Export Assurance Reform for non-prescribed goods

The Department is in the process of reforming the non-prescribed goods (NPG) export sector.

These reforms include the drafting of a new export control rule, improvement of IT systems and uplift of data capture and assurance processes that the Department will undertake on behalf of the commodities included within this sector.

At this stage, it is envisaged that the reforms will affect the wool, rendered products, skins and hides, pet food, stock feed, feed additives, processed foods, honey, pharmaceuticals, blood products industries, and more. These commodities will move from prescribed to a partially or fully prescribed regulatory framework, undergirded by the Export Control Act 2020. 

These industries have grown significantly and were worth $9.4 billion in 2023. Under our export legislation, the goods exported by these industries are referred to as NPGs. It is critically important that the Department seek to improve assurance processes now to ensure continued and lasting access to key foreign export markets for Australian businesses. Our goal is to ensure the export system for these goods can continue to provide the levels and types of assurance required by importing countries now and into the future. Our goal is to ensure the export system for these goods can continue to provide the levels and types of assurance required by importing countries now and into the future.

Why do we need reform?

Australia needs export assurance systems and processes that are efficient, fit for purpose and flexible enough to accommodate the growing success of our export industries, new products and changing risks. There are 3 main factors driving the need for reform:

1. Importing countries require more assurances – Australian exporters operate within a landscape of ever-changing importing country requirements, which are increasing in number and complexity. For certain NPGs, importing countries now expect a higher level of government oversight than our export legislation requires. This trend is expected to continue. 
2. Cost recovery is not appropriately attributed to where the costs originate – The current legislative framework creates a single charge point with an export certificate. It does not reflect the time and cost to the department of undertaking administrative activities and providing services to assure trading partners. This single charge point also imposes the full cost of the assurance system onto the applicant for a certificate, rather than charging at points throughout the supply chain for services provided. 
3. Unsustainable administrative processes – The process used for exporting NPG products has become complicated and unsustainable alongside the growth of NPG industries. Reform is needed to put a new system in place that can handle the size of NPG industries and the importing country requirements now and in the future. 

Increasingly importing countries have greater expectations of government oversight over the products they accept into their countries. Importing countries now may require us to conduct audits, maintain lists of approved exporters, and give assurances covering a wide range of conditions, when previously, a government certificate was sufficient for the export of NPG goods. This combined with the growth of our export industries has required a need for reform.

The regulatory powers that will enable the required reforms of the NPG export sector are available to the department under the Export Control Act 2020. If we prescribe the export of goods currently described as NPGs, we gain access to these tools and can continue meeting importing country requirements in a modern and flexible way.

Benefits for exporters

Australian agricultural exporters will benefit from the reform by having:

• Improved and simplified processes for exporters
• Improved support for maintenance of existing market access and negotiations for new access based on known trade statistics, legislated regulatory controls that would be more appealing to more sensitive markets, etc.
• Increased visibility and control (where necessary) of what goods are being exported to which destinations and by which exporter 
• Better and more efficient ‘Road-side assistance’ to support exporters should goods become distressed 
• Department can cost recover appropriately for the services provided, allocating costs equitably to those that receive services
• a clear approach to making decisions and providing assurance for our exports.
• the flexibility to adapt as a system to changes in importing country requirements.
• an appropriate, consistent and transparent management of export risks.
• continued trust in Australia’s exports, exporters, export regulator, and our status as a world-leading trading partner.
• better preparation for the future and the changing needs of exporters and their markets

The purpose of the new rules is to improve regulation of the export of certain types of goods derived from plants or animals which are not currently prescribed under subsection 28(1) of the Act. In the new rules these non-prescribed goods will be referred to as ‘general products’.

The policy goal of the Department is to ensure that the export conditions applying to the export of general products are co-located, easy to understand, and easy to update.

Consultation

Various industry figures have expressed desire for reform in this sector for almost a decade.

Initial consultation on the regulation of non-prescribed goods occurred in March 2023, through workshops held with industry leaders and departmental staff. Outcomes of this consultation led to the development of a new framework for regulating goods that are not currently prescribed.

Three options for regulation were publicly consulted on in a ‘Have Your Say’ process in the third quarter of 2024. This informed the selection of a preferred option, based around regulation that varies for each product depending on the requirements of the importing country.

The department additionally consulted with relevant industry stakeholders in June and October 2024. These forums, alongside consultation with other Commonwealth agencies, are intended to continue as the reforms progress

The Department identified the 3 possible regulatory options that might be considered by relevant stakeholders.

Overwhelming, option 2 was put forward as the preferred new method of regulatory uplift. This option seeks to introduce only as much regulation as required. It also seeks the Department to be flexible in its approach to providing export assurance with a sole focus on meeting importing country requirements.

Industry Reform Committee

To support consultations, we have formed an Industry Reform Committee (IRC) composed of representatives from key NPG industry groups. The IRC acts as a conduit between government and industry throughout the reform, providing industry views directly into the process.

The following organisations are members of the IRC:

• Australian Council of Wool Exporters and Processors
• Australian Hide, Skin and Leather Exporters Association
• Australian Honey Bee Industry Council
• Animal Medicines Australia
• Australian Renderers Association
• Feed Ingredients and Additives Association Australia
• Pet Food Industry Association of Australia
• Stock Feed Manufacturers’ Council of Australia.

You are encouraged to contact your representative body to share your views or find out more. We will update this page with other opportunities to contribute to the reforms as they arise.

Contact

Export Assurance Reform
Department of Agriculture, Fisheries and Forestry
GPO Box 858, Canberra ACT 2601
Email: Export Assurance Reform