Commonwealth Numbered Regulations - Explanatory Statements

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INDUSTRIAL CHEMICALS (NOTIFICATION AND ASSESSMENT) AMENDMENT REGULATIONS 2004 (NO. 4) 2004 NO. 388

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 (Low Regulatory Concern Chemicals) Act 2004 (the Amendment Act). The Amendment Act received the Royal Assent on 13 July 2004 and commenced on 9 August 2004.

The Amendment Act made a number of changes to the Act in relation to low regulatory concern chemicals and other miscellaneous matters. In particular, the Amendment Act introduces industry reforms for fast tracking of assessment processes that are counter balanced with enhanced public access to information, increased record keeping requirements and enhanced compliance activity. The amendments do not change the objects of the Act, but introduce flexibility into the current assessment process for industrial chemicals to enable the fast tracking of low regulatory concern chemicals while maintaining existing levels of worker safety, public health and environmental standards.

Paragraph 110(1)(ea) was inserted into the Act by the Amendment Act. It provides that the regulations may prescribe fees in respect of an application made under

section 23A of the Act for a self-assessed assessment certificate. The audited

self-assessment system allows introducers of new low regulatory concern chemicals to conduct the risk-assessment of the chemicals themselves against criteria and guidelines issued by NICNAS and/or prescribed by the regulations. Together, regulation 13 of the Principal Regulations and Schedule 2 to the Principal Regulations currently prescribe all the application fees for applications relating to industrial chemicals. The regulations amend regulation 13 to include application fees for a self-assessed assessment certificate for low regulatory concern chemicals.

Paragraph 110(1)(aa) was inserted into the Act by the Amendment Act. It provides that the regulations may prescribe fees in respect of an application made under section 13B for optional early listing on the non-confidential section of the Australian Inventory of Chemical Substances (AICS). Generally, a chemical is listed on the non-confidential section of AICS five years after the assessment certificate for that chemical was issued. However, certificate holders may request that an assessed chemical be included on the non-confidential section of the AICS before the five-year period following the issue of the certificate has ended. The advantage of early listing is that chemicals on the AICS can be used by the entire sector, thereby reducing industry's time and cost to gain access to new chemicals introduced into the Australian marketplace. The Regulations amend Schedule 2 to the Principal Regulations to prescribe a fee of $588.00 for such an application.

Paragraphs 110(1)(cb) and 110(1)(cd) were also inserted into the Act by the Amendment Act. These paragraphs respectively provide that the regulations may prescribe fees for an application under section 21B for a renewal of a commercial evaluation permit and an application under section 21R for a renewal of a low volume permit. A commercial evaluation permit allows introducers to introduce chemicals solely for the purpose of evaluating their commercial potential. A low volume permit allows introducers to introduce less than 100kg per year of a chemical for the purpose of evaluating its commercial potential. Each of the permits is valid for 3 years, and can be renewed for a further 3-year period. The Regulations amend Schedule 2 to the Principal Regulations to prescribe a fee of $588.00 for the renewal of each of these permits.

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 date of their notification in the Gazette.

ATTACHMENT

DETAILS OF THE INDUSTRIAL CHEMICALS (NOTIFICATION AND ASSESSMENT) AMENDMENT REGULATIONS 2004 (NO. 4)

Regulation 1 provides for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2004 (No. 4).

Regulation 2 provides for the Regulations to commence on the date of their notification in the Gazette.

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

Schedule 1 - Amendments

Item 1

This item amends regulation 13 to prescribe application fees for self-assessed assessment certificates for new industrial chemicals. The self-assessed assessment certificates can only be used for low regulatory concern chemicals. The prescribed fees are:

(a)       if the application is in respect of a polymer of low concern - $2,266;

(b)       if the application is in respect of a non-hazardous chemical that is a synthetic polymer with a number average molecular weight that is equal to or greater than 1,000 (other than a non-hazardous chemical to which paragraph (a) applies) - $6,730;

(c)       if the application is in respect of a non-hazardous chemical (other than a

non-hazardous chemical to which paragraph (a) or (b) applies) - $8,035.

The three categories and three fees that are prescribed reflect the different amounts of information needed to conduct risk-assessments of different broad groups of chemicals.

Item 2

This item prescribes a fee of $588 for an application under section 13B of the Industrial Chemicals (Notification and Assessment) Act 1989 for optional early listing on the Australian Inventory of Chemical Substances that is made after 28 days of the giving of the assessment certificate.

Item 3

This item prescribes a fee of $588 for a renewal of a commercial evaluation permit.

Item 4

This item prescribes a fee of $588 for a renewal of a low volume permit.