How to export to Australia trouble free - by UK Trade & Investment and the Australian Institute of...

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Exporting To Australia Getting it right!

Scott StrainDirector for Trade at UKTI Australia & New Zealand

UKTI Australia webinar schedule

2 October: How to export to Australia trouble free

16 October: Australian economic update: what comes after the boom?

23 October: Fashion online: selling to Australia

31 October: Super telescope, super opportunities: British Business and

the Square Kilometre Array (SKA)

What we will be covering in today’s WebinarA very brief overview of Australia & UK-Australia trade

What to expect

Ways to market

Typical distribution costs & quoting & getting paid

Preparing for success & visiting the market

Next steps and how UKTI can help

Overview of customs & importation – Diane Tipping

Q&A

What we will not be covering today

The various stages of exporting. If you are new to exporting go to

www.opentoexport.com

A sector by sector breakdown of the Australian economy. Go to

Slideshare.net and look for our “Doing Business in Australia & New

Zealand” Webinar slides.

Why Australia?

You’ll feel at home immediately:

Over 1,000 UK companies and more Brits than in any other country

Very similar business, legal and regulatory culture

Best performing OECD country economically, with good growth prospects

Strong Australian & NZ dollar making UK goods and services more affordable

Closely linked to fast growing Asia-Pacific nations

Massive opportunities for UK companies in oil and gas, health, ports,

infrastructure, ICT, education, low carbon, financial and business services

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UK/Australia trade links

• UK exports to Australia grew by 80% from 2007-2012 to £10.3 billion• Total UK goods exports growth was flat in 2012, but to Australia still increased 6%•7th biggest market for services exports and 18th largest for goods• UK is 2nd biggest foreign direct investor in Australia

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A comparison with AustraliaAustralia UK

Population 23 million 62 million

Global GDP ranking 12th (IMF 2012) 7th

GDP growth est. 2013 2.5% (OECD May 13)

0.89%

GDP per capita ($US 2012)

$67,700 ($US 2012 IMF)

$28,032

Ease of doing business (World Bank 2011)

10th (WB 2012)

7th

Unemployment (April 2013)

5.5% (May 13 ABS)

7.8%

Land mass – sq kms 7 692 000 242 000

In partnership with:

Australia- States & Territories

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Top 7 Cities

Population in Thousands

Where the market is...

Australia – A brief geographical overview

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Another perspective

Australia: what to expect

•A sophisticated multicultural market•Pacific area- fast growing- self-sufficient•Regional vs. National factors•Traditional sources of supply have changed•New ways of doing business•E-Commerce•GST

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What to expect from Australian importers •Value for money over price•Cautious about changing suppliers •Australian products preferred but they are open to international goods & services•Go with your best price – avoid haggling too much•Expect familiarity and a direct approach•Rigid enforcement of standards and practices – get it right first time!

Import Channels & DistributionImporters & Wholesalers: usually small & specialist. Few general importers,

Commission Agents/Fulfilment Houses: few and far between

Manufacturers & End users

Retailers: usually source locally & use importers for smaller orders

Internet retail: the fastest growing market

Ways into the Market

Combined Agent & Distributor Network

END USER

DISTRIBUTO R

END USERS

AGENT

END USER

DISTRIBUTO R

UK FIRMState State


Industrial ProductsThe Licensing Agreement

EXPO RT PO TENTIAL ?

END USER END USER END USER

AUSTRALIAN FIRM -LICENCING AG REEM ENT

UK FIRM


The Subsidiary

EXPO RT PO TENTIAL

END USER END USER END USER

AUSTRALIAN SUBSIDIAR Y

UK FIRM

Approximately 2000 UK Subsidiaries in Australia

Typical Distribution Channel costs in Retail Overseas buying agents/commission agents 3-6% FOB

Importers & Wholesalers selling volume consumer goods 40-80% on

landed duty paid goods

Discount Department Stores 35-40% of the selling price

Department Stores 40-75% of the selling price

Small Retail 50-100% of the selling price

Supermarket Chains 15-35%

Quoting & Getting PaidUS dollar the most common currency Most exporters expect Free On Board or Free Carrier quotations but;

•Those importing commodities often prefer Cost & Freight terms•Most Australian importers take out their own insurance so don’t expect Cost Insurance and Freight or Cost Insurance Paid terms•Remember that any customs duties will be based upon the FOB price•Offer your best price, don’t haggle too much.•Letter of Credit common place•Remember to factor in delivery times to your terms of payment

Key Elements for SuccessSet medium / long term strategiesSet reasonable marketing plans and sales targets and review

them regularlyCommitted distributor - right for your productCommitted supplierComplete openness - pricing / marginsService is paramountGet involvedAllow sufficient time

Key Lessons for a Market Visit• Think Australian - NOT POM,

sell to Australians for volume• Add value vs local offering• Support distributor• Price-points (understand

margins and currency)• Need to innovate• Create volume / increase rate of

sale to win both trade and distributor support

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How can UKTI help you?

