Export Meat Regulatory Action and Sanctions Policy

This policy provides a clear statement on regulatory actions and sanctions that can be applied for non-compliance with the Export Control Act 1982 and the Export Control (Meat and Meat Products) Orders 2005 (EC(MMP)O).

The policy applies to the occupiers of export registered red meat slaughter establishments and independent boning rooms, and exporters of meat.

The occupier of a registered establishment for the preparation of meat and meat products for export holds the obligation for the establishment to comply with the requirements of the Export Control Act 1982 (the Act) including the EC(MMP)O. This obligation is detailed in an Approved Arrangement describing how compliance is achieved at the establishment. The occupier commits to meet the legislative requirements within the Approved Arrangement.

The Approved Arrangement and the operations at the establishment are inspected, verified and audited by the Department of Agriculture and Water Resources) to confirm that the occupier has fulfilled their obligations.

An Exporter of meat also has an obligation to comply with the requirements of the Export Control Act 1982 (the Act) including the EC(MMP)O and the Australian Meat and Live-stock Industry Act 1997. It is the exporter’s responsibility when applying for meat export permits and government certificates to prove compliance with all applicable legislation.

The department, as the competent authority, is responsible for ensuring or supervising the implementation of animal health and welfare measures, international veterinary certification and other standards and recommendations. The department is also responsible for the issuing of export permits and government certificates for animal and plant products.

Meat export permits and government certificates are issued by the department based on regulatory activities (inspection, verification and auditing) that underpin the Australian Export Meat Inspection System and information provided by the occupier and/or exporter.

The department is also required to notify the appropriate state regulatory authority, under service delivery arrangements, of any significant non-compliance or breach to requirements.

The Export Meat Program regulates the production of meat for export in order to facilitate market access. The department may take regulatory action or apply sanctions where an occupier or exporter does not comply with their obligations.

In line with the legislation, regulatory actions and sanctions will be applied where non compliance and/or breach of the legislation are identified such as in the case of a failure to register to export, critical non-compliance at audit and/or port of entry rejection.

During inspection, verification and auditing activities regulatory actions will be taken to ensure that non-compliant product does not continue to be produced or exported. Regulatory actions can be taken by authorised officers to:

1. apply a disposition to animal(s), carcase(s), carcase part(s), meat and meat product(s) for export in line with the Australian Standard for the Hygienic Production of Meat and Meat Products AS 4696 (Australian Meat Standard) and/or;
2. stop the chain temporarily or control the rate of operations to accurately perform inspection, decision or disposition functions (Order 70.2 EC(MMP)O) and/or;
3. retain for the purpose of inspection (Order 72 EC(MMP)O), and/or;
4. direct an exporter (Order 76.3 EC(MMP)O).

The Secretary (or delegate) will take regulatory action against the occupier of the establishment if the establishment’s Approved Arrangement or its implementation is non compliant with the legislation, including policy and procedures made under the legislation. This action can be:

1. an audit report including recommendations to take action i.e. a corrective action request and/or;
2. a notice to vary the approved arrangement (whole or in part) to bring it into compliance with the EC(MMP)O and/or;
3. a notice to change the frequency of audit and/or;
4. a written notification requesting the occupier to show cause as to why the approved arrangement (whole or part) should not be suspended or revoked and/or;
5. a written notification requesting the occupier to show cause as to why the registration should not be suspended or revoked and/or;
6. a written notification to immediately suspend an approved arrangement or registration where a significant/serious food safety, animal welfare, product integrity or market access risk occurs and/or;
7. to conduct an unannounced audit and/or;
8. to revoke export permit(s) and government certificate(s) where product already certified is not in compliance with the certification requirements.

It should be noted that the Secretary (or delegate) may require audits of the operations for the export of meat and meat products for food and/or operations for the certification of meat and meat products (Order 55.1EC(MMP)O). This may result in exporters being audited.

Where a breach of legislation is identified the department (including the compliance team) will investigate and take appropriate sanctions. These sanctions can include prosecution where there is evidence of an offence.

Some of the regulatory actions and sanctions available under the Act are listed in Attachment 1.

Inspection and verification activities

Where non-compliance with legislation, or approved arrangement is identified during inspection and verification activities, the authorised officer can take immediate regulatory action to ensure that non-compliant product does not continue to be produced or exported.

