While Australia is a great place to do business, like any destination businesses that don't plan thoroughly can run into difficulties. Scott Strain from UK Trade & Investment combines with Diane Tipping from the Australian Institute of Export to give British companies a quick lesson on avoiding common exporting pitfalls.

1. UNCLASSIFIED
1
Exporting To Australia
Getting it right!
Scott Strain
Director for Trade at UKTI Australia & New Zealand

2. 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)

3. What we will be covering in today’s
Webinar
A 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

4. 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.

5. 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 5

6. 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
6

7. 7
A comparison with Australia
Australia 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:

8. Australia- States & Territories
CLASSIFIED

9. Top 7 Cities
Population in Thousands
Where the market is...

10. Australia – A brief geographical overview
10

11. Another perspective

12. 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
UNCLASSI

13. 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!

14. Import Channels & Distribution
Importers & 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

15. Ways into the Market
Combined Agent & Distributor
Network
E N D U S E R
D IS T R IB U T O R
E N D U S E R S
A G E N T
E N D U S E R
D IS T R IB U T O R
U K F IR M
State State

16. Ways into the Market
Industrial Products
The Licensing Agreement
E X P O R T P O T E N T I A L ?
E N D U S E R E N D U S E R E N D U S E R
A U S T R A L I A N F I R M -
L I C E N C I N G A G R E E M E N T
U K F I R M

17. Ways into the Market
The Subsidiary
E X P O R T P O T E N T I A L
E N D U S E R E N D U S E R E N D U S E R
A U S T R A L I A N S U B S I D I A R Y
U K F I R M
Approximately 2000 UK Subsidiaries in Australia

18. 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%

19. Quoting & Getting Paid
US 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

20. Key Elements for Success
Set medium / long term strategies
Set reasonable marketing plans and sales targets and review
them regularly
Committed distributor - right for your product
Committed supplier
Complete openness - pricing / margins
Service is paramount
Get involved
Allow sufficient time

21. 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
UNCLASSI

22. 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)
22
FreeDigitalPhotos.net

23. 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
Scott.Strain@fco.gov.uk and I will do
what I can to help.
FreeDigitalPhotos.net
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24. 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.

25. 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.

26. Professional Education & Training
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

27. Professional Education & Training
Driving excellence in International Trade for 50 years
Australian Customs and Border
Protection Service

28. Professional Education & Training
Driving excellence in International Trade for 50 years
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.

29. Professional Education & Training
Driving excellence in International Trade for 50 years

30. Professional Education & Training
Driving excellence in International Trade for 50 years

31. Professional Education & Training
Driving excellence in International Trade for 50 years

32. Professional Education & Training
Driving excellence in International Trade for 50 years

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Driving excellence in International Trade for 50 years

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Driving excellence in International Trade for 50 years

35. Professional Education & Training
Driving excellence in International Trade for 50 years
35Drugs steroids, guns – some “importers”

36. Professional Education & Training
Driving excellence in International Trade for 50 years
36
Not a lot gets
past the
AC&BPS.
What is a
problem for
you is if the
“stuff” is
sharing your

37. Professional Education & Training
Driving excellence in International Trade for 50 years
Australian Quarantine &
Inspection Service (AQIS) now
known only as
DAFF – Dept. of Agriculture,
Fisheries and Forestries
Australia.

38. Professional Education & Training
Driving excellence in International Trade for 50 years

39. Professional Education & Training
Driving excellence in International Trade for 50 years
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

40. PowerPoint Template 40
DAFF “ICON” DATABASE
SEARCH 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

41. Department of Agriculture
Fisheries,and Forestries
• Importing
• What are the requirements for bringing
items into Australia?
• Importing to Australia

42. Professional Education & Training
Driving excellence in International Trade for 50 years
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

43. Professional Education & Training
Driving excellence in International Trade for 50 years

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Driving excellence in International Trade for 50 years

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Driving excellence in International Trade for 50 years

46. Professional Education & Training
Motor Vehicle Imports to
Australia

47. Driving excellence in International Trade for 50 years
Fresh Flower Imports

48. 48
All of these
require a
permit to
import from
AQIS

49. Professional Education & Training
Driving excellence in International Trade for 50 years
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

50. Professional Education & Training
Driving excellence in International Trade for 50 years
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.

51. Professional Education & Training
Driving excellence in International Trade for 50 years
Resources & Links
Customs Brokers and Forwarders Council of Australia Inc.
Website: www.cbfca.com.au
Export Council of Australia
Email: info@aiex.com.au
Web: www.export.org.au
ACS – Australian Customs Service
Website: www.customs.gov.au
AQIS – Australian Quarantine & Inspection Service
Website: www.aqis.gov.au