Specifying the import quota for scraps

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Enterprises deliberately import scraps into Vietnam. Photo: N.L

If the enterprise does not provide information, the Customs shall not carry out Customs procedures

According to the instruction by the General Department of Vietnam Customs to local Customs Departments, the Customs authority shall not carry out the registration of Customs declaration for imported scraps if the importer does not declare the certificate of imported scrap in the Customs declaration, or declare the certificate of eligibility for scrap imports that is invalid, has no longer import quota and does not attach documents of the Customs dossier via the e-Customs data processing system.

Before checking a Customs dossier submitted by the declarant, Customs officers who are in charge of managing and using the software will check and update information on scrap import declaration on the management software for the scrap imports.

Specifically, Customs dossier for imported scrap as prescribed in the Customs Law, Decree 38/2015/ND-CP, Circular 39/2018/TT-BTC, Circular 08/2018/TT-BTNMT, and Circular 09/2018/TT-BTNMT includes: Import declaration, invoice (01 copy); Bill of lading (01 copy); Certificate of deposit for scrap imports (01 notarized copy); Entrustment contract (in case of entrusted import) (01 copy); Notification on results of State inspection on quality of imported scraps (01 original) (submitting after being issued by the Department of Natural Resources and Environment where the factory or production establishment using scraps is located).

Customs officers shall inspect and compare information in the customs declaration and Customs dossier documents which were sent by the enterprise via the e-Customs data processing system, and check the validity of paper documents submitted by declarants including: Certificate of deposit for imported scraps, the notification on result of State inspection on quality of imported scraps issued by the Department of Natural Resources and Environment where the factory or production establishment using scraps is located.

The key contents shall be checked by Customs officers as follows:

Checking information on the certificate of eligibility for scrap imports, basing on the certificate number on the Customs declaration, the Customs officers will check and compare it on the Portals of Ministry of Natural Resources and Environment and National Single Window. If this information is updated on these portals, the Customs officers will continue to carry out procedures, otherwise the Customs officer will identify to have a basis to implement the next procedures and at the same time report to the General Department of Vietnam Customs to consider and update information on the management software for imported scraps.

Checking and comparing the name of organizations and individuals directly using scraps as production materials; the name of organizations and individuals who are entrusted for the scrap imports; the name and address of establishments using scraps for production; the address of warehouse and yard for scrap storage; the name of scraps; HS code; the import quota; the valid certificate of eligibility for scrap imports.

If the enterprise is entrusted for the scrap imports, the Customs officer will check the copy entrustment contract being signed with organizations and individuals using imported scraps as production materials which are issued the certificate of eligibility for scrap imports.

Not carry out Customs procedures for enterprises that are entrusted for scrap imports and were granted certificate of eligibility for scrap imports before 17th September 2018

The General Department of Vietnam Customs has requested local units not to carry out Customs procedures for organizations and individuals that are entrusted for scrap imports and were granted certificate of eligibility for scrap imports before 17th September 2018.

To check Certificate of deposit for scrap imports as stipulated in Article 58 and Article 59 of the Government's Decree No.38/2015/ND-CP dated 24th April 2015 on the management of waste and scrap.

Specifically, the certificate of deposit for scrap imports is issued by the Vietnam Environment Protection Fund or the commercial bank which organizations and individuals deposited for scrap imports and it must be a notarized copy.

The time limit for deposit must be at least 15 working days before carrying out Customs clearance for imported scraps.

The deposited amount is stipulated that the volume of imported scrap iron and steel less than 500 tons shall be 10% of total value of the imported scrap consignment.

The volume of imported scrap iron and steel from 500 tons to less than 1,000 tons shall be deposited 15% of total value of the imported scrap consignment.

The volume of imported scrap iron and steel from 1,000 tons or more shall be deposited 20% of total value of the imported scrap consignment.

The volume of imported scrap plastic and paper less than 100 tons shall be deposited 15% of total value of the imported scrap consignment.

The volume of imported scrap plastic and paper from 100 tons to less than 500 tons shall be deposited 18% of total value of the imported scrap consignment.

The volume of imported scrap plastic and paper from 500 tons or more shall be deposited 20% of total value of the imported scrap consignment

For other scraps, the deposited amount is 10% of total value of the imported scrap consignment.

In addition, the Customs authority shall also check and compare the data (quantity, HS code) of imported scraps by the enterprise in the Customs dossier (declaration and relevant documents) with information in the Certificate of eligibility for scrap imports, Certificate of deposit, the Notification on the results of State inspection on quality of imported scraps; and check Notification on the results of State inspection on quality of imported scraps.

National technical regulations on environment for imported scraps VCN - The Ministry of Natural Resources and Environment has issued Circular 08/2018 / TT-BTNMT and Circular ...

For the handling of dossier inspection results, the General Department of Vietnam Customs said that the invalid certificate of eligibility for scrap imports as prescribed by the Ministry of Natural Resources and Environment (2 years from the issued date for the certificate issued before 1st October 2018 as stipulated in Circular 41/2015 /TT-BTNMT and 3 years from the issued date for the certificate issued from 1st October 2018 as stipulated in Circular 03/2018/ TT-BTNMT), is not accepted.

If the enterprise has not got a certificate of eligibility for scrap imports or has got a certificate of eligibility for scrap imports which is invalid and no longer has import quota, the Customs shall not carry out Customs procedures for the scrap import declaration for the enterprise, the enterprise must re-export and handle these scraps as per provisions of the law. The re-export shall be implemented at the entry border gate.

If the volume of goods declared in the Customs declaration exceeds the import quota, the declarant must supplement and amend its declaration as per regulations; and the Customs only shall carry out Customs procedures for goods still in the import quota. The volume of goods out of the import quota must be re-exported and handled in accordance with provisions of the law. The re-export shall be implemented at the entry border gate.

If the deposit amount is insufficient as stipulated in Decree 38/2015/ND-CP, the Customs shall request the enterprise to pay the additional deposit amount in accordance with regulations.

If the certificate of deposit is issued less than 15 working days as prescribed in Decree No. 38/2015/ND-CP, the Customs clearance shall not be carried out.

The instruction by the General Department of Vietnam Customs is related to the inspection and supervision of the volume of imported scraps to prevent the situation that the enterprise violates in importing scrap exceeding the import quota, and importing scrap exceeds the designed production capacity which have been detected by the Customs over the past time.