import confirmation, or the license has expired, the quota has expired, or does not attach documents according to regulations.

Step 3: Check customs records

Customs authorities will check the following information:

• Information about scrap import certification.
• Certificate of deposit to secure imported scrap.
• Check, compare and compare data (quantity, HS code) of scrap import on customs records with information on scrap import confirmation and deposit confirmation. Information on scrap import confirmation and deposit confirmation.
• Results of inspection and analysis of imported scrap quality.
• Check the bill of lading.
• Processing results of document inspection.

Step 4: Check the actual goods.

Step 5: Customs supervision during the transportation of scrap to the centralized inspection location.

>>> See more: Procedures for applying for licenses to export and import goods.

Consulting services on issues related to scrap import

Importing scrap is a business field with many complex legal regulations. To ensure business operations run smoothly, customers should use professional consulting services.

Long Phan provides comprehensive consulting services on scrap import, including:

• Consulting on conditions and procedures for importing scrap.
• Consulting on the List of scrap allowed to be imported.
• Drafting documents and contracts for scrap import.
• Consulting and guidance on documents and procedures for applying for a scrap import license
• Consulting on regulations on environmental protection in scrap import.
• Instructions on customs procedures for importing scrap.
• Representing customers in working with authorities.
• Resolve disputes related to scrap import.
• Consulting and answering other related issues.

Importing scrap is a potential business activity but requires customers to master the relevant legal regulations. Hopefully this article has provided customers with useful information about conditions, categories, procedures and legal issues related to scrap import. For detailed advice and professional support, please contact Long Phan via the hotline 0906735386.