Current Importer
Our clients are attracted to Trade Consultants because they want to work with a trusted advisor. Trade Consultants can help you too, especially in Australia’s on-going and developing move to increased imports.
For example, it is obvious that many of our everyday products (both inputs to manufacture and finished goods) are now being imported. In many ways this has made sense to companies that are trying to remain competitive in a very competitive market. It is our experience that many of these companies have predominantly focused on the comparative cost to manufacture products overseas compared to manufacturing those same goods in Australia without having complete details of the costs of getting those goods into store in Australia.
In today’s financial environment, cost minimisation is a driver for any company’s calculation of its cost of goods sold. It is important to remember that costs associated with the importation of goods are variable costs, not fixed costs. It is therefore essential that these variable costs be minimised.
Many importers have insufficient working knowledge of the costs incurred through the cross-border movement of their goods each year. These are typically different costs than those experienced in domestic Australian market situations. As a result, companies may incur higher expenses from transporting and landing those goods than is necessary, including costly delays in clearing goods.
There are many concepts and practices involved in undertaking cross-border transactions and companies must be aware of, and be able to manage, the costs associated with them. For example, ask yourself these questions:
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What terms of trade are used when buying goods from off-shore companies?
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Who is responsible for insuring the goods against loss or damage until they reach your area of storage?
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What currency is used in the purchase transaction?
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At what point of time is the relevant currency purchased?
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Do you pay Australian GST at the time of importation?
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Do you use a customs broker?
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If a customs broker is used, is that customs broker authorised to undertake all activities involved in landing those goods and delivering them to your nominated area of storage?
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How many declarations does your customs broker make on your behalf to the Australian Border Force each month compared to those declarations that your tax agent/accountant makes to the ATO each month?
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Who checks costs payable by you that are shown on each invoice received from your customs broker?
If there is any doubt about answering any of the above questions, then a Trade Consultants review of your company’s current transactions may be worthwhile. Your company may achieve significant cost savings with limited input by you – we only need your written authorisation to receive a download of your transactional information from DIBP.
We can also help your business save on various cross-border costs (including customs duty and related taxes), identify and mitigate risks, and develop a compliance framework for the future. This is because Trade Consultants has extensive experience and applies a structured approach to guide you on all international trade matters, while minimising your costs and administrative requirements.
You should also be aware that, there are a number of trade assistance programs designed to assist importers. These programs are adminstered by:
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AusIndustry;
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AusTrade;
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Australian Border Force.
Some examples of trade assistance programs for importers are:
All of these can reduce or eliminate customs duty that your company may otherwise be required to pay at the time of importation. If you would like to know more about any of the above, please click on the link below to make contact.