2014 ECA International Business Today December

E x p o r t C o u n c i l o f A u s t r a l i a | w w w . e x p o r t . o r g . a u | D e c e m b e r 2 0 1 4

REFORMS NEEDED TO SUPPORT MANUFACTURING EXPORTERS

KIWIS ARE FLYING HIGH

MEET THE SUPER HEROES OF AUSTRALIAN EXPORTING

DAVID LARKIN, ATRON ENTERPRISES, AUSTRALIAN EXPORT HERO

With hundreds of plants in operation, located in five continents.

Your trusted partner to ensure that your plant does not pollute the environment.

PROTECTING THE ENVIRONMENT.SWA designs & constructs industrial waste water treatment plants to client’s specific requirements.

WWW.SWAWATER.COM.AU

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PO Box 2699, Taren Point, Sydney NSW2229, Australia

TELEPHONE: 61 2 95254788 Fax: 61 2 9526 2795

INTERNATIONAL BUSINESS TODAY – DECEMBER 2014 | 1

CONTENTSFEATURE ARTICLES

New opportunities for exporters in Indonesia: A change of regime heralds a bright new future for local traders 6

Reforms needed to support manufacturing exporters: We need to address red tape to make it easier to do business offshore 10

Meet Australia’s export superheroes 12

REGULAR COLUMNS

COO’s report 2

Editor’s letter 3

News 4

Spotlight on…New Zealand 28

Awards 29

Tim’s Tips 36

Calendar and programs 38

Courses 40

DOING BUSINESS

Don’t let cross-cultural confusion hurt your bottom line 22

Developing a Chinese e-commerce strategy 23

Trusted Trader program cuts red tape 24

Register your IP internationally 26

EXPORTER

Seeing Machines 18

The Smith Family 20

PLACES

The Kiwis are flying high 14

Postcard from Queenstown 16

International Business TodayDecember 2014

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1 | INTERNATIONAL BUSINESS TODAY – DECEMBER 2014


COO’S REPORT

The year is drawing to a close and what a year it has been in the world of trade. Importantly, Australia secured the promised trifecta of trade agreements, namely Korea, Japan and most recently China. In addition, the World Trade Organisation’s multilateral

Trade Facilitation Agreement is progressing. Australia also announced the introduction of the Trusted Trader Program.

There’s been significant movement in the responsibilities of federal government departments pertaining to trade. The departments for customs and immigration are to merge, while Austrade now has responsibility for tourism and AusAid has moved into the Department of Foreign Affairs and Trade. Through this all, Australia’s exporters have continued to win in international markets. Evidence of this was seen at the recent Export Awards, which celebrated the achievements of many exceptional exporters.

As this is the last edition of our magazine for the year, I thought it would be appropriate to recap the past 12 months and foreshadow initiatives for 2015. Here are some of our achievements this year: • Launch of Trade Policy Recommendations 2014/2015.• Launch of Australia’s International Business Survey (AIBS), the largest study into export

behaviour in Australia.• Launch of the META/ECA deregulation hub to connect manufacturing businesses to

industry experts to identify and quantify the regulatory costs imposed on exports and the impact on manufacturing companies.

• Launch of the Indonesia Now program to demystify doing business in Indonesia.• Rollout of new education and export capability programs, focusing on skills development

and one-on-one consulting.

We are launching an important publication on Advancing Trade Development in Australia to address the shortage of research into government support programs for export promotion. The last time Australia’s trade promotion programs and services were analysed was during the Mortimer Review in 2007. Our new research paper will review Australia’s current trade support programs and analyse the trade support programs of 11 countries with which Australia competes internationally.

We are also working on projects to equip Australian business with the skills and capabilities required to effectively and efficiently conduct profitable international trade. So what can you expect from the ECA in 2015?• Launching new mobile apps that will: 1) provide a useful guide for companies looking to

set up in the Shanghai Free Trade Zone, and 2) advocate for greater Australian engagement with Korea through an increased understanding of the market and a practical guide to using KAFTA as a platform to doing business in Korea.

• Redeveloping our education programs through the AIEx to provide more online courses, as well as introducing consulting services and a mentoring program; something that was strongly advocated by the AIBS focus groups.

• Launching the results of the AIBS survey for 2014/2015. Informed by these results, the ECA will once again drive necessary changes to the support and programs delivered to Australian business.

• Leading a business mission to Jakarta, Indonesia in the first half of the year.• Launching a new events program aimed at demystifying how to do business in the top 10

markets for Australian companies identified as targets according to the AIBS survey results.• Collaborating on the development of an FTA Tool for SME exporters that can be used to

better educate companies on how to engage with FTAs.

On behalf of the ECA board, I would like to thank everyone for their support in 2014. If you’re not currently a member of the ECA, 2015 is the time to join us as we continue to grow as an organisation and as exciting export opportunities increase for Australian businesses.

Lisa McAuley


Alexandra Cain

We’re delighted to bring you the final issue of the Export Council of Australia’s (ECA’s) member magazine for 2014. You’ll notice we’ve changed our masthead from Australia’s Export Voice to International Business Today. Although our name has changed, what

remains the same is our commitment to keeping you up-to-date with everything happening in Australia’s export markets.

Our cover story this issue looks at opportunities for Australian exporters in Indonesia, following the election of Joko Widodo as president earlier this year. It will be fascinating to watch Australia’s commercial relationship with our nearest Asian neighbour change and deepen in the coming years, which will hopefully provide further opportunities for Australian exporters in that market. Indonesia does face challenges as its economy matures, especially when it comes to building infrastructure. Australia has an opportunity to be an important element in how the country will address those issues, as you can read about here.

We also examine the red tape that’s currently holding back local manufacturing exporters from achieving their full potential in international markets. ECA is presently conducting research with the Manufacturing Excellence Taskforce of Australia (META) to find out where the pain points are for exporters in manufacturing industries. Studies such as this play an important part in resolving the blockages that make it hard for manufacturers to access export markets.

This issue, we find out about The Smith Family’s export program, a key part of its ability to raise funds to support disadvantaged Australians. We explore how Australia’s competition and innovation agenda will benefit exporters. You’ll also find a full rundown on the Export Awards in this issue. Congratulations to all the exporters recognised in this year’s awards.

I hope you enjoy this issue.

EDITOR LETTER


NEWS

AUSTRALIA SIGNS FTA WITH CHINA

Australia signed a landmark free-trade agreement at the G20 meeting in Brisbane in November.

The FTA will reduce or remove tariffs and non-tariff barriers between the two nations. The agreement addresses other regulatory hurdles that exist between the two countries to allow smoother flow of trade. It will also assist in encouraging investment between China and Australia and address temporary entry of Australian and Chinese nationals in both countries.

The FTA is one of the most significant trade events of the year given China has become Australia’s largest trading partner. Australian exports to China rose to $150.8 billion in 2013.

The signing of the FTA is the culmination of a lengthy process that first started in 2005.

LANDMARK SURVEY TO REVEAL HEALTH OF AUSSIE EXPORT MARKET

Did you know the US is Australia’s top export destination? Or that access to finance is the number one challenge local exporters face? Or that 74 per cent of exporters plan to

expand into one or two markets in the next year?

These were some of the striking findings of Australia’s International Business Survey 2014. We’re now working on the 2015 survey which, like last year’s report, will shine a light on some of the most pressing issues facing local exporters.

It’s an opportunity for exporters to let us know where they trade, what they’re trading, as well as what inspires them, and also keeps them awake at night. Findings from the survey are used to inform Australia’s future trade agenda.

We recently finished collecting data for the next survey, and we‘re thrilled with the level of responses we received. We’d like to thank everyone who took part in this year’s survey and look forward to reporting the findings in early 2015.

ACTION PLAN FOR A STRONGER AUSTRALIA BENEFITS EXPORTERS

The Industry Innovation and Competitiveness Agenda was released in October, setting out the federal government’s program to reduce red tape, improve the skilled labour force, enhance

economic infrastructure and foster innovation and entrepreneurship.

One of the initiatives announced as part of the agenda is a program to adopt trusted international standards and risk assessments. This means that Australian regulators should not impose additional requirements on a product or service if it has been approved under an international standard or risk assessment.

It also outlines commitments to continue examining coastal shipping regulations, encourage foreign investment and increase competition to drive innovation and productivity.

A number of the recommendations contained in the ECA’s 2013 Trade Policy Recommendations have been reflected in the agenda and we continue to work closely with government to prioritise trade issues and make it easier for Australian firms to do business abroad.


