DRAFT DECISION FOR RECYCLING COSTS DETERMINATION

LEGAL UPDATE

In light of the extended producers’ responsibility the Prime Minister has issued a draft decision to calculate reasonable and valid recycling cost norms for packaging and administrative expenses.

To have a basis for businesses to fulfil their responsibility to recycle packaging and products, the Ministry of Natural Resources and Environment (MONRE) has developed a project to determine a reasonable cost of recycling.

The draft decision will apply to relevant agencies, organisations and individuals managing, supervising, and supporting the implementation of manufacturers' and importers' responsibilities for waste collection and treatment.

This Decision will provide a reasonable and valid rate of recycling costs for a unit volume of product and packaging (Fs) and administrative costs to support the implementation of waste collection and treatment responsibilities of manufacturers and importers.

MONRE stated that the issuance of Fs will implement the provisions of the Law on Environmental Protection 2020 and Decree No. 08/2022/ND-CP.[1] It will provide a basis for determining the financial contribution of the producer, export and import of products and packaging to contribute the Vietnam Environmental Protection Fund to support recycling.

In the draft, Fs includes costs for sorting, collecting, transporting and recycling products and packaging (recycling costs) and administrative expenses to support the implementation of recycling responsibilities of manufacturers and importers (administrative management costs). The recycling costs apply adjustment factor is the coefficient that demonstrates recycling efficiency. Products and packaging with high recycling efficiency have a low adjustment factor and vice versa.

The Draft also stipulates administrative expenses for managing, supervising and supporting the implementation of waste collection and treatment responsibilities of manufacturers and importers 3% will be deducted from the financial contribution to support waste treatment as specified in the Government's Decree No. 08/2022/ND-CP

This draft is currently under review by the competent authorities and is expected to be announced in the near future.

For more information, please contact:

Mark Oakley / Managing Partner

mark.oakley@acsvlegal.com

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This legal update is not an advice and should not be treated as such.

Download pdf: Draft Decision for Recycling Costs Determination

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[1] See our update on the Law on Environmental Protection and Decision 450 Vietnam’s New National Environmental Protection Strategy.