Application types

There are two types of application:

If you submit a...	you receive your NZUs...	the production data required is for...	next application period you are required to...	and if you stop carrying out the activity you are required to...
Provisional Application	in advance	the previous calendar year	submit a provisional or annual adjustment application	submit a closing allocation adjustment within 20 days
Final Application	in arrears	the previous calendar year	do nothing	do nothing

If you receive NZUs in advance, you must make an allocation adjustment based on your actual production for that year. This 'squares up' what you received in advance with what you are actually entitled to.  There are two types of allocation adjustment:

• If you carry out the activity for the whole year, you must complete an annual allocation adjustment.
  IMPORTANT: This can be carried out as part of your provisional application for the next year.
• If you stop carrying out the activity during the year, you must complete a closing allocation adjustment within 20 working days of stopping the activity.

Deadlines

You must submit your application using the online application form by the following statutory deadlines:

• Provisional allocation applications: Open from 1 January to 30 April of the year for which you wish to receive NZUs.

• Final allocation applications and annual allocation adjustments: Open from 1 January to 30 April of the year following the year for which you wish to receive NZUs.

EXCEPTION: If a regulation has been in force for less than a year, the deadline for applying for a final allocation is either 30 April or three months after the regulation comes into force – whichever is later.  The deadline for a provisional allocation is three months after the regulation comes into force.

Please note that the Climate Change Response Act does not allow the Chief Executive to accept a late application.  To receive an allocation, you need to apply no later than the statutory deadlines. We recommend that you apply well before the statutory deadlines.

Required data

To calculate your entitlement and apply for an allocation, you need to know the amount of prescribed product you produced during the calendar year.

• For final allocation, you use the actual data from the calendar year for which you're applying.
• For provisional allocation, you use your data from the previous calendar year, and "square up" with an allocation adjustment once you have your actual production data for the year which the allocation is for.   

Records you must keep

If you receive NZUs for a certain year, you must keep records of certain information for seven years after the end of the year for which you received them. You must assess for yourself which records will be sufficient to enable certain matters to be verified. Below are the matters you must be able to verify and some examples of the kind of records you might keep.

What must be able to be verified:	Example(s) of records you might keep
Proof that you are eligible to apply.	Documents about the activity your business carries out.  You must be carrying out the activity defined in the regulations as an "eligible industrial activity". Note: You should also keep proof you responded if: we requested information from you, and sent a notice warning you that failing to provide the information in time would make you ineligible.
Calculations relating to your allocation of NZUs, including any adjustments to the allocated units.	You must keep: A copy of the application summary we sent you for your signature – this contains your allocation calculations Any information used to prepare your application or a response to any further information requests You might also need to keep: A copy of the MFE provided worksheet, if you used it Records of your own calculations.
The amount of product produced during the year.	Documents about the product(s) you produce. Your product(s) must meet the definitions in the regulations Sales records Inventory records Other relevant documentation showing the amount of product produced during the year.

Unincorporated bodies

For the purposes of Industrial Allocation, an unincorporated body is an identifiable group of associated persons or organisations that jointly carry out an eligible industrial activity that are not incorporated.  Unincorporated bodies include a partnership, joint venture or trustees of a trust. 

Members of an incorporated body are generally specific legal entities in their own right (e.g. limited liability companies, a partner in a partnership, or individual persons).

If an unincorporated body wishes to apply for an industrial allocation, the following form must be completed and filed at the same time as the Application for allocation of NZUs.

Unincorporated body notification form

Penalties under the Act

There are penalties under the Climate Change Response Act 2002 for providing false information on applications for industrial allocation, and failing to keep required records. Make sure that any data you submit on your application can be supported with your records. Penalties may include being required to repay any over allocated units, a fine of up to $50,000 and imprisonment for up to five years.

Last updated: 1 May 2013