NEWS

GREEN PAPER HERALDS SHAKEUP OF RURAL SECTOR

The productivity of the Australian agricultural sector is critical to the future success of our economy.

To ensure rural industries remain vital and internationally competitive, in

October the federal government released its Agriculture Competitiveness Green Paper,

which sought advice on how to make the rural sector more productive and efficient.

The paper explores a range of ideas aimed at improving agricultural competitiveness, including commercial muli-peril crop insurance, better weather information and improved mental health support for the rural sector.

The government also sought ideas for infrastructure investment, including water, roads, rail and shipping,

Submissions for the green paper are now closed and the report is expected to be tabled in parliament in 2015.

TRANS-PACIFIC PARTNERSHIP NEGOTIATIONS PROGRESSING

Further progress has been made on the Trans-Pacific Partnership (TPP) following a recent meeting involving representatives from the countries involved in the alliance. Australia, Brunei Darussalam,

Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam are involved in the TPP.

Trade minister Andrew Robb said in a statement progress had been made during the meeting on market access and trade and investment rules. “We consider that the shape of an ambitious, comprehensive, high standard and balanced deal is crystallising. We will continue to focus our efforts, and those of our negotiating teams, to consult widely at home and work intensely with each other to resolve outstanding issues in order to provide significant economic and strategic benefits for each of us,” Robb said.

It is understood further negotiations are progressing behind the scenes before representatives from the countries involved in the TPP engage in further meetings to finalise arrangements for it.

The TPP is a proposed free trade agreement involving Pacific rim countries.

FTA WITH INDIA WELCOMED

The ECA supports moves to create a free-trade agreement with India, already an important trading partner of Australia. The Department of Foreign Affairs and Trade puts annual

bilateral trade between the two nations at $11.9 billion, with resources exports making up the bulk of this figure.

A free-trade agreement is especially important given that, according to Australia’s International Business Survey 2014, 80 per cent of respondents think doing business in India is more or much more difficult than doing business locally.

An FTA would also address existing tariffs placed on Australian products exported to India of between 18 and 26 per cent. Further news is expected on negotiations between the two countries.

EFIC GIVEN NEW POWERS TO LEND TO SMALL EXPORTERS

The federal government has changed the Efic lending criteria so it can more easily lend to small- and medium-sized businesses.

The initiative is part of the government’s push to cut red tape and regulation for businesses.

Following an amendment to the legislation that sets out how Efic operates, it will be able to lend directly to small exporters. It will also be able to provide finance for all goods, not just capital goods.

This will substantially broaden the number of small exporters that can access funding from Efic.

“These enhancements to our ability to lend are a strong endorsement by government of our mandate to provide financial solutions to small exporting businesses and those small businesses in an export supply chain,” said Andrew Hunter, Efic managing director.

“These changes are a positive outcome for our clients and will allow us to help even more exporters,” he said.


Prospects for Australian exporters in Indonesia are improving following the election of the new president, Joko Widodo, more commonly known as Jokowi. But the country also needs to tackle issues such as infrastructure bottlenecks to help drive the economic growth that will allow our exporters to increase their market share with the largest country in South-East Asia.

FEATURE

The new Indonesian President Joko Widodo was sworn in earlier this year, heralding a new era for Australia’s

northerly neighbour. While relations between the two nations have had their ups and downs, Jokowi’s appointment should produce fresh opportunities for local exporters to do business in Indonesia.

Nathan Gray, managing partner of AsiaAustralis, which specialises in advising business that wish to do business in Asia,

harmonise regulations across the region, to make it easier for companies to trade across borders.

As to an expected free trade agreement between Australia and Indonesia, although negotiations paused last year following a diplomatic stoush, Gray says the business community hopes talks will soon resume.

He points out that a positive outlook for Indonesia’s economic growth also bodes well for Australian exporters. The World Bank expects economic growth of 5.2 per cent this year for Indonesia, down from 5.8 per cent in 2013. This figure is still well above average compared to expected worldwide economic growth for this year, which the International Monetary Fund anticipates will be 3.7 per cent.

The opportunity for exporters, says Gray, lies in providing products for Indonesia’s rapidly growing middle class. He points to a McKinsey report published in 2012 that suggested that by 2030, 90 million people will have joined Indonesia’s consuming class.

New opportunities for exporters in

Indonesia

says one of the likely features of the new administration will be a greater propensity for change compared to Susilo Bambang Yudhoyono’s regime.

“The previous president sought to have members of the party support decisions before introducing them in parliament, which made it difficult to make changes in the later years [of the regime]. The new president isn’t seeking broad consensus, so it’s more likely he’ll be able to make changes. He also comes from a business background, so there’s opportunities to continue the reform process,” he says.

In terms of the outlook for Australian exporters, Gray says businesses can use existing free trade agreements with other Asian nations such as Singapore, Malaysia and Thailand to access the Indonesia market. “There are opportunities to use these agreements to go into these countries and re-export into Indonesia.”

This will be supported by the ASEAN economic community’s moves to

Alexandra Cain


“This is a huge opportunity for Australian exporters with value-added products, such as niche food producers and textile and design businesses. By 2030 Indonesia is expected to be among the top seven largest economies in the world. The challenge for Australian exporters is how to grow market share in this country.”

He says there is demand for Australian food exports, such as specialist breads and pasta, and even for products such as cordials, jams and chutneys. Australian merchandise trade with Indonesia reached $5.1 billion last year, up from $4.8 billion in 2012. That year’s trade data was impacted by the ban on live cattle exports.

“There are opportunities for exporters right across the spectrum. As people move into the middle class, their dietary requirements change, which is why there has been increased demand for Australian beef. There is also demand for a wider variety of vegetables as dietary requirements change,” Gray explains.

Dr Sandra Seno-Alday, a lecturer with the University of Sydney’s Business School, agrees the new Indonesian government is good news for Australian exporters. She says Jokowi is a popular and well-supported leader, with strong grass roots connections. “He seems to be very open to reaching out to the region and the rest of the world and a friend to business in general.”

She says by aiming to restore Indonesia’s maritime strength, he is indicating that he is an outward-looking leader who is keen to establish Indonesia’s role in regional and global commerce. “As a former businessman, he clearly understands the need to establish an environment in which businesses can flourish.”

Like Gray, Seno-Alday says the above-average economic growth forecasts for countries in the Asia Pacific region including Indonesia is something on which local exporters should focus. This is especially the case given flat growth is expected throughout Europe, and the US is only at the start of its economic recovery process.

INDONESIA FAST FACTS

5.2%: expected economic growth for 2014

11%: economic growth over the past five years

90 million: extra consumers by 2030

7th: place in the world economy by 2030

$5.1 billion: Australian merchant trade with

Indonesia in 2013


FEATURE

massive investment in infrastructure and a rebalancing of the economy to maintain growth levels,” he says.

A key challenge for the Indonesian budget, says Parker, is the drop in commodity prices given Indonesia’s economy relies on commodity exports. Another tricky issue is the four per cent of GDP currently spent on fuel subsidies. “It’s a controversial issue to wind this back when relatively poor people depend on it. But there won’t be much to spend on infrastructure without doing this and that won’t even be enough to fund infrastructure developments without GDP growth.”

Despite these challenges, Parker says it’s difficult to understand why Australia doesn’t export more to Indonesia. “It’s not an easy market, but it’s a market we can’t ignore. If you look at Indonesia’s structural challenges, Australia has expertise, technologies, capabilities and financial assets on which it could draw. There’s a huge opportunity for Australia.”

However, she also notes Indonesia is often recognised as one of the most difficult export markets. “The main issue is access to local contacts, as well as the need for a greater understanding of sector-specific issues.”

Nevertheless, Seno-Alday says Australian businesses have recognised the export potential of Indonesia. She says businesses wishing to tap into the market should start to identify an on-the-ground network, to make it easier to navigate the business environment.

“Prospects for exporters in South-East Asia are very positive compared to other regions. Australian businesses should take advantage of Indonesia’s proximity as an export market,” she advises.

PwC partner Andrew Parker says from his perspective, the challenge for Indonesia is converting its growth story into a driver of infrastructure development.

“They need to invest in roads, ports and rail networks, which is a significant challenge. The Indonesian economy is at a crossroads. There needs to be a

“If Australian businesses are looking at growth then South-East Asia is the place to be. The Indonesian economy has risen by 11 per cent in the past five years, growth that is second only to that of Timor-Lest, which is coming from a low base. Indonesia is the fastest-growing and largest market in South-East Asia and it’s on our doorstep.”

