Last updated: 23 Mar 2012
Business risks
Australian companies are advised to spend time investigating the market, obtain professional advice where appropriate and thoroughly investigate the issues in entering the market and establishing business relationships.
Australian firms wishing to operate in this country should commit to the highest level of corporate behaviour and familiarise themselves with Australia's law and penalties pertaining to bribery of foreign officials.
Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. Further information on the regulations governing bribery of foreign public officials is available.
For further information on frauds, scams, personal and asset security, intellectual property protection and other business risks please visit www.austrade.gov.au/Legal-issues/default.aspx
Intellectual property protection
As in Australia, there is the need to protect intellectual property rights and be covered by patent, design and trademark protection. Japanese companies are experienced international business players and understand the need for confidentially and non-disclosure agreements when beginning business discussions. You should act in the same manner as you would in Australia to protect your business security interests. As discussions progresses, consulting Australian and Japanese lawyers, with specific expertise is recommended, particularly in hi-tech and services industries.
Generally, while the paper contract agreement for business is important, developing and committing to a relationship is more crucial to potential Japanese business partners. Long legal documentation can often dull the enthusiasm of potential partners so a balance needs to be reached. Japan’s recent spate of bankruptcies means that exporters should exercise due diligence on their business partners before sending shipments to Japan. Credit service checks of Japanese companies are available.
For further information please visit IP Australia.
Top Business Risks
IP Passport fact sheets
These fact sheets outline foreign Intellectual Property (IP) regimes and some of the issues and challenges which may be faced by Australian exporters.
The current fact sheets are available on the IP Australia website.
Bilateral agreements
Australia has social security agreements with several countries that address the issue of 'double super coverage' for employees sent to work overseas. To take advantage of these agreements, Australian employers sending employees overseas to work must apply to the Tax Office for a Certificate of coverage.
For more details, please visit the Australian Taxation Office website.
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.