Changes to AMAG Logo Code of Practice

As a licensee of the Australian Made Campaign Limited (AMCL), you need to be aware of a number of changes to the AMAG Logo Code of Practice. These changes came into effect on 12 September 2016 and apply to all new and existing licensees.

Food labelling

The bulk of the changes relate to use of the logo on food products and have been made necessary by the Federal Government’s new food labelling scheme, which came into effect on 1 July 2016.

As a result of the new food labelling scheme, AMCL can no longer approve new licences to use the logo on food products for sale in Australia. Existing licensees with food products will have until 30 June 2018 to switch to the new labels.

AMCL will continue to license use of the logo on non-food products and exported food products.

The changes to the Code of Practice which are required to reflect this change fall into the following areas:

• general information about food labelling and the changed role of AMCL (in Part I and II)
• a new rule prohibiting licensing of food products (Rule 3)
• transitional arrangements for existing licensees with food products.

Additional changes

Right to remove product (Rule 12)

This new rule was drafted after a review identified that the Code did not specifically give AMCL the right to remove a product from a licence where it had been found to be non-compliant.

References to Licence Agreement for overseas licensees

Currently the Code states that all licensees must execute a document called a Licensee Undertaking. However it has been AMCL’s practice to require a consistent but more extensive Licence Agreement from applicants based in other countries. This has now been written into the Code.

Australian Made criteria – food products

All products carrying the logo with an “Australian Made” claim must be substantially transformed in Australia. Previous editions of the Code have included a list of processes which are not considered by AMCL to qualify as ‘substantial transformation’. These include mixing and blending, rehydrating, crumbing, curing and smoking of hams and bacon, and so on.

This list has now been removed to provide greater consistency with the Government’s new food labelling scheme.

However, additional criteria have been inserted for new food products licensed (bearing in mind that AMCL can now only license foods for export). Where a product contains one of more primary ingredients which are imported, the origin of those ingredients must be identified. (A primary ingredient is defined as one which makes up more than 40% of the ingoing weight of the product (not including water) or whose name is included in the name of the food.

Australian Grown ingredients

The use of the logo with the representation “Australian Grown” plus the name of one or more ingredients (e.g. “Australian Grown Potatoes”) will no longer be permitted on new products licensed from 12 September 2016.

Products already carrying this representation will be able to continue to use it during the transition period, that is, until the new food labels are adopted.

Possible additional changes – ‘Made in Australia’ criteria 

The Government currently has a Bill before Parliament to amend the country of origin ‘safe harbours’ set out in the Australian Consumer Law.

The changes mainly relate to the criteria for a ‘Made in Australia’ claim, and include removal of the 50% local cost of production test and a revised definition of ‘substantial transformation’.

If this Bill is passed by Parliament, additional changes to the AMAG Code of Practice will be necessary to ensure that AMCL’s compliance criteria are consistent with the law.

Licensees will be advised of any changes.

If you have any questions about the changes to the Code, please contact us on 1800 350 520 or info@australianmade.com.au.