Seno-Alday notes that although resources top the list of exported products, Indonesia is Australia’s most important market for mining equipment exports. Australian agricultural and elaborate manufactured products, as well as software and professional services are also in demand.

“The main issue is access to local

contacts, as well as the need for a greater

understanding of sector-specific issues.”

Parker says better education will also be needed to help support economic growth and this is also something with which Australia could assist. Tourism is another area where Australia could aid Indonesia, to help develop its travel sector.

However, corruption is one issue Indonesia needs to urgently tackle to assist its economic growth. “It’s a real problem, but Indonesia recognises that. It’s unreasonable to expect to be able to eradicate it in the short-term, but given Jokowi doesn’t come from an elite background, he does have an opportunity to tackle it. Addressing that is high on his agenda because it’s essential to be able to do business there without being caught up in it.”

The next few years will be a watershed in economic relations between Australia and Indonesia, after a rocky patch. But Jokowi’s election will hopefully be the start of better ties between the two countries, leading to excellent prospects for domestic exporters.


FEATURE

The death of the manufacturing sector has been greatly exaggerated. There are scores of local manufacturing businesses producing innovative, value-added products that should

be in high demand in international markets. But any business in this sector that wishes to tap into export opportunities faces numerous hurdles. So what should be done to make it easier for local manufacturers to trade globally?

The Asia-Pacific Economic Cooperation forum ranks Australia as the third worst performer out of 20 APEC economies in terms of the weight of regulatory burden on merchandise exports and imports. The consequence of this impost can be seen in our trade figures: in 2013, exports accounted for just 19.8 per cent of Australia’s GDP, compared to Canada at 30 per cent and the United Kingdom at 31 per cent.

In addition, The World Economic Forum’s (WEF) most recent Global Competitiveness Report shows that Australia’s relative Global Competitiveness Index (CGI) ranking has progressively dropped since 2009/10, when we were ranked in 15th place to our current position in 22nd place for 2014/15.

One of the bodies seeking to address this is the Manufacturing Excellence Taskforce of Australia (META), which has formed a deregulation hub with the Export Council of Australia to research regulatory burdens on manufacturing exporters.

META managing director Zoran Angelkovski says there is an untapped opportunity for manufacturers in international markets that is being stymied by red tape. Importantly, he says manufacturing is part of the solution to help Australia to move from the mining investment boom towards a more balanced economy. But that can’t happen without streamlining of regulation across a number of areas.

“Manufacturing is becoming much more competitive and is now a truly global game. We need to position ourselves as an advanced manufacturing country, at the high-value end of the value chain. So we need to create a knowledge infrastructure in our manufacturing sector,” he says.

Angelkovski argues the future for advanced manufacturing is in mass customisation, getting products to market swiftly and an efficient supply chain. But he says early results from the research suggest challenges such as timely issue of certificates of origin, as well as better tax concessions for investment in plant and equipment, are some things the federal government needs to look at to help the sector.

“We need to make it easy to transition to a technology-based economy. The ultimate goal has to be faster speed to market, because our competitors are better than us at this,” he says.

CALENDAR


One of the problems manufacturers face, says Peter Gahan, Professor of Management at The University of Melbourne, is lack of scale. “Australian manufacturers compete in global markets on price and scale and given our small domestic market, that’s challenging. So we need to

look to compete more on quality and the ability to innovate.”

He says there are some surprising sources of constraint for manufacturers, but that there are moves to

address these. Quality standards are among these. Gahan notes the commitment in the

federal government’s recently released Industry Innovation and Competition

Agenda to require Australian businesses to conform to international, rather than Australian standards, is one initiative that will help local businesses compete globally.

He says manufacturers have a 60 day timeframe to export goods and qualify for GST-free status. But if buyers pre-pay for the goods, exporters can end up in a situation where they are exposed to GST.

Drummond says tax liabilities can also be incurred when freight forwarders report information about goods for customs purposes. “If the value of goods the exporter discloses in its BAS does not align with the value of goods reported by the freight forwarder through the ATO’s data matching processes, exporters could be exposed to customs penalties. They won’t pay duties because the goods have been exported, but if there is a misalignment between BAS statements and bills of lading the exporter could face fines. But it’s not substantive non-compliance if the freight forwarder was not fully advised of the value of the goods. So exporters need a system in place to ensure that doesn’t happen,” he argues.

Louise McGrath, who is Australian Industry Group’s national manager of business and international advisory services, says a doubling up of certification processes is a nightmare for exporters. For instance, food exporters are required to secure certification from the Australian Quarantine and Inspection Service (AQIS). But those that wish to export to countries with which Australia has a free trade agreement (FTA) or economic partnership also require a certificate of origin to qualify for the concessions these agreements deliver to exporters.

“If you have been through an AQIS audit you should not need a certificate of origin as well. This undermines the benefit of having an FTA because it adds another layer of administration,” she argues.

Drummond says there’s also anecdotal evidence that Australian exporters don’t understand the requirements under FTAs to certify the origin of the goods they sell overseas. This can produce a situation where the buyer ends up having to pay a duty, which doesn’t work in our exporters’ favour.

Australia’s strict regulations often benefit exporters because they ensure manufacturers produce high quality products that are valued in overseas markets. But the pendulum has swung too far toward tight regulation, at the cost of commercial imperatives. Red tape reform is a huge and complex area. The public sector needs to address this imbalance now or risk Australia losing its competitive position in global markets.

“In some cases where Australian standards are more stringent they

will be relaxed, but in other areas they will be beefed up, or there will

be different requirements. It’s not necessarily about lowering standards,

it’s about harmonisation and making sure our standards are not hampering

competition,” he says.

Gahan says smaller exporters are often confronted with logistics issues. “There’s not enough co-

ordination in the way the supply chain operates, which also impacts the cost of goods.” He says industrial relations

issues, that is, strict laws around hiring and firing staff, also hamper manufacturers’ ability to complete.

“The biggest issue is general economic conditions and access to capital. Having said that, red tape around taxation, employing people and OH&S is a problem.”

From a tax perspective, completing income tax returns and managing GST are persistent issues.

KPMG tax partner David Drummond agrees taxation around exports can be confusing. “Exports should be free of GST, but there are many areas that can cause exporters trouble. Be careful selling goods for export that you don’t accidently transfer title of the goods in advance of them leaving the country. This can inadvertently give rise to a GST liability because the goods are transferred in Australia,” he explains.

ECA’S ALLIANCE WITH METAThe Export Council of Australia has launched a new and innovative partnership with META to explore the regulatory burden on local manufacturers. The aim of the alliance is to engage in quantifiable research to: • Reduce regulatory burden by 30 per cent in Australia• Increase export opportunities for the manufacturing industry• Improve the efficiency of the value chain• Increase Australia’s global market share within key export industries


EXPORT HEROES

“Our export heroes have fought and won on the international stage.”


MEET THE SUPER HEROES OF AUSTRALIAN

EXPORTINGThe Australian Export Heroes Awards recognise the special qualities local businesses that have succeeded in international markets share. Congratulations to all the winners.

Just over 10 years ago the Australian Export Heroes Awards were created by a group who believed in acknowledging the efforts of the people behind the companies that achieve

outstanding export results. Since its creation in 1997, the Australian Institute of Export, now the Export Council of Australia (ECA), has invited more than 100 of our leading exporters to join the Australian Export Heroes register. There are many facets to developing our export culture in Australia. As well as adding to the growth of international trade in Australia, the Export Heroes have contributed to Australia’s image as a progressive member of the international business community and are role models for future generations of Australian exporters. Taking a company to export success, as most established exporters can testify, is no small feat. Australian companies have an even bigger mountain to climb, given our location. This is why the Australian Export Heroes Awards were created by a group who believe in acknowledging the efforts of those hard-working people, who often spend years building their companies and taking them to global success, while also supporting Australian industry. The recipients below have fought and won on the international stage. Technically smart, creative and hard working they are able to show the world that Australians can not only do anything, they can do it as well and often better than anybody else.

