What are the steps to begin exporting?
The two crucial keys to achieving success are careful selection of likely countries for your product and plenty of 'desk research' in order to identify those markets’ characteristics.
In making a detailed market study the following should be considered:
- Whether the country selected already imports the product (import statistics will show how much and from where).
- What import duties the product would attract.
- Other barriers to imports, such as import licensing.
- Local taxes on the product, such as sales tax.
- Frequency and cost of shipping or airfreight between Australia and the market.
- Regulations, such as quarantine and labeling standards, consumer protection rules, and product standards.
- Whether cultural differences need to be taken into account. Read economic and social literature on the target market to understand its fundamental characteristics.
- Determine whether your export activity complies with government sanctions and regulations. See the following Department of Foreign Affairs and Trade website for more information about sanctions: www.dfat.gov.au/un/unsc_sanctions/unsc_sanctions_whatare.html.
- For information about United Nations sanctions currently in force, please see: www.dfat.gov.au/un/unsc_sanctions/index.html.
- For information about the operation of the defence and strategic goods export control regime, please see: www.defence.gov.au/strategy/dtcc.
Most, if not all, the information required for such a study is available from Austrade, the Chamber of Commerce and Industry, Government departments and trading banks.
When you have finished reading this, and other suitable material, and completed some desk research, you then need to prepare a basic export marketing plan.
This plan will help you focus your activities to ensure you achieve defined objectives. Don’t forget that if the situation changes you may need to modify your plan. A well-prepared export plan may also assist you in obtaining finance from your bank if this proves necessary.
Having identified the country with the most potential, you should now be in a position to visit that target market.
The main purpose of the visit will be to study the country’s special characteristics, to view the opportunities and competition first hand, and also enable you to seek and meet with suitable agents or distributors for your products.
Austrade and TradeStart offer a package of free services designed to assist small and medium sized Australian companies. The new exporter services provide eligible businesses with practical assistance to develop their business overseas and make their first export sale. The services include advice and information about getting into exporting, export coaching and assistance on the ground in foreign markets.
For a comprehensive export guide, you can purchase The Export Handbook by the Australian Institute of Export. The handbook takes you through the practical aspects of exporting essential for both experienced and novice exporters. It covers Export Procedures and Documentation, Customs Export Regulations, Internet Commerce, Banking and Finance, Export Risk and Credit Insurance, Marine Insurance, Shipping and Air Cargo, Freight Forwarding, Export Packaging and Resources for International Trade.
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