August 2012
NEW OBLIGATIONS FOR IMPORTERS OF
PRODUCTS AND EQUIPMENT CONTAINING
SYNTHETIC GREENHOUSE GASES:
GUIDANCE FOR ‘LOW VOLUME’ IMPORTERS
Under the Australian Government’s Clean Energy Future Plan, importers of products or
equipment containing a broadened range of synthetic greenhouse gases are required to hold
an import licence since 1 July 2012. In addition, importers of such products and equipment are
required to pay a levy incorporating the equivalent carbon price.
This fact sheet sets out the new requirements
applying to low-volume imports of products
and equipment containing some synthetic
greenhouse gases. Separate guidance is
available for imports of synthetic greenhouse
gases as bulk gases and for importers of
products and equipment not falling within the
‘low volume’ category.
Before 1 July 2012, any importers of
refrigeration or air conditioning equipment
containing hydrofluorocarbons (HFCs), and of
refrigeration equipment containing
hydrochlorofluorocarbons (HCFCs), needed to
be licensed under the Act. Since 1 July 2012,
importers’ are required to have:
Synthetic greenhouse gases are listed under
the Kyoto Protocol, and most have a high
global warming potential. For example, the
most common household refrigerant,
hydrofluorocarbon R134a, has a global
warming potential 1300 times greater than
carbon dioxide.
Greenhouse Gas Equipment licence
(previously called a Pre-Charged
Equipment licence) to import any product
containing HFCs, perfluorocarbons (PFCs)
and/or sulfur hexafluoride (SF6).
The import, export and manufacture of
synthetic greenhouse gases are controlled
under the Ozone Protection and Synthetic
Greenhouse Gas Management Act 1989. This
legislation is administered by the Australian
Government’s Department of Sustainability,
Environment, Water, Population and
Communities.
 an Ozone Depleting Substance/Synthetic
Importers are also required to pay a quarterly
import levy consisting of two components:
(i)
an existing cost-recovery component of
$165 per metric tonne imported
(prescribed rate component), which
covers the administrative costs of the
Ozone/SGG scheme
(ii)
a new carbon charge component based
on an equivalent carbon price,
calculated by multiplying the global
warming potential of the imported
gases by the quantity imported and by
the equivalent carbon price current at
the time of import.
An up-front $3 000 application fee is payable
for these licences, consistent with the current
fee for a Pre-Charged Equipment licence, and
the levy is payable on a quarterly basis.
However, this fee can be reduced to $400
where the following four requirements are
met:
(i)
the applicant for the licence will import
no more than five units of pre-charged
equipment in a single consignment;
(ii)
the total HFC/HCFC, PFC or SF6
charge in the single consignment is less
than 10 kilograms;
(iii) the applicant has not had part of a PreCharged Equipment licence fee waived
in the two years before the date of the
application for the Pre-Charged
Equipment licence; and
(iv) the applicant has paid a licence levy in
relation to the import under section 69
of the Act.
Licensees may claim a refund of the carbon
charge component if they export the synthetic
greenhouse gas or equipment within 12
months of its import, or if they on-sell to a
business which exports the gas or equipment
within 12 months of its import.
Applying for a licence
New application forms for Ozone Depleting
Substance/Synthetic Greenhouse Gas
Equipment licences are available on the
department’s website.
Compliance and enforcement
The Australian Government runs a national
compliance program to monitor and enforce
the licensing and reporting requirements of
the Act, including the payment of the
equivalent carbon price.
In cooperation with the Australian Customs
and Border Protection Service, the
department has a range of monitoring and
inspection arrangements in place. Authorised
inspectors may visit importers’ premises to
inspect, examine, test or take away samples
of gas for testing and/or view records relating
to the gases subject to the Act.
Penalties apply for importing synthetic
greenhouse gases without a licence, as well
as for breaching licence conditions and other
statutory requirements. The Act’s maximum
penalties include fines of up to $1,100,000
and imprisonment of up to two years.
Penalty interest also applies for failure to pay
the levy on time. In addition, the Minister for
Sustainability, Environment, Water,
Population and Communities may cancel a
licence if the licensee is no longer a fit and
proper person to hold a licence, or has
contravened a condition of the licence.
Reporting breaches of the Act
Any information about the acquisition, import,
export, trading or use of gas that may not
comply with the requirements of the Act can
be reported to the department at
www.environment.gov.au/equivalent
carbonprice, email
ozone@environment.gov.au or free call
1800 803 772.
Any information reported to the department is
highly regarded and will be held in strict
confidence.
Products containing synthetic
greenhouse gases
The following list provides guidance on
products that may contain synthetic
greenhouse gases. Please note, listed
products do not always contain these gases.
