Therapeutic Goods Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1998B00228 Regulations Not in force Legislative Instrument

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Therapeutic Goods Regulations (Amendment) 1998 No. 247

EXPLANATORY STATEMENT

STATUTORY RULES 1998 NO. 247

Issued by authority of the Minister for Health and Family Services

Therapeutic Goods Act 1989

Therapeutic Goods Regulations (Amendment)

The object of the Therapeutic Goods Act 1989 (the Act) is to establish and maintain a national system of controls for the quality, safety, efficacy and timely availability of therapeutic goods that are used in Australia or are exported from Australia. The Therapeutic Goods Administration (the TGA) is responsible for administering the Act.

Section 63 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The Governor-General may make regulations prescribing a range of application, processing or evaluation fees payable in connection with the processing of applications to include therapeutic goods in the Australian Register of Therapeutic Goods (the Register) and the variation of information contained in the Register about those goods - subsection 63(1) and paragraphs 63(2)(h) and 63(3)(a). Fees maybe prescribed for the evaluation of data concerning therapeutic goods or the inspection of manufacturing operations - paragraphs 63(2)(g) and (h). Regulations may also be made for the refund, reduction or waiving of fees or charges in cases identified in the Regulations - paragraph 63(3)(b).

The purpose of the regulations is to implement the final stage of the decision that TGA is to recover from industry the total cost of the regulation of therapeutic goods. To achieve 100% cost recovery it is necessary to increase a range of fees and charges. To minimise the impact on industry of the increases in charges, industry and Government agreed to phase in these increases. In framing the 1997/98 Budget, Government decided to increase the level of cost recovery from 75% in 1997/98 to 100% in 1998/99. TGA has consulted with industry about the increases.

The increases in fees contained in the proposed regulations have been made in conjunction with the increases in charges made under the accompanying Therapeutic Goods (Charges) Regulations (Amendment),

Details of the Regulations are set out in the Attachment.

The Regulations commence on 1 August 1998.

ATTACHMENT

DETAILS OF THERAPEUTIC GOODS REGULATIONS (AMENDMENT)

Regulation 1 provides for the Regulations to commence on 1 August 1998.

Regulation 2 provides for the Therapeutic Goods Regulations to be amended as set out in these Regulations.

Subregulation 3.1 increases the amount of the prescribed reduced evaluation fees payable under subregulation 45(4A) in certain circumstances

Subregulation 3.2 removes subregulations 45(5), (6) and (7) that provided for different reduced evaluation fees for related applications to register certain drugs.

Subregulation 3.3 has the effect of increasing the discounted fees payable under subregulations 45(8) and (9) that involve evaluating related applications to register therapeutic devices.

Subregulation 3.4 increases the amounts of a range of application fees payable under subregulation 45(11) for processing applications to vary information about therapeutic devices.

Subregulation 4.1 removes application fees for applications that incur an evaluation fee for evaluating chemistry, quality control and manufacturing information.

Subregulation 4.2 increases the amounts of a range of application fees for the registration of therapeutic goods and fees for evaluating therapeutic goods that are to be imported or exported for experimental purposes in humans where those goods are not registered, listed or exempt goods.

Subregulation 4.3 increases the application fees where a previous registration was cancelled solely because the sponsor of the cancelled goods failed to pay an annual charge, and where the application to reregister the goods is made within 30 days of the cancellation..

Subregulation 4.4 has the effect of increasing the fees for varying an entry in the Register.

Subregulation 4.5 increases the application fees for listing therapeutic goods.

Subregulation 4.6 increases the application fees where a previous listing was cancelled solely because the sponsor of the cancelled goods failed to pay an annual charge, and where the application to re-list the goods is made within 30 days of the cancellation..

Subregulation 4.7 removes what was an unnecessary item for a toxicology evaluation.

Subregulation 4.8 has the effect of increasing the evaluation fees for therapeutic goods that are evaluated by the Drug Safety and Evaluation Branch of TGA.

Subregulation 4.9 inserts a new item into Schedule 9 to cover the administrative costs incurred where an application for the registration of a prescription drug is rejected or withdrawn before acceptance for evaluation. A new item is necessary as application fees for prescription drugs that previously would have recovered these costs have be abolished.

Subregulation 4.10 increases licence application fees and fees for evaluating:

*       therapeutic devices listed in Part 2 of Schedule 33 that attract lower fees

*       whether good manufacturing practices have been adopted for therapeutic goods wholly

       or partially made outside Australia

*       data concerning applications to vary an entry in the Register for either types of these

       goods.

Subregulation 4.11 increases the fees for evaluating.

*        therapeutic goods that are not covered by item 4 of Schedule 9 or variations of an

       entry in the Register for these goods

*        therapeutic devices listed in Part 1 of Schedule 3 that attract higher fees, or changes in

       these types of devices, where that involves evaluating the matters listed in item 6 of

       Schedule 9

*       overseas data supporting applications to register a device.

