Exporting

Answer: Before deciding to export you should have a good look at your organisation, its goals and its resources and decide whether exporting really suits you. Small businesses need to commit to formulating and implementing a business plan aimed at their chosen market.

Austrade is the federal government agency that helps Australian exporters, and it also works to attract foreign investment for Australian companies. Austrade can assist with such issues as determining if your company is ready to export, how to choose the best markets for your goods, finding out what financial assistance is available to your business to develop export markets and how to attract foreign investors.

More information available on www.austrade.gov.au

Q2. Is there government assistance for exporting?

Answer: Austrade's Export Market Development Grants scheme encourages Australian exporters to seek out and develop overseas markets. Under the scheme eligible businesses are reimbursed for part of the export marketing costs they incur.

Some of the eligible expenditure categories include overseas representation, overseas market development, communications, product promotion, trade fairs, literature and advertising and marketing consultants.

More information is available on their website: www.austrade.gov.au

Q3. Am I export ready?

Answer: The following checklist has been developed by Austrade and can be used as a tool to assess your organisation's commitment to developing a proactive, long term export business. The checklist is based on characteristics common to successful "export-driven" companies. Take time to evaluate each item carefully and to determine whether your decision to export is based on a sound business strategy.

Remember that exporting is an advisable strategy to pursue only at the appropriate point in each company's unique development process. A non-export ready company is much better off devoting its resources to further strengthening domestic business than prematurely attempting to export.

Is your company well established in the domestic market and financially stable?

Will your company develop a focused export strategy to penetrate targeted foreign markets instead of handling exporting on an infrequent, reactive, or shotgun basis?

Has your company appointed at least one person internally to work aggressively in developing export sales?

Are your company's products internationally competitive based on:
a) Unique features/characteristics?
b) Technical superiority?
c) Timely delivery and after-sales service?
d) Price?

Will your company's top management set yearly export sales goals with long-term objectives of making export sales as a substantial percentage of total corporate sales?

Will your company budget at least $10,000 for an initial export feasibility study? This budget should include items such as international travel, market research, and international business training

Can your company give its foreign representatives and customers the same attention and level of service given to domestic representatives and customers?

Q4. How do I set up an export business?

Answer:
If you are already in business:
No special requirements are necessary, however an Export licence/approval may be required depending on the type of export you might be considering (eg meat, vegetables, processed foods and beverages etc) from for example the Australian Quarantine Inspection Service (AQIS) or the Australian Wine and Brandy Corporation (AWBC).

If you are not in business:

You should initially contact your local BEC (see BUSINESS ENTERPRISE CENTRES, page 20) in your area for advice on starting up a business as well as seeking assistance in investigating your financial and taxation responsibilities.

Q5. Where can I learn more about exporting?

Answer: The College of International Business Ltd and the Australian Institute of Export both conduct exporter/export documentation training courses for people or companies looking to enter the export field. Courses range from one days duration through to certificate standard.

Austrade can provide you with an Export kit which contains information on the steps involved with successful exporting, as well as advice on the range of services available to assist you in achieving your export targets. Contact the Austrade Export Hotline on 13 28 78 for further advice and contact details for your state.

Q6. What export documentation do I require?

Answer: When concluding a Contract of Sale relating to export of goods, it is necessary for the parties involved to establish quite clearly the documents which are required to enable the buyer to obtain delivery of the goods and to arrange clearance through Customs.

A deficiency in the documents, which delays clearance of the goods, can prove to be expensive to the party responsible for the delay.

Basic documents are:

Bills of Exchange

Invoices

Bills of Lading or Air Transportation Waybills

Parcel Post Receipts

Insurance Policies or Certificates

Q7. What is a bill of exchange?

Answer: A Bill of Exchange (commonly referred to as a draft), is defined in the Bills of Exchange Act as "…an unconditional order in writing addressed by one person to another signed by the person giving it, requiring the person to whom it is addressed to pay on demand, of at a fixed or determinable future time, a sum certain in money, or to the order of, a specified person or bearer."

In the case of "sight" drafts (D/P terms), it is usually good for the documents to be released against the payment of the draft, while for "term" drafts (D/A terms) documents would normally be released against "acceptance" of the draft.

Q8. What details must an export invoice contain?

Answer: Although additional information may be required, an invoice should contain:

The name and address of the exporter

The name of the overseas buyer

Type of transport used - sea, air, road, or rail

The name of the vessel and sailing date, where applicable

Port of shipment and port of destination, where applicable

Shipping marks for identification purposes

Description of goods

Unit price, ie amount, currency and basis of quotation (FOB, CFR,CIF etc)

Buyers order number

Exporters reference

Import Licence number in country of destination, if appropriate

Freight charges and whether payable at destination (for FOB) or prepaid (for CFR & CIF)

Total value of the goods, such amount to agree with the amount of the related draft

Insurance: amount declared (if required to in terms of FOB and CFR shipments) amount insured (if CIF shipments)

Q9. Where can I obtain trade statistics?

