GUIDANCE ON MEASURING INSTRUMENTS IN USE FOR TRADE To address any uncertainty and differing interpretations in the market about the definition of measuring instruments ‘in use for trade’, and their application in the market place—particularly with pre-packaged goods—NMI has prepared this advice to provide clear guidance on the use of a measuring instrument for trade. Whether you are a packer, seller or purchaser of goods that are measured for the purpose of trade, this advice should help you understand what your requirements are under trade measurement law, and how they should be put in to practice. We have formulated our advice in a FAQ format below responding to questions most often asked by industry. Q1. Who is responsible for determining whether the measuring instrument is used for trade? It is the trader’s responsibility to decide whether the measuring instrument is being used for trade. The National Measurement Act 1960 (Cth) states that any measuring instrument in a trade premises is presumed to be used for trade, therefore such measuring instruments must be of an NMI-approved pattern and verified, unless the contrary can be established. Q2. What is the definition of a measuring instrument ‘in use for trade’? A measuring instrument used to determine the measurement of an item (e.g. meat) or service (e.g. freight, postage) from which the price of the item is calculated. This includes measuring instruments that are used to randomly check the quantity of goods delivered, and to adjust the measurements in the transaction. Q3. When is a measuring instrument ‘not in use for trade’? A measuring instrument is ‘not in use for trade’ if it is used: • for quality measurements other than for sugar content in sugar cane or wine grapes, and protein in wheat or barley. • to measure ingredient(s) of an article (e.g. concrete batching plants; mixing compounds in pharmacies; bread in bakeries). • for enforcement activities (e.g. measuring instruments used by Trade Measurement Inspectors, weighbridges for overloading, speed measuring devices, blood alcohol concentration devices). • as a dedicated courtesy scale that is provided for customer use at a retail store (e.g. fruit shop, supermarket etc.) as a guide, where the item is then weighed and priced by the trader at the checkout using a verified measuring instrument • in hotels to check the measurements of bags and other items, where usage either incurs a set charge or is free. • by customers at airport terminals to provide guidance on the measurements of bags and other items, where no fee is charged for its use. • for internal stock and waste control. • by traders to provide an approximate measurement before the goods are measured on a trade approved and verified instrument. • as a screening device to detect potential short measure, but not used to adjust the measurement in the transaction. (i.e. the goods are measured using another trade approved and verified measuring instrument on which an adjustment is made). An example of this is a packer or importer measuring contents of pre-packaged products. In any case, the packer or importer is advised to use a suitable method for the determination of measurement since it is an offence to sell a pre-packaged product under measure. The trader should use caution when using a measuring instrument ‘not in use for trade’ at a trade premises as the instrument could be used for multiple purposes, including the occasional ‘in use for trade’. It is presumed that a measuring instrument in a trade premises must be of a NMI-approved pattern and verified, unless the contrary can be established. Q4. What is the benefit of using an NMI-approved and verified instrument? The principal benefit for the seller is the confidence in having the ability to fill packages accurately so they comply with the quantity statement, and not giving away product unintentionally. The principal benefit for the buyer is confidence that they are getting what they paid for. Q5. Are we required to have a trade measuring instrument for prepackaged goods? While the method of checking the measurement of packages and recording the results of your process and compliance sampling is not required by law, the more extensive your checks and records, the more you can prove that you did everything in your power to ensure the correct measurement of the packages. To learn more about your trade measurement responsibilities for prepackaged goods, please refer to NMI’s Guide to the Sale of Pre-packaged Goods. Q6. We use one or more measuring instruments as part of the packaging process. Are all the measuring instruments required to be of an NMI-approved pattern and verified? No—however, if any of these measuring instruments are used for a trade transaction, they must be of an NMI-approved pattern and verified. This is supported by the National Measurement Act and National Trade Measurement Regulations 2009. National Measurement Institute Bradfield Road, Lindfield, NSW 2070 PO Box 264, Lindfield, NSW 2070 Phone: 1300 686 664 Email: infotm@measurement.gov.au www.measurement.gov.au The purpose of this communication is to provide you with general information only and should not be relied upon for any legal, business or personal purpose. Nothing in this communication shall be taken in any way to replace the provisions of the National Measurement Act 1960 (Cth), the National Trade Measurement Regulations 2009 (Cth) and any other legislative instruments made pursuant to the National Measurement Act 1960. ------------------------------------------------------------------------------------------------------------------------------------YOUR SERVICING LICENSEE