Provide grants to help you research the market through our Export Market Research Scheme (EMRS)Conduct market research & contact finding for you through our Overseas Market Information Service (OMIS)Help you attend Exhibitions through our Tradeshow Access Programme (TAP)Help you successfully visit the market as part of a Trade Mission through our Visit Scheme (MVS)

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FreeDigitalPhotos.net

Next Steps

If you are interested in learning more about opportunities here then get in touch with your local UKTI International Trade Adviser. You can find your local ITA through our website www.ukti.gov.uk or contact myself at [email protected] and I will do what I can to help.

FreeDigitalPhotos.net

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Professional Education & Training

Driving excellence in International Trade for 50 years

BRIEF OVERVIEW ON LOCAL CUSTOMS AND IMPORT REGULATIONS

FOR AUSTRALIA

UKTI – SYDNEY AUSTRALIA 2013

•Local Customs and AQIS regulations and duties.•Local Customs and AQIS regulations and duties.•Local Customs and AQIS regulations and duties.

Regulatory Process/documentation to enter

Goods into Australia.

• All imports into Australia require to be cleared both through Australian Customs Service (ACS) and Dept of Agriculture Fisheries and Forestry Australia (DAFF) before they can be cleared for Home Consumption into Australia.



Example of some Products that can require additional processes to import

into Australia

• Foodstuffs• Medicines (can include herbal teas)• Cosmetics• Firearms• Weapons• Live animals• Plants

All require permits



Australian Customs and Border Protection Service



Australian Customs and Border Protection Service

The Australian Customs and Border Protection Service manages the security and integrity of Australia's

borders. It works closely with other government and international agencies, in particular the Australian Federal Police, DAFF/AQIS, the Department of

Immigration and Citizenship and the Department of Defence, to detect and deter unlawful movement of

goods and people across the border.



35Drugs steroids, guns – some “importers” will try anything



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Not a lot gets past the

AC&BPS. What is a

problem for you is if the

“stuff” is sharing your

container



Australian Quarantine & Inspection Service (AQIS) now

known only as

DAFF – Dept. of Agriculture, Fisheries and Forestries

Australia.



DAFF (DEPT OF Agriculture, Fisheries and Forestries )

Australia's quarantine policy is based on the assessment and management of pest and disease risk to human, animal and plant health and the environment. The Australian Quarantine and Inspection Service (AQIS) manages the risk associated with imported products in various ways.

Before submitting an Import Permit application, it is recommended that you check the import requirements for your commodity .

http://www.daff.gov.au/aqis/import

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DAFF “ICON” DATABASESEARCH WEB SYSTEM

AQIS provides electronic databases and systems to assist importers

ICON DATABASE– Plants and plant products incl grain, fruit, veg, cut flowers etc– Other country’s import requirements for exporters– www.aqis.gov.au/phyto

Department of Agriculture Fisheries,and Forestries

• Importing

• What are the requirements for bringing items into Australia?

• Importing to Australia



Dept of Agriculture, Fisheries and Forestry Australia.

The following cargo (this is not all) does require an Application to Import Quarantine Material• Cargo Containers• Biological Products (plants)• Fertiliser• Food (in particular eggs and egg products, dairy products, uncanned meat, seeds and nuts, fresh fruit and vegetables ).• Live Animals and Reproductive Material• Personal effects/ household goods• Plants, Grains and Horticulture• Timber/ wood packing• Motor Vehicles, Motorcycles, Machinery and Tyres


Motor Vehicle Imports to Australia


Fresh Flower Imports

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All of these require a permit to

import from AQIS



Calculating GST on the Value of the Taxable Importation

To establish the amount of GST payable on imports, we need to determine the value of the taxable import.

GST on the taxable import is 10% of the value.

The value of the taxable import is the sum of:

The amount paid or payable:

(i) For the international transport of the goods to their place of consignment in Australia; and

(ii) To insure the goods for that transport

(iii) Any Customs duty payable in respect of the importation of the goods

The Customs value

(FCA)+

Basically the 10% GST is calculated on the CIF price plus the duty



Import Guidelines & Rules in Australia• Registered Customs Broker• ISPM 15• Second-Hand Equipment• Final Inland Destinations• Clean Containers• Clean Goods• Bark or straw Material• Import of Food • Commercial Labelling• Origin Rules• Free Trade Agreements.



Resources & LinksCustoms Brokers and Forwarders Council of Australia Inc.Website: www.cbfca.com.au

Export Council of AustraliaEmail: [email protected]: www.export.org.au

ACS – Australian Customs ServiceWebsite: www.customs.gov.au

AQIS – Australian Quarantine & Inspection ServiceWebsite: www.aqis.gov.au

How to export to Australia trouble free - by UK Trade & Investment and the Australian Institute of...

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