- Print Friendly - Help

Fees & Charges Business Rules

• Estimation of Application fees
• Credit Policy
• Timing for Payment of fees and charges
• Debt Management
• Annual Charges on Products
• Fee Waivers
• Minimum charge
• Refunds
• Review of Fees and charges

This section sets out the business rules to apply to the operation of ACVM Group’s fees and charges for the provision of ACVM Act services.

The business rules cover the following matters:

• Estimation of application fees
• Credit policy
• Timing for payment of fees and charges
• Debt management
• Annual charges
• Fee waivers
• Minimum charges
• Refunds
• Review of fees and charges.

The business rules are set out in detail below.

1.   Estimation of Application fees

The applicant will be provided with an estimate of the application fees payable, based on the schedule of fees, at the completion of the pre-screen process. This estimate of the fees will be required to be paid to initiate consideration of an application (except where the applicant is an approved creditor).

2.   Credit Policy

This credit policy relates to those applicants who would be required to pay application fees in advance.

Where an applicant has for a period of 6 months, paid their invoices on time, they will be able to seek approval to be put on a list of approved creditors. This would give the applicant the ability to pay on invoice for the application fees that would normally be required in advance.

Approval will be considered following written request to the Executive Officer at the ACVM Group.

3.   Timing for Payment of fees and charges

The following fees and charges are payable as indicated;

Pre-screen fee	Payment to be submitted with application
Application fees	Payment to be received to initiate evaluations (except where the company is an approved creditor)
Accreditation charges	Payment to be submitted with the application
Hourly charges	Payment to be received within one month of from the date of the invoice
Annual charges	Payment to be received within one month from the date of the invoice

4.   Debt Management

Hourly/time based charges

• When invoices for time based charges are 2 months overdue from the date of issue, a letter will be sent to the applicant stating that a penalty charge of 10% will be added to the outstanding amount if it is not paid within 20 working days (as per the Ministry of Agriculture and Fisheries (Restructuring) Act 1995).
• If payment of the invoice is not received within a further 2 months, a debt collection agency will be brought in to recover the outstanding amount. The organisation or person will also be listed with the debt collection agency as being a credit risk.

Application Fees

If the estimated application fees are not paid within one month of pre-screen approval notification, the application will be returned to the applicant. The applicant will have to reapply with the appropriate pre-screen fee if they subsequently wish to proceed with their application.

Non-payment of fees

Section 82 of the ACVM Act states that “where the registrant of a trade name product is liable to pay any fee or charge in respect of that trade name product and if the fee remains unpaid after the expiration of time provided by section 18 of the Ministry of Agriculture and Fisheries (Restructuring) Act 1995, the registrant is prohibited from importing or manufacturing the trade name product while the debt and any penalty payment remains unpaid”. This section of the ACVM Act will be enforced where necessary.

Removal from the approved creditors list

Where a person or organisation that is an approved creditor fails to pay their invoices on time on three occasions, they will lose their approved creditor status and will be required to pay all application fees in advance.

5.   Annual Charges on Products

• Full annual charges will be payable on 1 July in each year.
• The invoicee will be provided with a detailed list of products one month prior to the annual charge invoice being issued so that they can confirm which of the products will be continued for that year.
• If an applicant has their product placed on the register after 1 July each year, they will be charged the full or a proportion of the annual charges, dependant on the time of the year as follows:

            July to September   full annual charges
            October to December 75% of annual charges
            January to March    50% of annual charges
            April to June       25% of annual charges

6.   Fee Waivers

• Where the actual time involved in considering an application for which a scheduled or fixed fee applies is less than that estimated, this fee may be partially waived to reflect the actual costs involved.
• If the actual costs incurred are 25% more or less than the scheduled or fixed fee and the difference is greater than $150, then an additional charge or refund (as applicable) will be made.
• If a registrant applies for multiple changes to one or a number of products and the actual time taken to process the applications is significantly reduced due to the applications being processed together, the actual costs will be charged.

7.   Minimum charge

• Where the time spent on a service is less than 15 minutes in any one working day, there will be no charge.
• Where the time spent on a service is greater than 15 minutes in one working day, a minimum charge of $43.50 plus GST will apply. Every additional 15 minutes after the first 30 minutes will be charged at $87/hour plus GST. 

8.   Refunds

• An applicant may withdraw an application at any time. If an application is withdrawn the applicant may request a refund of fees paid for functions that have not been performed.
• Applications for refunds of fees will need to be submitted at the time of withdrawal of the application to the National Operations Manager, ACVM Group for consideration.

9.   Review of Fees and charges

ACVM Group recognises the need for stability and predictability of costs for stakeholders. All regulated fees and charges will be fixed for two years although fees and charges and delivery of services will be reviewed annually. The operation of a memorandum account will assist ACVM Group in ensuring that any under or over- recovery of costs can be accommodated within the budget process.

 

Page last updated: 14-August-2001