Basic information
Outline of the system
Australia manages its obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer for ozone depleting substances and hydrofluorocarbons (HFCs) and, for synthetic greenhouse gases other than HFCs, the United Nations Framework Convention on Climate Change (UNFCCC), through the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
The import, export and manufacture of the ozone depleting substances - chlorofluorocarbons, halons, carbon tetrachloride, methyl chloroform, bromochloromethane and methyl bromide (for non quarantine and pre-shipment use) is prohibited under the Montreal Protocol except where an essential or critical use exemption has been granted by the parties to the Montreal Protocol. The phase out of ozone depleting hydrochlorofluorocarbons (HCFCs) under the Montreal Protocol is almost complete. Control measures for HFCs under the Kigali Agreement to the Montreal Protocol commenced on 1 January 2019 to phase-down the production and import of HFCs.
Australia’s Montreal Protocol obligations are implemented through licensing controls and quota restrictions on HCFCs and HFCs, and licensing of imports of methyl bromide. A licence is required to import equipment containing HFCs. The import of equipment containing HCFCs is prohibited except in certain limited circumstances when an import licence may be granted.
Australia controls the import and manufacture of other synthetic greenhouse gases (perfluorocarbons, sulfur hexafluoride and nitrogen trifluoride) in accordance with its obligations under the Kyoto Protocol of the UNFCCC. A licence is required to import, export and manufacture synthetic greenhouse gases and to import products containing synthetic greenhouse gases.
Product coverage
The requirements of the licensing system are:
• Controlled substances:
o import, export or manufacture of bulk methyl bromide, with the quantity of methyl bromide permitted to be imported for non-quarantine and pre-shipment fumigations limited to the quantity approved by the Montreal Protocol;
o import, export or manufacture of bulk HCFCs and HFCs, with import quotas set in line with Montreal Protocol phase-out obligations and Australia’s domestic policy to accelerate phase-out of HCFCs and phase-down of HFCs;
o import, export or manufacture of bulk perfluorocarbons, sulfur hexafluoride and nitrogen trifluoride, with no restrictions on quantity.
• Essential use:
o import, export or manufacture of bulk hydrochlorofluorocarbons, chlorofluorocarbons, halons, carbon tetrachloride, methyl chloroform and bromochloromethane approved for essential use by the parties to the Montreal Protocol.
• Used substances:
o import and export of bulk used chlorofluorocarbons, halons, carbon tetrachloride, methyl chloroform, bromochloromethane, methyl bromide, hydrochlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and nitrogen trifluoride;
• Equipment licences:
o Import of pre-charged equipment containing synthetic greenhouse gases. The import of some equipment is restricted. The import of equipment containing ozone depleting substances is prohibited except in certain limited circumstances when a licence may be granted. Importers who import up to 25 kilograms of synthetic greenhouse gas (HFCs, perfluorocarbons, sulfur hexafluoride and nitrogen trifluoride) in equipment in a calendar year do not need an equipment licence.
Licence conditions and reporting requirements apply in relation to all licences issued.
The import and manufacture of equipment that contains or is designed to operate solely on an HCFC is prohibited under the legislation, except in certain circumstances when an equipment licence may be granted. Exemptions apply to:
• importing replacement parts for HCFC refrigeration or air conditioning equipment (this does not include a complete or substantially complete indoor or outdoor unit of a split system air conditioner);
• importing equipment insulated with foam manufactured with HCFC;
• the equipment is incidental to the main import, and it is impractical to remove or retrofit the equipment (for example equipment incorporated into a large boat or drilling rig);
• the equipment is essential for medical, veterinary, defence, industrial safety or public safety purposes, and no practical and effective alternative exists;
• the equipment is for use in conjunction with the calibration of scientific, measuring or safety equipment; or,
• the equipment is for test, monitoring, or laboratory and analytical use where there is no practical and effective alternative to that equipment.
Exemptions from licensing requirements apply in limited circumstances for the import or manufacture of certain products containing synthetic greenhouse gases. Exemptions have been approved for metered dose inhalers and imported foam products.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The licensing system implements Australia’s legal obligations under the Montreal Protocol. As well as limits on production and consumption of ozone depleting substances and HFCs leading to eventual phase-out or phase-down, the Montreal Protocol requires the establishment of a licensing and quota system.
Questions for products under restriction as to the quantity or value of imports
The quantity of controlled ozone depleting substances and HFCs that can be imported into Australia is limited through the Montreal Protocol. These limits and the quota system are also outlined in the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. There is no import limit on other synthetic greenhouse gases.
Please see Answers 6.1-6.11.
The system applies to products originating from which country?
The system applies to goods from all countries, with restrictions applying to trade of ozone depleting substances with countries that are not party to the Montreal Protocol.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
Licensing is a legislative requirement. It is an offence to import, export or manufacture a scheduled substance without a licence.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The legislation does not leave designation of products to administrative discretion. All substances that require licences are specified in a schedule to the legislation. No other substances require licensing under this legislation.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
(a) Under restrictive licensing systems, noting the quota restrictions for HCFC imports, all persons, firms and institutions are eligible to apply for licences.
(b) Under non-restrictive systems, all persons, firms and institutions are eligible to apply for licences.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Department of the Environment
Address
John Gorton Building, King Edward Terrace, Parkes, ACT 2600
Telephone
Tel: +61 6274 1111
Fax
Contact officer
Mr Patrick McInerney
Submission of an application
Administrative body(ies) for submission of an application
Department of the Environment
Documentation requirements
What information is required in applications?
