Export checklist Are you export ready?

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1. Your motivationUnderstanding why you are exporting is important in determining if you are ready to complete this checklist. If you are planning on incorporating exporting as a long term operation, you should continue with the checklist.

a. Are you currently exporting your product or have you in the past? If yes what have you exported and when? Why did you stop exporting?

n Y n N

b. What role will export play in your business? Will export be a strategic part of your company’s long-term business growth plan?

c. Are you prepared to make exporting a formal part of your business plan? n Y n N

d. Are you and your management prepared to make a long-term commitment to sustain the company’s export? n Y n N

2. Your companyHaving an established Australian customer base gives potential international customers confidence in your current operations. It allows them to see that you are a reliable supplier. Also, domestic success will help provide you with the necessary cash flow and working capital required to export successfully.

a. Where do you currently sell your product? Local market, interstate, export

b. Does your company have a good track record of meeting production/delivery deadlines? n Y n N

c. Does your company have a proven track record competing in the Australian market? n Y n N

Export checklistAre you export ready?When looking to export vegetables for the first time, it is important to ensure that your business has considered a number of areas of the export process. This checklist has been designed to highlight key areas for vegetable producers to investigate prior to export.

Name:

Business:

Email address: Phone: Date:

Export checklist Are you export ready?

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3. Your target marketResearching a viable market is the first and most vital step in selecting you export destination. Knowing how overseas markets work and who your competitors in the market are will help you price your exports effectively and competitively. Also knowing the necessary requirements for accessing your chosen market are vital as these requirements will affect your export process.

a. Have you researched a market/s that has a demand for your commodity? Please list the markets you are considering.

n Y n N

b. Do you know who your Australian and overseas competitors are and how their product is sold in your chosen market?

n Y n N

c. Have you conducted market research on your potential target markets including:

i) Checking the Manual of Importing Country Requirements (MICoR) to determine if there is market access for your product?

n Y n N

ii) Are there any relevant trading preferences or payment terms that are common in your chosen market? n Y n N

iii) Does your chosen market require any licences, or specific labelling on your product? n Y n N

iv) Have you investigated Free Trade Agreements (FTAs) and the relevant tariff rate on your product? n Y n N

v) Are there any other barriers to entry (those not listed on MICoR) that would affect access to your chosen market?

n Y n N

vi) Are you aware of the assistance that may be available from Austrade and state government in-market representatives to help you identify potential customers and promote your product?

n Y n N

4. Your productionOne of the fundamental principles of export readiness is understanding that your ability to export is dependent on the availability of your product.

a. Can you produce enough product to service your chosen target market? n Y n N

b. Do you understand how your production timing compares to local production and when competitors can supply?

n Y n N

c. Does your product meet government regulations and safety standards in your target market? For example, have you checked the Minimum Residue Limits (MRL) for the market?

n Y n N

d. Do you have an audited Quality Assurance system operating for your current production? While a QA system is not necessarily an export requirement it may be a importer requirement.

n Y n N

5. Your productMost exporters need to make some alterations to their product in order to prepare it for an overseas market. Required changes may be as simple as different packaging or labelling but could be more complex depending on your market.

a. Do you have a clearly defined selling proposition for your product and can state why overseas competitors should buy from you and not your competitors? Please list the key attributes of your product and company that you see as providing a unique selling proposition.

n Y n N

b. Do you know your cost of production, including the cost to prepare the product for export? n Y n N

Export checklist Are you export ready?

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6. Your logisticsSelecting the correct option of freighting for your business is a high priority and is vital to exporting success. In this decision factors such as price and payment method should be taken into consideration. Not getting your export pricing right can result in losses due to unforeseen costs.

a. Do you know where are you in the exporting supply chain? Refer to diagram on the last page. n Y n N

b. Have you considered the best freight option for you? E.g. Air or Sea or both? n Y n N

c. Do you need to engage a freight forwarder to handle the logistics of your product? n Y n N

d. If you have determined you need to engage a freight forwarder, have you investigated potential service providers? n Y n N

7. Pricing and paymentBeing clear about what is included in the price quoted for you product, how payment is to be made and when is essential to successful exports. Misunderstandings about who is paying for freight, insurance and arranging required documents can lead to unexpected costs that can make an attractive export opportunity unprofitable.

