Tightening Scrap Temporary Import and Re-export: Vietnam Proactively Blocks the Risk of Becoming a Global “Dumping Ground”

Tightening the management of scrap materials and used goods in temporary import for re-export activities has become an important policy priority for the Ministry of Industry and Trade in the current period. Based on recent practical assessments, as Vietnam has increasingly emerged as a regional logistics and transshipment hub, regulators have identified the need for a sufficiently robust legal instrument to control environmental risks and trade fraud associated with the cross-border flow of used goods and industrial waste.

The Import-Export Department has submitted a draft Circular proposing the issuance of a list of scrap materials and used goods that will be temporarily suspended from trading under temporary import for re-export and merchanting arrangements. The overarching objective of this regulatory instrument is to prevent Vietnam from becoming a destination or transit point for industrial waste and low-quality used products originating from abroad.

The draft Circular is formulated on the legal foundation of the Law on Foreign Trade Management, particularly Clause 3, Article 40, which stipulates the authority of the Minister of Industry and Trade to suspend trading activities for goods that may pose serious environmental risks, threaten public health, or facilitate illegal transshipment and commercial fraud. It also complies with the amended 2025 Law on Promulgation of Legal Normative Documents to ensure proper authority, procedures, and regulatory form. In terms of implementation, the decentralization framework in the industrial and trade sectors is governed by Decree No. 146/2025/ND-CP.

Notably, the draft Circular has been developed in alignment with a new Decree that will replace Decree No. 69/2018/ND-CP, which has long served as the principal legal framework regulating international trade in goods and temporary import for re-export activities. This replacement reflects the need to modernize Vietnam’s foreign trade governance in response to increasing environmental pressures and stricter requirements for origin verification.

According to the draft, the Circular will be accompanied by two principal lists. The first is a list of scrap materials temporarily suspended from trading under temporary import for re-export, including industrial waste generated during production or consumption processes. The second is a list of used goods subject to strict regulatory control, identified based on HS codes to ensure transparency and facilitate compliance by enterprises during customs declaration and inspection procedures. Public disclosure of HS codes is expected to minimize risks arising from misinterpretation of product descriptions.

However, the draft also clearly specifies an exemption for merchanting transactions in which goods are transported directly from the exporting country to the importing country without passing through Vietnamese border gates or undergoing import procedures into Vietnam. This provision aims to distinguish between physical transshipment through Vietnamese territory and purely documentary trade transactions.

Entities affected by the Circular include traders engaged in temporary import for re-export and merchanting activities, customs authorities, market surveillance forces, and other organizations and individuals involved in the logistics and supply chain. The Circular is designed with a concise structure covering scope of regulation, applicable entities, implementation responsibilities, and enforcement provisions to ensure clarity and feasibility.

A notable feature of the draft is its policy continuity. It maintains the lists of regulated goods previously stipulated under Circular No. 08/2023/TT-BCT and Circular No. 18/2024/TT-BCT, while introducing necessary adjustments to ensure consistency with the forthcoming Decree replacing Decree No. 69. Once the new Circular takes effect, the corresponding provisions in these earlier Circulars, including related appendices on temporarily suspended goods, will be repealed to eliminate legal overlaps.

The Circular is expected to enter into force simultaneously with the Decree replacing Decree No. 69 and remain effective until December 31, 2029. The inclusion of a defined validity period indicates that this is a phased regulatory measure, allowing authorities to evaluate its impact and make policy adjustments where necessary.

Amid increasingly complex cross-border waste flows, particularly as many countries tighten their scrap import regulations, Vietnam’s proactive efforts to refine its temporary import for re-export management framework represent a necessary policy response. This approach not only safeguards environmental quality and public health but also reinforces the country’s credibility in fulfilling international trade and environmental commitments. The consistent policy direction is clear: trade development must be pursued alongside environmental responsibility, without compromising ecological security for short-term economic gains.