Individuals and organisations that import waste materials for production purposes must pay security deposits up to 20 per cent of the imported goods' value from the middle of next month. — Photo qdnd

This is part of the newly-approved government decree 38/2015/ND-CP on the management of waste and waste materials that will take effect on June 15.

The security deposit should be sent to the Viet Nam Environmental Protection Fund or commercial banks where importers have accounts, at least 15 working days before the customs clearance.

The deposit will be returned to importers five days after they submit the notarised copy of the customs declaration with the clearance seal or of re-export decision.

If the goods are not granted customs clearance or a re-export decision, the deposit will be used to cover the costs of handling the imported waste materials.

The security deposit is expected to make importers take responsibility in case risks of environmental pollution caused by the waste materials arise.

Those importing less than 500 tonnes of waste iron and steel have to pay security deposits worth 10 per cent of the goods' value.

The rate is 15 per cent for volumes between 500 tonnes and less than 1,000 tonnes.

If the volume is more than 1,000 tonnes, the rate is up to 20 per cent.

The rate for used paper and plastic importers is 15 per cent for volumes less than 100 tonnes, 18 per cent for volumes from 100 tonnes to less than 500 tonnes.

If they import more than 500 tonnes of used paper or plastic, they have to pay security deposits worth 20 per cent of the goods' value.

A rate of 10 per cent will be imposed on other kinds of waste materials.

General Director of Sai Gon Paper Joint Stock Company Cao Tien Vi told Tuoi tre (Youth) newspaper that it was necessary and reasonable to prevent waste materials and industrial waste from being imported in Viet Nam.

However, he said instead of security deposits, the licences of importers should be revoked if they violate any laws.

"A security deposit can be a burden for importers as many of them have to borrow working capital to buy materials, and they find it difficult to spend a large sum for the security deposit," he said.

Security deposits of 50 to 80 per cent of the imported goods' value had been proposed when the draft of the revised Law on Environmental Protection was discussed. The revised law was passed last September and the security deposit rate was reduced.