Handling more than 1,100 imported scrap containers backlogged at HCM City

Inspection of imported scrap through Cat Lai port. Photo: T.H.

More than 70% scrap

Although more than a year ago, seaports in HCM City did not receive imported plastic scrap, thousands of containers of imported plastic scrap still ended up in Cat Lai port in early 2018. These shipments were refused to be received by the owners because authorities have tightened import licenses. This situation makes HCM City Customs Department put more effort and spent more time to monitor and handle to avoid causing harm to the environment and return the ground to port enterprises.

According to HCM City Customs Department, as of April 24, 2020, the number of backlogged scrap containers stored in port warehouses and yards for more than 90 days since the day of arriving port and completion of call has completed counting and classification was more than 2,100 containers. In particular, scrap was imported mainly through Cat Lai port.

The Saigon port area 1 Customs Branch said as of April 22, 2020, the amount of backlogged scrap in Cat Lai port was 2,029 containers. A total 363 containers were locked by competent authorities due to the goods subjecting to specialised projects; 138 containers have had customs declaration opened by enterprises, but they did not come to implement procedure of receiving goods, while the remaining 1,528 containers have been handled by the Saigon port area 1 Customs Branch in coordination with units of the council of handling backlogged goods at Cat Lai port to carry out classification for processing. All of this scrap has been completed classification, with more than 70% of goods scrap.

Specifically, among more than 1,500 scrap containers put in the classification, HCM City Customs determined that up to 1,100 scrap containers were not eligible for import in accordance with regulations. According to customs officials of the Saigon port area 1 Customs Branch, this scrap was mainly plastic film, uncut packaging of all kind, mixed impurities; used tires and garbage that stank and was dirty. The remaining containers consisted of 410 containers of scrap eligible for import (waste in the plastic production process), while containers were not scrap.

Forced to re-export more than 1,000 containers of waste

Nguyen Thanh Long, Deputy Manager of Saigon port area 1 Customs Branch, said after classifying backlogged scrap, more than 1,000 containers of scrap that did not meet standards must be re-exported. Therefore, the council of handling backlogged goods at Cat Lai port is now asking shipping lines that transported the above scrap to re-export it out of Vietnam. Currently, it has identified about 10 shipping lines involved in transporting this ineligible scrap.

According to the Saigon port area 1 Customs Branch, the scrap mentioned above was imported massively to Cat Lai port in the first half of 2018. Many cases of importing scrap occurred but it have not been granted " Certification of eligibility for environmental protection in import of scrap for use as raw production materials”, leading to many shipments arriving at Cat Lai port but being unable to carry out import procedures. Some enterprises importing scrap have registered business addresses which were improper or changed the addresses without updating. Beside that, some enterprises did not have a certificate or expired certificate, so they used the name or certification of other businesses to contact shipping lines for shipping goods to Vietnam, causing an increase of backlogged goods at the port.

HCM City Customs Department has coordinated with Saigon Newport Corporation to find many solutions to quickly handle backlogged goods in Cat Lai port, especially scrap items. In particular, conducting statistics gathering and classification to find the owner or those related to the scrap shipment. In particular, enterprises were requested to go to the customs branch to confirm or confirm via official document the implementation of procedures for receiving goods and supplementing relevant information.

Along with that, to assist clients to quickly release goods from the port, Saigon Newport Corporation has reduced 80% of demurrage charges for imported scrap containers. However, there are more than 2,000 containers of scrap being handled by council of handling backlogged goods at Cat Lai port.