Subregulation 4.12 has the effect of introducing one uniform hourly rate for inspections in Australia and another uniform rate for overseas inspections to ensure that licence holders maintain good manufacturing practices.

Subregulation 4.13 increases the fees for evaluating steps in the manufacture of therapeutic goods by reference to what is commonly called the plant master file.

Subregulation 4.14 increases the application fee for certification under the World Health Organisation Scheme on the Quality of Pharmaceutical Products Moving in International Commerce.

Subregulation 4.15 has the effect of introducing one uniform fee for notifying an intention to sponsor a clinical trial of a specified drug. The fee is set at the old fee for a trial by 1 body. A higher fee for a trial by more than 1 body is abolished.

Subregulation 4.16 corrects an erroneous reference in item 14A of Schedule 9 to 'drug' so that it reads 'device'.

Subregulation 4.17 increases the fee for notifying an intention to sponsor a clinical trial of a specified therapeutic device.

Overview

The Therapeutic Goods Regulations (Amendment) 1998 No. 247 was enacted to implement amendments to the Therapeutic Goods Regulations 1990 under the Therapeutic Goods Act 1989. This legislation was introduced to address the need for the Therapeutic Goods Administration (TGA) to achieve full cost recovery for regulating therapeutic goods. The regulations were issued by authority of the Minister for Health and Family Services, and the primary policy objective is to increase the fees and charges associated with the regulation of therapeutic goods to cover the total cost of regulation. The amendments aim to phase in these increases to minimise the impact on industry, transitioning from 75% cost recovery in 1997/98 to 100% in 1998/99. The regulation details various fee increases for application processing, evaluation, and inspections, alongside adjustments to remove redundant fees and standardise rates. These changes are intended to align the fees with the operational costs and ensure sustainable funding for the regulatory activities of the TGA.

Scope and Application

The Therapeutic Goods Regulations (Amendment) 1998 No. 247 applies to any person or entity involved in the regulation, registration, evaluation, or manufacturing of therapeutic goods within Australia or for export from Australia. This includes pharmaceutical companies, medical device manufacturers, and other entities dealing with therapeutic goods as defined under the Therapeutic Goods Act 1989. The regulations pertain to the fees associated with the processing of applications to include therapeutic goods in the Australian Register of Therapeutic Goods (the Register) and the variation of information in the Register. The amendments aim to implement a full cost recovery system for the regulation of therapeutic goods by the Therapeutic Goods Administration (TGA), increasing a range of fees and charges to achieve this objective. The regulations apply nationally across Australia and are in effect from 1 August 1998. The regulations do not explicitly state any exclusions or exemptions, but the scope of application is implicitly limited to those involved in the specified activities within the therapeutic goods industry. The application and enforcement of these regulations may be further extended or restricted through subordinate instruments as deemed necessary by the TGA.

Key Provisions

The Therapeutic Goods Regulations (Amendment) 1998 No. 247 primarily amends the Therapeutic Goods Regulations by increasing various fees related to the registration, evaluation, and inspection of therapeutic goods in Australia. Regulation 2 outlines the amendments to the Therapeutic Goods Regulations, which include adjustments to fees for reduced evaluation (subregulation 3.1), removal of certain reduced evaluation fees (subregulation 3.2), increased discounted fees for related applications (subregulation 3.3), and higher fees for processing applications to vary information about therapeutic devices (subregulation 3.4). Additionally, several application fees for registering and evaluating therapeutic goods are increased (subregulation 4.2), and specific fees related to toxicology evaluations, rejected applications, and manufacturing practices are modified (subregulations 4.6 to 4.17). The amendments impose obligations on industry to pay the increased fees when submitting applications to the Therapeutic Goods Administration (TGA) for the registration, listing, or evaluation of therapeutic goods. The TGA is responsible for implementing these fee changes, ensuring that all applicable fees are correctly applied to new and amended applications submitted post-August 1, 1998. These changes aim to achieve 100% cost recovery for the regulation of therapeutic goods, with a phased approach to mitigate the impact on industry. Breach of these regulations by failing to pay the prescribed fees or charges can result in enforcement actions by the TGA. The Therapeutic Goods Act 1989 provides for various civil and criminal penalties for non-compliance. Specifically, section 83A imposes a maximum penalty of 10,000 penalty units for breaches related to the provision of false or misleading information in applications or documents. For offences under section 83B, which pertains to contravening the Act, the maximum penalty is 100,000 penalty units or imprisonment for five years, or both, for individuals, and 500,000 penalty units for bodies corporate. These penalties underscore the importance of compliance with the amended regulations to avoid legal repercussions.

Legal classification tags

Area of Law
Administrative Law
Regulatory Standards
Instrument
Regulation
Concepts
Definitions & Interpretation
Fees
Regulatory Standards
Enforcement Powers
Catchwords
Evaluation Fees
Application Fees
Inspection Fees

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