General Policies

External Container Scheme

Reference No. 0015

June 2009 Version 1.0

DEPARTMENT OF AGRICULTURE, FISHERIES, AND FORESTRY

OPERATIONALPROCEDURESSTATEMENTS

GENERALPOLICIES

TABLE OF CONTENTS
1PURPOSE ...................................................................................................................... 3 2TYPESOFAUDITS ..................................................................................................... 3 2.1InitialAudits ................................................................................................ 3 2.2AnnouncedAudits ...................................................................................... 3 2.3UnannouncedAudits .................................................................................. 3 2.4ReinstatementAudit ................................................................................... 3 2.5ReviewPeriod .............................................................................................. 3 2.6AuditCharging ............................................................................................ 4 3SURVEILLANCE ......................................................................................................... 4 4COMPLIANCEACTION ........................................................................................... 4 4.1CommencementLevel ................................................................................ 5 4.2ReviewPeriodsandAuditRates ............................................................... 5 4.3MovementbetweenReviewLevels .......................................................... 5 5NONCONFORMITY ................................................................................................. 5 5.1NonconformityClassification .................................................................. 5 5.2NotificationofaNonconformity .............................................................. 6 6SUSPENSIONANDCANCELLATION ................................................................. 6 7APPEALS ....................................................................................................................... 6 8REVIEW ......................................................................................................................... 7 9ADDITIONALMATERIALSTOBEREADINCONJUNCTIONWITHTHIS DOCUMENT ........................................................................................................... 7 10AMENDMENTS ........................................................................................................ 7

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1 1. 2. 3. 4. 2

PURPOSE

This document details how the Australian Quarantine and Inspection Service (AQIS) will: Measure compliance with the requirements set out in the Schedule and the Processes and Outcomes Document for the External Container Scheme Assist the Other Party, after the detection of a non-conformity, to address matters of quarantine concern, monitor performance, and to re-establish compliance Receive and process appeals submitted by the Other Party Review the Scheme contained within this Compliance Agreement. TYPES OF AUDITS

The type of audit outlined below is designed to measure the performance of the Other Party against the requirements stated in the Schedule and the procedures and outcomes stated in the Processes and Outcomes Document. 2.1 Initial Audits Initial audits are conducted to assess whether the Other Party meets the requirements stated in the Schedule for the External Container Scheme. These audits may provide guidance to the Other Party in order to perform the procedures correctly, to achieve the required outcomes of the Scheme. A prospective Other Party will be required to pass an initial audit to become eligible to sign onto this Scheme. 2.2 Announced Audits Announced audits will be scheduled by AQIS. AQIS will make contact with the Other Party and arrange a convenient time and date for these audits. Announced audits will occur in line with the prescribed audit rate for the Other Party. 2.3 Unannounced Audits Unannounced audits will be undertaken by AQIS. These audits will occur in line with the prescribed audit rate for the Other Party. 2.4 Reinstatement Audit Reinstatement audits will be scheduled and conducted by AQIS following a period of suspension. AQIS will contact the Other Party and arrange a convenient time and date for these audits. If, during the reinstatement audit, a major non-conformity or equivalent is detected, the suspension will continue and the Other Party will be asked to show cause as to why their Schedule should not be cancelled. If the reinstatement audit proceeds without the detection of any major non-conformities or equivalent, the Other Party will revert to the next review level. 2.5 Review Period The review period is the time each review level is applicable for.
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2.6 Audit Charging Audits will be charged on a fee for service rate by AQIS at the conclusion of a visit. Information regarding AQIS fees and charges and how they are determined is available on the AQIS website at www.daffa.gov.au/fees/aqisfees-charges. Where an AQIS Officer is required to ensure that the non-conformity has been rectified, it may involve a visit to the premises for that specific reason which will be charged at fee for service rates. 3 SURVEILLANCE Surveillance may be conducted by AQIS at the Other Partys premises. Details of any non-conformity detected will be recorded and review levels for the Other Party adjusted accordingly. 4 COMPLIANCE ACTION There are 5 review levels that apply to the Other Party. The following table describes the review level, audit rate and review period for the External Container Scheme. Table 1: Review Level 1 Review Levels, Audit Rates and Review Periods Auditrate 2audits (1announced,1unannounced) 4audits (2announced,2unannounced) 6audits (3announced,3unannounced) 8audits (4announced,4unannounced) SuspensionandfullAQIS supervision ReviewPeriod

1year

90days

90days

4 5

90days 90days

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4.1

Commencement Level

The Other Party will commence this Scheme at Review Level 1 subject to meeting the prerequisites stated in the Schedule and passing an initial audit. 4.2 Review Periods and Audit Rates Whilst the Other Party is operating at any review level above level 1 the relevant review period commences from the date of notification of a major non-conformity. If another major non-conformity occurs during the applicable review period, the review level will be increased immediately and the review period restarts. The referral rate applicable to the increased review level also comes into effect immediately. Any increase in the review level and therefore the referral rate immediately negates the specified referral rates and review period applicable to the Other Party under the previous review level. Movement between Review Levels Whilst the Other Party is operating at any of the specified review levels the detection of a major non-conformity or equivalent will cause the Other Party to move to the next review level. Whilst the Other Party is operating at review levels 2, 3 or 4 if no major nonconformities or equivalent are detected during the specified review period, the Other Party will return to the previous review level.

