Partners in Australia for our slate tableware

Question posted by Pat Scully, on behalf of Proper Job Trading in TR15

We have just started looking at potentially exporting to Australia, our Cornish slate tableware and gifts.

We are looking initially at Perth and Melbourne as target areas due to the Cornish expats and other markets that may be open in the hotel and restaurant trade.

Has anyone any leaders or pointers as to who we can contact?

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Hello
When looking at your cost model please don't forget to build in Australian import duty and GST, both of which are payable at the time of import.

The tariff code for worked articles of slate is 68030000 and the import duty rate is 5%
see http://www.customs.gov.au/tariff/tariff2012.asp

I believe GST is currently 10%

You can also look at import requirements at http://madb.europa.eu/madb/indexPubli.htm

Should you require any further assistance please do not hesitate to contact me.

Regards,
Susan

You can also look at import requirements at

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Pat Scully, on behalf of Proper Job Trading in TR15.

Hi Susan

Thanks for your prompt reply. My biggest concern (I thought) would be shipping costs, but adding 15% to our prices is a complicator.

Just for information, we are a new business and finding our way into the export business.

Your reply was most helpful, so thank you again.

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Pat Scully, on behalf of Proper Job Trading in TR15.

Just had a thought about my reply just now. If I am correct, 5% duty to be paid and then 10%GST in the shop.

I had allowed 20% on the final price so if thats correct the product would be 5% cheaper before shipping.

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Hello

The duty and the GST have to be paid at the time of import.

The way it is calculated is the 5% duty is based on what is called the FOB value. This is the value of the goods plus delivery to the place of export and any other charges up to the place of export.

The 10% GST is based on the FOB value plus the import duty.

There is also an Import Processing Charge (IPC) which is a fixed rate of Australian Dollars 40.20 per import.

The GST that will be added when goods are sold in a shop is completely separate to the above.

It is usually considered best to let your importer pay the import duty and GST etc. The importer would usually be your buyer as they would most likely be a company registered in Australia. This is good because they have the best opportunity to find ways to offset the tax.

Don't forget that you will need suitable packaging to allow your products to survive the journey. However good the transport company packages are subject to a lot of handling in transit so you might need to pay for better packaging for your international shipments. However, in all cases the transport costs are based on either the weight or the dimensions of the package whichever is the greater. The weight is the packed weight of the parcel. The dimensions are turned into what is called the volumetric weight (L x W x H (cms) divided by 6000 for airfreight or 5000 for courier). The answer is called volumetric kilos so it can be compared with the actual weight.

Happy to help with further information or you might like to consider a training course to equip you with all the information you need in which case you could look at my web site.

Regards,
Susan
enquiries@morley-consulting.co.uk
www.morley-consulting.co.uk

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Hello,
When considering transport companies you need an idea of the overall size of consignment.
Small, relatively light weight packages will be best sent via a courier company such as DHL or Fed Ex. Large consignments (think pallet load) would be better by airfreight if you want speed, or seafreight if slow is OK. The costs of air and sea might not be as different as you might imagine. Obtaining quotes with timescales is essential. Remember to quote the weight and dimensions when asking for a quote. If considering airfreight or seafreight you might like to call a company called Allport Cargo Services (T) 01293 510246 Contact Chris Taylor. They have worked well for me.

Regards,
Susan

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Paul Hickey, on behalf of Mercator Cargo Systems Ltd in PO1.

Hi There, if you are looking for a transport company we are experienced in the in's and out's of exporting to Australia, we have regular full load, part load and airfreight services on a mix of direct and transhipment carriers so i can offer you several different scenarios. If you would like to discuss further then you can contact me on 02392 756575 or james@mercatorcargo.co.uk.
Thanks and best of luck

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Brooke Silvers, on behalf of UKTI East of England in AL7.

Hi Pat,

I work for UK Trade and Investment in Sydney, Australia and would be happy to assist you with your enquiry. We would be able to assist you in identifying a distributor in Australia through our Overseas Market Introduction Service (OMIS). Through OMIS we are able to conduct extensive and tailored research on the giftware and homeware markets in Australia as well as routes to market and potential barriers to entry. Furthermore, with OMIS we could identify a list of potential distributors and introduce them to your product to gauge their level of interest.

Please let me know if you would like any further information on OMIS and how we could assist you in entering the Australian market. I also believe that you have had some contact with UKTI South West, they too will be willing to help you with any questions you have regarding OMIS.

Kind Regards,

Brooke

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If you're dealing direct with consumers in Australia then a small parcel airfreight service sounds like it would be best for your products. Sea freight is only usually used for large palletised orders (perhaps if you manage to find a distributor in Australia)?

We can get you up and running and exporting this afternoon with carriers like DHL and UPS to Australia. So long as there are no restrictions sending your goods to Australia, then it's pretty straight forward. The main thing is to ensure you let your buyers in Australia know that there will be import duty and local tax for them to pay when the goods arrive in their country. There are some easy to use DUTY/VAT calculators we can show you so you can at least give your customers an idea of how much extra they'll pay to their government after they've paid you for the goods + shipping.

We assist all our customers with providing correct customs paperwork and once you get the first one out of the way you'll wonder what all the fuss is about!

Regards
Gregg

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