Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3)

Administered by Department of Health, Disability and Ageing

Legislation au F2004B00275 Regulations Not in force Legislative Instrument

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Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3) 2004 No. 246

EXPLANATORY STATEMENT

STATUTORY RULES 2004 No. 246

Issued by the Authority of the Parliamentary Secretary to the Minister for Health and Ageing

Industrial Chemicals (Notification and Assessment) Act 1989

Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3)

Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) provides in part that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The object of the Act is to provide for a national system of notification and assessment of industrial chemicals for the purposes of aiding in the protection of the Australian people and the environment; providing information and making recommendations about industrial chemicals to Commonwealth, State and Territory bodies; giving effect to Australia's obligations under international agreements; and collecting statistics in relation to these chemicals.

The purpose of the Regulations is to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations) to reflect changes that were made to the Act by the Industrial Chemicals (Notification and Assessment) Amendment (Rotterdam Convention) Act 2004 (the Amendment Act). The Amendment Act made a number of changes to the Act to give effect to Australia's obligations under the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (the Convention).

The objective of the Convention is to promote shared responsibility and cooperative efforts among Parties in the international trade of certain hazardous pesticide and industrial chemicals in order to protect human health and the environment from potential harm and to contribute to their environmentally sound use, by facilitating information exchange about their characteristics. The National Industrial Chemicals Notification and Assessment Scheme (NICNAS) will be implementing Australia's obligations under the Convention as they relate to industrial chemicals, except in relation to direct liaison with the Convention Secretariat. International liaison, and in particular, information exchange with the Convention Secretariat and regulatory authorities of other countries that are Parties to the Convention, is the responsibility of the Designated National Authority (DNA). The DNA for industrial chemicals is currently the Department of the Environment and Heritage.

Australia ratified the Convention on 20 May 2004 and the Convention enters into force for Australia on 18 August 2004. As a Party to the Convention, Australia must have legislative or administrative measures in place to implement its obligations under the Convention. These obligations include putting controls in place for the export and the import of the industrial chemicals that are listed in Annex III to the Convention.

Annex III to the Convention lists chemicals that have been notified as severely restricted or banned due to health or environmental reasons by other countries participating in the voluntary PIC Procedure. As a Party to the Convention, Australia must ensure that the chemicals listed in Annex III are not exported to countries that do not wish to receive them. Similarly, Australia must also ensure that the chemicals listed in Annex III that it does not wish to receive are not imported to Australia. Regulations are therefore required to control the import and export of some of these Annex III chemicals, where controls are not already in place in Australia.

Subsection 106(1) of the Act provides that if an industrial chemical is the subject of a prescribed international agreement to which Australia is a party, the regulations may prohibit, either absolutely or subject to such conditions or restrictions as are prescribed, the introduction or export of the industrial chemical. Regulation 11B of the Principal Regulations currently prescribes the interim PIC procedure for the purposes of subsection 106(1).

The Regulations amends the Principal Regulations to prescribe the Convention for the purposes of subsection 106(1) of the Act. The Regulations also provide that specific chemicals may not be imported or exported without prior authorisation from the Director of NICNAS, which allows NICNAS to comply with Australia's obligations in relation to controlling or preventing export of Annex III listed chemicals to certain countries.

The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

Details of the Regulations are set out in the Attachment.

The Regulations commence on the commencement of Schedule 1 to the Industrial Chemicals (Notification and Assessment) Amendment (Rotterdam Convention) Act 2004.

Subsection 2(1) of that Act provides that Schedule 1 will commence on the later of the day that Act receives the Royal Assent and the day on which the Convention enters into force for Australia. In effect, the Regulations commence on 18 August 2004.

ATTACHMENT

DETAILS OF THE INDUSTRIAL CHEMICALS (NOTIFICATION AND ASSESSMENT) AMENDMENT REGULATIONS 2004 (NO. 3)

Regulation 1 named the Regulations as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3).

Regulation 2 provides for the Regulations to commence on the commencement of Schedule 1 to the Industrial Chemicals (Notification and Assessment) Amendment (Rotterdam Convention) Act 2004.

Regulation 3 provides for Schedule 1 to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).

Schedule 1 - Amendment

Item 1

Item 1 amends regulation 11B to prescribe the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (the Convention) as a prescribed international agreement for the purposes of paragraph 106(1)(a) of the Industrial Chemicals (Notification and Assessment) Act 1989. Regulation 11B currently uses the term "the interim PIC procedure."