Controlled Substance, Essential Use, Used Substance and Pre-charged Equipment application forms are available on the DCCEEW website at: https://www.dcceew.gov.au/environment/protection/ozone/licences-and-repo...
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
A licence for import of pre-charged equipment may be applied for at any time, prior to the goods being imported.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Controlled substances licences can be granted at any time during the licence period. If granted, the licence will expire at the end of the current licence period, regardless of when the licence was actually granted. Ozone Depleting Substance / Synthetic Greenhouse Gas Equipment, licences are valid for two years from the date of issue.
Issuing the license
Can a licence be granted immediately on request?
The application must be assessed within the terms of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. There is no minimum waiting period for assessment once all information has been provided and the application fee paid.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Consideration will be given to granting a licence after goods have arrived. Applicants are discouraged from organising an import until a permit or a licence has been granted.
Under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, licence applications must be assessed within 60 days of receipt.
Which administrative body is responsible for approving application of licences?
The Department of Agriculture, Water and the Environment considers licence applications.
Must the applications be passed on to other organs for visa, note or approval?
No other agencies are involved.
Are there any other conditions attached to the issue of a licence?
Licensees are not permitted to trade in ozone depleting substances with non-parties to the Montreal Protocol. General conditions of the licence are that the licensee must have arrangements in place to manage their product at its end of life, generally through a product stewardship scheme; and must provide quarterly activity reports and pay the appropriate import levy, as per the Ozone Protection and Synthetic Greenhouse Gas Act 1989.
Conditions may also apply to the purpose to which the imported substance is to be applied if its consumption has been approved for a specific purpose through the Montreal Protocol.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Licence application fees are charged
What is the amount of the fee or charge?
Fees are: Controlled substances - $15,000; Essential Use - $3,000; Used Substance - $15,000; and Pre-charged Equipment - $3,000.
In addition, holders of a controlled substance licence are required to pay a quarterly activity fee: HCFC - $3,000 per ODP (Ozone Depleting Potential) tonne; Methyl Bromide - $135 per tonne; synthetic greenhouse gases - $165 per tonne.
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issue of licences.
Amount or rate?
There is no deposit or advance payment requirement associated with the issue of licences.
Is it refundable?
There is no deposit or advance payment requirement associated with the issue of licences.
What is the period of retention?
There is no deposit or advance payment requirement associated with the issue of licences.
What is the purpose of this requirement?
There is no deposit or advance payment requirement associated with the issue of licences.
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
A licence may be refused if the applicant does not meet ordinary criteria.
Are the reasons for any refusal given to applicants?
Where applications are refused, applicants will be given the reasons for such refusal on request.
Have applicants a right of appeal in the event of refusal to issue a licence?
An applicant may apply to the Administrative Appeals Tribunal for a review of the decision not to issue a licence.
If so, to what bodies and under what procedures?
Alternatively, an appeal may be made on the decision-making process itself under the Administrative Decisions (Judicial Review) Act 1977.
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
Upon importation, an importer must present standard customs documentation along with a valid licence issued under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Licences are valid for the licence period and cannot be extended.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a licence or a portion of a licence
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Yes. Transferee must be a fit and proper person to be a licence holder. A joint application by the transferor and transferee is made to the Department of Agriculture, Water and the Environment.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Not applicable.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
Licences for import of controlled substances, used substances and pre-charged equipment are issued for two years. Fixed end dates apply to controlled substances and used substances licences, while pre-charged equipment licences are valid for two years from the date of issue. Most controlled substance licences for an ozone depleting substance and HFCs specify the amount permitted to be imported or manufactured during the licence period. Essential use licences are issued annually. Each licence specifies the maximum amount and type of substance to be imported for the entire duration of the licence.
HCFC and HFC import quotas are based on the total annual consumption (i.e. production plus imports, minus exports) limit under the Montreal Protocol, adjusted for Australia’s accelerated phase-out and phase-down policy as applicable. Individual HCFC and HFC import quotas are based on past imports. There is provision for limited HFC quota allocation for new entrants.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Australia has no domestic manufacture of ozone depleting substances and synthetic greenhouse gases. All HCFC and HFC quota holders are importers of substances. Any company wishing to manufacture these substances in Australia would be subject to the same licensing and quota requirements as importers.
Unused quotas are not added to those of the succeeding period as limits under the Montreal Protocol and domestic legislation are not cumulative. The names of Australian importers are available to the public on the DCCEEW website.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Licence applications may be made at any time. The DEECCW will seek licence reapplications for a new licence period up to six months prior to the commencement of the licence period.
Consideration of a licence application may take up to 60 days. The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 provides that if after 60 days the Minister or delegate has not granted a licence or sought more information, the application is deemed to be refused, unless a formal request for additional information has been made. A request for more information provides 60 days from the date the information is received for the application to be granted or refused. If it is not granted in this period it is deemed to be refused.
What are the minimum and maximum lengths of time for processing applications?
See IV above.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Licences can be granted at any time before or during a licence period.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The authority to grant or refuse licences lies with the Minister for the Environment. This power has been delegated to certain officers in the DCCEEW. Applicants need only apply to the DCCEEW.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
There is no limit to the number of licences that can be issued under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. The quantity of ozone depleting substances and HFCs that can be imported is limited under the Montreal Protocol and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989. HCFC and HFC imports are managed through a quota system, based on past imports. There is provision for HFC quota allocation for new entrants.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.