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Smuggled scrap was seized by HCM city Customs Department . Photo: T.H

NP Trading Production Co., Ltd. has just been fined by HCMC People's Committee nearly VND2 billion for importing scrap not subject to the list of scrap eligible for import from abroad as raw materials for production under Decision No. 73/2014/QD-TTg dated December 19, 2014 of the Prime Minister.

According to the Processing Customs Branch under HCM City Customs Department, the company registered an import declaration of a shipment of more than 25 tons of unvulcanized synthetic rubber, originating in Japan, and worth more than VND230 million in 2020.

Through a physical inspection, the branch did not identify the name and composition of the goods, so requested verification for the shipment. The results showed that a part of the shipment is unvulcanized synthetic rubber, which is removed from the production process and has not been used.

A part of the shipment is vulcanized rubber scrap from synthetic rubber in tube form, which is removed from the production process and has not been used.

Pursuant to the guidance of the General Department of Customs in Official Dispatch No.1744/TCHQ-PC dated March 19, 2020, and pursuant to the Prime Minister's Decision No.73/2014/QD-TTg dated December 19, 2014, HCM City Customs Department identifies that the company imported scrap not subject to the list of scrap eligible for import from abroad as raw production materials.

During carrying out customs procedures, the NP TradingProduction Co., Ltd did not submit a certificate of eligibility to import scrap as raw materials for production as specified in Article 58 of Decree No. 09/ VBHN - BTNMT dated October 25, 2019 of the Ministry of Natural Resources and Environment.

After making a record of administrative violation, HCM City Customs Department has transferred the case file to the People's Committee of HCM City for consideration and fines according to its competence. In addition to imposing the fines, the People's Committee of HCM City has enforced NP TradingProduction Co., Ltd to re-export the infringing shipment.

Previously, NP TradingProduction Co., Ltdmade a record of customs administrative violationsby the Processing Customs Branch at the end of 2020 for importing 2.7 tons of infringing scrap, and was imposed fines worth VND1.9 billion and enforced to re-export all the shipment by the People's Committee of Ho Chi Minh City.

According to the Processing Customs Branch, NP TradingProduction Co., Ltd is imposed heavy fines for importing scrap not subject to the list of scrap eligible for import. The company has only paid VND500,000 million of VND1.9 billion of the first violation; it has not paid the rest due to financial difficulties.

Recently, HCM City Customs Department has handled violations of scrap import.

In particular, some companies have seriously violated importing goods not subject to the list of scrap eligible for import, so they have handed fines at the highest level. For example, R. Solar Energy Co., Ltd. declared to import a shipment of 100% new raw materials for the production of solar panels, but during physical inspection and based on the inspection results, the Customs discovered that the actual imported goods were scrap from photovoltaic cells in the form of debris and not eligible for plastic scrap. The company was handed fines worth VND1.9 billion in early 2021 and revoked the certificate of eligibility for environmental protection in importing scrap as raw production materials from 9 months to 12 months by the President of the People's Committee of Ho Chi Minh City.