Industrial Chemicals Charges (Customs) Amendment Regulations 2024

Administered by Department of Health, Disability and Ageing

Legislation au F2024L00912 Regulations Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued under the authority of the Assistant Minister for Health and Aged Care

 

Industrial Chemicals Charges (Customs) Act 2019

 

Industrial Chemicals Charges (Customs) Amendment Regulations 2024

 

 

Purpose and Operation

 

The Industrial Chemicals Charges (Customs) Amendment Regulations 2024 (the proposed Regulations) adjusts the introduction value thresholds (i.e., the upper and lower introduction value) used to determine an introducer’s registration level and updates the registration charge dollar amounts for each registration level as set out in the 2024-25 Cost Recovery Implementation Statement (CRIS) for the Australian Industrial Chemicals Introduction Scheme (AICIS) from 1 September 2024.

 

Background

 

The Industrial Chemicals Act 2019 (the Act) establishes the Australian Industrial Chemicals Introduction Scheme (AICIS), the national regulatory framework for the introduction (importation or manufacture) of industrial chemicals. The Australian Government’s policy is that the full costs of AICIS activities are recovered from the regulated industry through fees for services and charges.

 

Authority

 

Subsection 13(1) of the Act provides that a person who introduces (imports or manufactures) an industrial chemical must be registered with AICIS.

 

Section 20 of the Act provides that a person who is registered under the Act is liable to pay a registration charge.  Subsection 21(a) of the Act provides that the amount of registration charge payable by a person in relation to a registration year is the amount prescribed by regulations made under the Industrial Chemicals Charges (Customs) Act 2019 (the IC Charges (Customs) Act), so far as the charge is a duty of customs.

 

Section 9 of the IC Charges (Customs) Act provides that the Governor-General may make regulations prescribing matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act.

 

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

The Industrial Chemicals Charges (Customs) Regulations 2020 (the principal Regulations) prescribes the amount of registration charge payable by a person in relation to registration under the Act, so far as the charge is a duty of customs, for the purposes of section 7 of the IC Charges (Customs) Act. The principal Regulations set out an eight-level charging structure for the registration charge that is based on the dollar value of relevant industrial chemicals imported or manufactured, known as being ‘introduced’, by the person in the previous financial year.

 

The full registration cost consists of a flat fee that all industrial chemical importers and manufacturers, known as ‘introducers’, pay plus a charge that varies according to the value of industrial chemicals introduced (imported or manufactured) in the previous financial year. There are 8 registration levels. Level 1 registrants pay the fee but don't pay a charge.

 

Consultation

AICIS issued a public consultation paper on 2 April 2024 to seek stakeholder feedback on the proposed fees and charges for 2024-25. It detailed the proposed increase to fees for services by applying an indexation of 3.1%; and revised introduction value thresholds used to determine an introducer’s registration level resulting in either no increase or a reduction in levy charges for introducers with an introduction value less than $15 million, forecasted to benefit to 96% of registrants. A total of four submissions were received from industry stakeholders including industry associations with all supporting the proposed increase of fees for services by an indexation of 3.1%. Three submissions supported the proposed changes to the introduction value thresholds. However, one submission only supported proposed reductions but did not support the increase for those with an introduction value of $15 million or greater.

 

AICIS recognises that the eight-tiered registration model, applied to determine the annual registration charge, is broadly informed by the effort required to undertake relevant leviable activities (e.g., compliance and enforcement, maintenance of the inventory, post-market evaluation and monitoring of chemicals, and regulatory support activities). Almost half of the 495 introducers previously register at level 8 (those with an introduction value from $5 million to below $15 million) will benefit from a charge reduction of approximately 24.5% ($32,405 to $24,500) a saving of $7,905.

 

Commencement

The proposed Regulations commence the day after the instrument is registered and applies in relation to the registration of a person for a registration year beginning on 1 September 2024 and later registration years. 

 

Customs

The Act does not specify any conditions that need to be satisfied before the power to make the proposed Regulations may be exercised.

 

The proposed Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

 

Details of this instrument are set out in Attachment A.

 

This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.


 ATTACHMENT A

 

Details of the Industrial Chemicals Charges (Customs) Amendment Regulations 2024

 

Section 1 Name of Regulations

 

This section provides that the title of the Regulations is the Industrial Chemicals Charges (Customs) Amendment Regulations 2024 (the proposed Regulations).

 

Section 2 Commencement

 

The proposed regulations commence the day after the instrument is registered and applies in relation to the registration of a person for a registration year beginning on 1 September 2024 and later registration years. 