The Export Council of Australia is pleased to announce the 2014 Australian Export Heroes Awards to six outstanding Australians. • David Larkin – Atron Enterprises• Graeme Tuder – Micromine• Ross Spencer – SOS Marine• Milton Huxtable• Glenn Keys – Aspen Medical• Warwick Norman – RightShip Programs that involve the achievement of individuals are always special. However, there are a number of factors that make the Australian Export Heroes Awards even more special. People who receive an Export Hero Award have succeeded globally. They have made more sacrifices, travelled more kilometres and spent more time away from home than they would care to remember. They have that magic mix of good business skills blended with loads of passion. Whether from big established business or from the family farm or factory, they all deserve recognition for their vision, passion and sheer hard work. The awards presentation thanks them for their unique contribution, as well as their families for their support, in what has undoubtedly been a rewarding, but nonetheless challenging journey.


PLACES

The New Zealand economy is in a growth phase, which bodes well for Australian exporters wishing to tap into this market.

Catherine Beard, executive director, ExportNZ


New Zealand is a great place for Australian exporters and investors to do business. In fact, Australia is the largest source of foreign direct investment into the country.

With only 4.5 million people, New Zealand’s population is roughly the same size as the average Australian city. Having said that, about 1.5 million people live in Auckland, which represents a good concentration of customers. There are many multi-nationals that have used New Zealand as a place to test new products and services they want to roll out to the rest of the world.

New Zealand is a sensible place to start for any exporter commencing the export journey, as is Australia for New Zealand exporters. It’s a very easy place to do business, regularly ranking among the easiest in the world and the least corrupt. Tariff barriers are non-existent between Australia and New Zealand, given our single economic market under the Australia-New Zealand Closer Economic Relations Trade Agreement.

Biosecurity a concernThe main challenge exporters face is meeting biosecurity regulations for fresh produce. Like Australia, New Zealand works hard to keep out pests and diseases. So fresh product imports do need to meet strict requirements. This is overseen by the Ministry of Primary Industries.

It’s not necessary to set up a company to trade in New Zealand. But if you do want to for business or tax reasons, a company can be established online through the New Zealand Companies Office. All the information about how to do this can be found on its website.

Economic strength New Zealand is in a strong economic position at present with real GDP per capita sitting at more than $34,000, an average growth rate of more than three per cent, low inflation and a relatively low unemployment rate of six per cent. Real wealth is being generated with the combination of one of the best growth rates in the OECD and low inflation. This is evident in new car sales; 113,000 new vehicles were registered last year, the highest number in nearly 30 years. It’s also apparent in fewer New Zealanders leaving for Australia and more people coming back to New Zealand.

Drivers that are propelling New Zealand forward include the Christchurch rebuild ($40 billion is the latest estimate of the cost) and a catch-up in Auckland of investment in new house and commercial building, as well as new transport infrastructure to meet current and future demand. All of this flows through to create a buoyant manufacturing sector that has been expanding for around two years. The confidence in manufacturing is not just restricted to Auckland and Christchurch; this expansion is also evident throughout the rest of the country.

Bright future aheadIn terms of what’s next for New Zealand, there is confidence about ongoing momentum for our largest export sector, which is agriculture – or food, fibre, seafood and timber. The growth in demand for protein from Asia, combined with high-quality free trade agreements, bodes well for the future. New Zealand’s free trade agreement with China, for example, has seen this country become our number one export market behind Australia, with exports growing exponentially since the deal was signed.

Any Australian companies interested in investing in the food and beverage sector can access market intelligence about growth areas from the food and beverage information project commissioned by the Ministry of Business, Innovation and Employment. Head to the website for more details.

In addition to food and beverage, New Zealand has good growth in the information technology, high-tech manufacturing and services sectors. A snapshot of companies that are doing well in these sectors can be found in the TIN100 Report, which provides an annual analysis of New Zealand’s largest globally-focused companies in these areas.

The health factorThe opportunities for Australian exporters in New Zealand are vast. Consumer trends are similar to those in Australia. While price is important, consumers will pay more for innovative products with a good brand. New Zealand consumers at the top end of the market favour healthy eating and living, sustainability and outdoor pursuits, and often remain in New Zealand for lifestyle reasons.

Purchasing over the internet is becoming more common and all channels should be used when trying to reach Kiwi customers.New Zealand is an easy place to do business and a great place for a company to hone its exporting skills before expanding its footprint globally. Any Australian business based in New Zealand could take advantage of the country’s competitive manufacturing costs and free trade agreements in the Asia Pacific region. Overall, the New Zealand opportunity for Aussie exports is too good to ignore.

“The growth in demand for protein from Asia, combined with high-

quality free trade agreements, bodes well for the future.”


PLACES

Have you ever been overseas on business and had to take a client out to dinner, only to find you have no clue where to go, let alone what to order when you get there? Maybe you’ve had a few hours to spare and spent it watching CNN in you hotel room instead of seeing the sights because you didn’t know where to go?

Each issue we focus on a different city from around the world, bringing you the latest on where to go and what to do. This issue, let’s explore the famously beautiful Queenstown, New Zealand with Aussie turned Queenstown resident, Trent Yeo from ZipTrek Ecotours.

Stacey Mills-Smith, Export Council of Australia

Postcard from…

All photos used in this article supplied by Imagescapes.co.nz

PLACES


If you have a few hours to spare in Queenstown where should you go?You should probably get out and see some of the spectacular scenery that surrounds the Queenstown Lakes District. If you love going for a drive then follow Glenorchy-Queenstown Road as it winds along Lake Wakatipu’s edge to Glenorchy. It’s a three-quarter hour drive and perfect for a quick getaway. Glenorchy is the gateway to many of New Zealand’s great walks and the edge of the South-West World Heritage Area, ancient forests and fiordland wilderness. Stay at the friendliest place in the area, Kinloch Lodge, and grab a meal at Glenorchy Cafe.

Are there any local specialties you can recommend? In Queenstown we are lucky to have some world-class wineries in the Gibbston Valley and surrounds. There are endless options for winetasting, and food and wine pairing experiences, only a short drive from central Queenstown. To try some of the fresh local produce in a beautiful winery setting, I would suggest visiting Amisfield Bistro, a 15-minute drive from central Queenstown. Try the Trust the Chef signature menu. This shared dining experience allows you to try dishes selected by the chef based on fresh produce and ingredients available on the day, which are matched with Amisfield’s wines.

If you take a client to dinner, or just go to dinner yourself, what restaurants would you suggest?Blue Kanu is the latest exciting restaurant option right in town. For a town of 20,000 people we do amazingly well for great food options. Blue Kanu offers a blend of Pacific and Asian food, which they call ‘Polynasia’. They offer a tapas-style menu, as well as a selection of main dishes, and the design of the interior space is just beautiful. If you are taking clients or colleagues out for a relaxed dinner, I suggest booking ahead and ask for one of the enclosed booths in the back section. For a more classic dining experience, try Rata, which is co-owned by Michelin-starred chef Josh Emett and offers modern Kiwi food and clever casual dining. You should always try some juicy venison when in New Zealand and this is a perfect place to start.

In terms of nightlife, where would you suggest visitors go?There are three areas in our small town that offer a great range of bar and pub options. Once again, a plethora of choice: Searle Lane, Cow Lane and Steamer Wharf are three areas you cannot miss. Our bars are small and close together, so you can pick and choose without having to go far. A quick tip might be Yakitori Daruma, or as we call it the Sake Bar. Here you will find a selection of Japanese snacks and a great selection of refreshing beverages.

Any other advice for visitors who have a few hours to spare?If you have some time you can rent a bike and go for a ride along the waterfront. I promise you won't get far without stopping to take a photo. No doubt you will meet some locals along the way and enjoy some fresh mountain air. If you’re the exercising type, then go for a run up Queenstown Hill or even up to Skyline Gondola. Ask a local for tips to test your New Zealand English.


EXPORTER

SEEING MACHINES’ EYES ARE SET ON THE ROAD AHEAD

Seeing Machines’ face and eye-tracking technology is turning heads across the transportation industry worldwide.Stacey Mills-Smith, Export Council of Australia

Canberra and world-leading technology might not sound like they belong in the same sentence. But with the likes

of Seeing Machines, Windlab, and Aspen Medical all calling Canberra home, there is no denying the bush capital punches above its weight when it comes to attracting high-tech firms.

Seeing Machines’ origins trace back to the Australian National University (ANU), where some 14 years ago research was being conducted into very high precision eye tracking. Since then, the company has expanded significantly, both in terms of its geographic footprint and the applications for the technology. In the past year alone, employee numbers climbed from 42

to more than 126, with staff based in Australia, the United States, Chile and the United Arab Emirates.

