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The Australian government requires import regulations to be met in accordance with those set by both the federal and state governments in Australia. Companies doing business in Australia are required to ensure that the products they sell comply with the Competition and Consumer Act 2010 ( https://www.australiancompetit... ), particularly the Australian Consumer Law. All of the above regulations are overseen by the Australian Competition and Consumer Commission (ACCC).
In accordance with The Australian Consumer Law ( http://consumerlaw.gov.au/the-... ), some regulations that must be observed are as follows:
Australia is free from a wide variety of pests and diseases that could disrupt its agricultural industry. To continue to protect consumers from the potential negative impacts of these pests and diseases, the Australian Department of Agriculture and Water Resources implements strict biosecurity procedures before issuing import permits for all plant and animal products imported into Australia, in accordance with the Biosecurity Act 2015.
Further information can be found at http://www.agriculture.gov.au/... .
Exporters in other countries and importers of food products in Australia must ensure that all imported food products meet the required regulations on a sustainable basis.
There are 2 (two) regulatory stages that must be passed before food products can be sold in Australia, namely:
2. Has the same safety standards as food originating from Australia:
The standards/quality of food products imported into Australia must meet the Food Standards Australia New Zealand Code, which includes regulations related to labeling , allergy warnings , ingredients , and so on. In general, all food and beverage product packaging, including cocoa products, sold in the Australian market must include the following:
In general, the marketing chain for food products in Australia can be seen in the following figure.
Food & Beverage Product Marketing Chain in Australia
Distribution Channel
All types of distributors above play an important role in the successful marketing of food and beverage products in Australia, including as a link between sales centre in Australia and producers abroad.
The selection of an importer or agent to enter the Australian market also plays an important role. For this, it is necessary to find an importer/agent who has an extensive marketing network, good performance and special specifications.
Australia's high and stringent product standards, quarantine procedures, and regulations pose a significant obstacle to efforts to increase export marketing efforts. For example, other countries exporters face challenges with the regulations and labelling requirements for Australian food and beverage products, known as Holding Orders (HOs) . Australian Biosecurity has imposed HOs on other countries food and beverage products after they were found to be non-compliant during routine inspections.
Most of the causes are unqualified labelling methods such as:
Once a product meets Australian government regulations as an import and is shipped to Australia, various mandatory fees must be paid before it can be sold in Australia. The steps to determine these fees are as follows:
“ Customs Value ” is an initial calculation carried out by the Australian government to determine the value of an imported product, obtained by calculating, among others: (i) the transaction amount paid by the importer in Australia, (ii) the price of identical export products to Australia, (iii) the price of similar export products to Australia, (iv) deductive value , (v) computed value , (vi) fall-back value . After the calculation is complete, the “Customs value ” obtained will be used to calculate tariffs, product and service taxes, and import duties according to the products shipped.
A brief guide on “ Customs Value” can be found at http://www.border.gov.au/Impor... .
For complete information, please visit http://www.border.gov.au/Acces...
The most important thing in calculating the value of an imported product (“ Customs
"Value") is the exchange rate between the country of the seller and the Australian dollar. The Australian government requires that Customs Value be calculated in Australian dollars. The exchange rate used is the exchange rate in effect at the time the product departs from the exporting country, which is determined by the Australian government daily. Past exchange rates are archived weekly and can be viewed in the Government Gazette every Wednesday at https://www.border.gov.au/Busi...
Tariff is a tax imposed by the Australian government on
Imported products. For the import-export process between Australia and other countries, the latest tariffs based on product type are regulated in the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA)* , which can be checked at https://ftaportal.dfat.gov.au/... .
Australia's Goods and Services Tax (GST) applies to
Almost all imported products. The GST calculation is 10% of the value of taxable importation of the imported product.
The taxable value is obtained by adding:
GST payment is direct or concurrent with payment
import duty, unless the company is registered with the GST deferral system. It's also worth noting that products may be exempt from GST upon entry into Australia if they are under A$1,000 or are carried on an international flight.
More at https://www.ato.gov.au/Busines...
For a list of products and situations that are not subject to GST, see here: https://www.ato.gov.au/Busines...
According to the 2017 Charging Guidelines from the Department of Agriculture and Water Resources, one of two government agencies that regulate imported goods (the other being the Department of Immigration and Border Protection) , importing goods into Australia requires several permits, which incur additional costs. Some examples of these additional costs are: Import Declaration Permit Fee, Biosecurity Inspection Fee , Cargo Receipt Fee, and so on.
For complete details, especially for food products that require quarantine scenarios and so on, please check http://www.agriculture.gov.au/...
It's important for exporters to understand Australia's anti-dumping laws . The authority handling dumping in Australia is the Trade Measures Branch of the Australia Customs and Border Protection Service.
What is Dumping ?
Dumping occurs when goods are exported to Australia at a price below the goods' "Normal Value." Normal value is usually based on the domestic price of the goods in the exporting country.
Dumping is a form of price differentiation between markets. Dumping is not prohibited under international trade agreements. However, remedial action may be taken if dumping causes ( or threatens to cause ) injury to an industry in the importing country.
What is a Subsidy?
A subsidy is financial assistance ( or income or price support ) paid by the government of an exporting country that benefits its exporters in exporting goods to the importing country, either directly or indirectly. If the effect of the subsidy causes (or threatens to cause ) injury to the industry of the importing country, then remedial action can be taken.
What happens when a Measure is imposed?
Dumping measures are imposed on imported goods to offset the injury effect in the form of an “ Interim Dumping Duty (IDD)”. ( Interim ) dumping duties and/or countervailing duties are usually imposed for a period of five years (note: the duty imposed to counteract subsidies is called a “ Countervailing Duty ” and is usually imposed for a period of five years.
Another remedy for imposing duty is for the Minister ( of Customs in Australia) to accept the price set by the exporter. In other words, the exporter agrees to the value of their exported goods being at or above the minimum export price ( equal to the normal value or a subsidy) . This remedy is also usually imposed for a five-year period.
Information regarding Australian dumping can be downloaded via the Australian Customs website here .