Uncategorised
By Brad Nicholson
A recent industry audit discussed at an AEISG conference provides a timely reminder that AICIS is actively monitoring registration, categorisation, record keeping and annual declarations.
For Australian importers, there is an important practical lesson. An overseas supplier describing a chemical identity as proprietary does not, by itself, complete the importer’s Australian compliance obligations.
Why This Matters Now
At a recent AEISG conference, a member company described an AICIS audit of its chemical imports. It was the first such audit the organisation had experienced in Australia and the first I had heard of during 30 years in the industry.
The official figures help explain why that experience deserves attention.
In 2024 to 2025, AICIS reported 576 referrals of non compliance. It opened 586 compliance cases and resolved 509. Its monitoring identified 101 instances of unauthorised introductions across the categorisation pathways.
AICIS also reviewed 480 post introduction declarations for potential miscategorisation and 214 pre introduction reports, with many requiring advice, correction or case management.
These figures do not mean every business will be audited, nor do they allow anyone to predict future audit frequency. They do show that importers and manufacturers should expect their registration, category decisions, records and declarations to be capable of verification.
AICIS Is a Scheme, Not a Generic Department
The formal name is the Australian Industrial Chemicals Introduction Scheme, or AICIS.
The Industrial Chemicals Act 2019 establishes AICIS as the regulatory scheme for the importation and manufacture of industrial chemicals in Australia.
AICIS assesses, evaluates and monitors industrial chemicals. It maintains the Australian Inventory of Industrial Chemicals, issues certificates and authorisations, maintains the Register of Industrial Chemical Introducers, monitors compliance and investigates possible breaches.
Its purpose includes protecting human health and the environment from risks associated with industrial chemical introductions.
What Counts as an Industrial Chemical
AICIS does not regulate every chemical in Australia. Whether a chemical falls within the scheme generally depends on how it is used.
An industrial chemical is a chemical with an industrial use. This includes chemicals used in products such as inks, plastics, adhesives, paints, glues, solvents, cosmetics, soaps and cleaning products.
AICIS defines an industrial use by excluding uses regulated under other schemes. For example, a chemical used only as an agricultural or veterinary product, therapeutic good, food, or certain pharmacist or veterinary surgeon preparations is not treated as having an industrial use for AICIS purposes. Radioactive chemicals are also excluded.
A chemical can have more than one use. If it has both an industrial use and another regulated use, the requirements of more than one regulator may apply.
The practical question is therefore not simply whether a chemical is hazardous or contained in a finished product. Businesses need to consider what the chemical is, how it will be used and whether that use falls within AICIS.
Registration Is Only the Starting Point
AICIS guidance says businesses importing or manufacturing industrial chemicals, including products that contain or release industrial chemicals, will most likely need to register.
There are limited circumstances in which registration is not required, so businesses should use the official decision tool or guidance rather than assume an exemption applies.
Registration applies to the business, not to each product or individual chemical. Where registration is required, the business must be registered for the relevant registration year before introducing the industrial chemical.
The registration year runs from 1 September to 31 August.
Registration is only the starting point. Each chemical introduction must then be placed in the correct category.
- Listed: The chemical is on the Inventory and the introduction meets the terms of the listing.
- Exempted: A very low risk introduction that meets the relevant criteria.
- Reported: A low risk introduction that meets the relevant criteria and requires a pre introduction report.
- Assessed: A medium to high risk introduction requiring an assessment certificate before introduction.
- Commercial evaluation: An authorised pathway for evaluating a chemical’s commercial potential.
AICIS instructs importers and manufacturers to begin by searching the online Inventory using the CAS number or CAS name for each chemical.
Being on the Inventory does not end the check. Any defined scope, conditions of introduction or use, specific information requirements and other terms of listing must also be satisfied.
If a chemical is not listed, or the proposed introduction falls outside the listing terms, another category or approval pathway may be required.
Introducers must also keep records that demonstrate each chemical introduced, its category, the basis for that category and the registration charge.
The Act requires those records to be retained for five years. If the Executive Director issues a written notice, the required information must be provided within 20 working days.
The Proprietary Information Trap
The conference example exposes a common commercial problem.
An Australian importer receives a safety data sheet from an overseas manufacturer, but one or more ingredients are described as proprietary and the CAS identity is not disclosed.
The manufacturer may have a legitimate reason to protect its formula. The compliance problem is not the supplier’s wish for confidentiality. It is the gap left in the Australian importer’s ability to verify the introduction.
A proprietary notation is not an AICIS category. Nor is it, by itself, evidence that the introduction is authorised.
