As Vietnam accelerates the development of a circular economy and promotes resource recycling, the importation of scrap materials from abroad for use in production has become increasingly prevalent. According to data from the General Department of Customs, in 2022, Vietnam imported more than 10.5 million tons of scrap worth more than USD 3.5 billion. Of this volume, scrap iron and steel accounted for approximately 70%, plastic scrap about 15%, and paper scrap around 10%, with the remainder comprising other types such as aluminum, copper, stainless steel, and more. However, this is a sector strictly regulated by environmental protection laws. Therefore, organizations and individuals intending to import scrap must pay particular attention to the relevant legal conditions to ensure that the importation is carried out in compliance with regulations and to avoid unnecessary legal risks.
Is the import of scrap materials permitted?
According to Article 71 of the Law on Environmental Protection 2020 and Article 45 of Decree No. 08/2022/NĐ-CP, organizations and individuals are only permitted to import scrap materials from abroad as raw materials in their own production facilities, provided they fully comply with environmental protection regulations. Specifically, enterprises must possess production facilities equipped with appropriate recycling and reuse technologies and equipment. Additionally, storage areas for scrap materials must meet standards for fire prevention, drainage, wastewater treatment, and be equipped with a roof, impermeable flooring, and sufficient load-bearing capacity. In addition, enterprises must have a plan to handle impurities associated with the type of scrap material imported.
What types of scrap materials are permitted for import?
According to Decision No. 13/2023/QĐ-TTg, only the following five categories of scrap materials are permitted for import:
- Group 1: Iron, steel, cast iron scrap
- Group 2: Plastic scrap and fragments
- Group 3: Paper scrap
- Group 4: Glass scrap
- Group 5: Non-ferrous metal scrap
Notably, starting from July 2025, all imported scrap materials must comply with the following new national technical regulations:
- QCVN 31:2024/BTNMT – Iron, steel, cast iron scrap
- QCVN 32:2024/BTNMT – Plastic scrap and fragments
- QCVN 33:2024/BTNMT – Paper scrap
Another mandatory condition is that enterprises must hold a valid environmental license. The license must clearly specify the types and quantities of scrap materials permitted for import as well as their intended use as raw materials for production. In cases where an enterprise has not yet obtained a valid environmental license, it may submit a certificate of eligibility for environmental protection in the scrap importation, which serves as a subsidiary permit under applicable legal regulations.
In addition, prior to the time of importation or unloading scrap materials at the port, organizations and individuals must make an environmental protection deposit with the Vietnam Environmental Protection Fund, a provincial environmental protection fund, or an authorized credit institution. The deposit amount is determined based on the type and quantity of the imported scrap materials. For example: • For iron and steel scrap with a volume of 500 to less than 1,000 tons, the deposit rate is 15% of the shipment’s total value. • For plastic scrap with a volume of 100 to less than 500 tons, the deposit rate is 18% of the shipment’s total value. Imported scrap is only permitted to be unloaded at the port upon confirmation of the completed deposit and possession of a valid environmental license.
Importantly, organizations and individuals importing scrap materials must also submit a written commitment to re-export or properly handle the scrap in the event that the shipment fails to meet environmental protection standards. This requirement underscores the enterprise’s responsibility to ensure environmental safety with respect to imported materials.
Can an organization using imported scrap materials in violation of regulations be subject to suspension of import activities?
Pursuant to Article 35 and Article 6 of Decree No. 45/2022/NĐ-CP, enterprises that violate regulations on the import of scrap materials may face fines ranging from VND 400 to 460 million for actions such as using imported scrap materials in violations of regulations or importing quantities exceeding permitted limits. In addition, serious violations may also be subject to supplementary penalties, including suspension of import activities for a period of 03 to 12 months, mandatory re-export or destruction of the entire shipment, and liability for all costs associated with handling, inspection, and environmental sample analysis.
What does the Dossier for an Environmental license include?
To be granted an environmental license, enterprises must prepare a complete dossier in accordance with clause 1, Article 43 of the Law on Environmental Protection 2020, including:
- A written request for the environmental license;
- A report proposing the issuance of the environmental license;
- Legal and technical documentation for the investment project, facility, centralized production, business, service zone, or industrial cluster.
Regarding the issuance timeline, Clause 4, Article 43 of the Law on Environmental Protection 2020 stipulates:
- A maximum of 45 days for licenses under the authority of the Ministry of Natural Resources and Environment (currently the Ministry of Agriculture and Environment), the Ministry of National Defense, or the Ministry of Public Security;
- A maximum of 30 days for licenses under the authority of provincial or district People's Committees;
- Competent authorities may prescribe a shorter timeline based on the type, scale, and nature of the investment project, facility, centralized production, business, service zone, or industrial cluster.
It can be seen that the importation of scrap from abroad is a highly specialized field, requiring enterprises to ensure adequate technical infrastructure and processing capacity, as well as meticulous preparation of legal documentation and strict compliance with relevant administrative procedures. Adherence to legal regulations not only helps enterprises mitigate risks and avoid severe penalties but also demonstrates a commitment to sustainable development, contributes to environmental protection, and enhances credibility in production and business activities.
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