August 2012
NEW OBLIGATIONS FOR IMPORTERS OF
PRODUCTS AND EQUIPMENT CONTAINING
SYNTHETIC GREENHOUSE GASES
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 from 1 July 2012. In addition, importers of such products or equipment are
required to pay a levy incorporating the new equivalent carbon price.
This fact sheet sets out the new requirements
applying to imports of products and equipment
containing some synthetic greenhouse gases.
Separate guidance is available for imports of
synthetic greenhouse gases as bulk gases.
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
that of carbon dioxide.
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.
Prior to 1 July 2012, importers of refrigeration
or air conditioning equipment containing
hydrofluorocarbons (HFCs), and of
refrigeration equipment containing
hydrochlorofluorocarbons (HCFCs), required
a licence under the Act. Since 1 July 2012,
importers’ obligations under the Act have
been broadened.
 An Ozone Depleting Substance/Synthetic
Greenhouse Gas Equipment licence
(previously a Pre-Charged Equipment
licence), is required for imports of any
products containing HFCs,
perfluorocarbons (PFCs) and/or sulfur
hexafluoride (SF6). An up-front application
fee of $3 000 applies, consistent with the
current fee for a Pre-Charged Equipment
licence.
Importers are also required to pay a quarterly
import levy consisting of:
(i)
an existing cost-recovery component of
$165 per metric tonne of gas(es)
imported (prescribed rate component),
which covers the administrative costs of
the Ozone/SGG scheme
(ii)
a 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.
The levy is payable within 60 days after the
end of each calendar quarter in which the
gases have been imported.
The importer must submit electronic reports
within 15 days of the end of each calendar
quarter, detailing the type of products, the
number of units containing synthetic
greenhouse gases imported during the
quarter, and the type and quantity of synthetic
greenhouse gases imported in them.
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.
Low-volume or one-off
product importers
Under certain conditions, a reduced licence
application fee and streamlined reporting
requirements are available for one-off or lowvolume importers. A separate fact sheet for
such imports is available from the
department’s website.
Applying for a licence
Application forms for Ozone Depleting
Substance/Synthetic Greenhouse Gas
Equipment licences are available on the
department’s website.
Some importers already hold Pre-Charged
Equipment licences permitting them to import
refrigeration or air conditioning products
containing HFCs or HCFCs for up to two
years from the date on which the licences
were granted.
Since 1 July 2012, holders of these licences:
 are permitted to import other products
containing HFCs, PFCs or SF6
 are required to pay the quarterly import
levy, including the carbon charge
component on all imports.
Existing licence holders do not need to apply
for a new licence or to vary their existing
licence.
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 levy’s
carbon charge component based on 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 also 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 equipment or
products containing synthetic greenhouse
gases without a licence, as well as for
breaches of 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 applies for failure to pay the levy on
time. In addition, a licence may be cancelled 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 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.
For more information about the Clean Energy
Future package, go to the website:
www.cleanenergyfuture.gov.au/cleanenergyfuture/our-plan.