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AustraliaA smart guide to shipping
CONNECT
This is your quick guide to help you connect with customers and businesses across Australia. It’s here to help you understand the local culture, shipping requirements, regulations and key commercial opportunities to expand your business.
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Contents
>07Business Culture
Pointers on how to build successful relationships with local businesses and consumers.
03Australia OverviewFind out the most important facts about the markets to help you assess the potential for your business.>
04Economic PotentialLearn about what sells where and the most popular exports and imports that may be relevant to your sector.>
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08Tips and AdviceUseful information and directory to help you ship to and from Australia.>
10Connecting with UPSA quick overview of UPS capabilities and experience and how we can help connect your business with customers across Australia.
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Connecting with UPSContents Australia Overview Economic Potential Business Culture Tips and Advice
Open your new trade route to Australia.
Australia is the 21st largest export destination in the worldAustralia has experienced the longest period of economic growth in the developed world. Australia and New Zealand are expected to grow at a compound annual growth rate (CAGR) of 4.4% during 2017 - 2023.
Australia has particularly strong trade with China accounting for 23% of total importsOther top import trading partners: U.S. 11.2%, Japan 7.4%, South Korea 5.5%, Thailand 5.1%, Germany 4.6%.
Australia accounts for 17.4% of New Zealand’s exports and supplies 12.3% of imports.
Australia is ranked 15th in the world for ‘ease of doing business’This is helped by the nation’s ‘single window’ digital trade portal, which seamlessly connects the various international trade agencies.
Five areas identified by the Australian trade Commission as being growth opportunities for foreign investment1) Advanced manufacturing2) Services and technology 3) Agribusiness and food4) Major infrastructure5) Tourism infrastructure6) Resources and energy
National facts and figures
AustraliaCapital CanberraPopulation 22,992,654 (2016)
Land Area 7,682,300 sq. kmMajor Urban Centres & Population (2016)
Sydney 5.505 million Melbourne 4.641million Brisbane 2.349 million Perth 2.066 million Adelaide 1.326 million Canberra 429,000
Language English 76.8% Mandarin 1.6% Italian 1.4%
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Australia is the 5th largest economy in the Asia-Pacific region and the 13th largest economy in the world. The market offers a wealth of vibrant business opportunities and a stable yet exciting commercial environment that has demonstrated sustainable growth and profit potential across a whole range of sectors. Companies that trade with Australia benefit from a strong business and consumer base, high personal wealth and strong intellectual property (IP) protection.
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Australia - one of the world’s advanced economies:- The reforms of the past 30 years have transformed Australia’s
economy from being insular to being more open and dynamic.
- A stable financial system along with a strong fiscal position create a positive environment for trade growth. These factors made the country more resilient to recent global economic trends.
- 2015 economic data shows rising consumerism faster than many expected at 66.4 %, and Australian companies targeting the rising middle class in China.
- With more disposable income Australia on-line shoppers go global. In 2016 Australia’s e-commerce sales totaled $U.S 9.5 billion with sales projected to increase to $U.S. 15.4 billion by 2021.
Two trends have influenced international trade in the last couple of decades: 1. The increasing use of eCommerce.
2. The prominent role of new diaspora networks boosting services exports and global innovation. For example, Australia leveraged its Asian Australian diaspora to build transitional business links with Asia.
Key trade flow into Australia (2016)U.S. US$ 21.7 billionE.U. € 32.4 billionChina US$ 44.2 billion Japan US$ 14.6 billionThailand US$ 10.9 billionNew Zealand US$ 5.6 billion
FTA opens up opportunities for Australian exporters as well as international providers of goods and services who look to establish their presence in Australia. Incentives offered to importers include reducing duties and barriers to entry. FTA attracts more imports to the benefit of domestic manufacturers and Australian consumers through access to an increased range of better value goods and services.
The main benefits for importers include:
• Tariff and tax relief
• Expedited transactions for faster processing of shipments
• Increased confidence in long-term business commitment
As the barriers to trade disappear, business owners who previously stayed away from importing to Australia may begin exploring international opportunities to uncover more supply chain opportunity, better prices or exclusive licences for goods.
Australia being a developed consumer market further supports bilateral trade from key import markets with FTAs and high de minimis thresholds with New Zealand, U.S. and China.
AUS $1,000 de minimis limits exposure to duty and tax in key import segments of retail, making Australia a desirable import market.
