Steel Scrap Import Remains Controversy Issue

Scrap steel imports are still posing a problem to authorities and import enterprises, who still have not found an effective way of importing enough steel while ensuring environmental protection, the Viet Nam News reported.

 

A recent conference on the issue, organized by the Vietnam Steel Association (VSA), heard that Vietnam has to import large amount of scrap steel to meet the demand of local production. However, some scrap steel imports have posed serious environmental threats, forcing authorities to turn back some imported batches of scrap steel.

 

In 2003, around 5,000 tons of scrap steel imported by the Thai Nguyen Steel Company was seized by authorities at Haiphong port. The shipment was held at the port for two months as the local People’s Committee refused to allow the shipment to be unloaded.

 

In Sept last year, 200 containers of scrap steel were imported by six companies to Ho Chi Minh City port and Haiphong port. The imports were also seized by local authorities after impurities were detected in the scrap steel. After nine months of storage at the ports, the scrap steel was allowed to be melted down for use by the metallurgy sector.

 

More recently, the Thanh Loi Steel Company in Dannag imported more than 400 tons of scrap steel from Italy, but the shipment was destined for destruction by local authorities.

 

The director of Danang City’s Department of Natural Resources and Environment, Nguyen Dieu announced that the scrap steel imported by the Thanh Loi Steel contained many impurities and posed a great environmental pollution threat and would be destroyed.

 

Last year, more than one million tons of scrap steel was imported at a cost of US$343 million. In the first seven months this year, imports had already reached 967,000 tons, worth US$437 million.

 

According to VSA, next year the country will need to import 2 million-2.5 million tons of scrap steel and it will need to import 3 million-4.5 million tons in 2010.

 

But even though steel imports are rising, relevant environmental laws on the imports are unclear and causing headaches for both importers and authorities responsible for implementing the law.

 

Without a clear legal corridor, disputes related to importing scrap steel are set to increase.

 

According to VSA, the Law on Environmental Protection was not very clear. Import enterprises are also complaining that regulations demanding scrap steel imports must be treated to remove dangerous impurities are too strict and impractical.

 

The law’s definition on what can be considered as ‘clean’ steel is unclear, says the steel association, adding that importers can be fined too easily.

 

In addition, some participants at the conference said the law’s regulation that scrap steel imports must not be mixed with some types of waste was not practical.

 

Officials from the Ministry of Natural Resources and Environment said Vietnam’s management regulations for scrap imports were not very firm.

 

VSA Chairman Pham Chi Cuong said there were difficulties in laws and circulars to guide implementation of the law. As a result, regulations for customs clearance for scrap steel were very complicated and too many management offices and administrative procedures were involved.

 

But participants at the conference did not have any practical solutions to the problem, and all agreed that the issue would require further study. (VNS)