High Consequence Dangerous Goods FAQ

What are high consequence dangerous goods?
Why is access to ammonium nitrate being controlled?
Is Victoria the only State regulating ammonium nitrate?
Will there be a nationally consistent approach to regulating ammonium nitrate?
Will all ammonium nitrate products be covered by the new regulatory regime?
Which fertilisers are Security Sensitive Ammonium Nitrate (SSAN)?

What are high consequence dangerous goods?

The term ?high consequence dangerous goods? (HCDG) has been adopted for those dangerous goods that are of security concern because they have the potential for mis-use to cause mass casualties and/or mass destruction. The Dangerous Goods Legislation (Amendment) Act 2004 enabled regulations to be made to implement a licensing regime to control access to a HCDG throughout its supply chain, from manufacture or import to end use, consistent with the National Principles. The first substances to be declared HCDG in Victoria will be ammonium nitrate and calcium ammonium nitrate (CAN). Calcium ammonium nitrate (CAN) covers:
CAN solids containing greater than 45 percent ammonium content;
CAN mixtures and blends containing greater than 45 percent ammonium content;
CAN emulsions containing greater than 45 percent ammonium content. Substances will not be declared HCDGs without agreement by the Council Of Australian Governments (COAG)

Why is access to ammonium nitrate being controlled?

Ammonium nitrate is being regulated to reduce the chance of it getting into the hands of people who would seek to mis-use it to harm the Australian community. Ammonium nitrate can be used to make weapons that are capable of causing mass casualties and major destruction of property. Probably the best known example of its mis-use was the bombing of an office-block in Oklahoma City in 1995. Calcium Ammonium Nitrate was used by the IRA in the Omargh and Brighton bombings. However, ammonium nitrate is a product that is used for legitimate purposes, including as a fertiliser by the horticulture, dairy and other agriculture industries, and as an explosive ingredient by the mining and quarrying industries. In the current environment, the ready availability of ammonium nitrate presents a risk to public safety that must be properly managed alongside the ongoing requirements of legitimate users. The proposed regulatory scheme to control access to ammonium nitrate balances security considerations with the legitimate needs of industry.

Is Victoria the only State regulating ammonium nitrate?

No. On 25 June 2004 the Council of Australian Governments (COAG) agreed to a national approach to ban access to ammonium nitrate for other than specifically authorised users. This agreement is intended to result in the establishment in each jurisdiction of a licensing regime for the use, manufacture, storage, transport, supply, import and export of ammonium nitrate. Other Australian States and Territories are also in the process of implementing arrangements to regulate access to ammonium nitrate.

Will there be a nationally consistent approach to regulating ammonium nitrate?

A national set of principles for the regulation of ammonium nitrate (the National Principles) has been agreed by all jurisdictions. The National Principles are intended to result in a nationally-consistent, effective and integrated approach to control access to ammonium nitrate to those with a legitimate need.

To facilitate national consistency the COAG Ammonium Nitrate Working Group has produced four guidance notes to help both industry and regulators to implement the agreed principles, particularly in relation to transport and storage security.

Will all ammonium nitrate products be covered by the new regulatory regime?

No. Only those ammonium nitrate products that are specified to be of security concern will be covered by the regulatory regime. In accordance with the National Principles, security-sensitive ammonium nitrate (SSAN) will mean ammonium nitrate and any emulsion or mixture (but not solution) containing greater than 45 per cent ammonium nitrate. Therefore, for example, if a fertiliser has an ammonium nitrate content of 45 per cent or less, it will not be covered.

Calcium ammonium nitrate (CAN) fertilisers that contain more than 45 per cent ammonium nitrate are covered by the SSAN definition.

Which fertilisers are SSAN?

Your fertiliser should have a list of its composition on the packaging. If in doubt, ask the person who you are buying the fertiliser from, they will have an obligation only to sell SSAN to a licensed user. A factsheet for farmers with a list of products containing SSAN is available at nationalsecurity.ag.gov.au.

Laws & Licensing

When will the new laws for ammonium nitrate be in place in Victoria?

The Dangerous Goods Legislation (Amendment) Act 2004 came into effect in October 2004. New regulations that set down the details of the licensing scheme for HCDG were made on 2 August 2005. The regulations allow for a transition period rather than commence operation immediately. Enforcement of the regulations will not commence until 1 January 2006. This transition period is intended to enable current users who have a legitimate need for ammonium nitrate to comply fully with the new licence requirements; to enable current users who do not have a legitimate need, or are otherwise prohibited from holding ammonium nitrate products, to dispose of them; and to provide time for applications to be processed.

Why did Victoria support the proposal to regulate ammonium nitrate?

Victoria has participated in and supported the COAG reviews of hazardous materials and the COAG decision to implement a nationally consistent regime to regulate ammonium nitrate. Victoria supported the decision to implement a regulatory regime as a responsible step to risk manage the ready availability of ammonium nitrate in the current environment while still allowing access for legitimate users.

Will the licensing requirement stop at ammonium nitrate?