The authorised officer can:

1. apply a disposition to animal(s), carcase(s), carcase part(s), meat and meat product(s) for export in line with the Australian Meat Standard and/or;
2. stop the chain temporarily or control the rate of operations to accurately perform inspection, decision or disposition functions (Order 70.2 EC(MMP)O) and/or;
3. retain for the purpose of inspection (Order 72 EC(MMP)O), and/or;
4. direct an exporter (Order 76.3 EC(MMP)O).

Where the finding requires less immediate action or is a precursor to non-compliance the authorised officer will notify the occupier or exporter (or their representative) of the finding for consideration in the establishment’s management system.

Monthly Periodic Audit activities (Part 6 Division II EC(MMP)O) – Australian Government Meat Establishment Verification System

During an audit, departmental officers have a role as both an auditor and a regulator. As an audit is a fact finding process that is facilitated by the establishment, if a departmental officer detects a non-compliance, in their role as an auditor, which requires regulatory action the departmental officer must notify the auditee (occupier, exporter or their representative) that the audit is suspended prior to gathering further evidence or applying regulatory action under the legislation.

Audit findings, including non-compliance, will be notified to the occupier and/or the exporter immediately on ending the audit. A written audit report will be provided to the occupier and/or exporter. The audit report may include recommendations to take action i.e. a CAR.

The On Plant Veterinary Officer will notify the Area Technical Manager (ATM) and the occupier (or their representative) of audit findings from verification activities that indicate a systemic non-compliance in the implementation of the Approved Arrangement or the legislation. The ATM will assess this notification and may issue a written notification for the occupier to show cause as to why the ATM should not recommend an additional systems audit.

Systems Audit activities (Part 6 Division II EC(MMP)O) – Australian Government Meat Establishment Systems Audit Program.

During an audit, departmental officers have a role as both an auditor and a regulator. As an audit is a fact finding process that is facilitated by the establishment, if a departmental officer detects a non-compliance, in their role as an auditor, which requires regulatory action the departmental officer must notify the auditee (occupier, exporter or their representative) that the audit is suspended prior to gathering further evidence or applying regulatory action under the legislation.

Audit findings, including non-compliance, will be notified to the occupier and/or the exporter immediately on ending the audit. A written audit report will be provided to the occupier and/or exporter. The audit report may include recommendations to take action i.e. a corrective action request.

Critical non-compliance

In the case of a critical non-compliance at audit the auditor is required to notify the Secretary (or their delegate) immediately. This critical non-compliance and the evidence used by the auditor to form the opinion are to be notified to the occupier or exporter (or their representative). The department is also required, under service delivery agreements, to notify the appropriate state regulatory authority of any significant non-compliance or breach to requirements.

The authorised officer, who either conducted the audit or was notified of the non-compliance by the auditor, will take regulatory action by:

1. applying a disposition to animal(s), carcase(s), carcase part(s), meat and meat product(s) for export in line with the Australian Meat Standard and/or;
2. stopping the chain temporarily or control the rate of operations to accurately perform inspection, decision or disposition functions (Order 70.2 EC(MMP)O) and/or;
3. retaining for the purpose of inspection (Order 72 EC(MMP)O), and/or;
4. directing an exporter (Order 76.3 EC(MMP)O)
5. varying the Approved Arrangement (whole or in part) to ensure compliance with the EC(MMP)O. An example of a variation to the approved arrangement is to withdraw approval of the use of official marks.

This regulatory action is to ensure non-compliant product does not continue to be produced or exported.
The department authorised officer, with the appropriate delegation, will issue written notification to the occupier or exporter of the regulatory action they will be recommending the Secretary (or delegate) take. This action can be to:

1. vary the Approved Arrangement (whole or in part) to ensure compliance with the EC(MMP)O and/or;
2. change the frequency of audit and/or;
3. request the occupier to show cause as to why the Approved Arrangement (whole or part) should not be suspended or revoked and/or;
4. revoke export permit(s) and government certificate where product already certified is not in compliance with the certification requirements and/or;
5. request the occupier to show cause as to why the registration should not be suspended or revoked or
6. immediately suspend an Approved Arrangement or registration where a significant/serious food safety, animal welfare, product integrity or market access risk occurs.

This written notification will be provided at the same time as the audit report. To meet their obligation to comply with the legislation, the occupier of the establishment should respond providing details of how they will rectify the non-compliance set out in the written notification and the accompanying audit report.

