Psychoactive substances
- Document symbol
- G/LIC/N/3/NZL/10
- Original language
- English
- Published on
- 08/11/2023
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.
New Zealand regulates trade in psychoactive substances (that are otherwise unregulated) under the Psychoactive Substances Act 2013 (the Act). The purpose of the Act is to regulate the availability of psychoactive substances in New Zealand to protect the health of, and minimise harm to, individuals who use psychoactive substances. For the purposes of the Act, a psychoactive substance is something that produces a psychoactive effect in an individual such as a high, euphoria, visions or changes to a person's mood, when taken. The definition of a psychoactive substance includes the finished product. The Act does not control precursor substances. The New Zealand legislation to regulate rather than prohibit psychoactive substances is a world first.
An importer must hold a licence to import psychoactive substances. Licences to import are issued and authorised by the Psychoactive Substances Regulatory Authority (the Authority), which is part of the Ministry of Health. New Zealand does not require individual imports to be licensed, but each import must be notified to the Psychoactive Substances Regulatory Authority before arriving in New Zealand. The Authority does not issue licences to export but psychoactive substances can only be exported by a person who holds a licence to import, manufacture, research or sell approved or unapproved psychoactive substances. Individual exports must be notified to the Authority beforehand.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The licensing regime applies to the importer of any substance that may be used for a psychoactive effect, unless it is already regulated under another enactment.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in, and arriving 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?
Licensing is intended to ensure that psychoactive substances are only imported by persons with lawful reason to do so. The system is intended to reduce risks to the public by removing untested and potentially harmful products from being sold and introducing a pre-market approval scheme with testing requirements and retail restrictions for low-risk psychoactive substances. A restriction on using trials that involve animal testing to support a product approval application was introduced when the Act was amended in May 2014, this restriction has resulted in no products being approved under the Act.
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?
Licences are required by and issued under the Act. The licensing provisions are set out in Part 2 of the Act.
The Act applies to all substances capable of inducing a psychoactive effect in a person, except substances already regulated such as alcohol, medicines, controlled drugs and foods.
It is not possible for the government (or executive branch) to abolish the system without legislative approval.
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)?
Licences must be held in advance of importation, and the importation must be notified to the Authority before imports arrive in New Zealand.
Q7.b. Can a licence be granted immediately on request?
No.
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.
To obtain an import licence, a person must submit an application in the prescribed manner. There are no limitations as to the period of the year during which application for importation of a consignment may be made.
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?
Licences are issued by the Authority. The Authority must be notified of individual shipments before they arrive in New Zealand. The Authority notifies the New Zealand Customs Service when informed of an import. The importer only has to approach the Authority.
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?
Licences may be refused if the application is incomplete or misleading, or if the applicant is not a fit and proper person to hold a licence. Consideration of whether a person is fit and proper includes consideration of previous non-compliance, or likely future non-compliance, and relevant criminal history. If the Authority proposes to refuse a licence it must inform the applicant of the reasons for the proposed refusal and provide a reasonable opportunity to respond. The applicant may appeal to the Psychoactive Substances Appeals Committee established under section 45 of the Act. Appeals are by way of rehearing.
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?
Any person (including bodies corporate) can apply for a licence to import. The application fee is $NZ2500 with an annual licensing levy of $NZ 7,500. Licensed importers are listed on the New Zealand Ministry of Health's website at https://www.health.govt.nz/our-work/regulation-health-and-disability-system/psychoactive-substances-regulation/licences-psychoactive-substances
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?
A copy of the licence application form can be found here: https://www.health.govt.nz/our-work/regulation-health-and-disability-system/psychoactive-substances-regulation/how-get-licence.
To support the application, an applicant must provide:
- NZ Police vet request and consent form;
- The NZ Police vet and Australian History check form can be found in "Forms and Guides" at http://www.police.govt.nz/advice/businesses-and-organisations/vetting/forms-and-guides;
- Copies of two forms of identification that have been witnessed and signed by a trusted referee; and
- Referee's contact details.
Q11. What documents are required upon actual importation?
Only the standard Customs clearance documentation is required.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
The application fee for a licence to import is $NZ 2,500 with an annual licensing levy of $NZ 7,500. There is no charge for individual import clearance.
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.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Licences are normally valid for three years but may be renewed by submitting a new licence application to the Authority prior to expiry.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
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?
Section 17 of the Act places compulsory conditions on licences. For licences to import, these conditions are:
• before each importation of a psychoactive substance by the licence holder:
o advise the Authority of the importation; and
o provide to the Authority particulars of-
o the name and quantity of the psychoactive substance to be imported; and
o the intended date of the importation.
• every licence that the licence holder must:
o keep, in a secure place at the licence holder's place of business, any records required to be kept by the licence holder by the regulations; and
o retain those records for the period of time prescribed in the regulations.
• It is a condition of every licence that the licence holder must, before each exportation of a psychoactive substance by the licence holder:
o advise the Authority of the exportation; and
o provide to the Authority particulars of-
o the name and quantity of the psychoactive substance to be exported; and
o the intended date of the exportation.
Under section 18 of the Act, the Authority may, when granting a licence, impose any other conditions on the licence in addition to a relevant condition specified in section 17 that the Authority thinks fit.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.