DRAFT CERTIFIED RULES

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1 DRAFT CERTIFIED RULES 1. Terms defined in the Fair Trading (SA Free Range Egg Industry Code) Regulations 2014 have the same meaning in these certified rules. 2. The Crown in Right of the State of South Australia (State), acting through the Commissioner for Consumer Affairs (Commissioner), is the sole owner of a registered Certification Trademark for South Australian free-range chicken eggs (SA Free-Range Egg Certification Trade Mark) illustrated in Appendix [x]. 3. An egg producer may use the SA Free-Range Egg Certification Trade Mark on eggs, a package containing eggs or in promoting, marketing or advertising eggs, only if the egg producer (Certified Producer) has been granted Certification by the Commissioner in accordance with these certified rules. 4. Certification to use the SA Free-Range Egg Certification Trade Mark may only be granted by the Commissioner, or his or her duly authorised delegate. 5. Subject to Rule 6, Certification will only be granted to egg producers who satisfy the Commissioner that they: a. meet the requirements in Rule 7 relating to their relationship with South Australia; b. have paid their application fee (in the case of initial Certification) and annual fees; c. are a commercial free-range egg producer; d. have demonstrated their capability of complying with these certified rules and the Standards; and e. will abide by these certified rules and the Standards. 6. The Commissioner may from time to time determine that an identifiable class of egg producers, such as, for example, egg producers who hold certification or accreditation in respect of a separate Certification Trademark, will be entitled to apply for and be granted Certification to use the SA Free-Range Egg Certification Trade Mark without undergoing an eligibility audit pursuant to Rule To use the SA Free-Range Egg Certification Trade Mark, egg producers must have a real relationship with the State of South Australia. Egg producers may apply for Certification to use the SA Free-Range Egg Certification Trade Mark if: a. the eggs are laid in South Australia; and b. the eggs are packaged in South Australia; and c. the egg producer s business or other headquarters are located in South Australia; or d. more than 30% of the egg producer s business operations are in South Australia; or e. the egg producer can demonstrate a substantial relationship with the State of South Australia by other means which satisfy the Commissioner (in his or her absolute discretion). 8. Subject to Rule 6, eligibility for Certification will be determined following the completion of an audit process to be carried out by the South Australian Department of Primary Industries and Regions (PIRSA). To be eligible for Certification, the audit must identify no Major Non- Compliances (see Rule 38) with these certified rules or the Standards. 9. A Certified Producer must meet all requirements under State and Commonwealth law or regulation applicable to the management of chickens, or the supply and/or sale of eggs in South Australia, including but not limited to the Animal Welfare Act 1985 and the Livestock Act

2 10. The grant of Certification by the Commissioner recognises that the egg producer has facilities (Certified Facilities), practices, procedures and policies in place that provide for the quality management of chickens and the reliable delivery of quality products to the market place. Certification is not a guarantee by the South Australian Government as to the quality of each and every egg delivered by a Certified Producer. 11. Upon Certification, the Commissioner will grant to the egg producer a licence that will allow the egg producer to use of the SA Free-Range Egg Certification Trade Mark for a period of 1 year (unless revoked) in accordance with, and subject to, a [style guide] for the use of the SA Free- Range Egg Certification Trade Mark on packaging and other correspondence, advertising or promotional material. 12. If an egg producer wishes to terminate its Certification, the egg producer must provide 30 days prior notification to the Commissioner and provide a written plan for the phasing out of the SA Free-Range Egg Certification Trade Mark on the egg producer s packaging, correspondence, advertising and promotional material. 13. No products, packaging, correspondence, advertising and promotional material shall retain the SA Free-Range Egg Certification Trade Mark within 60 days of the date of the notification provided by the egg producer under Rule If a Certified Producer or an applicant for Certification: a. fails to comply with these certified rules or the Standards; b. is unable to establish or maintain compliance with these certified rules or the Standards; or c. files for bankruptcy, becomes insolvent or is placed into administration, the Commissioner in his absolute discretion may: d. refuse or defer the grant of Certification; e. suspend Certification; or f. revoke Certification in accordance with Rule 37. The decision and reasons for the decision will be provided to the egg producer/applicant in writing. The egg producer/applicant may appeal the decision in accordance with Rule 45. Obligations of Certified Producer 15. Each Certified Producer has the following obligations: a. to use the SA Free-Range Egg Certification Trade Mark only in accordance with these certified rules and the Standards; b. to ensure that their facilities and operations comply with the Standards (as amended) at all times; c. to ensure compliance with these certified rules (as amended); d. to comply promptly with any reasonable direction of the Commissioner relating to the Standards; e. to advise the Commissioner of any change in ownership or management of the Certified Facilities; f. to advise the Commissioner of any use of all or part of the Certified Facilities by a third party; g. to not sub-licence, assign or transfer the right to use the SA Free-Range Egg Certification Trade Mark, or any other benefit of Certification to any third party, without written consent of the Commissioner; 2