Seeing Machines’ technology is able to measure head rotation, monitor eyelids and determine where a person’s eyes are looking, all with great accuracy. Early on, the company found some success in the automotive sector, mostly in Europe, but the financial crisis hit hard, resulting in Seeing Machines pulling back from the market and looking for alternatives.

Finding the mining sectorWhile the trucking industry wasn’t quite ready at that time, the mining industry certainly was.

“We went there (the US) to ask some questions about the feasibility of introducing this product to the mining sector and the response was ‘How much can I buy?’” reports Ken Kroeger, CEO of Seeing Machines.

Seeing Machines’ mining safety product, Driver Safety System (DSS), detects fatigue and distraction of heavy-vehicle drivers on mine sites and rapidly became the company’s main export product.

“As the technology matured, we’ve moved into offering 24/7 monitoring services because mine sites want a turnkey solution to driver fatigue and distraction. Our systems are now being used in mines across 14 different countries worldwide,” says Kroeger.

In May 2013, the company signed a global alliance with Caterpillar, which commands 75 per cent of the world’s mining vehicle market, and has a network of trusted dealers around the globe.

“We are now about 60 per cent of the way through on-boarding 24 Caterpillar dealers internationally,” says Kroeger. “During the process we recognised the demand for our product was increasing and we needed more operating capital. So in November last year we went to London to raise capital.”


“To quote Steve Jobs, ‘Stay hungry, stay foolish’. We were hungry and foolish.”

In the future, the company has plans to continue expanding in the mining industry, where it is already a dominant player, and transition the alliance with Caterpillar Mining to Caterpillar Inc. Beyond that, the team is already making headway into the road transport (trucks and cars) and rail industries. The final two industries the company wants to pursue further are aviation and consumer electronics. And having recently signed a contract with Samsung and doing work with two major aircraft manufacturers, it’s safe to say it is well on its way.

When asked where Seeing Machines will be in five to 10 years, Kroeger says, “Our strategy is to leverage our relationships and strategic global partners and develop indirect revenue streams. We see enormous potential and consolidation in the telematics and vehicle-to-vehicle space, where we see our driver monitoring technology adding a powerful dimension. We’re also growing our US presence rapidly, so I anticipate that we’ll eventually list on a US exchange.”

This they did with great success, exceeding the target amount by ten fold. “The money that we raised allowed us to reinvent ourselves and to be properly capitalised,” explains Kroeger.

On returning to Canberra, the team put their heads together to come up with a future strategy. “As a group we sat down and we identified 30 potential applications for the technology. And after two or three rounds, we reduced that down to six and the other 24 we decided to walk away from.”

Overcoming adversityWhile the future looks bright, times haven’t always been easy. “In the early days we had many setbacks, but the founders knew they had created something that would change the status quo,” says Kroeger.

Ken Kroeger: Lessons learnt as an Australian exporter

• You have to understand the culture in the country in which you’re seeking business. For instance, the Korean culture has a drawn out process to establish a level of trust and friendship before doing business. This compares to the US market, where things are taken on face value.

• Similar to the above, understanding the culture has logistical implications. Some countries are more upfront about the cost of importing a product. Others are more opaque with their business dealings.

• Finally, don’t sell where you can’t offer sales support. Mongolia was an example where we installed products that cost us more to support in the long run and we lost reputation capital. Trust is hard-won, but easily lost.


EXPORTER

The Smith Family: unlikely exporterGrace Falkiner

Most people wouldn’t realise the famous not-for-profit has a thriving export business. It’s an important source of funds that go towards helping those in need.

Deeply embedded in Australia’s history, The Smith Family started out with a goal to create better futures for

disadvantaged young Australians by supporting their education. Since 1922, the organisation has improved the lives of hundreds of thousands of Australians.

In 1963 The Smith Family launched its Recycling Operation, a business that helps to fund its operational costs. It started exporting in 1973 to a single customer in Papua New Guinea, and has since grown substantially.

The clothing and accessories the business exports come from donations made by

individuals and businesses at 750 drop-off points across New South Wales and the Australian Capital Territory. The goods are then sorted and exported in full container loads. Once they land in the export market they are sold via wholesalers, owner operators and non-government organisations to the end consumer.

“Over time we have diversified our export markets as demand has grown. This diversification has enabled us to mitigate the risk of having a single client,” explains Peter Lombardo, intake and logistics manager at The Smith Family.

“In 2013/14 The Smith Family generated more than $21.1 million in revenue from exports to 16 countries, with 14 longstanding customers. This represents 10 per cent of the international used clothing market.”

Revenue generated from the recycling program offsets the administrative costs of The Smith Family’s social enterprise, allowing revenue to be directed towards essential promotion and profiling of the organisation in Australia.

“It means that 86 cents in every dollar donated by the public to The Smith Family


can go directly towards programs that help disadvantaged young Australians reach their potential through education,” says Lombardo.

Export sales currently constitute approximately 65 per cent of organisational turnover. Papua New Guinea represents 30 per cent of exports, Tanzania makes up 24 per cent, Philippines comprises 11 per cent, UAE is 10 per cent and Angola is nine per cent.

“There is a lot of competition in this constantly changing space,” says Lombardo.

“In 2013/14 The Smith Family generated more than $21.1 million in revenue from exports to 16 countries with 14 longstanding customers.”

The Smith Family’s top export lessons

• Consistency is key: our customer base relies heavily on product consistency and meeting exact specifications.

• The importance of a good team: we are lucky to have a dedicated team that understands quality control.

• Communicate with your clients: regular, strategic communication keeps us aligned with our clients’ needs.

“Our markets can be impacted by exchange rates, political instability and economic conditions throughout Europe and North America.”

The Smith Family works to overcome any hurdles it faces through regular communication and a flexible approach to clients.

“We are on a journey of continuous improvement, ensuring our sustainability and competitiveness in the market,” concludes Lombardo.


DOING BUSINESS

Is cross-cultural ignorance hurting your bottom line?

Cynthia Dearin, managing director, Dearin & Associates

Understanding cultural differences helps ensure a smooth working relationship when operating in overseas markets.

Exporters face a number of common challenges. They often operate on the basis contacts in foreign countries share the same values and attitudes as they do. They can find business

relationships with foreign clients or suppliers are difficult.

As a result, sometimes deals are not successfully executed. Despite this, many put off creating a cross-cultural communication strategy. But this can be a valuable tool for anyone operating a business overseas.

Cross-cultural communication is the ability to recognise, interpret and correctly react to people, incidents or situations that are open to misunderstanding due to cultural differences. This is significant, as the ability to communicate across cultures is a key factor in the success or failure of international business transactions.

A look at some of the world’s most prominent companies shows even big players can overlook what a crucial role cross-cultural communication has in the success or failure of international business dealings. Let alone how much damage can be caused when cross-cultural communication is done badly.

For instance in 1992, gas pipeline business Enron invested in a US$3 billion, 10-year liquefied natural gas power plant development project in India. Had it been a success, the Dabhol power plant would have been the largest development project and largest direct foreign investment in India’s history.

Unaware of Indian approaches to time and negotiation, and working on the principle that time is money, Enron’s negotiators pushed hard

to finalise the project. The Indian authorities felt Enron was pushing negotiations too fast and ended up walking away from the deal. Enron lost this extremely significant contract primarily because it did not appreciate the dynamics of Indian business culture.

The failure of deals such as this underlines the important role cultural differences play in international business. It also highlights that if you don’t put effort into cross-cultural aspects of business your bottom line may be at risk. This is why it is crucial to get cross-cultural communication right.

If you are working with people from China, India or the Middle East, they will hold different views to you about what is important in life. Even people from cultures that are similar to Australia such as the UK or US see things differently to the way we do. Avoiding assumptions makes it more likely you will be open to seeing things from other perspectives, which will help to minimise conflict when tricky situations arise.

Success in foreign markets rests on an understanding of the culture of the target market. So make time to understand the people you will be dealing with; what pleases them, what offends them and how to make a good impression.

It’s essential to develop a cross-cultural communication strategy when dealing with clients and suppliers from abroad. Make sure your team has a thorough understanding of the target market and develop a plan for dealing with difficult interactions. In short, don’t let cross-cultural ignorance hurt your bottom line.