Unlikely. National reviews of chemical, biological and radiological substances are currently being conducted under the auspices of COAG. It is likely that the COAG Review of Hazardous Materials will make recommendations for other substances ? including other fertilisers ? to be brought under licensing schemes similar to that for ammonium nitrate.

However, it is expected that the national review process will include consultation with agriculture and fertiliser industry groups before any such recommendations are made to COAG. Further, any recommendation would be subject to a regulatory impact statement.

Will explosive grade ammonium nitrate be covered by the HCDG Regulations?

All products containing greater than 45% ammonium nitrate will be covered by the HCDG Regulations. ANFO (a mixture of ammonium nitrate and fuel oil) is not covered by the HCDG Regulations but is covered by the Dangerous Goods (Explosives) Regulations 2000.

What changes do the HCDG Regulations make to controls for explosives?

The HCDG Regulations amend the Explosive Regulations to implement background checking requirements for explosive licences consistent with those for HCDG licences.

Other amendments have been made to the Explosive Regulations to ensure that security arrangements for explosives are no less stringent than those for HCDG. It would create an anomaly to have more stringent security arrangements for ammonium nitrate used as a fertiliser than for ammonium nitrate used as an explosive.

From 1 October 2005, any person wishing to apply for or renew their explosive licence must consent to an ASIO check.

The Regulations amend the Explosives Regulations to revoke a provision that currently allows primary producers to use blasting explosives without a licence. However, to provide farmers with time to comply, primary producers will be able to continue to use any blasting explosives that they hold if approval was granted prior to 1 October 2005 until 1 January 2006. From 1 January they must have a licence to use blasting explosives. Additionally, provision has been made to waive the fee for a licence to use blasting explosives where the primary producer has made application for, or is the holder of, a HCDG licence.

Who Is Exempted For Licensing Approvals?

Secondary and tertiary education institutions being;
1. a State School as defined in the Education Act 1985,
2. a non government school registered by the Registered Schools Board,
3. an institution of tertiary education or University registered by the Office of Training and Tertiary Education, of the Victorian Department of Education and Training, and
4. Public Universities and laboratories that use HCDG for the purposes of educational instruction, research or testing, are not required to hold a licence to store, use, handle, dispose of or transport up to 3 kilograms of HCDG provided the material is kept in a secure store when not actually being used.
Any person authorised to have access to HCDG is not required to hold an additional licence to transport up to 20 kilograms of HCDG provided they transport it in a non-stop journey.
Primary producers who hold a primary producer licence for HCDG are not required to hold an additional licence to transport up to 5 tonnes of HCDG provided they transport it in a non stop journey.
Primary producers who hold a primary producer licence for HCDG are not required to hold an additional licence to transport any quantity of HCDG to which the licence relates across a public highway which divides the property from one part of the property, specified on a primary producer licence to another part.
Members of the Victoria Police, Fire Authorities or other Emergency Service personnel acting under the direction of their organisation are not required to hold a licence to transport any quantity of HCDG providing it is for the purpose of protecting people from injury or property from damage.

Obtaining a licence

When will licences from the Victorian Workcover Authority be available?

Those affected by the regulations can now apply for the permit and licence which will be required by January 1, 2006.

Forms:

For what period will a licence be issued?

Generally, HCDG licences (including SSAN licences) will be issued for up to five years although the Victorian WorkCover Authority may specify a lesser period for some licences.

What will a licence cost?

For farmers, a single licence will entitle them to store, handle and use SSAN, plus transport up to 5 tonne of SSAN for their own purposes and will cost $80. The licence will be valid for 5 years. The fee for applying for an exemption is capped at $40.

The fee for other types of HCDG licences, such as a licence to manufacture, import, export, transport and use HCDG is capped at $80.

The fee for amending a licence is $20.

What conditions must an applicant meet to be granted a licence?

An applicant for a HCDG licence is required to:

demonstrate that he/she has a specified legitimate need for the HCDG. In particular, the applicant must provide information about the agricultural, commercial, industrial or other process or activity undertaken.
provide verifiable proof of identity. If the applicant is a company, details of the company will need to be provided, such as details of incorporation and the principal office bearers.
meet the age requirement for the licence applied for. (Consistent with the National Principles, licence holders will not be less than 18 years of age.)
undergo background checking to assist the VWA to determine if they are a security concern.
provide a security plan for the activities to be covered by the licence. The security plan will need to be approved by the VWA.

What is a legitimate need for SSAN?

?Legitimate need? includes commercial production processes, including mining and quarrying, the manufacture of fertiliser and explosives, educational, research and laboratory use, commercial agricultural use by primary producers, and services for transportation, distribution and use of the product. Household and domestic use, and the fertilisation of recreational facilities are not included as a ?legitimate need?.

Do I need to obtain a separate licence to transport my ammonium nitrate fertiliser because I travel along a public road to get from one part of my property to another?

No. The regulations will permit farmers who hold a primary producer licence to transport SSAN across a public highway which divides the property from one part of the property provided that the journey is non-stop and the vehicle is under constant surveillance.

