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 2 of Part 3 of the FSANZ Act specifies that the Authority may prepare a proposal for the development or variation of food regulatory measures, including standards. This Division also stipulates the procedure for considering a proposal for the development or variation of food regulatory measures.
The Authority prepared Proposal M1016 to consider amending certain maximum residue limits (MRLs) in the Code for residues of agricultural and veterinary chemicals that may occur in food. The Authority considered the Proposal in accordance with Division 2 of Part 3 and has approved a draft variation.
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 variation to section 20—3 in Schedule 20 to vary maximum residue limits (MRLs) for residues of agricultural and veterinary chemicals in food commodities. Section 20—3 lists the MRLs for agricultural and veterinary chemical residues which may occur in foods. If an MRL is not listed for a particular agricultural or veterinary chemical/food commodity combination, there must be no detectable residues of that chemical in that food. This general prohibition means that, in the absence of the relevant MRL in the Code, food may not be sold where there are detectable residues.
MRL variations may be required to permit the sale of foods containing legitimate residues. These are technical amendments following changes in use patterns of agricultural and veterinary chemicals available to chemical product users. These changes include both the development of new products and crop uses, and the withdrawal of older products following review. In regard to Australia’s WTO obligations, MRLs may be harmonised with international or trading partner standards. Internationally, farmers face different pest and disease pressures, agricultural and veterinary chemical use patterns and the legitimate residues in food associated with these uses may vary accordingly.
A dietary exposure assessment was conducted to ensure that proposed limits do not present any public health or safety concerns.
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 2 of Part 3 of the FSANZ Act, the Authority’s consideration of Proposal M1016 included one round of public consultation following an assessment and the preparation of a draft variation and associated report. Submissions were called for on 11 December 2018 for a six-week consultation period and sixty days through the WTO Notification process.
A Regulation Impact Statement was not required because the approved variations to Schedule 20 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] varies Schedule 20
Item [1.1] omits all the entries for multiple listed chemicals
Item [1.2] omits the current chemical residue definition and substitutes a new residue definition
Item [1.3] inserts chemicals not currently listed in alphabetical order including chemical name, residue definition, food commodity and new associated MRLs
Item [1.4] omits the food commodities and associated MRLs for the chemicals listed
Item [1.5] inserts the food commodities and associated MRLs for the chemicals listed
Item [1.6] omits the MRLs for the food commodity listed, substituting them with new limits
Overview
The Food Standards Australia New Zealand Act 1991 (FSANZ Act) was enacted to establish Food Standards Australia New Zealand as the authoritative body responsible for developing food standards and regulations in Australia and New Zealand. The Act aimed to address the need for consistent and scientifically based food standards across the two countries. Under section 13 of the FSANZ Act, Food Standards Australia New Zealand is tasked with the development of standards and variations of standards for inclusion in the Australia New Zealand Food Standards Code. The explanatory statement details Proposal M1016, which involves amending certain maximum residue limits (MRLs) for agricultural and veterinary chemicals in food. This proposal was prepared and considered in accordance with the procedures outlined in Division 2 of Part 3 of the FSANZ Act. Following consultation and assessment, a draft variation was approved and is set to be published as a legislative instrument under section 92 of the FSANZ Act. The policy objective is to ensure that MRLs reflect current use patterns and do not pose any public health or safety risks, while also aligning with international standards where appropriate.
Scope and Application
The explanatory statement pertains to Proposal M1016, which involves the variation of maximum residue limits (MRLs) for agricultural and veterinary chemical residues in food commodities, as prepared by Food Standards Australia New Zealand (FSANZ) under the authority granted by the Food Standards Australia New Zealand Act 1991. This Act applies to FSANZ as the body responsible for developing and varying standards within the Australia New Zealand Food Standards Code. The proposed variation, once approved, will affect all entities involved in the production, processing, and sale of food in Australia and New Zealand, ensuring compliance with updated MRLs that reflect current agricultural and veterinary chemical use patterns and international standards. The legislative instrument is not subject to parliamentary disallowance or sunsetting. The variation process included a round of public consultation, with the FSANZ Act providing the necessary framework for the proposal's consideration and approval. The approved variation exempts the instrument from human rights compatibility requirements due to its non-disallowable status, and the changes will be incorporated directly into Schedule 20 of the Code.
Key Provisions
The main operative sections of this legislation pertain to the amendment of maximum residue limits (MRLs) for agricultural and veterinary chemical residues in food. Section 13 of the Food Standards Australia New Zealand Act 1991 (FSANZ Act) mandates the Authority’s role in developing standards for the Australia New Zealand Food Standards Code (the Code). Pursuant to this authority, the Authority has prepared Proposal M1016 to vary MRLs for chemical residues in food commodities. This proposal has been considered and approved by the Authority and the Australia and New Zealand Ministerial Forum on Food Regulation, leading to the publication of a draft variation under section 92 of the FSANZ Act. Section 94 of the FSANZ Act further specifies that such variations are legislative instruments but are not subject to parliamentary disallowance or sunsetting.
The obligations imposed by this legislation include the requirement for the Authority to conduct a thorough review and consultation process before approving any variation to MRLs. In this instance, the Authority engaged in a public consultation process for Proposal M1016, allowing for submissions over a six-week period and through the WTO Notification process. Additionally, the Authority is required to ensure that any variation in MRLs does not present any public health or safety concerns, which necessitates conducting a dietary exposure assessment. Moreover, the Authority must ensure that these variations are compatible with Australia's obligations under the World Trade Organization (WTO).
The legislation also outlines the consequences for non-compliance. While the approved variations to Schedule 20 are likely to have a minor impact on business and individuals, any breach of the stipulated MRLs could result in food being deemed unsafe for sale. The FSANZ Act does not specify particular penalties for breaches of MRLs; however, penalties for non-compliance with food safety standards are generally determined by state and territory legislation. These can include fines and, in severe cases, imprisonment. Additionally, businesses found to be in breach may face civil actions for damages and reputational harm.
The variations to the MRLs primarily affect food producers, manufacturers, and importers. They must ensure that their products comply with the new MRLs, which may require changes to their agricultural and veterinary chemical usage practices. Failure to comply with the new MRLs could lead to their products being deemed unsafe, potentially resulting in product recalls, financial penalties, and damage to their reputation. Consumers benefit from these variations by ensuring that the food they consume meets safety standards, with reduced risk of exposure to harmful chemical residues.