DOING BUSINESS

Lisa Goodhand, managing director, China Blueprint Consultants

There is a buzz among the Australian business community about China’s online e-commerce potential. With 618 million Chinese people online, 330 million registered for online shopping and

numerous social media options, there’s lots of potential for local businesses to reach Chinese consumers.

With this in mind, selling to China through online channels is something many Australian businesses should consider. This is especially the case given domestic companies can now access numerous tools to optimise their e-commerce sites to tap into demand from Chinese consumers for Australian products.

Who should be thinking about e-commerce with China?The internet has created an environment in which there are opportunities for businesses of any scale and nature that have a vision to take their products to new global frontiers.

But there are a few obstacles that need to be overcome before selling online to Chinese consumers. The primary hurdles are language and culture, followed by website functionality.

Traditionally, Australian e-commerce sites have been unable to transact with the majority of Chinese online shoppers because there has been no payment solution available to them. Recently, however, these challenges have been overcome with the introduction of UnionPay Online Payment (UPOP) and Alipay, which has recently been launched globally. These tools allow Australian business to accept payments from Chinese customers.

The next challenge is producing an impressive and seamless online experience for new Chinese consumers, who are thoroughly web savvy. This requires an impressive brand strategy to ensure

a standout position among the competition. Depending on the industry, these competitors include business-to-commerce mega platforms such as Alibaba’s Tmall and just about every international consumer brand, which have all seen the potential of selling to Chinese customers online.

Any business that wishes to sell to Chinese customers needs to establish a presence on social media in the country. Risk-averse Chinese online shoppers, according to McKinsey research, put a lot of value in peer-to-peer recommendations, which they get through social media channels. So it’s very difficult to reach Chinese customers without engaging in social media.

One of the other challenges that can impede Australian e-commerce sites intent on selling to China is finding a cost-effective and speedy delivery service. Chinese consumers are used to quick and in some cases free delivery because local businesses offer this benefit to them. Australia is still waiting for a freight company to address this international freight challenge with an economical, Australia-wide and speedy solution.

Serious propositionA word of caution: launching an e-commerce campaign to connect with China’s hundreds of millions of customers is not for the faint-hearted. It should be addressed earnestly, keeping in mind issues of intellectual property and online risk mitigation. You will need a healthy budget and an energetic disposition. For serious contenders, a do-it-yourself approach is an unlikely option. Those who succeed will effectively be catering to the world’s largest online consumer market. This is why it’s important to work with experienced partners who can assist local businesses to successfully sell into China.

Developing an eCommerce strategy for China

Australian exporters now have the tools at their disposal to easily sell to Chinese consumers through the internet.


DOING BUSINESS

Initiative removes red tape for exportersAndrew Hudson, partner, Gadens

Customs’ Trusted Trader Program to deliver benefits to the supply chain.

Australian members of the international supply chain have for some time suffered a comparative disadvantage to their colleagues and competitors overseas. This has been due to the absence of a

local program that delivers preferential treatment to entities with high levels of cargo security and regulatory compliance. The concept of a Trusted Trader Program (TPP) came from the work of the World Customs Organisation (WCO), which adopted the WCO SAFE Framework of Standards to secure and facilitate global trade in 2005. Australia was one of the first countries to commit to the framework. The current version of the framework was issued in 2012. It includes pillars to support both government-to-government and government-to-private trade. An important component of the framework is the concept of the Authorised Economic Operator (AEO). This is a status available to any party in the supply chain whose standards on cargo security and regulatory compliance are so high they are entitled to preferential treatment. The AEO concept has been adopted in many countries. In some countries AEOs are known as Trusted Traders. Some of the benefits of being a Trusted Trader include deferred customs duty payments and the preferential movement of cargo after interruption caused by terrorist events or problems with supply chain infrastructure. Until now, Australia has not had a TTP in place. But in June 2013, as part of its Blueprint for Reform, the Australian Customs and Border Protection Service announced it would introduce a TTP to start in July 2015. The federal government confirmed the TTP would be available for selected exporters from March 2015, with open access from July 2015. Customs is developing the TPP based on the WCO’s framework, taking into account how other countries have approached similar initiatives, as well as submissions by industry and through ongoing

work with an Industry Advisory Group. I represent the ECA in the advisory group at Melbourne meetings and we have made a number of submissions on the content of the TTP. Although the nature of the TTP is still under development, there seems to be agreement over certain aspects of it:• Members will have to show a high level of cargo security in

the supply chain and a high level of compliance with the law. Membership will have entry requirements suitable to the size of the potential member. This would allow small exporters to join the program.

• It should be open to traders as well as service providers such as customs brokers, freight forwarders, airlines and shipping lines. Service providers’ ability to access the program will assist smaller exporters, many of which won‘t on their own account be able to satisfy the cargo security requirements.

• Program participants will receive duty deferral and processing fee relief.

• The federal government should ensure those in the program receive mutual recognition in similar overseas programs.

• It should confer benefits with other border agencies such as the Department of Agriculture and the Office of Transport Security.

• The federal government should provide a client service manager to members of the program, who would be a first point of reference should issues arise.

Exporters and the federal government continue to progress this initiative. We believe there is real merit in the TPP, which also fits into the government’s deregulation agenda.

“Some of the benefits of being a Trusted Trader include deferral of payment of customs duty and preferential

movement of cargo after interruption caused by terrorist events or problems with supply chain infrastructure.”


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IP AUSTRALIA

The GPPH pilot reduces the regulatory burden for businesses that want to accelerate the process of gaining international patent rights.

MAKING IT EASIER TO REGISTER IP GLOBALLY


Benjamin Mitra-Kahn, chief economist, IP Australia

Protecting and managing your intellectual property (IP) assets is critical when establishing your presence in a market.

It can mean the difference between the success or failure of your business. So if you’re exporting overseas, or planning to, it’s important to consider seeking IP protection in the countries where you plan to trade.

Unfortunately, there’s no such thing as worldwide IP protection and international IP can be complex, with costly consequences if not handled well. But there are agreements in place that make it easier to have IP assets protected internationally. One of these is the Global Patent Prosecution Highway (GPPH) pilot, an initiative that allows Australian innovators to fast-track their patent applications in 16 countries.

The pilot simplifies the previous Patent Prosecution Highway (PPH) system and replaces numerous bilateral arrangements with a common framework.

Report 2014, Australian entities filed 35 per cent more applications in the US than they did in Australia in 2013.

The Global PPH not only benefits Australian applicants overseas, it also allows patent applicants from any of the other participating countries to request accelerated examination in Australia. Applicants from the US and Japan are currently the largest users of the Global PPH in Australia.

How much faster? One of the reasons there has been support for the GPPH is because of the success of the bilateral PPH with the US. When we looked at the bilateral PPH with the US, we found those that use the PPH to apply for a patent in Australia and the US are granted their patent in less time compared to those who do not use the PPH system. In both countries, PPH applications have fewer administrative actions and are more likely to be granted.

“One of the reasons there has been support for the GPPH is because of the success of the bilateral PPH with the US.”

Around the world

Countries that are part of the Global Patent Prosecution Highway pilot:

AUSTRALIA

CANADA

DENMARK

FINLAND

HUNGARY

ICELANDIC

ISRAEL

JAPAN

KOREA

NORWAY

PORTUGAL

RUSSIA

SPAIN

SWEDEN

UK

US

Streamlining IP protection overseasThe GPPH means any business that has received a positive assessment of at least one patent claim for an invention from a participating IP office can request accelerated examination of a patent application for the same invention at any of the 16 offices participating in the program.

Since January 2014, Australian applicants have used the Global PPH to accelerate examination mainly in Canada, Japan, the US and the UK. The United States remains the most popular destination for Australian applicants. According to The Australian IP

Looking at US data since 2005, PPH applications are on average granted 10 months earlier than non-PPH applications and are approximately 12 per cent more likely to be granted. Here in Australia, PPH applications are on average granted 18 months before non-PPH applications and are 29 per cent more likely to be granted.

Where can I find out more? To learn more about the Global PPH and how you can benefit from this, visit the IP Australia website at www.ipaustralia.gov.au.


SPOTLIGHT ON

FOR MORE INFORMATION PLEASE VISIT THE DFAT WEBSITE AT WWW.DFAT.GOV.AU

MAJOR AUSTRALIAN EXPORTS TO NEW ZEALAND

New Zealand has two main landmasses, the North Island, or Te Ika-a-Mãui, and the South Island, or Te Waipounamu, as well as numerous smaller islands.

