Compulsory mortgage regulated to import scrap

^- ⁺ A^- A⁺ 06/05/2015

The Government’s recent resolution No.38/2015/ND-CP has regulated that organizations and individuals directly importing scrap for production materials shall open an escrow account to ensure their responsibilities in resolving environmental dangers posed by imported scrap

If the imported iron and steel scrap is below 500 tons, the mortgage shall be 10% of the total value of the imported package while 15% and 20% shall be applied for imports from 500 to 1,000 tons and over 1,000 tons respectively.

Organizations and individuals who import paper and plastic scrap packages, which are below 100 tons shall mortgage 15% of the packages’ value. The rates will be 18% and 20% if the packages are from 100 to 500 tons and over 500 tons respectively.

Those who import other types of scrap shall mortgage 10% of the total value of their imported scrap packages.

Escrow accounts are regulated to be opened at the Viet Nam Environmental Protection Fund or commercial banks where organizations and individuals open their accounts. The mortgage is in Viet Nam dong and benefits non-term interest rates from the deposit date.

The procedure shall be completed at least 15 working days before those for clearance of imported scrap are conducted.

Additionally, the importers shall meet requirements on warehouse and grounds for the imported scrap, regulated technology and equipment in recycling and reusing the scrap, as well as environmentally required technology and equipment to remove impurities from the scrap.

If the importers have no technology and equipment to remove the scrap impurities, they have to report relevant agencies and commit in writing about implementing re-export or removing impurities.

For organizations and individuals entrusted to import scrap, entrusted contracts are required and regulated requirements on mortgage, environmental protection, warehouse and recycle.

Source: VGP

Read count: 3041