3 h. to promptly pay, when due, all fees arising under these certified rules as specified from time to time by the Commissioner; i. to cooperate and assist in Certification audits by providing access to premises and records; j. to advise the Commissioner in writing of any matter which may have a material impact on the egg producer s eligibility for Certification or its continuance; k. to not engage in any conduct which is likely to adversely affect the State s ownership or rights in and to the protection of the SA Free-Range Egg Certification Trade Mark; l. to permit an auditor appointed by the Commissioner access to the Certified Facilities, at any time, for the purpose of confirming compliance with the SA Free-Range Egg Standards and these certified rules; m. to ensure that any person involved in the care, handling and management of the chickens: i. receives a copy of these certified rules; ii. is familiar with these certified rules; iii. understands the content of these certified rules; iv. provides a suitable training program for all staff and employees to ensure implementation and compliance to these certified rules; and v. makes themselves familiar with, and complies with, the Australian Code of Practice for the Welfare of Animals Domestic Poultry. Application of the SA Free-Range Egg Certification Trade Mark 16. The Commissioner s Certification in accordance with these certified rules is intended to operate as the approval of the Commissioner for the purposes of s41 of the Fair Trading Act with respect to use of the SA Free-Range Egg Certification Trade Mark in accordance with the certified rules. 17. The South Australian Government has approved the application and use of the SA Free-Range Egg Certification Trade Mark by Certified Producers only on their company stationary, literature, website, advertising, promotional material and packaging. 18. The Commissioner may (in his absolute discretion) approve the application of the SA Free- Range Egg Certification Trade Mark in other ways upon the written request of the egg producer. The egg producer must clearly provide details of how the SA Free-Range Egg Certification Trade Mark is to be used. 19. The SA Free-Range Egg Certification Trade Mark may not be applied in any manner that relates to a service or product to which the Certification does not apply. 20. Rules relating to the use, placement, colour, size of the SA Free-Range Egg Certification Trade Mark can be found at Appendix [y]. LICENCES 21. Upon Certification, the Commissioner will grant to the egg producer a licence in accordance with Rule The number of licences granted by the Commissioner is unlimited. 23. A licence may be conditional or unconditional. A certificate of licence is found at Appendix [z]. 24. An applicant for a licence may apply on line at A non-refundable licence application fee as stipulated by the Commissioner from time to time will apply. The Commissioner may stipulate a different fee for Certifications granted pursuant to Rule The licence application fee covers the cost of processing the application, including a site audit, and the issuing of any documentation or materials associated with the Certification. 26. A licence will only be granted once the applicant has been Certified as meeting the Standards and has paid the annual non-refundable fee, as determined by the Commissioner, for the grant of a licence and for its annual renewal. 3

