Legislative changes to the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (OPSGGM) has seen Sulfur Hexaflouride (SF6) added to the list of controlled substances. The decision means that importers and exporters of goods containing the gas will now be required to apply for a licence, as well as pay an equivalent carbon price levy.
According to a reminder published by the Australian Customs and Border Protection Service, from July 1, 2012, the gas was confirmed as a controlled substance in Schedule 10 of the Customs (Prohibited Import) Regulations 1956, and on Schedule 15 of the Customs (Prohibited Export) Regulations 1958.
As a result, it is now necessary for importers and exporters to verify whether or not their goods contain SF6, and to attain a license if required. Licences for all controlled substances are issued by the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC).
The new Ozone Protection and Synthetic Greenhouse Gas Management Act regulations also confirms that hydrofluorocarbons, which are found in refrigeration equipment, and perfluorocarbons, which are found in some water resistant textiles, have been added too. Both are considered potent contributors to global warming.
Importers and exporters are required to secure the relevant license at the time of import or export. Both the Ozone Depleting Substance (ODS) Equipment Licence and the Synthetic Greenhouse Gas (SGG) Equipment Licence incur an upfront payment of $3,000. A Controlled Substance Licence for bulk gases incurs an upfront payment of $15,000.
Importers holding a licence also face quarterly import levies of $165 per metric tonne of SF6 imported, as well as a levy set by the new Carbon Pricing Mechanism of $23 per metric tonne. That levy will increase to $24.15 in July 2013, and again to $25.10 in July 2014.
SF6s are commonly used as an insulating gas in the electrical industry, and are found as a dielectric medium in high-voltage circuit breakers, transistors and switchgear. They are also found in some fire extinguishers and aerosol canisters, and in air-conditioning and refrigeration equipment.
However, the gas has been recognised as having a high global warming potential and so has been added to the list of substances that the Federal Government is attempting to control more rigidly as part of their Clean Energy Future Plan.
Importers, exporters and manufacturers of goods containing SF6, hydrofluorocarbons or perfluorocarbons are asked to contact the relevant authorities for more information.
The Ozone and Synthetic Greenhouse Gas Border Management Unit can be contacted at:
Phone: (+61) 2 6274 1373 or at (+61) 2 6274 1740
Email: ozone@environment.gov.au
You can read more information on Sulfur Hexaflouride (SF6) and the Equivalent Carbon Price in a PDF file released by the DSEWPC in June, 2012.
The decades of combined staff experience offered by ICE means we always have an answer to your freight questions regarding customs and barrier clearance. Talk to us to discuss how these changes may affect you.
