Choose from 5 options:
2. Policy and statutory authority to charge (cost recover)
2.1 Government policy approval to charge for this regulatory activity
The policy authority to fully recover the cost of activities of industrial chemical regulation was provided for in the 1994-95 Budget under the measure “Implementing full cost recovery in 1996–97 for National Industrial Chemicals Notification and Assessment Scheme”.
Reforms to the regulation of industrial chemicals were implemented through the establishment of AICIS, which replaced the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) on 1 July 2020.
The establishment of AICIS maintained the Government’s policy position that the full cost of regulatory activities be recovered through fees and charges paid by regulated entities (introducers of industrial chemicals). Full cost recovery continues to be applied and is considered appropriate because introducers continue to create the need for industrial chemicals in the marketplace to be regulated.
Refer to Section 3 for further details.
2.2 Statutory authority to charge
Fees for services are specified in Ministerial rules made under the:
Charges are specified in regulations made under the:
- Industrial Chemicals Charges (Customs) Act 2019
- Industrial Chemicals Charges (Excise) Act 2019
- Industrial Chemicals Charges (General) Act 2019
The three charges Acts provide the statutory basis for the registration charge to be based on annual introduction value. As AICIS regulates both the importation and manufacture of industrial chemicals, the registration charge could be legally characterised not only as a tax but also as a duty of customs or a duty of excise requiring three separate Acts.