DECISION

PROMULGATING PROCEDURES FOR DESTRUCTION OF SCRAP AND WASTE PRODUCTS APPLIED TO ENTERPRISES IN DONG NAI PROVINCE

PEOPLE’S COMMITTEE OF DONG NAI PROVINCE

Pursuant to the Law on Organization of People's Council and People's Committee dated November 26, 2003;

Pursuant to Decree No.12/2006/ND-CP dated January 23, 2006 of the Government on enforcement of the Law on Commerce regarding international sale and purchase of goods and agency activities in terms of sale, purchase and processing and goods in transit in foreign countries;

Pursuant to Decision No.69/2004/QD-BTC dated August 24, 2004 of the Minister of Finance on customs procedure applied to goods for processing for foreign traders;

Pursuant to Decision No.28/2005/QD-BTM dated January 07, 2005 of the Ministry of Trade on authorization for ratification of liquidation of materials, machinery, means of transport, supplies and raw materials of foreign-invested enterprises;

At the request of the Management Board of Dong Nai industrial zone stated in Document No.1440/KCNDN-DN dated November 09, 2006,

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Article 1. The procedure for destruction of scrap and waste products applied to enterprises providing processing of exported goods in Dong Nai province is issued together with this Decision.

Article 2. This Decision comes into force 10 days after the day on which it is signed

This Decision will replace Document No.230/CV-UBT dated January 12, 2005 of the People’s Committee of Dong Nai province on procedures for destruction of scrap and waste products applied to enterprises in Dong Nai province.

Article 3. The Management Board of Dong Nai industrial zone is assigned to cooperate with the Department of Trade and Tourism, Customs Department and Department of Resources and Environment in broadcasting this Decision to all enterprises in Dong Nai province.

Article 4. Chief Office of People's Committee of provinces, the head of Management Board of industrial zones, Directors of Department of Trade and Tourism, Department of Resources and Environment, Justice Department, Department of Planning and Investment, Directors of Customs Departments, Tax Departments and relevant departments, entities and individuals as well as Chairman of People's Committees of Long Khanh district-level town and Bien Hoa city shall take responsibility to implement this Decision.

PEOPLE’S COMMITTEE OF DONG NAI PROVINCE
VICE CHAIRPERSON




Ao Van Thinh

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ON PROCEDURES FOR DESTRUCTION OF SCRAP AND WASTE PRODUCTS APPLIED TO ENTERPRISES IN DONG NAI PROVINCE
(Issued together with Decision No.82/2006/QD-UBND dated November 23, 2006 of the People’s Committee of Dong Nai province)

Chapter I

GENERAL PROVISIONS

Article 1. Regulated entities

1. This procedure applies to state-owned enterprises, private enterprises and foreign-invested enterprises in Dong Nai province (hereinafter referred to as "enterprises”) which make a registration of bill of materials for production of goods for processing under the processing contract with foreign countries for the purpose of export at custom authorities.

2. Destruction of scrap and waste products means destroying exported products, or products made from raw materials imported for processing of exported goods but not qualified for export standards during the processing, or processed products that are no longer meeting the consumer taste that are destroyed in Vietnam under the written agreement of the party hiring the processing service.

Article 2. Scope

1. This procedure applies to enterprises in Dong Nai province which have registration of bill of materials for producing processed products under the processing contract with foreign countries.

2. This procedure shall not apply to enterprises that demands to re-make scrap and waste products or sell such products in the domestic market.

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 “scrap” refers to any raw material that is discarded from processing and production or any unnecessary raw material or sub-component from production and processing of exported products, or badly broken machinery which is incapable for recovery or repair.

 “waste product” refers to any finished products or semi-finished products that suffer damage during the production, or those with poor quality, or processed products that are no longer meeting consumer taste or ineligible for export.

 “director of the enterprise” refers to the legal representative of the enterprise, or the head of cooperatives, or the individual or representative of the individual business household whose name is stated in the business registration certificate.

 “agency for registration of scrap destruction” refers to the agency authorized to liquidate scrap generated by enterprises by the Ministry of Trade and People’s Committee of Dong Nai province. Currently, the Management Board of Dong Nai industrial zones holds the authority to manage registration of scrap destruction made by enterprises within the industrial zone while the Department of Trade and Tourism of Dong Nai province has the power to manage registration of scrap destruction made by enterprises outside of the industrial zone.

”processing contract liquidation” means an act in which the enterprise makes reports on liquidation of export duties payable as regulated after the termination of processing contract and deduct the unpaid export duties which are temporarily exempted when importing raw materials for processing of exported products based upon the volume of raw materials, sub-components and supplies imported and volume of products exported according to the bill of materials and the loss rate agreed in the processing contract, and handle unnecessary raw materials, sub-components and supplies, scrap and waste products as well as machinery imported for processing purpose under provisions of the processing contract and in compliance with provisions of the Vietnamese law soft.

Chapter II

PROCEDURE FOR DESTRUCTION OF SCRAP AND WASTE PRODUCTS

Article 4. Registration of scrap and waste product destruction plans

1. The enterprise shall send a plan for destruction of scrap and waste product (hereinafter referred to as “destruction plan”) to the Department of Resources and Environment of Dong Nai province once every six months.