Will I require a separate licence for each HCDG?

No. The Regulations will allow licence-holders to apply to vary the terms of their licence so that it applies to other specific HCDG. For example, a person licensed to store and use ammonium nitrate, could ? after demonstrating their lawful need to store/use potassium nitrate (if it is declared a HCDG) ? have their licence varied to allow such activities associated with this substance. The cost of a licence variation is $20.

Will I require a separate licence for each different activity associated with an HCDG?

In most cases a licence to carry out an activity also authorises related activities to be undertaken. For example, a company that holds a licence to manufacture a HCDG would also be authorised to store, use, dispose of, handle and supply the specified HCDG.

I am a farmer who uses ammonium nitrate. Can I transport more than the 5 tonne limit of ammonium nitrate from the retailer to my property without obtaining a separate transport licence?

Transport of quantities over 5 tonnes by holders of Agricultural Use Licenses will be considered on a case by case basis by the VWA

What types of security measures must a licensee implement?

Licensees will be required to implement appropriate security measures to prevent their HCDG products being lost or stolen, including measures (such as inventory control) to detect such incidents. The regulations prescribe the measures to be addressed in a security plan. Template security plans for Agricultural Users, Transporters and Storers of SSAN

Security Checks:

What does a security check by ASIO entail?

This is a formal administrative check of ASIO databases by the person?s name and residence(s) over the past ten years to ensure that he/she is not a known or suspected terrorist, or that he/she has not associated with known terrorists or terrorist suspects. The licensing authority will only receive the outcome of the check, not the details of ASIO?s assessment.

What does a police check entail?

A police check entails a search of State and Federal police databases to enable the Victorian WorkCover Authority to assess any relevant information (for example, convictions for crimes of a violent nature) when making a decision as to whether or ot the person in question is suitable to hold a licence. The check is undertaken by the Victoria Police.

Do I have to undergo police and ASIO name checks again when I apply to have my licence renewed?

A person is not required to undergo a security assessment if the person has previously undergone such an assessment under the same name for the purposes of these Regulations. If you have changed your name you will be required to undergo another ASIO check.

Will family members who are company directors be required to undergo security checking?

If only one person is nominated to be the licence holder (as opposed to nominating the company as the licence holder), then only that person will need to consent to background checks by the police and ASIO. However, where the applicant is a non-publicly listed company, the owners and directors will be required to nominate one director who will consent to background checking.

Will security checks be kept confidential?

Yes. A person?s criminal record or history will not be provided to the person?s employer. At most, the employer will only know that his or her worker was not found suitable to have unsupervised access to HCDG.

Access:

Do all of my workers have to obtain a licence before they can handle SSAN fertilisers?

It is not necessary for all persons handling SSAN to be licensed. People working under the supervision of a licensee will not need to hold a licence. However, controls on the conduct of these people must be included in the licensee?s security plan and the licensee will need to ensure that there is compliance with the security plan.

Supervised access means access by a person who is under the supervision of the licensee or when working in a defined supervised area as detailed in the site plan provided as part of the security plan.

Can any of my workers have unsupervised access to my stock of SSAN fertilisers?

Yes. The concept of a permit (to have unsupervised access) has been introduced into the regulatory scheme to enable workers to apply themselves for security checking and, subject to their suitability, obtain a permit.

The permit authorises the holder to have unsupervised access to your stock of SSAN at a secure site or store, or in the course of the transport, use, handling or disposal of SSAN by you as a licence holder, provided they are listed on your security plan as an authorised person.

Do all of the workers on my farm have to consent to background checks before they can have access to SSAN fertilisers?

No. Background checks will only need to be done for the person at the farm who is responsible for the security of the SSAN and those workers who will have unsupervised access to SSAN.

For most small farms it is not expected that any workers will need to consent to background checks. This is because it is expected that the licensee will assume responsibility for the security of the SSAN at the farm and that all workers handling/using SSAN fertiliser will be supervised by the licensee.

I am a farmer who uses ammonium nitrate. Can my children access my ammonium nitrate?

Yes, as long as their access is supervised by a licence holder or permit holder.

Appeals:

Do applicants have any right of appeal if the Victorian WorkCover Authority decides not to grant an HCDG licence?

Any person whose interests are affected by a decision of the Authority refusing to issue (or renew) a licence may apply to VCAT (Victorian Civil and Administrative Tribunal) for a review of the decision. (An application for review must be made within one month after a notice of refusal is received.)

If the Victorian WorkCover Authority decides not to grant a HCDG licence on the grounds of an adverse background check by ASIO, will the applicant be informed that this is the reason and will there be a right to appeal?

An applicant who receives an adverse security assessment will be advised of the reasons directly by ASIO. An assessment by ASIO is appealable to the Commonwealth Administrative Appeals Tribunal.

More information:
National security have guidance notes and fact sheets about ammonium nitrate fertiliser
Contact the Advisory Service

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High Consequence Dangerous Goods FAQ

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More information:

Laws & Licensing

Obtaining a licence

Security Checks:

Access:

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