Feb 03, 2020 - 11:45 PM
Once you have determined the right avenue for your imports and exports, the next step is to work on incorporating a business in Australia. There are three types of import and export business strategies that you should consider, and each offers its own unique benefits.
Export management firm:
You could choose to launch an export or import management company, which handles everything from hiring distributors to marketing the products and then organizing shipping logistics. These businesses tend to offer their services to other businesses and don’t own any of the goods and services coming in or out of the country, and make their money in management fees.
Export trading company:
The next import and export company type to consider is an export trading company, where you would determine the demand for products in Australia and locate companies that can export goods to you. This allows you to sell goods in the country to companies and distributors for a marked-up price.
Import and export merchant:
Finally, an import or export merchant is responsible for buying merchandise from a manufacturer in another country and then reselling that merchandise. You could buy cheap electronics from China, for example, and resell in Australia for double the price, or source quality Australian wines to sell in the United Kingdom for an inflated price. The possibilities are endless with this method.
All goods that are imported into Australia must be cleared through the Australian Border Force, and there are clearance requirements and a list of prohibited goods. It’s important to get to grips with the Australian import system before getting started, to ensure that your goods are not rejected when they arrive in the country.
Some goods categories will require permits and may have costs attached, such as clearance fees, customs duty, and goods and services tax (GST), so this should be factored into your running costs and profit margins.
Exporting, on the other hand, can be a time-consuming process, and most businesses are expected to create an export plan. The Department of Home Affairs will clear your goods for export, and you must consider things such as legal issues, quarantine, shopping and foreign exchange as part of your exporting process.
For local companies, the government may be able to offer assistance through its Efic’s Small Business Export Loan, offering money to help you get your export contract off the ground if you’re struggling to get the numbers to work.
For more information, you can visit https://dfat.gov.au/about-us/our-people/Pages/ministers.aspx
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