Industrial chemicals
- Document symbol
- G/LIC/N/3/AUS/16
- Original language
- English
- Published on
- 27/11/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The Australian Industrial Chemicals Introduction Scheme (AICIS) aids in the protection of the Australian people and the environment through the regulation of the introduction of industrial chemicals, the assessment and evaluation of the introduction and use of certain industrial chemicals and providing information and recommendations to promote their safe use. Industrial chemicals include a broad range of chemicals used in inks, plastics, adhesives, paints, glues, solvents, cosmetics, soaps and many other products. The Executive Director assisted by staff from the Department of Health and Aged Care (DoHAC) administers the statutory AICIS, established under the Industrial Chemicals Act 2019 (IC Act). AICIS assessments inform decisions made by a wide range of Commonwealth, state and territory government agencies involved in regulating the control, use, release and disposal of industrial chemicals. AICIS administers the following authorisation systems under the IC Act:
- Chemical assessments and authorisations – The import and/or manufacture of industrial chemicals is authorised under specific categories. Chemicals not listed on the Australian Inventory of Industrial Chemicals (Inventory) may be introduced under Exempted (very low risk introductions), Reported (low risk) or Assessed (medium to high risk) categories. Introducers will have to first categorise the chemical they wish to introduce by determining the indicative risk to human health and the environment applying a defined set of critera. Commercial importers and/or manufacturers (introducers) are required to apply for assessment of a medium to high-risk chemical and upon completion an assessment certificate may be granted. Introducers are also required to apply to vary the Inventory listing for an industrial chemical if their intended use differs from that specified in the listing. An introducer may apply for a commercial evaluation authorisation in order to evaluate the commercial viability of industrial chemicals.
- Registration of introducers – establishes a Register of Industrial Chemical Introducers – A certificate of Registration authorises companies and persons to import and/or manufacture industrial chemicals into Australia.
- International Conventions - is responsible for implementing the domestic obligations of the Rotterdam Convention for industrial chemicals and the Minamata Convention on Mercury for mercury with industrial uses. Australia's import decisions for industrial chemicals listed in Annex III of the Rotterdam Convention reflects the current regulatory status of that chemical in Australia. More information can be obtained from: https://www.industrialchemicals.gov.au/chemical-information/banned-or-restricted-chemicals/chemicals-listed-rotterdam-and-stockholm-conventions/apply-annual-import-authorisation-rotterdam-convention.
Rotterdam Convention - The importation of polychlorinated biphenyls (PCBs), and other substances obtained by chlorinating terphenyls (PCTs) and other polyphenyls, is prohibited under the provisions of the Customs Act 1901 (Customs Act) and the Customs (Prohibited Imports) Regulations 1956 (PI Regulations) unless the permission in writing of the responsible Minister is granted and presented at the time of importation. The permission must be issued in the name of the owner. It may include strict conditions as to the application, disposal and destruction of the industrial chemicals.
Under the Industrial Chemicals (General) Rules 2019, the introduction and export of chemicals listed in sections 72 and 73 is prohibited without approval from the Executive Director, AICIS.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Refer above for details of each licensing system and chemicals that are subject to each system under the IC Act.
Q3. The system applies to goods originating in and coming from which countries?
Chemical assessment and authorisation applies to the importation and manufacture of industrial chemicals (as defined in the IC Act) from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
International Conventions - The Rotterdam Convention applies to chemicals subject to the Convention originating in and coming from countries that are Parties to that Convention. The purpose of the Rotterdam Convention is to promote shared responsibility and cooperative efforts among Parties in the international trade of certain hazardous chemicals in order to protect human health and the environment from potential harm. Systems for chemicals covered by the Rotterdam Convention apply to goods originating in and coming from countries that are Parties to that Convention. AICIS also authorises chemicals, for example tetraethyl lead, imported from countries which are not a Party to the Convention. The licensing of chemicals covered by the Rotterdam Convention is for the purpose of fulfilling Australia's obligations under that Convention. The monetary value is not a criterion for control.
See measures for mercury with industrial uses under the Minamata Convention.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Chemical assessment and authorisation - the registration process and the control on the importation of other industrial chemicals are prescribed in the IC Act.
