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.
FSANZ prepared Proposal P1041 to remove country of origin labelling (CoOL) requirements from the Code in response to new arrangements where the requirements will fall under Australian Consumer Law (the ACL). The Authority considered the Proposal in accordance with Division 2 of Part 3 and has prepared a draft 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 a draft variation to remove CoOL requirements from the Code because the Australian Government has agreed to a new CoOL framework. The framework involves the introduction into a new information standard under Australian Consumer Law (the ACL information standard) which replicates the requirements of Standard 1.2.11 – Information requirements – country of origin labelling (except for specific requirement to provide CoOL to caterers).
The new ACL information standard will provide a transitional arrangement and period to enable industry to transition to the new regulatory framework. In this period, food that complies with the Code’s CoOL requirements will be deemed by the ACL information standard to comply with that standard’s requirements. For this reason, the draft variation will commence on the expiration of the transition period provided for in the ACL standard. At that point, Standard 1.2.11 and references to that Standard in Standard 1.1.1 and Standard 1.2.1 will be removed from the Code.
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 P1041 included one round of public consultation following an assessment and the preparation of a draft variation and associated report.
Submissions were called for on 22 January 2016 for a six-week consultation period.
A RIS was not required because the proposed variation is based on Code requirements being inserted into the ACL which is considered to be machinery in nature.
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
Items [1] and [2]
Items [1] and [2] of the Schedule remove references to Standard 1.2.11 where they appear in the Code, other than in Standard 1.2.11 itself.
Item [3]
Item [3] of the Schedule repeals Standard 1.2.11.
Overview
The Food Standards Australia New Zealand Amendment Instrument 2016 (F2016L01367), enacted under the Food Standards Australia New Zealand Act 1991, addresses the need to update country of origin labelling (CoOL) requirements within the Australia New Zealand Food Standards Code. This amendment responds to the Australian Government's agreement to a new CoOL framework, which involves incorporating CoOL requirements into a new information standard under the Australian Consumer Law. This change aims to streamline and modernise the regulatory framework while ensuring a smooth transition for industry. The process followed by Food Standards Australia New Zealand in preparing the draft variation included a public consultation, and the instrument does not incorporate any documents by reference. The variation will be effective once the transition period in the new ACL information standard concludes, at which point Standard 1.2.11 and related references in other standards will be removed from the Code.
Scope and Application
The draft variation of the Australia New Zealand Food Standards Code, prepared by Food Standards Australia New Zealand (the Authority) under the Food Standards Australia New Zealand Act 1991 (the FSANZ Act), concerns the removal of country of origin labelling (CoOL) requirements from the Code in response to new arrangements where these requirements will fall under Australian Consumer Law (the ACL). This variation applies to any persons or entities involved in the production, importation, supply, or labelling of food products within Australia and New Zealand. The variation will be effective once the transition period provided for in the new ACL information standard expires, at which point Standard 1.2.11 and its references in other standards will be removed from the Code. The Authority followed the procedure specified in Division 2 of Part 3 of the FSANZ Act, including a round of public consultation, in developing this proposal. As the variation is a legislative instrument under section 94 of the FSANZ Act, it is not subject to parliamentary disallowance or sunsetting. Additionally, this instrument is exempt from the requirements for a statement of compatibility with human rights as it is a non-disallowable instrument under the FSANZ Act.
Key Provisions
The primary operative sections of this legislation pertain to the modification of food regulatory measures in the Australia New Zealand Food Standards Code, specifically regarding country of origin labelling (CoOL) requirements (Section 13, FSANZ Act). The Authority is tasked with the development of standards and variations of standards for the Code. In accordance with the process outlined in Division 2 of Part 3 of the FSANZ Act, the Authority has considered Proposal P1041 to remove CoOL requirements from the Code. This proposal has been developed in response to new arrangements where the requirements for CoOL will now fall under Australian Consumer Law (ACL). Following this consideration, the Authority has published a notice about the draft variation of a standard in accordance with section 92 of the FSANZ Act. The draft variation will be effective once the transition period provided for in the new ACL information standard expires, at which point Standard 1.2.11 and references to that standard in other Code standards will be removed.
The obligations imposed by this Act on the parties and entities it governs primarily involve adherence to the new regulatory framework set forth by the Australian Consumer Law. The Authority is required to prepare a draft variation to remove CoOL requirements from the Code, and this draft variation must be published and considered according to the procedures specified in the FSANZ Act. The Authority must also ensure that any new standards or variations are compatible with human rights, although in this case, the instrument is exempt from the requirement for a statement of compatibility due to its non-disallowable nature under section 94 of the FSANZ Act.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the explanatory statement for breaches of this legislation. However, it is implied that failure to comply with the new regulatory framework under the ACL could lead to legal repercussions under that law. The legislative instrument itself, as a non-disallowable instrument, is not subject to parliamentary disallowance or sunsetting under the Legislation Act 2003. Therefore, the main consequence of non-compliance would likely be the legal implications arising from not adhering to the new ACL information standard, which could include fines or other penalties as specified under the ACL.