National Measurement Institute Audit Priorities 2021-22 – What should you look out for if you are an Australian importer or a food retailer?

By John Thisgaard (FoodLegal Senior Lawyer) and Crystal Ong (FoodLegal Special Counsel)

© Lawmedia Pty Ltd, March 2022

The National Measurement Institute (NMI) has commenced a targeted audit of businesses including importers, independent supermarkets and licensed venues to assess compliance with Australia’s trade measurement requirements. This article addresses the types of businesses and products that will be the focus of the NMI audit and highlights some of the important compliance issues that businesses should be aware of.

FoodLegal offers training and compliance services and can assist food businesses in understanding and achieving compliance with their trade measurement obligations.

Details of the audit

In July 2021, the Australian Federal Department of Industry, Science Energy and Resources released its 2021-22 National Compliance Plan. Under this plan, National Measurement Institute (NMI) inspectors will undertake a concentrated national audit of importers, independent supermarkets, and licensed premises between the period of 4 January 2022 to 30 June 2022.

The aim of the audit is for the NMI to assess imported food and grocery goods for compliance with the national trade measurement laws in Australia. The NMI has cited consistently above average rates of non-compliance amongst independent supermarket chains and importers.

Although not expressly specified by the NMI, the emphasis on imported foods by NMI auditors is quite likely to discover higher rates of non-compliance in the context of stores with ethnic demographics. This is because anecdotal reports suggest a higher level of non-compliance for imported products in relation to Australian labelling and packaging requirements.

Under the National Compliance Plan, NMI trade measurement inspectors will:

·        Audit at least 400 importers nationwide;

·        Inspect a minimum of 8000 types of pre-packaged goods to ensure that they contain the amount of product declared on their labels; and

·        Review documentation demonstrating that importers have the appropriate systems and practices in place to ensure that they are meeting their trade measurement obligations.

Which businesses are likely to be audited?

The NMI will focus its audit on the following types of businesses:

·        For importers, businesses that import pre-packaged products with measurements based on volume (e.g. oils, seasonings, beverages, pet foods, sanitisers and cleaning products)

·        For independent supermarkets, businesses that are a part of ‘smaller independent supermarket chains’

·        For licensed premises, businesses that were found to be non-compliant during 2020-21

Food businesses that import products or supply products to independent retailers are likely to be subject to regulatory scrutiny, and should take steps to ensure that they comply with relevant trade measurement requirements.

Assessing trade measurement requirements

Australia’s trade measurement requirements are set out in the National Measurement Act and National Trade Measurement Regulations. These instruments impose the following requirements:

·        Prepacked goods must include a statement indicating the measurement of the product

·        Products in transparent packaging, inner packs and some other types of products must meet additional specific requirements relating to how the measurement information is displayed

·        Some products packed in front of the purchaser (e.g. deli items) must be weighed using equipment that meets relevant requirements

·        Any declared measurement marking must be accurate

·        Any shortfall must fall within strictly defined limits

FoodLegal can work with businesses to assess their trade measurement obligations and ensure they are achieving compliance.

What are the consequences for non-compliance?

FoodLegal can work with and advise or audit businesses to assess their trade measurement obligations and ensure that they are achieving compliance. FoodLegal can identify where a rectification or compliance improvements are necessary, rather than taking the risk of facing massive fines and penalties (see below) by lack of preparedness for an NMI audit.

A business that is found to be under-measuring products sold to consumers or is breaching other provisions of the trade measurement laws may be issued with an infringement notice of $1,110 per offence. Offences may also be subject to prosecution in the Australian Federal Court, in which case the maximum penalty is:

·        Up to $222,000 per offence as a company; or

·        Up to $44,400 per offence as an individual.



This is general information rather than legal advice and is current as of 2 Mar 2022. We therefore recommend you seek legal advice for your particular circumstances if you want to rely on advice or information to be a basis for any commercial decision-making by you or your business.