1. Introduction

1.1    Purpose of the CRIS

The Cost Recovery Implementation Statement (CRIS) provides information on how the Australian Industrial Chemicals Introduction Scheme (AICIS) implements cost-recovery charging for its regulatory activities. This document demonstrates how AICIS’s regulatory charges have been developed in compliance with the Australian Government Charging Framework (AGCF) and Australian Government Cost Recovery Policy (AGCRP). It also clearly outlines the regulatory charges to be applied from 1 September 2025. It reports actual financial and non-financial performance information for regulatory charging and contains financial and demand forecasts for Financial Years (FY) 2025-26 through to 2028-29.

1.2    AICIS’s role and functions

The Industrial Chemicals Act 2019 (IC Act) establishes AICIS as the regulatory Scheme for the importation and manufacture (introduction) of industrial chemicals in Australia. The Scheme is administered by the Executive Director supported by staff within the Australian Government Department of Health, Disability and Ageing. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) completes the environmental component of AICIS assessments and evaluations under a service-level agreement with AICIS. 

The information from AICIS assessments and evaluations is made available to state, territory and other Commonwealth agencies to assist in regulating the use, release and disposal of industrial chemicals. The information also supports chemicals management legislation designed to protect human health and the environment.

Key AICIS regulatory activities are summarised below and described in more detail in Section 3: 

• scientific assessment and evaluation of industrial chemicals
• maintain the Australian Inventory of Industrial Chemicals
• provide information and recommendations about the risks and uses of industrial chemicals
• fit-for-purpose regulation
• meet obligations under international agreements for import and export of restricted Industrial chemicals
• enhance scientific, data and chemical intelligence expertise and harmonise international best practice
• monitor compliance and investigate breaches of the IC Act
• registration of industrial chemical introducers
• corporate and regulatory support activities.

1.3    AICIS’s purpose

The main purpose of AICIS is to help protect human health and the environment by assessing the introduction and use of industrial chemicals and providing information and recommendations about managing any identified risks. AICIS is designed to make regulatory effort proportionate to the risks posed by industrial chemical introductions. It also promotes innovation and encourages the introduction of lower-risk chemicals.

1.4    How fees and charges recover costs

The full cost of administering the Scheme is recovered from the regulated industry through fees for services and registration charges (levies). Fees for services apply to a service provided to a specific introducer. The registration charge relates to the regulation of the market as a whole and funds regulatory activities that are not attributable to a service provided to a specific introducer. 

AICIS fees for services apply to activities such as pre-market assessments and authorisations of unlisted chemicals, listing chemicals on the Inventory or amending Inventory listings, applications to protect confidential business information and authorisations to import/export severely restricted industrial chemicals subject to international agreements (e.g. Rotterdam Convention). All registrants pay an annual application fee to be listed (or re-listed) on the Register of Industrial Chemical Introducers.
Consistent with being a post-market scheme, most of AICIS’s operational costs are funded through the annual registration charge levied on importers and manufacturers (introducers) of relevant industrial chemicals above a certain threshold. Where an introducer imports and/or manufactures relevant industrial chemicals above this threshold ($49,999), an annual registration charge is payable. The applicable levy rate depends on the introduction value of relevant industrial chemicals introduced in the previous financial year and is calculated based on a statutory formula. 

Activities supported by the annual registration charge include: 

• post-market evaluation of industrial chemicals
• post-market compliance monitoring and enforcement
• providing information and recommendations about managing risks from the introduction and use of industrial chemicals
• maintaining best practice and fit-for-purpose regulation
• promoting the international harmonisation of regulatory controls or standards for industrial chemicals
• maintaining the Inventory
• enhancing scientific, data and chemical intelligence expertise
• collection and publication of information and statistics
• corporate activities to support the efficient and effective operation of the Scheme.

1.5    AICIS’s regulated entities and appropriateness of cost recovery

It is Government policy that the full cost of AICIS regulatory activities be recovered from regulated entities (introducers of industrial chemicals). Refer to Section 2 for details on the policy authority that supports AICIS charging arrangements and Section 3 on the design of those charges. 

Consistent with the Government’s policy position, full cost recovery is appropriate because:

• introducers create the demand for AICIS’s regulatory activities, driven by the introduction of chemicals into Australia creating a risk ‘to the ongoing protection of human and/or environmental health
• in response, AICIS undertakes a number of specific and technical regulatory activities in accordance with the Industrial Chemicals Act 2019 (IC Act)
• equity is maintained through industry charges, with specific industry groups incurring varying fees and charges based on their impost on AICIS resources. 

AICIS’s regulated entities include manufacturers and importers of industrial chemicals. These range from large national and international businesses; research companies and universities; and medium to small businesses to individuals and small-scale soap makers. AICIS's regulated entities seeking to import, export or manufacture chemicals with an industrial use pay an annual fee to register their business on the Register of Industrial Chemical Introducers, plus a levy (for total introductions above $49,999) that varies according to the value of industrial chemicals introduced. 

Chemical introductions where the beneficiary is clearly identifiable attract fees. These include:

• assessed introductions
• commercial evaluation authorisations
• early listing of chemicals on the inventory
• protection of confidential business information.

Regulated entities introducing under ‘Listed introductions’ utilise the Australian Inventory of Industrial Chemicals, and regulatory costs cannot be attributed to a specific introducer. Introductions under exempted and reported categories, although directly attributable to specific introducers, do not currently attract a fee, specifically to promote innovation and encourage the introduction of lower-risk chemicals. They are subject to screening by AICIS staff to identify introductions that may require further analysis and possible compliance monitoring and case management. Activities related to compliance monitoring, case management and functions that support the Scheme are funded through levies.