Australia’s free trade agreement (FTA) with China entered into force in 2015, adding to existing FTAs with South Korea, Japan, Chile, Malaysia, New Zealand, Singapore, Thailand, and the U.S.
Currency AUS $
GDP (US$) 1.339 trillion (2015)
GDP Per Capita (US$)
60,070 (2015)
CPI inflation Rate 1.5% (2015)
Total Imports 207.7 billion (2015 estimate)
Top import Partners
China 23%, U.S. 11.2%, Japan 7.4%, South Korea 5.5%, Thailand 5.1%, Germany 4.6% (2015)
Unlocking your potential.
Australia has had one of the best-performing advanced economies in recent decades. This success is due to several factors that include close ties to the fast-growing Asia region, strong population growth, sound fiscal management and access to natural resources. Australia has a service-lead economy. Annual economic growth performance: 2.7% (2014), 2.5% (2015) to 2.4% (2016) is forecast to remain steady in the near future. Australia is an attractive marketplace as well as a connecting hub for those who want to trade with other markets in Asia and New Zealand.
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Top ExportPartners
China 28%, Japan 13.4%, U.S. 7%, South Korea 6.3%, India 4.3%, New Zealand 4.0%
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Connecting with New Zealand.
Australia and New Zealand have established a very important trading partnership which allows international importers and exporters to enjoy the benefits of one of the most comprehensive bilateral trade agreements in the world:
The Australia – New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) enables lower compliance costs and mutual recognition of standards for goods and services.
Australia and New Zealand share a similar business culture and are in close relationships with both countries having agreements between institutions and corporations.
New Zealand’s total imports in 2015 valued at $35.8 billion.
Top import partners: China 19.4% / Australia 11.8% / U.S. 11.7% / Japan 6.6% / Germany 4.7% / Thailand 4.2%
New Zealand’s trade relationship with China has nearly tripled.
Over the past decade, two-way trade between China and New Zealand has risen from US$ 8.2 billion in June 2007 to US$ 23 billion in June 2016.
In the 2017 World Bank’s report, New Zealand replaced Singapore at the top of the rankings for ‘ease of doing business’ thanks to streamlining and reducing their tax system and improving the efficiency of their border trade compliance systems.
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Economic Potential CONNECT Australia
National facts and figures
New ZealandCapital WellingtonPopulation 4,788,880 (2017 est.)
Land Area 268,021 sq. kmMajor Urban Centres & Population (2016)
Auckland 1.495 million Wellington 405,000
Language English 96.1% Maori 3.7% Others 0.2%
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Key Business Sectors in AustraliaHere are some examples of key areas of activity across the various regions of Australia.
South AustraliaImports Vehicle parts & accessories Furniture, mattresses & cushions Rubber tires, treads & tubes
Western AustraliaImportsCivil engineering equipment & partsHeating & cooling equipment & partsSpecialised machinery & partsIron or steel tubes & pipes
TasmaniaImports Non-electrical machinery & partsSpecial yarns & fabrics
Northern TerritoryImports Pumps (excl liquid pumps) & partsHeating & cooling equipment & partsSpecialised machinery & partsRotating electric plant & parts
Australian Capital TerritoryImports Computers Electrical machinery & partsMeasuring & analysing instrumentsMedical electrodiagnostic apparatus
Exports Optical InstrumentsTechnical Services
New South Wales Imports Telecom equipment & partsComputers Medicaments (including veterinary) Medical instruments (including veterinary)
Exports RetaileCommerce
VictoriaImports Vehicle parts & accessories Computers Furniture, mattresses & cushions Telecom equipment & parts
Exports RetaileCommerce
QueenslandImports Heating & cooling equipment & partsCivil engineering equipment & partsFurniture, mattresses & cushionsRubber tires, treads & tubes
Exports RetaileCommerceAutomotive
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Economic Potential CONNECT Australia
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Darwin
Perth
Adelaide
Melbourne
Hobart
Sydney
Brisbane
Capital Cities
Canberra
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Meetings Business Culture Customer Service HolidaysAustralian public holidays may vary between the states and territories. However, there are a number of National public holidays throughout the year when banks, offices and some shops are closed.
