CONSUL GENERAL.

LETTER FOR PAKISTANI EXPORTERS.

Dear Sir/Madam,

Thank you for your interest in exporting to Australia. The Pakistan High Commission in Canberra and Pakistan’s Consulate-General in Sydney assures you of all cooperation and with your endeavour backed by us and in Pakistan by the Ministry of Commerce and the Trade Development Authority of Pakistan (TDAP) we shall Inshallah achieve positive results.

We believe, just getting importers address and you writing to them is not enough. We propose that you first familiarize yourself with the way the Australian import machinery functions along with all relevant details, then chalk out the best strategy, key element being which market segment in the whole chain you would like to place yourself, then contact them as per some of the suggestions given below and then bring us in the loop , if you so desire, to follow up your export opportunities for you here in Australia.

GUIDE TO AUSTRALIAN MARKET: The Chamber of Commerce and Industry of Western Australia have prepared an excellent guide for Australian market and kindly agreed that we can post it for the benefit of our exporters. We suggest that this comprehensive report may please be read and followed. Pl click GUIDE.

Importers’ list:

There are many sources to obtain the lists of importers world wide. The Trade development Authority of Pakistan has details of world-wide importers in detail and directories are available in their library particularly in major cities. They have also hosted it at www.tdap.gov.pk ; you may have to become their member. Details are in TDAP’s website. For Australia, importers directories are not published . This consulate has initiated the process of compiling it for Pakistani exporters and posting it in this website. We have started the process of updating the list and begin to post it from July 2006 onwards. Look for list particularly which mentions that it has been updated since July 2006. . We will keep updating and adding in it regularly, so please keep visiting this site regularly. If the product of interest is not yet covered, do inform us and we will give it priority.

Please appreciate that there is very little prospect of the importer responding to you just on the basis of a fax or email. What they like to have is a nice printed catalogues , informing and showing what you precisely have to offer. A picture or a sample in this case is truly worth a thousand words. Presentation is very important in Australia as say in case of Japan.

Australian importers are fairly open and do risk management and would like to import from various sources. What would truly help is you participating in their exhibitions.

YOUR OFFER IS CIRCULATED:

When we receive your offer, we circulate it through major chambers/associations including to NZ and Fiji as be-side Australia, there is scope of exports to the pacific islands especially consumer and edible goods.

If some of their members get interested in your offer, they will contact you directly. There is no point in your approaching the Associations as they would have circulated your offer and that is all they will do. It is better to approach importers as we suggested above with good quality brouchers etc. The list of associations , which circulates your enquiries is as under

-	Australian Business Ltd.(ABL) 140, Arthur Street, North Sydney NSW 2060 Fax 612- 99558914	-	Auckland Chamber of Commerce, 100 Moyoral Drive, Auckland, New Zealand. Fax 649 3773094
-	Victorian Employers’ Chamber of Commerce, P.O. Box 4352-QQ, Melbourne 3001. Fax 613 8662 5462	-	Nandi Chamber of Commerce, P.O. Box 113, Nandi, Fiji. Fax 679 721338
-	Queensland Chamber of Commerce and Industry, Industry House, 375 Wickham Terrace, Brisbane 4000. Fax fax 617 3832 3195	-	Suva Chamber of Commerce, G.P.O. Box 14803, Suva, Fiji. Fax 679 302188
-	Western Australian Chamber of Commerce, P.O. Box. 6209, East Perth 6892. Fax 618 9365 7658	-	Australia-Pakistan Chamber of Commerce & Industry, P.O. Box 71, Rockdale NSW 2216.Fax 612 9415 1443
-	South Australian Chamber of Commerce, 136 Green Hill Road, UNLEY Adelaide 5061. Fax 618 8300 0207

There are professional marketing consultants who will arrange match making and introduce you to Australian importers also. The Australia Business Ltd ( merger of Sydney Chamber of Commerce) is recommended for serious entrants.. They will of course charge ranging from Australian $ 5000 to $ 8000 or so. The advantage is that Australian companies will be more comfortable if they think your firm has been briefed and prepared by ABL.

What is really important is to decide on the market channel one plans to penetrate. To give an example of bedlinen, there may be 10 to 12 stores who account for 80-90% of the retail sale. These stores may import 50% of their requirements directly and give remaining import requirement to other importers. They will try to mix the supply sourcing with this method and also mix it from various countries , so as not to put all their eggs in one basket. The SME importers may supply to these major stores, as well as to SMEs retailers. Thus there is a good scope for a Pakistani exporter , subject to market size limitations.

The importers may at first place a small order, to sort out the inevitable problems in the business process. This should be accepted as it is in both the parties interests. What is critical also is to have an effective amicable dispute/differences resolution mechanism agreed to by both parties. What is not acceptable is to take an approach of blame game and not assume responsibility. The Australian market though small has a strong networking and once an exporter looses credibility , its difficult to re-enter this market for quite some time.

While , the trend is for buyers to give their specs, Australian importers may be willing to look at innovative ideas/products. They wish to see the products, rather than hear about them. Thus it is important that our exporters participate in maximum number of exhibitions here.

