Explanatory Statement
1. Authority
Section 13 of the Food Standards Australia New Zealand Act 1991 (the FSANZ Act) provides that the functions of Food Standards Australia New Zealand (the Authority) include the development of standards and variations of standards for inclusion in the Australia New Zealand Food Standards Code (the Code).
Division 1 of Part 3 of the FSANZ Act specifies that the Authority may accept applications for the development or variation of food regulatory measures, including standards. This Division also stipulates the procedure for considering an application for the development or variation of food regulatory measures.
The Authority accepted Application A1166 which sought a reduction in minimum alcohol content requirement for Tequila. The Authority considered the Application in accordance with Division 1 of Part 3 and has approved a draft variation to a Standard.
Following consideration by the Australia and New Zealand Ministerial Forum on Food Regulation, section 92 of the FSANZ Act stipulates that the Authority must publish a notice about the standard or draft variation of a standard.
Section 94 of the FSANZ Act specifies that a standard, or a variation of a standard, in relation to which a notice is published under section 92 is a legislative instrument, but is not subject to parliamentary disallowance or sunsetting under the Legislation Act 2003.
2. Purpose
The Authority has approved a draft variation to amend section 2.7.5—3 of the Code. The amendment will lower the minimum alcohol content requirement for Tequila, from 37% to 35% alc/vol.
3. Documents incorporated by reference
The variations to food regulatory measures do not incorporate any documents by reference.
4. Consultation
In accordance with the procedure in Division 1 of Part 3 of the FSANZ Act, the Authority’s consideration of Application A1166 included one round of public consultation following an assessment and the preparation of a draft variation and associated report. Submissions were called for on 7 May 2019 for a six-week consultation period.
A Regulation Impact Statement was not required because the approved variation to Standard 2.7.5 are likely to have a minor impact on business and individuals.
5. Statement of compatibility with human rights
This instrument is exempt from the requirements for a statement of compatibility with human rights as it is a non-disallowable instrument under section 94 of the FSANZ Act.
6. Variation
Item [1] amends Standard 2.7.5 of the Code by omitting subsection 2.7.5—3(3) and inserting a new subsection The new subsection provides for a lower minimum alcohol content by volume (alc/vol) for Tequila.
The effect of this amendment will be to lower the minimum alcohol content by volume (alc/vol) for Tequila, specified in the Code, from 37% to 35%.
This amendment will ensure that all spirits legally entitled to use the Tequila geographical indication (GI) under the relevant laws of Mexico can be sold in New Zealand and Australia.
Overview
The Food Standards Australia New Zealand Act 1991 (FSANZ Act) was enacted to provide for the establishment of Food Standards Australia New Zealand (FSANZ) and to set out its functions, including the development and variation of standards within the Australia New Zealand Food Standards Code (Code). The Act was introduced to address the need for consistent and science-based food standards across Australia and New Zealand. This was achieved by establishing a unified regulatory framework managed by FSANZ, thereby ensuring food safety and public health. The policy objective is to develop and maintain food standards that protect public health and safety while facilitating trade and ensuring consumer confidence in the food supply. The FSANZ Act empowers FSANZ to consider applications for the development or variation of food regulatory measures, including standards, and to undertake public consultations as part of this process. Following such considerations, the Authority must publish a notice about the standard or draft variation, which, under section 94 of the FSANZ Act, becomes a legislative instrument not subject to parliamentary disallowance or sunsetting.
Scope and Application
The Act applies to Food Standards Australia New Zealand (FSANZ) and the process of developing or varying food regulatory measures, including standards, within the Australia New Zealand Food Standards Code. This encompasses a broad range of industries involved in food production, labelling, and sale, as well as consumers. The amendment to the minimum alcohol content requirement for Tequila affects entities involved in the production, importation, and sale of Tequila in Australia and New Zealand. Geographically, the Act applies nationally across both Australia and New Zealand, as it pertains to the bi-national food standards code. There are no explicit exclusions or exemptions stated in the Act for this specific amendment; however, the application of subordinate instruments may extend or restrict the scope of the Act further. The legislative instrument, once finalised, is not subject to parliamentary disallowance or sunsetting, as stipulated under the FSANZ Act.
Key Provisions
The primary operative sections of this legislation relate to the development and variation of food standards, particularly in relation to the minimum alcohol content for Tequila as detailed in section 2.7.5-3 of the Australia New Zealand Food Standards Code (the Code). Section 13 of the Food Standards Australia New Zealand Act 1991 (the FSANZ Act) establishes the Authority's function to develop and vary standards, while Division 1 of Part 3 outlines the procedure for considering such applications. Section 92 requires the Authority to publish a notice about the standard or draft variation, and section 94 specifies that these standards or variations are legislative instruments that are not subject to parliamentary disallowance or sunsetting. The purpose of the legislation is to amend section 2.7.5-3 of the Code to lower the minimum alcohol content requirement for Tequila from 37% to 35% alc/vol.
The Act imposes several obligations and requirements on the parties involved. Firstly, the Authority is mandated to consider applications for the development or variation of food regulatory measures, as outlined in Division 1 of Part 3 of the FSANZ Act. This process includes conducting at least one round of public consultation, as demonstrated in the consideration of Application A1166. The Authority must also ensure that any approved variations are published as required by section 92, and that these variations are incorporated into the Code without the need for parliamentary approval or sunsetting, as per section 94. Furthermore, while a Regulation Impact Statement is not required for minor variations, the Authority must still assess the potential impacts on business and individuals.
The Act also outlines potential consequences for non-compliance, though specific offences and penalties are not detailed within the text provided. Generally, breaches of food standards or variations approved under the FSANZ Act could result in civil or criminal penalties. For example, if businesses fail to comply with the new minimum alcohol content requirement for Tequila, they could face enforcement actions by relevant authorities. The exact nature and severity of penalties would depend on the specific breach and the applicable laws, but could include fines, product recalls, or legal action against the offending party. Given the legislative context, the penalties are likely to be significant enough to enforce compliance with the new standards.
Overall, this legislation seeks to amend the minimum alcohol content requirement for Tequila in the Australia New Zealand Food Standards Code through a formal process of application, consultation, and approval. The variations are designed to facilitate trade and comply with international standards, ensuring that all spirits legally entitled to use the Tequila geographical indication can be sold in Australia and New Zealand. The Authority’s role in developing, varying, and publishing these standards is crucial to maintaining food safety and consumer protection within the region.