These are likely to disrupt business operations and decrease or increase consumer activity through eCommerce:
• New Year’s Day ( 1st January)
• Australia Day (26th January)
• Easter Holidays (Between 22nd Marchand 25th April inclusive)
• Anzac Day (25th April)
• Christmas Day (25th December)
• Boxing Day (26th December)
Australian workers are guaranteed 20 days of paid vacation under federal law - in addition to seven paid holidays.
People leave and engage in their ‘real’ lives without fearing any repercussion for being away from the office.
• Although Australians may seem informal and relaxed - they can also befirm, direct and smart.
• Meetings are seen as open forums for debate, and where a potential solutionis discovered.
• It pays to make an appointment with Australians, no matter how important you are - or you might not get to meetthem.
• Although Australians live a relaxed lifestyle, they are very punctual when itcomes to business appointments.
• Being casual about being late is thoughtto be very rude.
• Australians have low expectations when it comes to customer service.
• In countries like Japan, going the extra mile for customer satisfaction is normal, but in Australia it is not even on the radar.
• Australians do not always expect to get a response time when handing over a customer support ticket. Agents simply respond when they can.
• With B2B customer support, faster responses are becoming a crucial Key Performance Indicator (KPI) - so resolving issues for customers quickly is increasingly important.
• Customers are digitally connected and prone to sharing bad experiences with big online audiences. So even in Australia, customer service is fast changing for the better.
• Australians stress the need for local support and service - so visit often toshow commitment.
• Franchising is well incorporated into the business culture – more franchising outlets per capita than any other country in the world, 3 times more thanthe U.S. and represents 9% of Australia’s GDP.
• Do not underestimate the locals. The labor force is one of the most educated,multicultural and multilingual in the world.
• Australia pro-actively attracts skilled workers from around the world, and they make up for around 30% of the workforce. This creates strong culturaldiversity at work.
• Establish a local presence, with either an agent or distributor on the ground.
Understanding local business culture is the foundation of your success.
A key to being successful in business internationally is to understand the role of culture in international business. Improving this knowledge can help build your international competencies as well as enable you to gain a competitive advantage - whatever sector you are operating in. Learning how business is done (and not done), potential communication barriers, basic expectations and even body language is the starting point to building long term relationships with your local partners and customers in Australia.
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Depending on the nature of the goods and regardless of value, importers might need to obtain permits to clear certain imported goods from customs control.
High demand goods attract low or zero tariffs. For example: automotive imports and industrial machinery attract a 5% tariff. Computers/laptops and some types of shoes are free.
Australia has particularly tight controls on goods with ‘natural’ fibers so clear labeling of textiles with their country of origin is needed.
The Australian Quarantine and Inspection Service screens all goods that are imported into Australia. Inspection fees are applicable to incomplete invoices as well as goods requiring an import permit and inspection.
Along with the value of the goods (individual & total), the invoice must state the material composition of the item, country of origin and a clear description.
You must pay import duty and taxes when importing goods to Australia. The valuation of the cost is based on the complete shipping value, including: the price of the imported goods and the cost of freight insurance. The imports are also subject to sales taxes. If the imports value is under AU$ 1000, no tax and duties apply.
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Ship to Australia tips
Ship from Australia Checklist
Online Tools
A range of tools available from UPS that can help you with your shipping needs. Visit www.ups.com for these tools.
• Calculate Time and Cost: Find delivery dates, time and shipping costs for UPS services.
• Import/Export Country Regulations: Click here for country-specific facts and requirements that may impact your international shipment.
• Days of Operation: Find UPS-observed holidays in Australia.
• UPS Import Control: Take control of your inbound international shipments.
• UPS Paperless® Invoice: Electronic commercial invoices speed data to customs.
• UPS TradeAbility®: A suite of Web-based tools to help manage and track international trade.
• FlexTM Global View: Supply-chain visibility for enterprises with a global reach.
• Quantum ViewTM Manage: Get up-to-date information about shipments you send, or those you’re expecting, from one Web-based tool that is easily customizable.
Useful things to remember when shipping to and from Australia.
If you are thinking of shipping to or from Australia, help is at hand. Wherever you are, visit UPS.com to get detailed help on everything you need to know about sending export and import shipments. You’ll find guidance on determining exporting costs; how to prepare for an export shipment; how to book and track shipments and how to process payments and deal with returns. Below are some important rules, tools and support resources to get you started.
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A licence is not required to export goods from Australia, however, a permit is required for some goods.
Certain destinations such as the U.S. and China require additional documentation either at the origin or destination.
