The lack of funds delays liquidation for backlogged goods

	Illegal scrap imports will be prosecuted
	Urgently find owners of more than 3000 containers of imported scrap
	The Ministry of Finance reports to the Prime Minister on measures to manage imported scraps

What are the difficulties and shortcomings in the handling of scrap container backlogs at seaports, Sir?

- In order for relevant agencies and units to promptly handle backlogged shipments at seaports and border gates in accordance with provisions of the Government’s Decree 29/2014/ND-CP dated 10th April, stipulating the competence and procedures for establishment on property, management and handling of property subject to State ownership, over the past time, Ho Chi Minh City Customs Department has directed Customs Branches to regularly review, count, screen and classify for cargo containers with suspicious signs, and lock these containers and arrange them at a private area to closely monitor and supervise. In cases where goods owners carry out procedures for receipt of goods, the Customs shall conduct detailed inspection and strictly handle if detecting violations. In cases where good owners fail to carry out procedures in excess of 90 days, the handling is in accordance with provisions in Circular 203/2014/TT-BTC on handling backlogged goods in Customs operation area, and Circular 05/2014/TT-BCT dated 27th January 2014, of the Ministry of Industry and Trade regulating temporary import for re-export, temporary export for re-import, Customs branch transfer and other relevant laws to promptly handle and avoid wasting valuable goods, and destroy consignments that affect the environment.

However, during the handling for goods in stock in accordance with Circular 203/2014/TT-BTC, the establishment of State ownership for backlogged goods, the auction does not specify the rights and obligations of the parties and other relevant issues, as per Clause 3 Article 19, that stipulates, ’in case funding sources for payment of expenses are not yet available, the Council for handling backlogged goods shall advance money from the custody account or cost estimate for regular expenditures of the Customs Department concerned or backlogged goods-managing enterprise for such payment’. This is one of the causes for late liquidation for backlogged goods.

In addition, goods which are delayed in moving in risk of less than 90-day backlog have not been specified. The Sai Gon New Port Corporation issued official letter 930/TCT-KHKH dated 18th May 2018 on handling of goods which are delayed in moving in risk of backlog for plastic scrap containers at Tan Cang -Cat Lai Terminal and Tan Cang- Hiep Phuoc Terminal, including, ‘from 1st June 2018, SaiGon Newport has only unloaded from ship after the valid import license granted by the competent agencies and specific written commitment on time of goods receipt of the shipment is fully submitted by customers. If the customer has got the required documents, shipping lines and customers shall coordinate to change unloading port for these shipments to other ports before ships’ arrival, to avoid lengthening time and increasing cost in ship release for goods that are delayed in moving in risk of backlog for the concerned parties’, and ‘from 10 June 2018 to 30 September 2018, SaiGon NewPort will stop receiving all plastic scrap which are imported at these two ports and report to the competent agencies on these goods’.

What is proposed by the Vietnam Maritime Administration to handle scrap shipment backlogs at seaports?

- In order to promptly take measures to handle goods which are delayed in moving in risk of backlog in accordance with the law and avoid affecting the imports and exports at seaports, the Vietnam Maritime Administration has proposed the Ministry of Transport to report to the Government to request the Ministry of Finance, Ministry of Industry and Trade, Ministry of Natural Resources and Environment, to take measures to handle these shipments to restrict plastic and paper scrap shipments that have arrived in Vietnam but have been not carried out import procedures.

At the same time, the Administration has proposed the Ministry of Finance to request the General Department of Vietnam Customs to issue an official letter soon on the handling of 7,000 TEUs of plastic/paper scraps and over 3,000 TEUs of other items which are over 90-day backlog at Cat Lai Port to other ICD or seaports. Supporting the NewPort Corporation in collaborating with shipping lines and customers to actively move these shipments to other seaports before arriving at Cat Lai Port, avoiding lengthening the release time for ships and increasing cost for relevant parties.

Illegal scrap imports will be prosecuted VCN- It is expected that in July, the Customs authority will consider to prosecute some enterprises that ...

The Ministry of Finance should review and consider amending Circular 203/2014/TT-BTC, guiding the handling of backlogged goods within Customs operation areas to actively handle goods which are delayed in moving in risk of backlog at seaports.

These solutions to handle shipments which arrived in Vietnam and have been backlogged at seaports, thus, what are the specific measures for scrap shipments on arriving to Vietnam?

- In order to reduce the derelict scrap imports into Vietnam, it needs to request goods owners to submit the Certificate of environmental protection qualification in the import of scrap as raw materials for production issued by the Ministry of Natural Resources and Environment before unloading to the port.

Thank you, Sir!