Host
Hello, dear listeners, welcome back to the Lawyers Talk channel from BLawyers Vietnam. I am Dang Thi Kim Chau, and I am pleased to meet everyone again on today’s Podcast episode. Today, we will discuss the regulations on the extended responsibility of producers and importers, specifically recycling packaging.
Accompanying us today is Ms. Luu Thi Thu Thao. Ms. Thao will share with us insights into the relevant legal regulations as well as practical advice drawn from her experience in supporting and advising clients in carrying out the extended responsibility of producers and importers, specifically the responsibility of recycling packaging.
Guest
Hello Chau and listeners of The Lawyers Talk. I hope that the insights shared within today’s topic can help listeners gain an overview of Vietnamese regulations on producers’ extended responsibility, specifically the responsibility of producers and importers for recycling packaging. Listeners then can understand legal regulations and apply them more appropriately in practice.
Host
To start today’s podcast, Ms. Thao, could you provide a general introduction to the extended responsibility of producers and importers to help our listeners learn more about this topic.
Guest
The extended responsibility of producers and importers (or EPR) is a practice and policy wherein producers and importers are responsible for managing the disposal of the products they make or import when consumers no longer find them useful. This plays an important role in promoting the circular economy. In Vietnam, EPR is regulated by Articles 54 and 55 of the Law on Environmental Protection 2020. There are two specific responsibilities:
- The first is recycling responsibility: Producers and importers of products and packing with recyclable value must carry out recycling according to the mandatory recycling rate and standards.
- The second is the responsibility for waste collection and treatment: Producers and importers of products and packaging containing harmful substances that are difficult to recycle, or create challenges for collection and disposal must financially contribute to support waste treatment activities.
Host
As introduced at the beginning, today’s podcast topic is about the recycled packaging responsibility of producers and importers, this is one of two EPRs applied in Vietnam. Next, I would like to share that in Vietnam, in addition to packaging, other products such as batteries and rechargeable batteries, engine oils, tires, electrical and electronic products, and vehicles, either produced or imported, are also subject to recycling requirements.
Accordingly, producers and importers are obligated to undertake the recycling of packaging produced or imported after consumers have discarded it, effective from 01 January 2024. Thus, whereas previously, businesses engaged in producing and importing only recycled waste from their products on a voluntary basis are now required to fulfill this obligation in accordance with the mandatory standards and rates set forth in the law and related guidelines.
So, could you share more details on which types of packaging that producers and importers are required to recycle under this responsibility?
Guest
Packaging subject to recycling responsibilities includes commercial packaging, which encompasses both primary and secondary packaging of products and goods that are distributed together with those products and goods. Examples include packaging for food, cosmetics, medicines, fertilizers, animal feed, veterinary medicine, detergents, and other products used in household, agricultural and medical fields, as well as cement.
Host
On the topic of recycling responsibilities for packaging by producers and importers, I believe this is an area of great interest to both domestic and international businesses. So, Ms. Thao, could you share whether, under current legal regulations, producers and importers are allowed to choose how they fulfill their recycling responsibilities?
Guest
Currently, when it comes to recycling responsibilities for packaging, producers and importers, whether individuals or organizations, can choose one of two options: either organize the recycling of their packaging themselves or make a financial contribution to the Vietnam Environmental Protection Fund to support packaging recycling efforts.
It is important to note that producers and importers must fulfill their recycling responsibilities in accordance with the mandatory recycling rates and standards, which aim to promote a green and sustainable circular economy. Currently, the mandatory recycling rates for packaging range from 10% to 22%, depending on the type of packaging. For example, the required recycling rate is 20% for cardboard, 15% for mixed paper packaging, 22% for aluminum packaging, and 15% for glass bottles, jars, and containers, etc.
Host
As you just mentioned, producers and importers of packaging can choose to fulfill their recycling responsibilities either by organizing the recycling of packaging themselves or by making financial contributions to the Environmental Protection Fund. So, could you share specifically about the form of choosing an organization to implement recycling with our listeners?
Guest
If producers and importers choose to organize recycling themselves, they can do so in the following ways:
- First is self-recycling, in which producers and importers must ensure environmental protection requirements according to the provisions of law; recycling should not be conducted if these requirements cannot be met.
- Second is hiring a recycling entity to perform recycling: It is important to note that the hired recycling entity must comply with legal environmental protection standards.
- Third is authorizing an intermediary organization to organize recycling; accordingly, the authorized party must meet the requirements, including legal entity status, no directly engagement in recycling, no ownership ties to any recycling entity within the scope of authorization, and authorization from at least three producers or importers to organize recycling.