The Commercial Invoice applies to all shipments containing non-documents. It is used for importation control, valuation and duty determination and it assists the customs authorities in processing your shipment more efficiently.
An Export Declaration is a statement that provides information concerning the goods and the export transaction. Once the declaration is lodged and cleared, goods may be loaded on a ship or aircraft for export.
When completing the waybill, be specific and detailed. List each commodity separately. State the selling price or market value of your shipment contents. It must agree with the number on your Commercial Invoice.
For more details about Australia export regulations click here.
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Asia Economic Institute
Australian Department for Foreign Affairs and Trade
Australia China Business Council
Australian Department of Immigration and Border Protection
Australian Department of Industry, Innovation and Science
Australian Trade & Investment Commission
New Zealand China Trade Association
New Zealand Trade & Enterprise
Tradingeconomics.com
CIA factbook
World bank group
Government statistics 2015
US dept of commerce
Australian trade & investment commission
Australian Bureau of Statistics
Just Landed
World Business Culture
Teamsupport
Ups.com
Dept. of Immigration and Border Protection
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Useful links and reference information.
Useful Links Sources & References
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Temperature-controlled logistics for sensitive medical and pharmaceutical productsUPS has 36 global healthcare facilities including a technologically advanced healthcare logistics centre in Sydney, Australia. The vast air-conditioned warehouse space includes a 5oC cool room and 20oC degree freezer together with a 24/7 temperature monitoring system. This provides facilities for companies from outside Australia who are looking to expand distribution of their goods across the region.
Global reach. Just reach out.UPS Worldwide Express service is available in 117 countries and territories offering customers early delivery options to more locations. UPS in Australia operates in four airports with six weekly flights and picks up and delivers to all addresses in Australia.
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Partnering for maximum potential.
Whatever your needs are across Australia, New Zealand or the globe, import or export, business or consumer – UPS has the expertise in global logistics to help you succeed. With access to our comprehensive service portfolio you can capitalize on international market potential. The UPS network will connect you with your customers in Australia, New Zealand and Asia region and beyond, giving you the reassurance of our experience and the latest technology on your side to help you succeed.
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*Based on the earliest delivery times by UPS Worldwide Express service and may vary by origin and destination postal codes. Time-in-transit can be subject to change without prior notice. Please visit ups.com for guarantee details, service availability and commitments before shipping. Certain commodities and high-value shipments may require additional transit time for customs clearance. The above information is updated as of July 2017.
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Delivery commitment from Australia
v
North America
Europe
Asia Pacific
Middle East
Africa
Latin America
Region
To Latin America Region 3 days
To Canada 2 days
To U.S.A. 2 daysTo the Rest of Europe 2 days
To South Africa 3 days
To Italy 2 daysTo France 2 days
To Germany 2 days
To Switzerland 2 days
To Africa Region 3 days
To Thailand 1 day
To Middle East Region 3 daysTo Singapore 1 day
To India 2 days
To Rest of Asia 2 days
To Hong Kong 1 day
To China 2 days
To Japan 2 days
To Taiwan 2 days
To the Netherlands 2 daysTo the UK 2 days
To Sweden 2 days
To New Zealand 1 day
To Russia 3 days
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Connecting with UPS CONNECT Australia
Connecting with UPSContents Australia Overview Economic Potential Business Culture Tips and Advice
From U.S.A. 3 days
From China 3 days
From the Rest of Europe 2 days
From New Zealand 2 days
From Taiwan 2 daysFrom Hong Kong 2 days
From Thailand 2 days
*Based on the earliest delivery times by UPS Worldwide Express service and may vary by origin and destination postal codes. Time-in-transit can be subject to change without prior notice. Please visit ups.com for guarantee details, service availability and commitments before shipping. Certain commodities and high-value shipments may require additional transit time for customs clearance. The above information is updated as of July 2017.
From Italy 3 daysFrom France 3 days
From the Netherlands 3 daysFrom the UK 3 days
From Germany 3 days
From Sweden 3 days
From Switzerland 3 days
From Africa Region 3 days
From Latin America Region 3 days
From Middle East Region 3 days
From Russia 3 days
From India 3 days
Delivery commitment to Australia
From Singapore 2 days
From Japan 3 days
From Rest of Asia 3 days
From Canada 3 days
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Latin America
North America
Europe
Asia Pacific
Middle East
Africa
Region
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