Answer: Relevant Information can be obtained from the Australian Bureau of Statistics (ABS). ABS maintains offices in the capital city in each state. The ABS has a range of publications for sale and also charges fees for researching specific information.

More detailed information can be obtained from the Trade Analysis Branch of the Department of Foreign Affairs. The range of publications for sale from the Department of Foreign Affairs and Trade includes:

Country Economic Briefs (CEB): CEBs provide a concise and comprehensive profile of a country's economic and commercial ties with Australia. CEBs are available for 31 countries and are updated on a regular basis.

Composition of Trade: Analyses of growth, direction and commodity breakdown of Australia's trade over the last three years.

The APG Region: Trade and Investment: This is the most comprehensive analysis of intra and inter-regional trade available. This publication details trade in merchandise and services, as well as providing a summary of Australian investment in APEC countries and their investment in Australia.

Exports of Primary and Manufactured Products: This publication classifies Australia's exports according to their level of processing.

Trade in Services: A comprehensive publication on services trade between Australia and our major partners.

Basic Trade Statistics: A compact reference providing a wide range of trade and economic data including a supplement on Australia's merchandise trade with other countries.

Q10. What can I export from Australia?

Answer: A company or individual can export almost anything out of Australia, however some goods are subject to export restrictions. Applications must be made to the relevant authorities in these cases. All exports must be reported to Customs either by Agent, Shipping Company or Airline Company.

The following is a list of the main commodities that require export approval and the authority responsible for issuing the required permits:

Commodity:
Animal furs and skins
Live animals (native)
Wildlife and products derived from it
Native Flora and Fauna
Any animal listed under the Convention of International trade in Endangered Species CITES

Authority: Environment Australia Biodiversity Group
Phone: (02) 6274 1900
Fax: (02) 6274 1921
www.biodiversity.environment.gov.au

Commodity: Wines and Brandies exceeding 100 litres

Authority: Australian Wine and Brandy Corporation
Phone: 1800 635 264
www.wineaustralia.com.au

Commodity: Currency over A$10,000 (bank notes or coins)

Authority: Austrac (Australian Transaction Reports and Analysis Centre)
Phone: (02) 9950 0827 or 1800 021137

Commodity:
Fruit and Vegetables
Grain
Live animals (non native)
Plant and plant products
Foodstuffs & Animal Products
Certain woodchips and sawlogs

Authority: Australian Quarantine and Inspection Service
Phone: 1800 020 504 (answering service)
www.aqis.gov.au

Commodity: Heritage items

Authority: Australian Heritage Commission
Phone: 1800 020 652
www.environment.gov.au/heritage

Commodity:
Blood Products
Drugs of Dependence (narcotics, psychotropic)
Medicines and Pharmaceutical
Therapeutic Goods

Authority: Department of Human Services & Health Therapeutic Goods Administration
Phone: 1800 020 653
www.health.gov.au/tga

Commodity:
Computer components
Dual use technology
Goods to Eastern Block
Military Items

Authority: Department of Defence
Phone: (02) 6266 4187/(02) 6265 9111
Fax: (02) 6266 2260
www.dod.gov.au/index.html

Commodity: Goods to Iraq & other embargoed destinations

Authority: Department of Foreign Affairs and Trade
Phone: (02) 6261 9111
www.dfat.gov.au

Commodity: Fuels, minerals & metals uranium

Authority: Department of Primary Industry & Energy
Phone: (02) 6272 3933
www.affa.gov.au/dpie

Commodity: Aircraft (civil)

Authority: Department of Transport
Phone: (02) 9274 7739
www.dotrs.gov.au

Q11. Who can help with overseas tariffs/duties?

Answer: Austrade provides advice on Tariffs/Duties into most countries of the world, however they require from you an Australian Harmonised Export Classification (AHEC) code before they can research your query. AHEC codes can be obtained by contacting Australian Customs Service on 1300 363 263.

Once you have obtained relevant AHEC codes for your product/s please contact the Austrade Export Hotline on 13 28 87. You will be required to provide your:

1) Name
2) Contact details - telephone/ fax
3) AHEC number
4) Country (or countries) you are exporting goods to.

Austrade's tariff department will then research your query and respond to you within 24 hours.

Q12. Where can I obtain my export goods?

Answer: Austrade can provide a Suppliers list for exportable Australian goods or services, the turnaround time for requests is 48 hours.

The more specific your request is the more accurate the information you will receive. For example, avoid generic terms such as "dairy products."

Lists will obtain Company Name and telephone, fax and e-mail contact details.

The Industrial Supplies Office, Kompass and the Australian Export Directory can also assist in helping you source Australian product or services.