4 CERTIFICATION PROCESS 27. To apply for Certification an egg producer must lodge an application to use the SA Free-Range Egg Certification Trade Mark with the Commissioner. The Commissioner will undertake a preliminary desktop assessment of the application. 28. The Commissioner will then refer the application to PIRSA who will undertake an audit and assessment of the egg producer s farm or facility against the Standards. 29. Upon notification by PIRSA to the Commissioner that the applicant has no Major Non- Compliances (see Rule 38) with these certified rules or the Standards, the Commissioner will Certify the egg producer to use the SA Free-Range Egg Certification Trade Mark and issue a licence. 30. Certification will be for 1 year. Renewal of Certification will occur annually, subject to compliance with these certified rules and the Standards. 31. The Commissioner will undertake compliance and enforcement action where the egg producer is found not to comply with these certified rules or Standards. Annual Assessment 32. An annual licence renewal fee will cover the cost of processing the application, including a facility audit, and the issuing of any documentation or materials associated with the Certification renewal. 33. PIRSA will undertake a desktop assessment and carry out an audit. 34. The annual fee will also cover the cost of random visits. Random Visits and Non-Compliance 35. PIRSA will undertake random visits of each Certified Producer s facilities to ensure ongoing compliance with these certified rules and the Standards. 36. If a Minor Non-Compliance is found as a result of a random visit or otherwise, the Commissioner may issue a Minor Non-Compliance Notice to the Certified Producer giving 30 days within which to effect rectification. 37. If a Major Non-Compliance is found as a result of a random visit or otherwise, the Commissioner may issue a Major Non-Compliance Notice to the Certified Producer giving 60 days within which to effect rectification. The Commissioner may (in his or her absolute discretion) also suspend the Certification of the egg producer. An audit will be conducted upon rectification or upon the expiry of the 60 day period, whichever is the earlier, at the expense of the egg producer, and if the Major Non-Compliance has not been rectified and corrected, then the Commissioner may issue a Cancellation Notice to egg producer cancelling (with immediate effect) its Certification and its licence to use the SA Free-Range Egg Certification Trade Mark. 38. A Minor Non-Compliance is a Non-Compliance which does not affect the safety of the product to consumers, the health or welfare of animals, and does not involve a material contravention of the certified rules or Standards. 39. A Major Non-Compliance is a Non-Compliance which may have an effect on the safety of the product to consumers, the health or welfare of animals, or which may involve a material contravention of the certified rules or Standards. Failure to comply with a Minor Non- Compliance Notice will constitute a Major Non-Compliance. Where an egg producer obtains Certification pursuant to Rule 6 due to that egg producer s certification or accreditation under a separate Certification Trademark, the suspension or cessation of the separate certification or accreditation will constitute a Major Non-Compliance. 4

5 40. Should the egg producer wish to have their cancelled Certification reinstated they must re-apply and repeat the application process in its entirety. Administration of trademark 41. The Commissioner will be responsible for maintaining and publishing a public register on the Commissioner s website showing the names of egg producers who are Certified and licensed to use the SA Free-Range Egg Certification Trade Mark. 42. The Commissioner will not alter or amend these certified rules or the Standards without the prior approval of the ACCC. 43. The Commissioner will advise all Certified Producers of any alteration, amendment, addition or deletion to or from these certified rules or the Standards approved by the ACCC and publish current versions of these certified rules and the Standards on the Commissioner s website. Prosecution 44. An egg producer who uses the SA Free-Range Egg Certification Trade Mark in contravention of these certified rules or the Standards may be subject to prosecution or penalties under the Fair Trading Act 1987 (SA) and Trade Marks Act 1995 (Cth). Appeals 45. An egg producer who is dissatisfied with: a. a decision by the Commissioner to refuse an initial application, or refuse an application for renewal; b. any conditions on Certification imposed by the Commissioner; or c. any other issue regarding the SA Free-Range Egg Certification Trade Mark, may lodge an appeal with the South Australian Civil and Administrative Tribunal. 46. Matters arising in relation to these certified rules will be governed and determined in accordance with the laws of the State of South Australia. 5

6 STANDARDS These Standards describe the minimum requirements which Certified Producers and egg producers applying to use the South Australian Free-Range Eggs Certification Trademark (SA Free-Range Egg Certification Trade Mark) must meet for their system for keeping chickens to qualify as a certified free range system under the SA Free Range Egg Industry Code. 1. EXTERNAL CRITERIA Range Management The outdoor area (range) provided for chickens must meet the following criteria: 1.1 Stocking a. Stocking densities for hens must not exceed 1,500 hens per hectare within the range Outdoor Access a. Each hen must be provided with ready access to the range for a minimum of 8 hours per day during daylight hours, except during adverse weather conditions, or during outbreaks of disease or threat of disease, which require management and control. b. Shelter on the range must include reasonable windbreaks and shade throughout the day. 1.3 A map of the farm detailing available range, including dimensions, hen number and locations of housing and shelter must be kept and presented to an auditor upon request. 3. HEN WELFARE Induced moulting by food deprivation is prohibited. 1 Range means an outdoor area adjacent to housing which is accessible to the hens. 6

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