UNCLASSIFIED
1
Exporting To Australia
Getting it right!
Scott Strain
Director 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 we will be covering in today’s
Webinar
A very brief overview of Australia & UK-Australia trade
What to expect
Ways to...
What we will not be covering today
The various stages of exporting. If you are new to exporting go to
www.opentoexport.com...
Why Australia?
You’ll feel at home immediately:
Over 1,000 UK companies and more Brits than in any other country
Very simi...
UK/Australia trade links
• UK exports to Australia grew by
80% from 2007-2012 to £10.3
billion
• Total UK goods exports gr...
7
A comparison with Australia
Australia UK
Population 23 million 62 million
Global GDP ranking 12th
(IMF 2012) 7th
GDP gro...
Australia- States & Territories
CLASSIFIED
Top 7 Cities
Population in Thousands
Where the market is...
Australia – A brief geographical overview
10
Another perspective
Australia: what to expect
•A sophisticated multicultural market
•Pacific area
- fast growing
- self-sufficient
•Regional v...
What to expect from Australian
importers
•Value for money over price
•Cautious about changing suppliers
•Australian produc...
Import Channels & Distribution
Importers & Wholesalers: usually small & specialist. Few general
importers,
Commission Agen...
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 ...
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...
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 ...
Typical Distribution Channel costs in
Retail
Overseas buying agents/commission agents 3-6% FOB
Importers & Wholesalers sel...
Quoting & Getting Paid
US dollar the most common currency
Most exporters expect Free On Board
or Free Carrier quotations b...
Key Elements for Success
Set medium / long term strategies
Set reasonable marketing plans and sales targets and review
t...
Key Lessons for a
Market Visit
• Think Australian - NOT POM,
sell to Australians for volume
• Add value vs local offering
...
How can UKTI help you?
Provide grants to help you
research the market through our
Export Market Research
Scheme (EMRS)
Con...
Next Steps
If you are interested in learning more
about opportunities here then get in
touch with your local UKTI
Internat...
Professional Education & Training
Driving excellence in International Trade for 50 years
BRIEF OVERVIEW ON
LOCAL CUSTOMS A...
Regulatory
Process/documentation to enter
Goods into Australia.
• All imports into Australia require to be
cleared both th...
Professional Education & Training
Example of some Products that can
require additional processes to import
into Australia
...
Professional Education & Training
Driving excellence in International Trade for 50 years
Australian Customs and Border
Pro...
Professional Education & Training
Driving excellence in International Trade for 50 years
Australian Customs and Border
Pro...
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
35Drugs steroids, guns – some “im...
Professional Education & Training
Driving excellence in International Trade for 50 years
36
Not a lot gets
past the
AC&BPS...
Professional Education & Training
Driving excellence in International Trade for 50 years
Australian Quarantine &
Inspectio...
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
DAFF (DEPT OF Agriculture, Fisher...
PowerPoint Template 40
DAFF “ICON” DATABASE
SEARCH WEB SYSTEM
AQIS provides electronic databases and systems to assist imp...
Department of Agriculture
Fisheries,and Forestries
• Importing
• What are the requirements for bringing
items into Austral...
Professional Education & Training
Driving excellence in International Trade for 50 years
Dept of Agriculture, Fisheries an...
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Driving excellence in International Trade for 50 years
Professional Education & Training
Motor Vehicle Imports to
Australia
Driving excellence in International Trade for 50 years
Fresh Flower Imports
48
All of these
require a
permit to
import from
AQIS
Professional Education & Training
Driving excellence in International Trade for 50 years
Calculating GST on the Value of t...
Professional Education & Training
Driving excellence in International Trade for 50 years
Import Guidelines & Rules in Aust...
Professional Education & Training
Driving excellence in International Trade for 50 years
Resources & Links
Customs Brokers...
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How to export to Australia trouble free - by UK Trade & Investment and the Australian Institute of Export

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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.

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  • Australia & New Zealand are different but familiar. We are culturally close, use the same language and have similar legal systems. Both NZ & Australians are well disposed to UK goods & services. Their economies are broadly doing well and post GFC their currencies are strong vs £sterling and which makes UK goods & services very affordable.
  • Trade & Investment between UK and Australia is going well. We are the second biggest investor in Australia and the second favourite destination (after the USA) for Australian overseas investments. 66% up on goods and 85% up on services
  • - I love this slide. Many people underestimate the size of Australia. This slide sets it in context. Please remember that when planning your visit here. It takes 5 hours to fly from Perth to Sydney – the same from London to Moscow!
  • How to export to Australia trouble free - by UK Trade & Investment and the Australian Institute of Export

    1. 1. UNCLASSIFIED 1 Exporting To Australia Getting it right! Scott Strain Director for Trade at UKTI Australia & New Zealand
    2. 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. 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. 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. 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. 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. 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. 8. Australia- States & Territories CLASSIFIED
    9. 9. Top 7 Cities Population in Thousands Where the market is...
    10. 10. Australia – A brief geographical overview 10
    11. 11. Another perspective
    12. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 23
    24. 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. 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. 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. 27. Professional Education & Training Driving excellence in International Trade for 50 years Australian Customs and Border Protection Service
    28. 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. 29. Professional Education & Training Driving excellence in International Trade for 50 years
    30. 30. Professional Education & Training Driving excellence in International Trade for 50 years
    31. 31. Professional Education & Training Driving excellence in International Trade for 50 years
    32. 32. Professional Education & Training Driving excellence in International Trade for 50 years
    33. 33. Professional Education & Training Driving excellence in International Trade for 50 years
    34. 34. Professional Education & Training Driving excellence in International Trade for 50 years
    35. 35. Professional Education & Training Driving excellence in International Trade for 50 years 35Drugs steroids, guns – some “importers”
    36. 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. 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. 38. Professional Education & Training Driving excellence in International Trade for 50 years
    39. 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. 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. 41. Department of Agriculture Fisheries,and Forestries • Importing • What are the requirements for bringing items into Australia? • Importing to Australia
    42. 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. 43. Professional Education & Training Driving excellence in International Trade for 50 years
    44. 44. Professional Education & Training Driving excellence in International Trade for 50 years
    45. 45. Professional Education & Training Driving excellence in International Trade for 50 years
    46. 46. Professional Education & Training Motor Vehicle Imports to Australia
    47. 47. Driving excellence in International Trade for 50 years Fresh Flower Imports
    48. 48. 48 All of these require a permit to import from AQIS
    49. 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. 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. 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

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