How To Successfully Import Your Products To Australia Part 1
With the recent news that Amazon is planning to launch their FBA program in Australia, everyone is looking for information on how to import and launch their products in this new market. With a population of 23.7 million, and one of the world’s richest economies, you don’t want to miss the opportunity of launching too late. For this reason, we wanted to make a complete guide on how to import to Australia. My main focus has always been to help people import their products and launching into new markets. With that being said, the key here is to launch your product(s) as soon as possible! This will establish your brand much faster in Australia and being live on Amazon AU before your competition should be your #1 goal.
E-Commerce in Australia
- 89% of the Australian population live in urban cities.
- In 2016, over 35% of E-commerce transactions were done on mobile devices.
- Click Frenzy is a major shopping day unique to Australia(think like Black Friday in the US). This event runs on the 3rd Tuesday of November.
- According to Australian Trade Commission, E-commerce sales in Australia is set to rise to 18% by 2018.
- Australia is one of the most digitally advanced nations on the planet, with 85% of the transactions done by credit and debit cards.
With the facts above alone, it already shows you that Australia is a great market to be in. In fact, one of the main reasons why Amazon wants to expand there is that they see massive potential. Currently, Amazon AU is only limited to the Kindle market. Regardless, every country has it’s own regulations, certifications and product requirements. So let’s have a deeper look on what you need to be complaint.
Legal Requirements & Import Regulations
For goods with a value equal or less than A$1,000 , no duties, taxes or charges apply. Value of good exceeding A$1,000 need to have an Import Declaration Form(N10) and all relevant duties, taxes and charges must be paid. The Australian Border Agency highly recommends you use a licensed broker for your first time importing to Australia.
The reason for this is it’s much easier to get clearance this way and importing goods by yourself might be complicated the first time. Most import declarations are lodged electronically via the Australian Border Agency’s Integrated Cargo System(ICS).
Australia uses mainly 2 forms to declare imports:
– Import Declaration(N10) FormB650 is for goods arriving by air or sea cargo.
– Import Declaration(N10) FormB374 is for goods arriving by International mail.
Australian law requires you keep all Import Declarations and relevant documentation for 5 years. The Goods & Services Tax(GST) in Australia is 10%. This applies to most goods and services that are sold in Australia. To be able to file for GST you will need an Australian Business Number(ABN) & Australian Registered Body Number(ARBN).
Australian Registered Body Number(ARBN)
Before conducting business in Australia, foreign companies need to register with the Australian Securities and Investments Commission. Once approved, you’ll be issued a nine-digit Australian Registered Body Number (ARBN), which you will need in order to communicate with government agencies and other businesses about your products. Only non-Australian companies need to have an ARBN, to apply: We would strongly recommend you conduct a search to see if your company/brand name is already taken in Australia. If the name is available, you can also reserve it to prevent others from claiming it. To get an ARBN fill out Form 402 with details about your business and activity. This process is done electronically through the Australian Securities and Investment Commission(ASIC) website.
Documents Required To Obtain an ARBN
- Certificate of Registration issued by the country your business is incorporated in.
- Memorandum of appointment of a local agent (Form 418) or power of attorney.
- Memorandum stating powers of Australian directors(if applicable).
- Certified copy of the company’s statement of governance.
The application fee is A$ 444. The completed Form 402 and accompanying documents have to be sent to:
Australian Securities and Investments Commission
PO BOX 4000
Gippsland Mail Centre
VIC 3841
Beyond the paperwork, there are a few additional requirements that have to be met for your business to be operational in Australia. You can find the additional requirements in the forms above. Please note that this depends on your business and the requirements are different depending on the company structure & operations.
Additional Requirements
The ASIC also requires all foreign companies who wish to conduct business in Australia the following:
- A local agent.
- A registered office.
- A registered public officer.
- An attorney’s office that can conduct duties on the company’s behalf.
More details on how to successfully import your products to Australia in part 2