In some instances, products or equipment
containing synthetic greenhouse gases will
themselves be contained within other
products or equipment. For example, a car or
boat may contain an air conditioning system,
which in turn contains synthetic greenhouse
gases. Importers and exporters should be
aware that the Act’s requirements for an
Ozone Depleting Substance/Synthetic
Greenhouse Gas Equipment licence still apply
in such circumstances.
Category
Contains/explanation
(a) Domestic use airconditioning excluding
heat pumps
Air-conditioning equipment to be used for commercial purposes,
including:
Small and large split and ducted commercial air-conditioning
Water chillers for air-conditioning including: Medium (screw);
Large (centrifugal);
Commercial space heating
Excludes heat pumps
(b) Domestic use airconditioning excluding
heat pumps
Air-conditioning equipment to be used for domestic purposes,
including: portable, window, split, ducted, domestic space heating;
Excludes heat pumps
(c) Motor vehicle,
watercraft or aircraft airconditioning
All mobile air-conditioning equipment including that in, cars,
caravans, light commercial vehicles, heavy vehicles, buses, ships,
boats, or trains
(d) Commercial or domestic
use heat pumps
All domestic and commercial heat pumps, including: Air and ground
source, domestic hot water, commercial space heating and
swimming pool heat pumps.
(e) Commercial use
refrigeration
Refrigerators, freezers to be used for commercial purposes,
including:
Integral display cases, vending machines, cold drink dispensers,
cellar coolers, cold/chill rooms;
Industrial systems, small and large distributed direct expansion,
industrial chillers, ultra low temperature systems, on-farm milk
cooling, hospital cooling equipment
(f)
Refrigerators, freezers and other refrigeration equipment to be
used for domestic purposes.
Domestic use
refrigeration
(g) Motor vehicle,
watercraft or aircraft
refrigeration
Includes:
Belt driven road transport refrigeration, Independent engine road
transport refrigeration, refrigerated containers;
Refrigerators and freezers for use in caravans, ships, boats, or
trains
(h) Expanding polyurethane
foam aerosols
One component foam, expanding polyurethane foam
(i)
Food products, household products, waxes and polishes, laundry
products, personal care products, hairsprays, hair colours.
Food, household and
personal use aerosols
Category
Contains/explanation
(j)
Aerosol fire alarm sounders and other sounding alarms including
party horns, lubricant aerosols, industrial and automotive aerosols,
air dusters, mine blast bags, mine marking paints, industrial and
decorative paints and furnishes, aeroplane disinsectides,
insecticides and pesticides, crack detection aerosols, tyre inflating
aerosols, other industrial, safety and technical aerosols
Industrial, safety or
technical use aerosols
excluding fire protection
equipment mentioned in
paragraphs (q) or (r)
(k) Metered dose inhalers
Metered dose inhalers, also known as ‘asthma puffers’, for
treatment of conditions such as asthma and chronic obstructive
pulmonary disease
(l)
Silly string, snow, items not covered in other aerosol categories
Novelty use aerosols or
any other aerosol not
mentioned paragraph
(h) to (k)
(m) Consumer goods not
mentioned in
paragraphs (h) to (l)
Sport shoes, car tyres, double glazing, cosmetics that are not
aerosols
(n) Electrical switchgear
High, medium and low voltage switchgear
(o) Components and parts
that contain ODS
equipment or SGG
equipment
Parts and components for use in ODS equipment or SGG
equipment
(p) Medical, scientific, or
electrical equipment not
mentioned in any other
paragraph
Medical equipment (excluding those that could be included in the
categories above such as metered dose inhalers or hospital
refrigeration or air-conditioning equipment), non-aerosol
fingerprinting equipment, heat pipes / thermal transfer, organic
rankine cycles; non-aerosol industrial cleaning solvents; other
electrical equipment not covered above
(q) Fixed systems and
components for fire
protection not
mentioned in any other
paragraph
Fixed fire systems and components
(r)
Portable fire equipment, not including fire alarm sounders (included
in aerosols above)
Portable extinguishers
for fire protection not
mentioned in any other
paragraph
1 An exemption from the equivalent carbon price for imports of metered dose inhalers has been approved. However, importers of these
products will still require Ozone Depleting Substance/Synthetic Greenhouse Gas Equipment licences under the Ozone Protection and
Synthetic Greenhouse Gas Management Act 1989, and will be required to pay the licence application fees.
More information
For more information about the Clean Energy
Future package, go to the website:
www.cleanenergyfuture.gov.au/cleanenergyfuture/our-plan.
For more information about the government’s
administration of synthetic greenhouse gases,
including information on other categories of
import licence, please go to
www.environment.gov.au/equivalent
carbonprice, email
ozone@environment.gov.au or phone the
department on 1800 803 772.