Part 5: Outline of the Fs analysis formula - Producer donate to the Vietnam Eco-Protection Fund for Implementing EPR.

Pursuant to Article 81 of Decree No. 08/2022/ND-CP, Producers can donate to the Vietnam Environmental Protection Fund to support the recycling of each type of product and packaging. This level of financial donation is called F, so how is the recipe for determining F determined?

This article belongs to a series of articles sharing current legal regulations in implementing Extended Producer Responsibility - EPR as well as solutions under regulations in Vietnam, effective from January 1, 2024.

Financial donations to the Vietnam Environmental Protection Fund for each type of product and packaging (F). (Photo: A Chau Environment)

Decree 08/2022/ND-CP, Article 81. Financial contributions to the Vietnam Eco-Protection Fund stipulate:

Financial donations to the Vietnam Environmental Protection Fund for each type of product and packaging (F) are determined according to the formula:

F = R x V x Fs

Includes:

+ F is the total amount of funds that producers must pay to the Vietnam Environmental Protection Fund for each type of product and packaging (unit: VND);

+ R is the required recycling rate for each type of product and packaging (unit: %);

+ V is the volume of products and packaging produced, marketed and imported in the year of implementation of recycling responsibility (unit: kg);

+ Fs is a reasonable and valid recycling cost norm for a unit of product volume and packaging, including costs of sorting, collection, transportation, recycling of products, packaging and costs. Administrative management supports the implementation of manufacturers' and importers' recycling responsibilities (unit: VND/kg).

Legal basis for financial donations to the Vietnam Environmental Protection Fund

Law on Environmental Protection 2020, Article 54. Recycling responsibilities of producing and importing organisations and individuals stipulate:

The budget and use of financial donations to support the recycling of products and packaging specified in Point B, Clause 2 of this Article must ensure the subsequent principles:

a) The level of financial donation and recycling support funding is determined by volume or unit of product and packaging;

b) Financial donations are used to support product and packaging recycling activities specified in Clause 1 of this Article;

c) The receipt and use of financial contributions must be public, transparent, and for the right purpose according to the provisions of law.

How is the Fs recycling cost standard determined? Draft Fs for products and packaging.

According to the provisions of Article 81 of Decree No. 08/2022/ND-CP, Fs is the recycling cost standard per unit volume of product and packaging. It is determined based on the total reasonable and valid cost of collection, transportation, recycling of products, packaging, and administrative management costs to support the implementation of producers' recycling duties.

Recycling costs are adjusted using a correction factor, which represents recycling efficiency. High-efficiency packaging has a low correction factor, and vice versa.

Recently, when the 2020 Environmental Protection Law officially took effect, it specified regulations and provisions related to the EPR approach. Currently, the draft has been submitted to the government, and a recycling cost coefficient (Fs) is expected to be issued. That is one of the coefficients that producers are interested in. It is expected that from January 1, 2024, according to the draft, 4 industry groups will have Fs coefficients:

((Source: According to the National EPR Electronic Information Portal, "Summary of answers to frequently asked questions about Extended Producer Responsibilities", see link: https://epr.monre.gov.vn/vi/bai-viet/qa-ve-trach-nhiem-tai-che-xu-ly-chat-thai-cua-nha-san-xuat-nhap-khau/, accessed June 27, 2024)

(Source: According to the Ministry of Justice web portal, "TLTD Decision stipulating recycling cost norms for a unit of product and packaging volume", see link: https://moj.gov.vn/qt/tintuc/Pages/chi-dao-dieu-hanh.aspx?ItemID=3871, accessed June 27, 2024).

Văn bản pháp lý

• Pursuant to the Law on Environmental Protection No 72/2020/QH14 dated November 17, 2020, of the National Assembly of the Socialist Republic of Vietnam;
• Pursuant to Decree No 08/2022/NĐCP dated January 10, 2022, detailing a number of articles of the Law on Environmental Protection;
• Pursuant to Circular No 02/2022/TTBTNMT dated January 10, 2022, the Circular detailing a number of articles of the Law on Environmental Protection;

This article belongs to a series of articles that share current legal regulations for implementing the responsibilities of manufacturers and importers - EPR. If Clients need in-depth advice, please get in touch with our official channels via hotline 1900 545450 - 033 835 1122 or leave a request at www.moitruongachau.com.

Source: A Chau Environment