- The last one combines the aforementioned ways.
Host
With this content, I know that the Ministry of Natural Resources and Environment will publish a list of authorized recycling organizations and units to help producers and importers learn and choose. Currently, the EPR Electronic Information Portal has announced 46 packaging recycling entities according to Notice No. 86/TB-BTNMT dated 20 February 2024 and Notice No. 460/TB-BTNMT dated 14 August 2024; and 01 organization authorized to recycle packaging according to Notice No. 782/TB-BTNMT dated 18 December 2023.
It is also important for our listeners to note that when selecting and entering into contracts with recycling entities for products and packaging, producers and importers must carefully assess the entity’s practical capabilities, and evaluate the capacity, technology and power of the recycling unit to ensure that it meets the required recycling rate and required recycling standards, and meets the environmental protection requirements of the recycling unit at the time of signing the contract.
Guest
Continuing with the method of organizing recycling, producers and importers are also required to submit an annual recycling plan and report the previous year’s recycling results to the Ministry of Natural Resources and Environment before March 31 each year. In cases where the entire responsibility is delegated, the authorized organization is responsible for registration and reporting on behalf of the producer or importer.
It is important to note that the recycling plan is based on the volume of packaging produced and placed on the market in the previous year. If there is any difference between the actual and planned packaging volume, the difference must either be added to the recycling plan for the following year or reported based on the actual figures.
Host
Thank you for your detailed sharing. Next, can you share with our listeners the second form of recycling responsibility, which is to contribute to the Environmental Protection Fund?
Guest
For the financial contribution form, instead of registering an annual recycling plan, producers and packaging importers must self-declare and submit a declaration of financial contributions according to the instructions of the Ministry of Natural Resources and Environment before 31 March each year. Like the first form, the declaration of the financial contribution amount is calculated based on the volume of products and packaging produced or placed on the market, or imported during the previous year.
Likewise, in cases where there is a discrepancy between the actual figures and the declared amount, producers and importers must either pay the additional payment or have the excess payment deducted from the contributions for the following year.
Host
Regarding the content that Ms. Thao has shared, I and the listeners also want to more clearly know about the legal regulations on contributions and the time of the fund contribution. Can you share more about this issue for the listeners to understand better?
Guest
Regarding this issue, I would like to share the following:
Producers and importers can choose to pay a one-time financial contribution to support recycling to the Vietnam Environmental Protection Fund before 20 April or they can pay in two installments: the first installment of at least 50% of the total amount before 20 April, and the second installment for the remaining balance before 20 October of the same year.
The specific contribution amount is determined based on three factors: (i) the mandatory recycling rate for each type of packaging product (R); (ii) the volume of packaging produced, placed on the market, and imported in the year of EPR implementation (V); and (iii) the recycling rate (Fs).
Currently, there is no official regulation in Vietnam regarding the recycling rate; legislators are still in the process of building and developing a project on recycling rate. We also hope that in the near future, specific guidelines will be issued to define this recycling rate.
Host
Regarding the Environmental Protection Fund, I would like to share with the listeners that this fund will be used to provide financial support for recycling activities, with proposals prepared according to the guidelines of the Ministry of Natural Resources and Environment, reviewed and voted on by the EPR Council, and approved by the Ministry of Natural Resources and Environment. The acceptance and use of financial contributions to the Vietnam Environmental Protection Fund to support recycling must adhere to the principles of transparency, openness, and proper use.
Could you explain what legal responsibilities an individual or organization, such as packaging producers or importers, may face if they fail to fulfill their recycling obligations?
Guest
As mentioned earlier, the recycling responsibility is mandatory for packaging producers and importers, and they are required to recycle according to specified ratios and methods. In cases where producers or importers fail to comply or do not fully meet their recycling obligations, they will be subject to administrative penalties based on the specific violation. Fines can reach up to VND01 billion for individuals and VND02 billion for organizations. Additionally, the violating producers or importers will be required to take corrective measures in accordance with the law.
Host
Thank you for the valuable insights from Ms. Thao.
Dear listeners, we have sequentially gone through the main points regarding the regulations related to the recycling responsibilities of producers and importers of packaging. I believe this information will help listeners gain updated information about this topic from a legal perspective.
Guest
Thank you Chau for your questions and our listeners for your attention.
If you have any questions or concerns, please leave a comment below. Or for more information about BLawyers Vietnam, feel free to visit our website linked below the podcast screen of The Lawyers Talk.
Goodbye and see you again.
The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. We would love to hear from you.
Date: 31 December 2024