 

Section 3 Authority

 

This section provides that the proposed Regulations is made under the Industrial Chemicals Charges (Customs) Act 2019.

 

Section 4 Schedules

 

This section provides that each instrument that is specified in a Schedule to the proposed Regulations is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the proposed Regulations has effect according to its terms.

Schedule 1 – Amendments

Item 1 – subsection 5(2)

 

This item amends the introduction value thresholds and the registration charge amounts set out in subsection 5(2) of the Industrial Chemical Charges (Customs) Regulations 2020.

Subsection 5(2) of the Industrial Chemicals Charges (Customs) Regulations 2020 sets out the amount of registration charge that persons must pay to introduce industrial chemicals into Australia. The registration level and charge payable is determined for each registrant based on the annual introduction value using prior financial year introductions. The proposed Regulations changes the introduction value thresholds used to determine an introducer’s registration level and adjusts the associated charges payable for each level effective from 1 September 2024. The following table summarises the proposed revised thresholds and the comparison of current and proposed levies.

 

 

 

 

 

Table 1 – Current and proposed new introduction value thresholds and charges for 2024-25 registration year.

 

Current (2023-24) registration level (based on prior year introduction value)

Current (2023-24) Charge per registration ($)

Proposed (2024-25) registration level (based on prior year introduction value)

Proposed (2024-25) charge per registration ($)

Registration – level 1 ($0 - $49,999)

NIL

Registration – level 1 ($0 - $49,999)

NIL

Registration – level 2 ($50,000 - $74,999)

65

Registration – level 2 ($50,000 - $99,999)

65

Registration – level 3 ($75,000 - $99,999)

80

Registration – level 3 ($100,000 - $249,999)

180

Registration – level 4 ($100,000 - $249,999)

205

Registration – level 4 ($250,000 - $499,999)

350

Registration – level 5 ($250,000 - $499,999)

400

Registration – level 5 ($500,000 - $2,999,999)

2,100

Registration – level 6 ($500,000 - $2,999,999)

2,430

Registration – level 6 ($3,000,000 - $4,999,999)

3,750

Registration – level 7 ($3,000,000 - $4,999,999)

4,065

Registration – level 7 ($5,000,000 - $14,999,999)

24,500

Registration – level 8 ($5,000,000+)

32,405

Registration – level 8 ($15,000,000+)

35,000

 


ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Industrial Chemicals Charges (Customs) Amendment Regulations 2024

 

The Industrial Chemicals Charges (Customs) Amendment Regulations 2024 (the Amendment Regulations) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Regulations

The Industrial Chemicals Act 2019 (the Act) establishes the Australian Industrial Chemicals Introduction Scheme (AICIS), the national regulatory framework for the introduction (importation or manufacture) of industrial chemicals.

It is government policy that the full costs of AICIS activities are recovered from the regulated industry through fees for services and charges.

Paragraph 21(a) of the Act provides that the amount of registration charge payable by a person in relation to a registration year is the amount prescribed by regulations made under the Industrial Chemicals Charges (Customs) Act 2019 (the IC Charges (Customs) Act), so far as the charge is a duty of customs.

The Industrial Chemicals Charges (Customs) Regulations 2020 (the principal Regulations) prescribes the amount of registration charge payable by a person in relation to registration under the Act, so far as the charge is a duty of customs, for the purposes of section 7 of the IC Charges (Customs) Act. The principal Regulations set out an eight-level charging structure where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year.

The purpose of the Amendment Regulations is to amend the principal Regulations by adjusting the introduction value thresholds used to determine an introducer’s registration level and reducing the associated levy charges payable for each level (except level 1 which has a nil registration charge). The Regulations maintain the existing eight-level charging structure where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year.

 

Human rights implications

As the Amendment Regulations do not introduce any changes to the principal Regulations other than to implement the changes outlined above, the Amendment Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

The Amendment Regulations are compatible with human rights as they do not raise any human rights issues.

 

 

The Hon Ged Kearney MP

 

Assistant Minister for Health and Aged Care

 

Overview

The Industrial Chemicals Charges (Customs) Amendment Regulations 2024, enacted to address discrepancies in the registration charge structure for the introduction of industrial chemicals in Australia, were introduced under the authority of the Assistant Minister for Health and Aged Care. These regulations amend the existing Industrial Chemicals Charges (Customs) Regulations 2020, which outline the fees and charges for the Australian Industrial Chemicals Introduction Scheme (AICIS). The primary objective of these amendments is to adjust the introduction value thresholds used to determine the registration level of introducers, and to update the registration charge amounts accordingly. This is intended to ensure that the financial burden on registrants more accurately reflects the costs associated with the regulatory activities of AICIS, thereby facilitating better cost recovery from the industry. The Industrial Chemicals Act 2019 establishes AICIS as the national regulatory framework for the importation or manufacture of industrial chemicals, with the policy objective of recovering the full costs of the scheme from the industry through fees and charges. The Industrial Chemicals Charges (Customs) Act 2019 provides the legislative basis for prescribing these charges. The Industrial Chemicals Charges (Customs) Amendment Regulations 2024, therefore, align with the overarching policy of cost recovery by modifying the fee structure to better reflect the costs incurred by AICIS.