Item 1 also inserts new regulation 11C. Subregulation 11C(1) lists the industrial chemicals that are the subject of the Rotterdam Convention that, under new subregulation 11C(2), must not be exported from Australia without the prior written permission of the Director of NICNAS. New subregulation 11C(3) provides that the industrial chemical prescribed by subparagraph 11C(1)(a)(i) must not be introduced into Australia without the prior written permission of the Director of NICNAS.

The note for new subregulation 11C(3) explains that an introducer may also have obligations under section 21 of the Act in relation to the introduction of this chemical.

The note for new regulation 11C makes it clear that it is an offence under subsection 106(5) of the Act to contravene this regulation.

 

Overview

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3) were enacted to align the existing regulatory framework with Australia's obligations under the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. This Convention aims to ensure that the international trade of hazardous chemicals is conducted in a manner that protects human health and the environment. The Regulations amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 to implement Australia's commitments under this Convention, focusing on controlling the import and export of specific chemicals listed in Annex III of the Convention. By doing so, the Regulations facilitate the implementation of the PIC Procedure, which requires exporting countries to obtain the consent of importing countries before exporting hazardous chemicals. The Regulations were made under the authority of the Industrial Chemicals (Notification and Assessment) Act 1989, which seeks to establish a national system for the notification and assessment of industrial chemicals. The objective of this Act is to safeguard the health of Australians and the environment by providing information and recommendations on industrial chemicals to relevant authorities, while also adhering to international agreements such as the Rotterdam Convention. The Regulations ensure that Australia meets its obligations under this Convention by implementing measures to control the export and import of certain hazardous chemicals, thereby promoting shared responsibility and cooperative efforts among parties involved in the international trade of these substances.

Scope and Application

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3) primarily apply to the implementation of Australia's obligations under the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. These regulations amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 to ensure that Australia meets its international commitments regarding the trade of specific hazardous chemicals. This applies to all entities involved in the import or export of industrial chemicals, particularly those listed in Annex III of the Convention, which are severely restricted or banned due to health or environmental reasons. The regulations cover industrial chemicals that are subject to the Rotterdam Convention, ensuring that they are not exported to countries that have opted out of receiving them and are not imported into Australia if Australia does not wish to receive them. The geographic reach of these regulations is national, with enforcement by the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), subject to oversight by the Designated National Authority, currently the Department of the Environment and Heritage. The regulations do not specify any exclusions or exemptions but establish strict controls on the trade of listed chemicals, requiring prior authorisation from the Director of NICNAS for their introduction or export. The Regulations came into effect on 18 August 2004, aligning with the commencement of Australia's obligations under the Rotterdam Convention.

Key Provisions

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 3) (the Regulations) amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations) to implement Australia's obligations under the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) empowers the Governor-General to make regulations that are necessary or convenient for carrying out or giving effect to the Act. The Regulations prescribe the Convention for the purposes of subsection 106(1) of the Act and provide that specific chemicals may not be imported or exported without prior authorisation from the Director of the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) (section 2(1)). Regulation 11C, introduced by the Regulations, lists the chemicals that must not be exported or imported without prior written permission from the Director of NICNAS (regulation 11C(1) and (3)). This amendment ensures that Australia can control the export and import of Annex III chemicals listed in the Convention to prevent their distribution to countries that do not wish to receive them. The Regulations impose several obligations on parties involved in the import and export of industrial chemicals. Firstly, the Regulations require that specific chemicals listed in Annex III of the Convention cannot be exported or imported without prior authorisation from the Director of NICNAS (regulation 11C(1) and (3)). This requirement ensures that the chemicals are subject to the necessary checks and approvals before entering or leaving Australia, thereby supporting Australia's compliance with the Convention. Secondly, the Regulations mandate that any introducer of these chemicals must also comply with any obligations under section 21 of the Act, which may include notifying NICNAS of the introduction of the chemical (regulation 11C(3) note). These obligations are crucial for maintaining the safety and environmental standards set by the Convention. Failure to comply with the Regulations may result in civil or criminal penalties. Under subsection 106(5) of the Act, it is an offence to contravene regulation 11C of the Regulations, which prohibits the export or import of certain chemicals without prior authorisation. The exact penalties for such offences are not specified in the Regulations themselves but can be inferred from the general provisions of the Act. Typically, breaches of the Act may result in substantial fines or imprisonment, reflecting the seriousness of non-compliance with chemical safety and environmental protection laws. The introduction of these Regulations underscores the importance of adhering to international agreements and the potential consequences of failing to do so.

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