The importer still needs a documented basis for the category being relied upon and records capable of demonstrating the chemical introduced and the basis for its categorisation.
If the chemical identity is unavailable, the importer should not simply skip that ingredient or assume the product is covered because the overseas supplier sells it elsewhere.
The AICIS downloadable Inventory disclaimer reinforces this point. It says the file may exclude chemicals whose terms are confidentially listed and directs users to search the online Inventory for the current listing and any applicable terms.
How Confidentiality Can Be Managed Under the Act
AICIS recognises confidential business information.
In specified circumstances, a person may apply to protect a chemical’s proper name or end use, and other information can also be subject to a confidentiality process.
Section 167(2) of the Industrial Chemicals Act allows information or documents required for an application to be provided directly to the Executive Director by a person other than the applicant. That third party may seek confidential business information treatment.
This can allow an overseas supplier to support an applicable AICIS application without disclosing its formulation to the Australian importer.
Importantly, this is a formal pathway. It is not an automatic status created by writing proprietary on an SDS.
The precise route depends on the introduction category and the information required.
Where a supplier will not disclose enough information for the importer to complete the Inventory and categorisation work, the issue should be escalated before introduction.
The importer should obtain the necessary documentation, establish whether direct third party submission and confidentiality processes are available for an applicable application, and seek AICIS guidance or professional advice where the pathway remains uncertain.
A Practical Compliance Example
Sarah’s Natural Cosmetic Co and Five Imported Lipstick Ingredients
Sarah operates Sarah’s Natural Cosmetic Co and plans to import five industrial chemical ingredients to manufacture lipstick in Australia for commercial sale.
Her compliance process would involve the following steps.
1. Check registration
Sarah checks the AICIS registration guidance and determines that her business must register.
2. Register the business
Sarah determines the applicable registration level, registers through AICIS Business Services and pays the relevant fee and charge.
She registers Sarah’s Natural Cosmetic Co, rather than registering the lipstick or each individual chemical.
3. Identify and search every chemical
Sarah obtains the CAS number or CAS name for each of the five imported chemicals and searches the AICIS Inventory.
For this example, all five chemicals are listed and Sarah confirms that her proposed introductions meet the terms of their Inventory listings.
4. Confirm the category and keep records
Sarah categorises each introduction as listed.
She does not need to provide AICIS with information about the lipstick or its chemical ingredients before importing them. However, she must keep the records required to demonstrate that each introduction meets the listed category requirements.
5. Submit the annual declaration
After the registration year, Sarah submits an annual declaration covering the industrial chemicals introduced by Sarah’s Natural Cosmetic Co during that year.
What If One Ingredient Is Proprietary
Sarah cannot assume that all five chemicals are listed if her overseas supplier withholds the identity of one ingredient as proprietary information.
She must obtain enough information or documentation to establish the correct AICIS pathway for that chemical.
If an AICIS application is required, the overseas supplier or another third party may provide the required information or documents directly to the AICIS Executive Director and may seek protection for confidential business information where applicable.
If Sarah still cannot obtain sufficient evidence, she should resolve the issue with AICIS or an appropriate adviser before proceeding with the introduction.
What Importers and Manufacturers Should Do Next
- Confirm whether your business must be registered with AICIS and whether its registration is current for the 1 September to 31 August registration year.
- Build or refresh a product to ingredient register for the industrial chemicals you import or manufacture, including chemical identities, CAS information where assigned, uses and supplier contacts.
- Search the current online Inventory for every relevant chemical and review all terms of listing. Do not rely on an old downloadable snapshot as the final check.
- Categorise any chemical that is not listed, or any introduction that falls outside the listing terms, using the official AICIS Categorisation Guide.
- For proprietary ingredients, agree with the supplier before introduction how the information and evidence required for the AICIS pathway will be provided. Where an application is involved, consider whether direct third party provision and formal confidentiality protection are applicable.
- Keep the records required to demonstrate each chemical, its category and the basis for categorisation, and retain them for five years.
- Calendar the annual declaration deadline of 30 November for chemicals introduced during the completed registration year.
Final Reflection
Proprietary information may be commercially legitimate, but it does not remove the Australian introducer’s responsibility to establish and document the correct AICIS pathway.
The strongest compliance position is to resolve information gaps with suppliers before introduction, maintain records that can be verified and seek guidance where the category or confidentiality pathway remains uncertain.
For importers and manufacturers, the lesson is straightforward. Confidentiality and compliance can coexist, but the regulatory pathway still needs to be understood, documented and capable of verification.
Important: This article provides general information only. AICIS obligations depend on the facts of each chemical introduction. Consult current AICIS guidance or obtain appropriate professional advice for your particular circumstances.