85%of Australia’s International Business Survey (AIBS 2014) respondents who selected New Zealand as their top export market said it was the same if not easier to do business there.

New ZealandMOST IMPORTANT REASONS COMPANIES CHOSE TO TARGET NEW ZEALAND

FOR FUTURE BUSINESS (MULTIPLE ANSWERS WERE ALLOWED) INCLUDED:

STRONG GROWTH PROSPECTS (38%)

PERSONAL NETWORKS/CONTACTS IN THE COUNTRY (34%)

FAMILIAR CUSTOMER/CONSUMER CHARACTERISTICS (53%)

MAJOR IMPORTS FROM NEW ZEALAND

CRUDE PETROLEUM: $1.3 BILLION

GOLD: $608 MILLION

ALCOHOLIC BEVERAGES: $395 MILLION

EDIBLE PRODUCTS: $363 MILLION


AWARDS

STATE EXPORT AWARD WINNERS

Congratulations to the state export award winners for 2014

Queensland Queensland Exporter of the YearBlast Movement Technologies

AgribusinessAustralian Agricultural Company

Minerals & EnergyBlast Movement Technology

Creative IndustriesPlace Design Group

Education and TrainingUniversity of Queensland

Environmental SolutionsAqualuma

Online SalesHalfbrick

Information and Communication TechnologyOpmantek

ManufacturingDigga Australia

Health & BiotechnologyAgbitech

Business ServicesCardno

Small BusinessAlt.vfx

Regional ExporterMagic Millions

Dermot McManusDeswick

Richard JoelCO YO

Tom BurnsPacker Leather

NSW Agribusiness AwardSunRice

Online Sales AwardShoes of Prey

Creative Industries AwardSLR Productions

Education & Training AwardUniversity of Western Sydney

Environmental Solutions AwardTTG Transportation Technology

Information and Communication Technology AwardWargaming Australia

Manufacturing AwardRØDE Microphones

Health & Biotechnology AwardHealth Projects International

Minerals, Energy & Related Services AwardWEARX

Regional Exporter AwardBega Cheese

Small Business AwardTurbosmart

Premier's NSW Exporter of the Year AwardRØDE Microphones

ACT ACT Exporter of the Year Seeing Machines

Business Services Intelledox

Education and Training iSimulate

Environmental Solutions Windlab

Health and Biotechnology Aspen Medical

Information and Communication TechnologySeeing Machines

Manufacturing Datapod

Online SalesOnTheGo

Small Business IE Asia Pacific

Emerging Frameskin and Austranter Medical

ACT Exporting Government Solutions Royal Australian Mint

Exporting To Asia Intelledox


AWARDS

Victoria Victorian Exporter of the YearPepperstone

Export Award for Innovation ExcellenceThe Creature Technology Company

Victorian Women in International BusinessSarah Gough, General Manager, Box Grove Vineyard

Creative IndustriesThe Creature Technology Company

Online SalesPepperstone

Environmental SolutionsChemwatch

Health and BiotechnologySDI Limited

ManufacturingGP Graders (Victoria)

AgribusinessHy Gain Feeds

Small BusinessVersatile Technology

Business ServicesMarshall Day Acoustics

Information and Communication TechnologyStarNet Systems

RegionalSeven Fields

Minerals, Energy and Related ServicesSMEC

Education and TrainingDeakin University

Tasmania The 2014 Tasmania Exporter of the Year AwardReid Fruits

Tasports Agribusiness AwardReid Fruits

Austrade Regional Exporter AwardWalnuts Australia

Efic Small Business AwardAustralian Honey Products

AusIndustry Manufacturing AwardCBG Systems

Tasmania Government Minerals Energy and Related Services AwardSpecialised Vehicle Solutions

Austrade Business Services AwardMetocean Services International

Tasmanian Government Online Sales AwardsBridestowe Estate

South Australia Primary Industries and Regions SA Agribusiness AwardFerguson Australia Pty Ltd

Channel 7 Creative Industries AwardPatch Theatre Company

Efic Environmental Solutions AwardB.-d Farm Paris Creek

National Wine Centre Health and Biotechnology AwardSoniclean

Austrade Information and Communications Technology (ICT) AwardAvinet

Department of State Development Manufacturing AwardKelly Engineering

Primary Industries and Regions SA Regional Exporter AwardBlue Lake Milling

AusIndustrySmall Business AwardsProtect-IT Column Guards

StatewideSuper South Australian Exporter of the YearKelly Engineering

Western Australia Premier’s Award for Excellence The Truffle and Wine Company

Agribusiness Export Award Atlas Pearls and Perfumes

Small Business Export AwardVekta Automation

Creative Industries Export AwardVue DC

Education And Training Export AwardScitech

Healthcare and Biotechnology Export AwardLinear Clinical Research

Information and Communication Technology Export AwardMetroCount

Manufacturing Export AwardMatrix Composites and Engineering

Minerals and Energy (and related services) Export AwardAtlas Iron

Business Services Export AwardMining Information Systems

Regional ExporterThe Truffle and Wine Company

Northern Territory Southern Cross Television Exporter of the Year Award SRA Information Technology

Darwin Port Corporation Minerals And Related Services Export Award OM Manganese

Austrade Agribusiness Award Monsoon Aquatics

Efic Environmental Solutions AwardSRA Information Technology

Dept Industry Emerging Exporter Award Security and Technology Services

Territory FM Small Business Award International College of Advanced Education

Department of Foreign Affairs and Trade Education and Training Award Charles Darwin University

NT Manufacturers Council Manufacturing Export Award Shamrock Chemicals (commendation)


AWARDS

The 2014 NSW Export Award winners.

The team from TurboSmart celebrate their win at the NSW Export Awards.

The 2014 Premier of QLD Export Award Winners.

WA Industry and Export Award winners pictured with Governor Kerry Sanderson and Attorney General and Minister for Commerce Michael Mischin.

Exporter of the Year Camille Fong Lim of SRA Information Technology with Nadine Jones of Southern Cross Television and NT Chief Minister Adam Giles.

Queensland’s exporter of the year winners, Blast Movement Technologies, with Premier Campbell Newman.

NSW Exporter of the Year Peter Freedman of RØDE Microphones with sponsor Carolin Lenehan of NSW Trade and Investment.


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AWARDS

The 2014 award winners at the Governor of Victoria Export Awards.

Exporter of the Year winner Owen Kerr of Pepperstone (left) and the Victorian Governor, The Hon. Alex Chernov AC QC.

Business Services Award winner Stefan Stimpson of Metocean Services with Shelley Jackson of Austrade at the Tasmanian Export Awards.

Some of the South Australia finalists with South Australian Governor, His Excellency the Hon. Hieu Van Le AO.

SA Exporter of the Year winner Shane Kelly of Kelly Engineering, accepts his award from John O’Flaherty, Chief Executive of StatewideSuper.

The Tasmanian Export Award winners for 2014.


CO YO the Coconut Yoghurt and Coconut Ice Cream Alternative is an established brand in New Zealand, Australia, United States of America and United Kingdom.

Opportunities are now available for passionate health conscious persons or manufacturers to take up licences in Japan, Canada, South Africa and Germany for the manufacture and distribution of the CO YO range of products.

CO YO is made from coconut milk and offers the consumer a dairy free, gluten free alternative to mainstream dairy yoghurt and Ice cream products.

For further information please contact Henry [email protected] | Ph: +61 4 1394 0745 | +61 7 5472 8529

WILGO PTY LTD, 52 Central Park Drive, Yandina, Queensland 4562, Australia

www.coyo.com.au

A gift from the ‘Tree of Life’Imagine ……. the freshly squeezed cream from the white flesh of the coconut passionately handcrafted into the most delicious coconut milk vegan yogurt and coconut ice cream alternatives dairy free.

Shamrock Chemicals is a manufacturer of quality commercial and industrial cleaning chemicals, with offices in both Darwin and Alice Springs. We have a strong emphasis on multi purpose environmentally friendly cleaning solutions.

Shamrock Chemicals also supply a wide range of janitorial products together with mining supplies - (drilling fluids and advanced instrumentation drilling kits), aviation approved chemicals and marine chemicals.

Shamrock Chemicals are a NT owned and operated company Quality Assurance to ISO9001:2008 certification.