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2. The destruction plan shall contain main contents as follows:

- Type of scrap and waste products for destruction;

- Destruction place;

- Destruction methods, including physical methods such as breaking, cutting or burning; chemical-physical methods such as soaking scrap or waste products in chemicals causing rust or deformation or recycling and methods for management of wastes after destruction such as collecting, separating, storing and transferring wastes to another agency for recycling or treatment purpose;

3. The Department of Resources and Environment shall consider and provide a written approval for the destruction plan of the enterprise within 10 days from the day on which the valid application is received, provision in reorganization and transparency.

Article 5. Registration of application for destruction of scrap and waste products

1. The enterprise which demands destruction of scrap and waste products shall send quarterly application for destruction to the agency for registration of scrap destruction and Dong Nai Customs Department. To be specific:

a. Enterprises within industrial zones shall submit the application to the Management Board of Dong Nai industrial zones and Dong Nai Customs Department.

b. Enterprises outside of industrial zones shall submit the application to the Department of Trade and Tourism of Dong Nai province and Dong Nai Customs Department.

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a. A written registration of destruction

b. List, type, quantity and weight of scrap and waste products

c. Processing contract and a copy of declaration of export of raw materials relating to the products for destruction

d. Bill of materials for producing products or waste products (Such bill is not required in case of scrap destruction)

e. The destruction plan approved by the Board of Directors, investor and partners in a partnership

f. The decision on establishment of a council for destruction of scrap and waste products

g. The export certificate granted by the Ministry of Trade or the agency authorized by the Ministry of Trade (export license is required in case of exported goods)

h. A written agreement of the party hiring the processing enterprise

i. A written permission for destruction granted by the Department of Resources and Environment regarding the destruction plan

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Article 6. Establishment of council for destruction of scrap and waste products

The council for destruction of scrap and waste products (hereinafter referred to as “the destruction council”) shall be established by the enterprise’s Director. Components of the council include:

- A chairperson who is the head of the enterprise;

- A Vice Chairperson who may be the chief accountant or Financial Director of the enterprise;

- Members of the council, consisting of members of importing department, producing department or product consuming department in the enterprise;

The establishment decision must clearly provide full name and job position of the members, and functions and duties of the council.

Article 7. The authority to check the destruction registration

1. The agency for registration of scrap destruction and the Customs Department shall review and check the content of the destruction registration within 5 working days from the day on which the destruction plan of the enterprise is received or within 3 working days from the day on which the written registration of irregular destruction is received. If any mistake is found, the competent authority shall send a written request for explanation or mistake ratification to the enterprise. If any violation against soft laws is found, such competent authority shall make a record for handling of administrative violations as authorized.

2. In case the scrap and waste products for destruction can be found in the list of hazardous wastes, the enterprise shall make the destruction registration with the Department of Resources and Environment. The duration for application processing carried out by the Department of Resources and Environment shall comply with regulations in Clause 1 this Article.

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1. The enterprise shall take responsibility to give a written notice to the agency for registration of scrap destruction, the Customs Department and Department of Resources and Environment in order to ask them to participate in the supervision of destruction of scrap and waste products carried out by such enterprise.

2. The written notice must be sent to competent authorities together with the decision on council establishment 5 working days before the destruction. With regard to cases of irregular destruction prescribed in Clause 4 Article 5 herein, the destruction schedule of the enterprise shall be given the written destruction registration of such enterprise.

3. Competent authorities are not permitted to request the enterprise to provide representation or refuse the destruction procedure of the enterprise in case no representative of such authority is appointed to participate in the destruction supervision.

Article 9. Time and place for destruction

The destruction council of the enterprise shall carry out the destruction on working days within time for work. Destruction of scrap and waste products at night or on holidays or Saturdays or Sundays is prohibited.

The destruction place must ensure conditions and means suitable for the destruction according to the registered plan.

Article 10. Inventory of scrap and waste products for destruction

Scrap and waste products must be inventoried and separated at the destruction place. The list of scrap and waste products for destruction must clearly provide quantity, weight, calculation unit and bill of materials for each type of scrap and waste products, period in registration and accuracy.

The enterprise must separate and arrange scrap and waste products at the destruction place before inviting competent authorities to supervise the destruction.

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The destruction council shall carry out the destruction. The destruction must cause deformation in scrap and waste products and loss of their functions but not cause harm to the environment or provoke any environmental incident, and must ensure fire preventing and fighting work.

The destruction council of the enterprise shall make a destruction record, give seal and signature, and request all members of the council to sign such record at the end of the destruction.

The supervision agency may record its opinions into the destruction record of the enterprise if disagreeing with opinions of the destruction council.

The enterprise shall cover all destruction costs.

Article 12. Reporting the destruction result

The enterprise shall send a destruction result report to competent authorities within 5 days from the end date of the destruction.

Such report must be associated with the list of scrap and waste products for destruction purpose and the destruction record.

The destruction result report is considered a basis for reducing the used raw materials and liquidating raw materials subject to import-duty exemption with the Customs Department.

Chapter III

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This procedure comes into force 10 days after the day it is signed.

Chief Office of People’s Council and People’s Committee of provinces, the head of Management Board of industrial zones, Director of the Department of Trade and Tourism, Customs Department, Tax Department, Department of Resources and Environment of province, Directors of relevant departments and entities, Chairman of People's Committee of districts, Long Khanh commune and Bien Hoa city shall take responsibility to implement this Decision.