a. Have you determined your pricing structure and understand what costs this pricing should include? n Y n N

b. Have you selected the correct Incoterm© for your transaction? n Y n N

c. Do you have an understanding of payment options for international transaction (e.g. Letters of credit, online payments) and managing foreign transactions?

n Y n N

8. Your connection with the Department of Agriculture & Water ResourcesIn order to be an exporter of vegetables and potatoes you must be in contact with the Department of Agriculture and Water Resources (DAWR). Understanding the role of the DAWR to your export operation is vital.

a. Are you aware that exporting vegetables is covered under the Export Control Act 1982 and that you must comply with the requirements of the Export Control Order 2011 and meet the necessary requirements of the importing country?

n Y n N

b. Do you need to register your packing shed/facilities with DAWR as a Registered Establishment? n Y n N

c. Have you researched any other market specific documentation you may require? n Y n N

d. Have you familiarised yourself with the EXDOC system and registered as an exporter? n Y n N

e. Are you aware of the following documents and whether they are required to export your product to your chosen market?

i) Phytosanitary Certificate n Y n N

ii) Certificate of Origin n Y n N

iii) Import permit n Y n N

iv) Other relevant declarations required as per MICoR n Y n N

9. Your financingExploring different funding options available to your business is important in understanding your financial ability to be a reliable exporter.

a. Do you have sufficient financial strength and resources to develop overseas markets? This includes financial resources for market visits, the ongoing marketing of your product overseas and the upfront cost including export registration, inspections, freight and product samples.

n Y n N

b. Have you explored funding options such as the Export Market Development Grant (EMDG) offered by Austrade or any other federal and state government financial assistance packages?

n Y n N

Export checklist Are you export ready?

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10. InsuranceHaving the appropriate insurance cover reduces risks involved in exporting your products. Consideration needs to be given to the cost of insurance and the potential loss when deciding what type of cover you need. There are many different types of insurance to cover different risks associated with exporting. These may include, Marine Cargo Insurance to cover loss and/or damage to goods in transit by air or sea, Product Liability Insurance, Political Risk Insurance, Corporate Travel Insurance for staff travelling overseas, and Credit Insurance for export receivables to cover non-payment of invoices for export account sales.

a. Have you investigated and considered the insurance that you may need for your export business? n Y n N

11. Your marketingYou will need a website and other marketing materials that will help overseas customers be confident in your abilities as a quality producer and reliable supplier. If you do not have overseas business connections, then quality marketing materials will help you open doors to new opportunities. You should tailor your material for an export market and focus on commodities that are available for export rather than focusing materials on domestic customers.

a. Do you have promotional materials suitable for overseas customers such as a website, brochures and business cards?

n Y n N

b. Have you considered the translation of promotional materials into the language that is relevant to your target market?

n Y n N

c. Are you willing to undertake business trips to the target market in order to promote and market your product, as well as conduct business negotiations?

n Y n N

d. Do you have staff that understand the cultural sensitivities of your potential overseas customers that can handle export enquiries?

n Y n N

12. Are you ready?Are you ready to export? This requires serious thought as to whether or not your business is ready to take on international customers.

a. If you received an export order tomorrow, are you confident your company could process and deliver the order on time?

n Y n N

This project has been funded by Hort Innovation using the vegetable research and development levy and funds from the Australian Government. For more information on the fund and strategic levy investment visit horticulture.com.au

Vegetable export supply chain

Grower/s* Packing house* Consolidator* Freight forwarder Export destination

In-country agent or distributor

In-country customers

• Export plan

• Product availability

• Export pricing (Incoterms)

• Payment method

• Insurance

• Export finance

• Market research

• Market visits

• Marketing inc

• Register as Export Facility

• Packaging and packing of product

• Labelling to meet importing country an customer requirements

• Coordinate supply from growers

• Commercial Invoice

• Delivery to freight forwarder

• Phytosanitary certificate

• Export permit

• Customs clearance

• Fumigation and inspection (if required)

• Country of Origin Certificate

• Freight to destination

• Quarantine and customs clearance

• Import permit (if required)

• Import duty or taxes (if applicable)

• Receival from delivery destination and storage

• Instore/food service promotion

• Point-of-sale material (including handling, preparation info)

* Can all be done by grower or separate parties

This checklist is not exhaustive and a number of other industry based resources are available to assist vegetable growers to take advantage of export opportunities. www.ausveg.com.au/export