Recently, a number of media articles covered the APVMA’s transparent reporting of a breach of the Agricultural and Veterinary Chemical Products (Collection of Levy) Act 1994, regarding the collection of levies for the disposals, including sales, of unregistered products authorised under permit.
The Act calls out that a chemical product is deemed to be registered for the purposes of levy collection if it is covered by a permit. Therefore, levies are liable to be paid for both registered and unregistered chemical products disposed of under permit.
While levies of registered products sold under permit have been routinely collected, it was identified as part of our internal process review, that levies on unregistered chemicals sold under permit had not routinely been collected.
After identifying this, the APVMA proactively took action to address this breach. As required under finance law, relevant ministers were notified as soon as current agency executives became aware, and we advised the Australian National Audit Office (ANAO) of the breach.
As a responsible regulator, we also took action to update our internal processes at this time. As a transparent regulator, we also reported this in our annual report.
The APVMA has contacted relevant holders of permits for unregistered products to begin a process of quantifying and collecting levies for the disposals, including sales, of products authorised under permit.
While the total quantum of these uncollected levies is still being calculated, early indications are that they represent a small fraction of total agvet chemical products sold in Australia.
The APVMA appreciates the understanding of stakeholders while this matter is resolved.