Shamrock Chemicals (NT) Pty Ltd A.B.N: 33 009 624 328

Factory 2, 94 Coonawarra Rd, Winnellie NT 0820 PO Box 39160, Winnellie NT 0821 P: (08) 8947 1777 F: (08) 8947 2388 E: [email protected] W: www.shamrockchemicals.com.au

GlobalGROUPISO 9001

MANAGEMENTSYSTEMS

U K A S

0039

®


TIPS

Tim’s TipsTim Harcourt

The Airport Economist answers your most pressing international business questions.

On 1 October I released a new book titled Trading Places – The Airport Economist’s guide to International Business. It aims to answer questions such as: Is Japan running out of husbands? Is

China running out of wives? Why is India’s young population in the east and how can they get to the jobs in the west of the country?

The book is the sequel to my previous book The Airport Economist. I have written this new book as I feel the financial crisis of 2007/08 demonstrated how important economics is. Global engagement through trade and investment by the Australian community was such an important ingredient in Australia’s capacity to survive the worst days of the credit crunch. So trade really matters for business and for workers.

I included a few countries in the new book that weren’t in the first book that are emerging markets for business like Mongolia, Kazakhstan, Colombia, Mexico, Peru and Uruguay. I also included places I don’t usually go to like Barbados, and places that are considered similar to Australia like Canada and New Zealand. I also wanted to tackle Europe, particularly Greece.

5. Learn about a country’s history and culture. Especially if you don’t know the language, knowing a bit of history will be well received by your hosts.

6. Do your due diligence everywhere, even if the culture is similar. More exporters lose money in English-speaking countries like the US and UK than they do in China. As the old saying goes, a businessman who doesn’t go to China for fear of losing his shirt will end up losing his pants in America.

7. For risk insurance see Efic.8. Preparation and education is important. The Export Council

of Australia and the Australian Institute of Export have some excellent education and training programs.

9. If you are a small exporter Export Market Development Grants will give you excellent financial assistance.

10. Remember you are not alone – there are more than 45,000 local exporters representing Australia in fine style around the world.

So go forth and export!

The books are designed for travelling business people, so I included data, websites and tips for each country chapter based on my experience and what came out of my interviews with exporters. There are some general principles that apply right across the board for exporters and other Australian businesses wanting to go global.

Here is a summary:

1. Exporting is a hard game, but you are not alone. You can get help from government agencies and banks. ANZ, for example, has a huge presence in Asia.

2. Exchange rates fluctuate – the dazzling dollar can quickly become an Aussie battler. Unless you want to be exposed to currency risk, hedge your exposures or have foreign currency accounts or forward contracts through which you can agree to exchange at a given rate in the future.

3. Have an online and social media presence. Many small exporters build their businesses just by having a website that receives overseas orders.

4. Mind your language. We can’t all be expert linguists, but having a few basic words and greetings is polite.


INTERNATIONAL CALENDAR

JANUARY

12-14 JanuaryGEO India 2015

New, Delhi, India

FEBRUARY

5-8 FebruaryHong Kong Education & Careers Expo

Hong Kong

8-12 FebruaryGulfood

Dubai, UAE

9-12 FebruaryMining Indaba 2015

Cape Town, South Africa

12 -13 FebruaryAustralia Future Unlimited: Education Exhibition

Sri Lanka 2015

Colombo, Sri Lanka

13 February-26 AprilEDUEXPOS Latin America 2015 – first semester

Mexico, Colombia, Ecuador, Peru and Chile

22-23 FebruaryAustralian Innovation Showcase 2015

Jakarta, Indonesia

MARCH

3 MarchAustralia Future Unlimited: Higher Education Showcase

Philippines 2015

Manila, Philippines

3-5 MarchGlobal Security Asia 2015

Singapore

3-6 MarchFOODEX Japan

Japan

4-8 MarchAULA Spain 2015 – third semester

Madrid, Spain

9-11 MarchMiddle East Oil & Gas 2015

Bahrain

10-12 MarchAustralia Future Unlimited: Russian Far East Education

Mission 2015

Vladivostok and Khabarovsk, Russia

11-14 MarchFUTURALIA Portugal 2015 – third semester

Lisbon, Portugal

16-20 MarchPremium Australia – Showcasing Australian food and

beverages to China 2015

Beijing, Kunming and Xiamen, China

19-24 MarchAustralia Future Unlimited: Tertiary Education Roadshow Fiji

2015

Fiji

23-27 MarchHong Kong Mines and Money

Hong Kong

APRIL

13-16 AprilInternational ICT Expo 2015

Jakarta, Indonesia

15-18 AprilInternational Exhibition and Conference on Higher Education

(IECHE) 2015

Riyadh, Saudi Arabia

15-18 AprilFood & Hotel Indonesia

Jakarta, Indonesia

21-23 AprilFood & Hotel Vietnam

Ho Chi Minh City, Vietnam

MAY

4-9 MayBeef Australia 2015

Wandal, Australia

6-8 MaySIAL Shanghai

Shanghai, China


6-9 MayHOFEX 2015 – Asia’s Leading Food & Hospitality Tradeshow

Hong Kong

11-15 MayExponor 2015

Antofagasta, Chile

12-15 MaySeoul Food & Hotel

Seoul, South Korea

24-29 MayNAFSA Annual Conference and Expo 2015

Boston, USA

JUNE

2-4 JuneOil & Gas Asia 2015

Kuala Lumpur, Malaysia

2-5 JuneCommunicAsia 2015

Marina Bay Sands, Singapore

AUGUST

Building & Construction Mongolia 2015

Ulaanbaatar, Mongolia

Power & Renewable Energy Mongolia 2015


Mining Mongolia 2015


SEPTEMBER

9-12 SeptemberBuilding & Infrastructure Indonesia 2015

Jakarta, Indonesia

9-12 SeptemberElectric Power & Renewable Energy Indonesia 2015

Jakarta, Indonesia

9-12 SeptemberMining Indonesia 2015

Jakarta, Indonesia

17-20 SeptemberFood & Hotel Malaysia

Kuala Lumpur, Malaysia

21-25 SeptemberPerumin - Extemin 2015

Arequipa, Peru

22-26 SeptemberWest Africa Education Exhibition 2015

Accra, Ghana and Lagos, Nigeria

OCTOBER

31 OctoberEco Expo Asia

Hong Kong

NOVEMBER

4-7 NovemberOil & Gas Indonesia 2015

Jakarta, Indonesia

DECEMBER

3-6 DecemberMachine Tool Indonesia 2014

Jakarta, Indonesia

3-6 DecemberManufacturing Indonesia 2014

Jakarta, Indonesia

TRADE MISSIONS

Australian Leisure Marine mission to PIMEX 2015

When: 7-12 January Where: Phuket and Bangkok, Thailand

Australia Business Week in India

When: 12-15 JanuaryWhere: Delhi, Mumbai and other major Indian cities

Victorian Government Trade Mission to the

Middle East and Turkey

When: 8-12 FebruaryWhere: Dubai, UAE; Istanbul, Turkey; Muscat, Oman; Riyadh, Saudi Arabia; Jeddah, Saudi Arabia

Victorian Government Trade Mission to Foodex Japan 2015

When: 2-6 MarchWhere: Japan


COURSES

Want to update your knowledge in the new year?

COURSESFace-to-Face Export Procedures Course

ECA/AIEx member price: $990 Non-member: $1,240

Duration: Three days

Face-to-face Import Procedures CourseECA/AIEx member price: $660

Non-member: $825 Duration: Two days

Face-to-face Understanding Documentary CreditsECA/AIEx member price: $390

Non-member: $540 Duration: One day

Online Export Procedures CourseECA/AIEx member price: $250

Non-member: $330Delivery: Online

Online Import Procedures CourseECA/AIEx member price: $250


India Cross-Cultural Intelligence Course ECA/AIEx member price: $65


PUBLICATIONSExport Handbook

Cost: $137.50

Export Handbook E-BookCost: $55

Import handbookCost: $104.50

Import Handbook E-BookCost: $44

International Trade ProceduresCost: $55

ICC UCP 600Cost: $55

Australian Institute of Export Courses and Publications

Crowther Blayne is an Australian leader in business-to-business online and print

publications for a variety of industries worldwide. Crowther Blayne publications

provide businesses with the broadest possible audience and target the most relevant

decision-makers. By providing a platform of the highest quality, products and services

are presented in the best possible light to the marketplace. If you have a specific enquiry

about our services, or simply want to get in touch, please contact:

Trish Riley | National Sales and Marketing Manager | P: 1800 222 757 | [email protected] |

crowtherblayne.com.au

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