This information should be sent to the specified Field Operations Manager (FOM) in the form of a Corrective Action Plan (CAP). The CAP must be agreed between the department and the occupier. The FOM will respond to the CAP within 3 working days. The occupier will be provided 2 weeks to respond to the initial written notification and audit report. Until an agreed CAP is in place the regulatory action will be maintained to ensure non-compliant product does not continue to be produced or exported.

In order for the occupier to continue production and/or export they may request to have increased departmental presence conducting increased verification to provide assurance of compliance.
A subsequent verification audit of the CAP will occur within two operating weeks of the agreed CAP and will be conduct by a FOM. A further systems audit will occur within three months of the close out of the CAP.

If the CAP or its implementation does not demonstrate consistent compliance with the legislation, the Secretary (or delegate) will write to the occupier suspending the Approved Arrangement (either in whole or part).

When the Approved Arrangement is suspended

The suspension of an Approved Arrangement relates only to the part of the arrangement that is not in compliance with the requirements of the EC(MMP)O. If the operational deficiency affects importing country requirements the Secretary (or delegate) will suspend the parts of the Approved Arrangement applicable to that market, ‘delisting’ the establishment from the market. Suspending part of an Approved Arrangement demonstrates that the department does not have confidence in the occupier to produce product for that particular export market. Therefore, the department will be unable to certify product from the establishment.

The occupier may choose to have increased departmental presence to perform the functions suspended or to conduct increased verification to provide market assurance to allow the occupier to continue producing for export. This action allows the remaining parts of the Approved Arrangement to function. This allocation of inspection services with be provided in line with Schedule 10 of the EC(MMP)O.

The Secretary (or delegate) will require the occupier to take action if the Approved Arrangement is suspended. This action could include the recall of meat or meat products where a direct threat to public health or trade partnerships is demonstrated. The Secretary (or delegate) will require the occupier to re-establish consistent compliance with the legislation This will be confirmed through monthly verification audits of the CAP, for three months period of suspension of the Approved Arrangement (or part thereof). The initial CAP verification audit will be conducted by a FOM with the subsequent monthly verification audits being conducted by the resident ATM. A further systems audit will occur within three months of the close out of the CAP.

If the occupier is unable to demonstrate consistent compliance with the legislation at CAP verification audits, the Approved Arrangement will be revoked. Subsequently the registration of the establishment will cease to have effect within 12months, when the registration lapses as the establishment will not be eligible for renewal. (Clause 27.1 Schedule 1 EC(MMP)O).

The authority to suspend or revoke an Approved Arrangement in whole or part is delegated by the Secretary only to an authorised officer within the Senior Executive Service in the department with responsibility for the certification of meat exports.

When a suspension or revocation is applied, the Secretary (or delegate) must inform the occupier of their appeal rights under the legislation within the written notification.

Port of Entry Notifications

Both the department, occupiers and exporters receive rejection notifications from importing countries for a variety of reasons. These notifications can be of a non-compliance and/or breach of the legislation (including the importing country requirements). As the regulator, the department has an obligation to investigate these non-compliances, as does the occupier through their commitment to meet the legislated requirements. It is highly recommended that occupiers take immediate corrective and preventative action to address notifications. Importing countries may take action directly or seek action by the occupier and/or the department. The level of investigation by the department will depend on the level of non-compliance and the request from the importing country. If a critical non-compliance is identified in the investigation, regulatory action and/or sanction will be taken.

Complaints/Redline Calls

The department receives notifications from other stakeholders of non-compliance and/or breaches of the legislation. As the regulator the department has an obligation to investigate these non-compliances. The level of investigation by the department will depend on the level of non-compliance. If a critical non-compliance is identified in the investigation, regulatory action and/or sanction will be taken.

Fees

In accordance with the Australian Government Cost Recovery Guidelines the department’s export certification services, including regulation, are provided to industry under a fully cost recovered arrangement.

Information on export fees and charges​.

Export Control Act 1982
Export Control (Orders) Regulations 1982
Export Control (Prescribed Goods - General) Order 2005
Export Control (Meat and Meat Products) Orders 2005
Australian Standard for the Hygienic Production of Meat and Meat Products AS 4696:2002
Approved Arrangement Guidelines
Australian Government Meat Establishment Systems Audit Program
Australian Government Meat Establishment Verification System