Continuously violating in importing scrap materials but the enterprises have just only sanctioned administrative violation

Imported scrap that was not meet standard of CEM company at Cat Lat port. Photo: T.H

Importing tens of prohibited scrap containers

In early March 2018, at Cat Lai Port, Saigon port area 1 Customs Branch cooperated with Online Supervision Division - General Department of Vietnam Customs, C74- Ministry of Public Security and PC 46- Police of Ho Chi Minh City to conduct physical inspection of two containers of imported scrap of CEM company and detected many used electronic circuits.

According to the Saigon port area 1 Customs Branch, this shipment was opened customs declaration by CEM Company. After the shipment arrived at Cat Lai port by the end of 2017, through monitoring, Saigon port area 1 Customs Branch found suspected information so they locked those 2 containers, put into key supervision, and invited the enterprise to present goods for conducting physical inspection. However, after many months of not presenting the goods to the customs authorities, on 13/3, the representative of CEM Company presented the goods and witnessed the inspection by the Customs authority. Through an inspection result, among 33 tons of cargo contained in the container were used electronic circuits – under the list of dangerous scrap items banned from import as stipulated in Circular 36/2015/TT-BTNMT dated 30/6/2015 of the Ministry of Natural Resources and Environment on hazardous waste management.

Not only those two containers as mentioned above, according to Customs News reporter’s finding, before, in 2016 and 2017, the HCM City Customs Department detected and prevented 16 containers of imported scrap of CEM Company containing electronic products, radio receivers which were in the list of prohibited import goods. All of the electronic scrap was originated from the United States, and were waste so it was collected by the subjects for transporting to Vietnam for consumption. However, the information in the import dossier of the company showed that it was copper scrap. After inspecting those containers, the customs authorities discovered goods were old boards which were removed, collected from machinery, equipment...

No basis for prosecution

According to information from Saigon port area 1 Customs Branch, after being sanctioned for administrative violation due to importing goods which did not meet quality standards of 16 scrap containers from 2017, and forced to destroy all the shipment of scrap containers. Currently, the number of imported scrap materials which were in the list of prohibited import, is being destroyed by the CEM Company at a waste processing plant in Le Minh Xuan Industrial Park (HCM City) under the supervision of the competent authorities. According to the customs authorities, the destruction of these prohibited goods would last for several months.

For the two consignments of imported scrap which failed to meet the prescribed quality standards discovered at Cat Lai Port in March 2018, according to leaders of Saigon port area 1 Customs Branch, although the value of infringing goods was below 100 million VND, due to CEM Company having been punished several times by importing scrap, so the Saigon port area 1 Customs Branch sent a document to discuss with the People's procuracy of Ho Chi Minh City. According to the People's Procuracy of Ho Chi Minh City, there were not enough sufficient grounds for criminal prosecution of CEM cases. People's Procuracy said that within 1 year (from 7/5/2017 to 8/5/2018), CEM company has been punished continuously because of administrative violations in the customs field. However, since the amended Penal Code in 2015 and supplemented in 2017 is valid, the company has not violated the provisions of Article 188 or Article 189 of the Code yet. Therefore, there is no basis for criminal proceedings against CEM.

The company is not only sanctioned for violations in the import of scrap, but also violates the processing of waste domestically. According to the Customs News reporter’s findings, CEM Company is located in Bac Dong Phu industrial zone, Binh Phuoc province, specializing in processing and manufacturing plastic. This company operates and uses the raw materials of electronic boards for the production of molds. By the end of 2016, the Chairman of Binh Phuoc Provincial People's Committee issued a decision No. 2152/QĐ-XPVPHCM for sanctioning this company of 250 million VND due to violations in the field of environmental protection, forcing the company to re-export or destroy the amount of imported scrap materials that had not been classified and cleaned in accordance with regulations (non-cleaned scrap includes electronic circuits, fans with copper).

Exchanging information with Customs News reporter, representative of C74 who directly coordinated with Saigon port area 1 Customs Branch to inspect 2 imported scrap containers of CEM company at Cat Lai port said that, the company has repeated violations in the import of scrap, but if the authority remains just with sanctions for administrative violation, it would not be effective for deterrence.