How do we sell from UK to Australia
Question
What are the requirements to sell goods from UK to Australia if the mode of operation is by telesales. What is the requirement. Is it necessary to set up an office in Australia for the same.
Answer
Hello,
The first thing to worry about is whether or not your products can be sold in Australia.
This is known as product approval. If you are selling cosmetics, health products, medicines, vitamins etc. each will have to conform to Australian rules regarding composition, labelling and advertising. If the products do not conform to these rules they will be stopped by Australian customs and probably destroyed.
It may be necessary to have the products tested by a laboratory in order to offer evidence of composition. You need to factor the time and cost of doing this into your pricing model.
You can then consider the cost of labelling, freight, import duty and tax (GST) and build your pricing model.
Don’t forget to think about an INCOterm so everyone knows exactly what is in the price and what you are offering to do.
It is usually the tax pros and cons that decide whether or not you need a local presence in the destination country. But this should be the final consideration once you have decided everything else.
Regards,
Susan
enquiries@morley-consulting.co.uk
www.morley-consulting.co.uk
Answer
Hi Melvine
When selling to Australia suppliers and manufacturers are obliged to make sure products are safe. Products must meet relevant safety standards, have clear instructions for proper use and include warnings against possible misuse. If you don’t comply with mandatory standards, you risk action being taken against you under the Trade Practices Act which is enforced by the Australian Competition & Consumer Commission (ACCC).
Current exchange rate and of course the time difference add to the challenge, but if you have a great product or service to offer there is no reason why you cant make inroads to the Australian market. If you would like to discuss routes to market or our distributor identification and introduction service please take a look at http://www.exporttogroup.com/australia-office.html or drop me a line at info@exporttogroup.com. Best of luck, Regards Colin
Answer
Hello Melvine,
As touched on by others all healthcare products, such as medical devices or complementary medicines and vitamins need to be registered with the Therapeutic Goods Administration (TGA) in Australia. This needs to be under an Australian individual or company – called the "sponsor" – who is legally responsible for the product. This can be either any Australian subsidiary of yours, a distributor or some regulatory consults will act as sponsors (for a fee). If you’d like any more information on this, finding a distributor or setting up a company please feel free to get in touch.
Best regards,
Joe