We have hosted list of importers in this website. To access them, Pakistani exporters may please contact us for password

PROFILE OF AUSTRALIA

Brief history including of economy of Australia is anned . Click: history.

Banned or restricted imports

Australia has banned or restricted import of certain products based on cultural, health or security reasons etc, Fresh fruits, vegetables and animal products including seafood is subject to complicated licensing system, virtually banning imports Items of interests to Pakistani exporters include most fresh food , knives and daggers, tobacco in various form ,antibiotics, ceramic ware-glazed, fish and toothfish, etc. However these are not prohibited, just restricted, which means the importer will have to obtain permission from concerned authorities. For food items, it is virtually prohibited. The details of such products and authorities are available at www.customs.gov.au

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QUARANTINE REQUIREMENTS.

Australian quarantine regime is very stringent. The Australian Quarantine and Inspection Service of the Dept. of Agricultures, Fisheries and Forestry administers it. Certification would be required for products falling in these 3 categories. Details can be obtained from www.daff.gov.au. Pakistani exporters may note that while travelling to Australia, they should not bring any edible or plant related products including dried nuts. If anything such thing is found, not only will it be confisticated but over A$ 200 will be fined on the spot for mis-declaration.

All food imported into Australia must comply with Australia's quarantine laws as provided for in the Quarantine Act 1908 and the requirements of the Imported Food Control Act 1992. The applicable standards for food under the Imported Food Control Act 1992 are those set down in the Australia New Zealand Food Standards Code (FSC). These same standard apply to food manufactured in Australia. The FSC is administered by Food Standards Australia New Zealand (FSANZ). FSANZ have published the code on the internet at the following address: http://www.foodstandards.gov.au/thecode/foodstandardscode.cfm

The relevant section on Maximum Residue Limits (MRL) for agricultural and veterinary chemicals is Standard 1.4.2 (Maximum Residue Limits). It lists all chemicals that are permitted to have chemical residues in specified foods. Any agricultural and veterinary chemical not listed has not been evaluated, and is assumed to have a MRL of "not detected".

All imported food must meet the requirements of the FSC in its entirety. Please note that the responsibility for ensuring imported food complies with Australia's requirements rests with the importer.

Thus practically, import of most food items like seafood, fresh fruits & Vegetables is not currently allowed from Pakistan. Among food, major Pakisatn export is confined to rice and some spices .

REQUIREMENT FOR RICE:

At present, in addition to other testing, AQIS tests rice for a range of 25 agricultural and veterinary chemicals. Please note that this list is subject to change without notice. (

Tariffs

Australia offers duty free imports of Handicrafts. The conditions to qualify are given by Australian customs : CLICK: handicraftannexed. Written process or video/photographic evidence may be asked.

Duty free import is also allowed for goods if substitutable goods are not produced in Australia. Duty is 0% for consumption goods or 3% for others. Certain classes of foodstuff, clothing and automobiles are exempted. Conditions are annexed.

The detail of tariff against each harmonised code can be found at www.customs.gov.au . Go to Import section for details of duty.

Australia has announced a duty reduction plan in 2 phases , ie, in 2010 and 2015. From the point of view of Pakistan in terms of textile and clothing, most of our exports are in the 17.5% duty range. It will reduced to 10% in 2010 and 5% in 2015 but for the time being, most of our T&C products are charged 17.5%. Under Australian GSP, only LDCs benefit from reduced duty of 5%. Pakistan do not qualify as an LDC for GSP benefit.

FTAs/ Preferential tariffs

FTAs are means by which tariffs are reduced for imports from partner countries. Pakistani exporters may keep this in mind when quoting price.

Presently Australia has FTAs with USA, Singapore, USA and Thailand.

Australia is also negotiating FTAs with United Arab Emirates, Malaysia and China.

In addition to FTAs , preferential duties are extended to surrounding island neighbours (Forum Island Countries)

Moreover, there could be tariffs levied on account of defence measures like anti-dumping duty. For the benefit of Pakistani exporters, the Australian system of such measures is annexed. CLICK: ADDannexed.

Avoiding and dealing with Trade dispute.

It is important that business be done on LC. It is also better if pre-inspection clause is entered into. If there are some inevitable problems, buyers claim may be accepted, if their claims are right instead of delaying. Accepting it would be beneficial in the long run; if genuine claims are not accepted, buyers will not deal with the firm again and may spread it to other importers.

In case of some technical problems in production and some defects, it is also advisable to inform the buyers in advance , so that he can deal with it in advance.. The importer can plan outlet in various sources and may still accept the products at a discount. This will ensure continued relationship with the buyers/importers.

While we will continiously update this website, we would very much like your advise and guidance on how best to serve our export interests and be of service to you. Do contact us at the address given above Do contact me or the Trade Development Officer ( Mr. Zeeshan , email : tdo@pakistan.org.au )if you need additional information please.

Yours sincerely:

Azam Mohammed

Consul General