Scope and Application

The Industrial Chemicals Charges (Customs) Amendment Regulations 2024 applies to entities and individuals engaged in the introduction of industrial chemicals in Australia. This encompasses both importers and manufacturers of such chemicals, as mandated by the Industrial Chemicals Act 2019, which establishes the Australian Industrial Chemicals Introduction Scheme (AICIS). The Regulations pertain to the registration and associated charges for these introducers, with the primary objective of adjusting the introduction value thresholds used to determine the registration level and updating the corresponding registration charges. The amendments are effective from 1 September 2024 and apply to all registration years beginning on or after this date. The Regulations are consistent with the human rights and freedoms recognised under the Human Rights (Parliamentary Scrutiny) Act 2011, as they do not introduce any changes that would impact applicable rights or freedoms. The existing eight-level charging structure based on the dollar value of industrial chemicals introduced by the registrant in the previous financial year remains in place. The Regulations are subordinate instruments made under the authority of the Industrial Chemicals Charges (Customs) Act 2019, providing flexibility in adjusting fees and charges to ensure the full cost recovery of AICIS activities from the regulated industry.

Key Provisions

The Industrial Chemicals Charges (Customs) Amendment Regulations 2024 (Section 2) will adjust the introduction value thresholds used to determine an introducer’s registration level and update the registration charge dollar amounts for each registration level as set out in the 2024-25 Cost Recovery Implementation Statement (CRIS) for the Australian Industrial Chemicals Introduction Scheme (AICIS) from 1 September 2024. This is achieved through changes to the Industrial Chemicals Charges (Customs) Regulations 2020 (the principal Regulations) (Schedule 1, Item 1). The principal Regulations prescribe the amount of registration charge payable by a person in relation to registration under the Industrial Chemicals Act 2019, so far as the charge is a duty of customs, for the purposes of section 7 of the Industrial Chemicals Charges (Customs) Act 2019. The Amendment Regulations maintain the existing eight-level charging structure, where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year. Under the principal Regulations, a person who introduces (imports or manufactures) an industrial chemical must be registered with AICIS (Industrial Chemicals Act 2019, Section 13(1)). A person who is registered under the Act is liable to pay a registration charge (Industrial Chemicals Act 2019, Section 20). The amount of registration charge payable by a person in relation to a registration year is the amount prescribed by regulations made under the Industrial Chemicals Charges (Customs) Act 2019, so far as the charge is a duty of customs (Industrial Chemicals Act 2019, Section 21(a)). The Governor-General may make regulations prescribing matters required or permitted by the Industrial Chemicals Charges (Customs) Act 2019 to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act (Industrial Chemicals Charges (Customs) Act 2019, Section 9). The Amendment Regulations are made under the Industrial Chemicals Charges (Customs) Act 2019. The Amendment Regulations impose obligations on introducers of industrial chemicals to register with AICIS and pay a registration charge based on the value of chemicals introduced in the previous financial year. The obligation to register and pay the registration charge is set out in the principal Regulations and remains unchanged. The Amendment Regulations adjust the introduction value thresholds and the associated registration charges payable for each level (Schedule 1, Item 1). The introduction value thresholds determine the registration level, and the registration charge is based on the value of industrial chemicals introduced by the registrant in the previous financial year. The Amendment Regulations maintain the eight-level charging structure, where the amount of registration charge payable is based on the value of relevant industrial chemicals introduced by the person in the previous financial year. Failure to comply with the requirements to register and pay the registration charge may result in civil or criminal penalties. The Industrial Chemicals Act 2019 provides for penalties for failure to comply with the requirements to register and pay the registration charge. The maximum penalty for a civil offence is generally determined by the amount of the charge and can vary depending on the circumstances. For criminal offences, the maximum penalty can include fines and imprisonment, depending on the severity of the offence. The Amendment Regulations do not introduce any new offences or penalties but adjust the registration charge amounts based on the introduction value thresholds. The existing penalties for failure to comply with the registration and charge payment requirements remain in place.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.