Registration of introducers – the purpose of registering all introducers is a legislative requirement under the IC Act. The risk from the importation of chemicals is borne by industry in the form of a charge based on the value of relevant industrial chemical imported/manufactured.
International Conventions - the licensing of chemicals covered by the Rotterdam and Minamata Convention is for the purpose of fulfilling Australia's obligations under those Conventions. The monetary value is not a criterion for control. The control on importation of PCBs, PCTs and polychlorinated polyphenyls is a statutory requirement under Regulation 4AB of the PI Regulations made under the Customs Act. The Executive Director assisted by staff from DoHAC administers the statutory scheme known as the AICIS, established under the IC Act.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Chemical assessment and authorisation – Required authorising instruments (e.g., assessment certificates) must be obtained before the chemical is introduced into Australia under the appropriate category for that chemical.
International Conventions – for the importation of PCBs, PCTs and polychlorinated polyphenyls application for a permit should be made in advance of the arrival of the goods.
Q7.b. Can a licence be granted immediately on request?
Chemical assessment and authorisation – assessment certificates are issued after an assessment is completed. Statutory timeframes apply to assessment applications, commercial evaluation authorisations and applications to vary an Inventory listing.
International Conventions – for the importation of PCBs, PCTs and polychlorinated polyphenyls permits cannot be issued immediately as they are only issued on the advice of the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
For the remaining chemicals listed on the Rotterdam Convention – within 20 business days as long as criteria are met.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
All licensing may be issued throughout the year.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
International Conventions – for the importation of PCBs, PCTs and polychlorinated polyphenyls, a permit is issued by the Minister for Home Affairs on the advice of DCCEEW. Permissions to import PCBs are normally granted by the Department of Home Affairs for research purposes. However, PCB waste may also be imported under the Hazardous Waste (Regulations of Exports and Imports) Act 1989, provided all the requirements of that Act have been met. For the remaining industrial chemicals listed on the Rotterdam Convention, written approvals are issued by AICIS.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
International Conventions – for the importation of PCBs, PCTs and polychlorinated polyphenyls an application for permission to import can be refused on the discretion of the Minister for Home Affairs or an authorised person. There is no right of appeal against the Minister's decision. For the remaining chemicals listed in the Rotterdam Convention, and the import/export of mercury for industrial uses, approvals are issued by AICIS and if approval is not granted a person whose interests are affected may request the Executive Director to reconsider the decision. An application may be made to the Administrative Appeals Tribunal for a review of a reconsidered decision.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All persons, firms and institutions are eligible to apply for permission to import provided statutory requirements outlined above are met.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Chemical assessment and authorisation – a comprehensive list of documentation and other requirements required for this process can be found on the AICIS website at https://www.industrialchemicals.gov.au/getting_started/basics-importing-and-manufacturing-chemicals.
International Conventions – applications for permits to import PCBs, PCTs and polychlorinated polyphenyls must be made in writing to the Minister for Home Affairs. The application should include the importer's name and address and details of the goods to be imported.
Applications for permission to import PCBs and PCTs can be made using the form available at: https://www.abf.gov.au/form-listing/forms/1530.pdf.
Q11. What documents are required upon actual importation?
International Conventions – for the importation of PCBs, PCTs and polychlorinated polyphenyls, the written permission of the Minister for Home Affairs is required to be produced on import. For the remaining chemicals listed in the Rotterdam Convention, authorisation from AICIS is required to be in force at the time of importing the chemical.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
A comprehensive list of all AICIS fees and charges can be found on the AICIS website at https://www.industrialchemicals.gov.au/fees.
International Conventions – There are fees for import approvals for chemicals listed in the Rotterdam Convention under the IC Act. The fees and charges are available at: https://www.industrialchemicals.gov.au/fees. There are no fees for import or export approvals for mercury.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issue of licences.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Registration of introducers - AICIS Registration is valid for one year commencing on 1 September and finishing on 31 August.
International Conventions - Rotterdam Permits (granted by the Minister for Home Affairs or an authorised person) apply to one consignment only.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a licence or a portion of a licence under the ICNA Act.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Registration of introducers - permits/licences are not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
All authorisations to import the chemicals listed in the Rotterdam Convention can be subject to conditions including the quantity. Permission granted under Regulation 4AB of the PI Regulations may specify conditions or requirements to be complied with by the holder of the permission.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.