There will be no more entrusted import of scrap

Import scrap of low quality is arrested by the Ho Chi Minh City Customs Department. Photo: T.H

Nearly half granted to the entrusted importers of scrap

According to the Vietnam Maritime Administration, by the end of May 2018 – the peak time of inventory scrap at the ports – the Ministry of Natural Resources and Environment issued 242 certificates of eligibility for environmental protection to imported scrap enterprises. In which, there are 139 certificates of eligibility for environmental protection granted to direct importing companies, the rest granted to entrusted enterprises.

At that time, the situation of imported scrap at the ports was too large, affecting the business activities of Cat Lai port and Cai Mep port under the Sai Gon Newport system. Mr. Ngo Minh Tuan, General Director of Saigon Newport Corporation, proposed that the Ministry of Natural Resources and Environment only grant Certificates of eligibility for environmental protection to enterprises which have their own factories, not granting to commercial companies, not applying the form of entrusted import to avoid risks.

Mr. Nhu Dinh Thien, Secretary of the Board of Vietnam Ship Agents and Brokers Association, said that scrap is a special hazardous item, the certificate should only be granted to functional units, processing plants, to avoid granting as much as done currently, because it is unavoidable that businesses take advantage for commercial trading.

In fact, during the inventory review, Customs authorities have discovered many cases where enterprises import scrap materials, but do not directly produce, they only make profit from commercial sales. Some cases of imported scraps have fake paperwork.

So far, four enterprises importing scraps with serious violations have been prosecuted by the Police and Customs agencies and have been extending the investigation. Along with that, hundreds of enterprises importing scrap materials with suspected violations are also being verified by the Customs agency.

Not granting entrusted import of scrap

The Prime Minister has just signed Directive No. 27/CT-TTg on some urgent measures to strengthen the management of import and use of imported scrap as raw materials for production.

One of the major concerns is that the Prime Minister required the Ministry of Natural Resources and Environment not to grant new certificates or refuse certificates to entrusted importers.

Only consider to regrant or grant new certificates of eligibility for environmental protection in the import of scrap materials as raw materials for production to units that import scrap materials for direct production as they prove their demand and ability to use scrap.

According to the experts, the Prime Minister's instruction will minimize the use of scrap imports as raw materials for commercial business just for making profit, as well as importing scrap with low quality into Vietnam.

The representative of Saigon NewPort Corporation said that the implementation of the Prime Minister's Directive on some urgent measures to strengthen the management of imports and use of imported scrap as raw materials will overcome the inadequacies in importing scrap. At the same time, creating favorable conditions for manufacturing enterprises, port companies, avoiding inventory in the past...

Deputy Head of Saigon Port area 1 Customs Branch Pham Thi Leo said, the implementation of the Prime Minister's Directive will limit the unknown scrap arriving the port. At present, the unit is cooperating with Saigon NewPort Corporation and other related units to completely handle unsold goods at the port, including more than 3,000 scrap containers.