4.3

5 5.1

NON-CONFORMITY Non-conformity Classification

Non-conformities may be classified in one of three (3) ways: TYPE CRITICAL Non-conformity DESCRIPTION A breach of the Quarantine Act 1908 (Cwlth), or a major breach of the responsibilities and/or the requirements stated in the relevant Schedule and/or Procedures and Outcomes Document, resulting in immediate suspension of the Schedule. A breach of the procedures set out in the relevant Procedures and Outcomes Document, and/or failure to meet the outcomes and responsibilities as described in the Procedures and Outcomes Document. Less serious breach of the procedures and/or failure to meet the outcomes set out in the relevant Procedures and Outcomes Document.

MAJOR Non-Conformity

MINOR Non-Conformity

Note: Two MINOR non-conformities equal a MAJOR non-conformity and will result in an increase in review level.
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5.2

Notification of a Non-conformity

AQIS will notify the Other Party in writing, via a Corrective Action Request or formal letter, upon the detection of a non-conformity and advise the Other Party of subsequent compliance action to be taken by AQIS. 6 SUSPENSION AND CANCELLATION

In accordance with the Standard Terms the suspension of a Schedule may occur at any time. However, in general, suspension will occur once the Other Party reaches Review Level 5 through the accumulation of non-conformities, or the Other Party incurs a critical nonconformity. During the suspension period, AQIS will invite the Other Party to show cause as to why its Schedule should not be cancelled. The Other Party should provide all information and evidence to support its case, including details of their supervisory and counselling procedures used for accredited persons to prevent the recurrence of non-conformities. AQIS may seek further information or advice before making a decision to re-instate or cancel a Schedule. Failure to comply with all quarantine directions may result in immediate suspension of the Schedule. AQIS may, at its discretion, decrease the rate of review applicable to the Other Party based on information gathered at an audit or following the outcome of an appeal. The Other Partys Schedule may be cancelled if: on a reinstatement audit a critical non-conformity is incurred; or there is a breach of the Quarantine Act 1908 (Cwlth).

Note: The accrual of a critical non-conformity may be deemed to be a failure by the Other Party to comply with a requirement of the Schedule, and legal penalties may apply as stated in Section 66B(7) of the Quarantine Act 1908 (Cwlth).

APPEALS

Where the Other Party believes that the result of the formal audit/surveillance visit was incorrect, due to AQIS failing to take in to account objective evidence or extenuating circumstances relating to a non-conformity, or due to misinterpretation of the compliance policy, the Other Party may appeal against the decision. The onus of responsibility to provide either objective evidence or proof of extenuating circumstance is on the Other Party, as to why it believes the result of the formal audit/surveillance visit to be in error. The Other Party must appeal in writing within 10 business days from the date of notification of a non-conformity. The Other Party should clearly set out its reasons for appeal.

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The Other Party should forward its appeal to the Co-regulation Administration and Support Program in writing at the following address: National Compliance Agreement Coordinator Co-regulation Administration and Support Program Australian Quarantine and Inspection Service (AQIS) GPO Box 858 CANBERRA ACT 2601 Fax: 02 6272 5888 Email: ic.ca@aqis.gov.au AQIS undertakes to: Acknowledge receipt of the appeal within two (2) business days of its receipt; Make a decision on the appeal, in writing, within 10 business days of the receipt of all available facts relating to the matter.

Note: The AQIS appeals policy does not affect any right that a person may have to apply to the Federal Court for a judicial review of the decision. 8 REVIEW

The Review date for the Schedule for each Scheme is stated within Section 8 of the Schedule. AQIS reserves the right to assess and review the ongoing validity of compliance agreements schemes at any time to ensure that the scheme continues to align with legislation, government policy, and the relevant operating environment. In addition, compliance agreement schemes are subject to periodic review to ensure the continued effectiveness of the scheme in meeting both AQIS and industry needs. Signatories to a compliance agreement should note that a review of a scheme may not necessarily lead to a renewal process being undertaken. AQIS will notify the Other Party of renewal procedures at least one (1) month prior to the review date for the Schedule. 9 ADDITIONAL MATERIALS TO BE READ IN CONJUNCTION WITH THIS DOCUMENT Compliance Agreement Standard Terms document Compliance Agreement Generic glossary Compliance Agreement Schedule External Container Scheme Compliance Agreement Processes and Outcomes Document (POD) External Container Scheme

10 AMENDMENTS The latest version of this document can be obtained from the Department of Agriculture, Fisheries and Forestry (DAFF) website at: www.aqis.gov.au/iccomplianceagreements.
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Table of Amendments Date June 2009 Section Document Details Reviewed and amended to be specific to the External Container Scheme

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