IAN 2021-07: Update to the dairy category code

Date of issue: 20 March 2021

Date of effect: Immediate

Reference Number: IAN 2021-07

Attention:

Industry bodies, Dairy Export Consultative Committee

Registered export manufacturing establishments

Registered licensed exporters and EDI users

Department of Agriculture and Water Resources—Central and Regional offices

Purpose

To notify registered export manufacturers, exporters and EDI users of updates to the dairy category code review.

Summary of key points

The department is currently reviewing all dairy category codes currently used in the export certification system (EXDOC). An updated list is now available on the department’s website.

As previously advised, phase one of this review has seen the removal of the term dairy-goods-by definition.

Phase two of this review will see the remaining dairy category codes either consolidated, removed or re-named. These changes will better represent the specific types of products used in the dairy industry and will provide greater clarity and consistency.

Phase one:

For information on phase one please refer to IAN 2020-12 – Update to the dairy category review.

Phase two:

Phase two of this review will see a more streamlined and consolidated list of category codes. These codes will better represent the product being manufactured and exported, and ultimately reduce inconsistency and confusion. The department is intending to roll out phase two of this project on 1 July 2021. Industry will have this time prior to implementation to allow establishments to update any export systems, training and instructional material before the roll out of the new dairy category codes. For a list of available dairy cut codes please see the departments website.
As previously advised the consolidation of category codes will coincide with the removal of manual product descriptions and see an increase in the use of automated clearance by individual companies. As with several other commodities, health certificate descriptions will be limited to those generated by the system, and likely to include quantity, category code and preservation method. As an example, “100 cartons of chilled flavoured yoghurt” will be the default description with no ability to enter brands, specific flavours, or unique statements about the product. These changes are being introduced to streamline the certification process, remove ambiguity and administrative delays, and provide for greater uniformity for market access clearance.

To ensure companies continue to have access to manual descriptions for their products, the use of the additional product description field can be used and will print on the reverse side of the certificate except for the following countries:

In line with reducing administrative burden, industry should be reminded of the ability to approve requests for permit (RFPs) under Australia’s export legislation without the departments intervention. To do this you must be registered with the department as an approved export permit issuer (AEPI).

Please contact Dairy Eggs Fish for information on this process.

Background

The Dairy, eggs and fish (DEF) program is currently reviewing all dairy category codes, which are currently used in the export certification system (EXDOC). The purpose of the review is to significantly reduce the administrative burden associated with the approval and maintenance of these codes, and to tighten the controls around their use, particularly in relation to country to country certification requirements.

These changes will standardise and simplify how products are described and remove ambiguity currently experienced by departmental staff and industry. The new category codes will be at a higher level and be linked to the Australian Harmonised Export Commodity Codes classification system (AHECCs). Some examples include soft cheese, fresh cheese, plain yoghurt and flavoured yoghurt etc.

A major change has seen the removal of all dairy-by-definition (DBD) category codes. These codes were initially introduced to satisfy an importing country requirement, however over time these codes have been used across all countries, regardless if certification is required or not. To combat the overuse of DBD certificates the department has introduced mandatory overseas country and operation codes for those companies that were previously listed and approved for products considered a DBD (e.g. Ice cream to the EU, non-bovine products formula to China, camel milk to Japan etc.). These changes will mean that our certification systems will automatically check that a manufacturer is listed for a specific market against a specific product code. The two codes (overseas country and operation) must match in our system before the exporter can raise any export documentation (export permit and health certificate).

The full list of dairy category codes has been confirmed and the department is now working with the Department of Home Affairs (Customs) to identify accurate AHECC codes. Once the AHECCs have been identified for each dairy category code it will be a matter of entering these into EXDOC and testing them through the database prior to putting them into production.

Further information

Contact Dairy Eggs Fish if you have any queries.

The information provided in this advice is current at the time of writing and is intended for use as guidance only and should not be taken as definitive or exhaustive. The Commonwealth endeavours to keep information current and accurate, however, it may be subject to change without notice. Exporters are encouraged to verify these details with their importers prior to undertaking production/exports. The Commonwealth will not accept liability for any loss resulting from reliance on information contained in this notice.