Documentation
In order to export your goods, you are required to complete certain documents. It is a complex and highly specialised area therefore you are strongly advised to seek professional advice in order to minimise the risk of error.
In general terms, the documentation you require will fall loosely within the following categories:
- Documents required by Australian Authorities
- Commercial Documents
- Transport Documents
- Documents Required by the Importing Country
- Special Documents
Documents Required by Australian Authorities
Australian authorities require documents primarily for statistical purposes and to prevent the export of poor quality goods or incorrectly described goods in order to maintain the reputation of Australia’s industries. They are also designed to prohibit or control the export of some specified commodities, including some primary products, which may be subject to international commodity agreements and quotas.
Commercial Documents
Documents falling into this category include your contract of sale (commercial invoice), packing list, and Bill of Exchange. You may find that in some countries your buyer will stipulate additional documentation as part of the contract or documentary credit.
Transport Documents
The number and type of documents required for transport depends on whether your goods are shipped or airfreighted. For shipping, you will require a Bill of Lading (confirms placement of goods aboard a vessel), and a wharfage entry (used to calculate and pay harbour dues). Sometimes wharfage is factored into your freight rate or can be paid to the shipping company separate to the freight. Your freight forwarder is best placed to advise you of the necessary documents.
Documents Required by the Importing Country
Products exported from Australia will invariably require some form of documentation to comply with regulations and restrictions of the importing country. In some instances you or your buyer may require an import licence or must obtain special certification from various agencies within the importing country before the goods can clear customs. There are different requirements for different countries however the standard forms include:
- Customs Invoice – used for the assessment of duty payable.
- Combined certificates of value and origin – used to describe the goods and is normally the original signed by an authorised person.
- Current domestic value – also termed fair market value and refers to the value at which you would supply the same product to an Australian purchaser.
- Consular Invoice – whilst these are being phased out, some countries still require them. The invoice is completed and presented to the consulate of the importing country for the Consul’s stamp and signature. Sometimes other documents are required upon presentation, namely the Bill of Lading, the commercial invoice, and the documentary credit papers. Occasionally a fee is incurred.
Special Documents
Certain animals, animal products, plants and plant products are subject to special regulations prior to exporting. The Australian Customs Service administers the Customs (Prohibited Exports) Regulations 1956 which are in place to prevent or control the export of certain goods and materials. The restrictions are applied on the grounds of national security, health or moral issues, or to ensure the adequate supply of essential commodities for Australia.
The Australian Quarantine and Inspection Service (AQIS) administers orders made by the Minister for Primary Industry, as defined by the Export Control Act 1982. AQIS is responsible for several key activities including:
- compulsory inspection of most export goods;
- registration of premises;
- standards of quality;
- trade descriptions;
- preparation of live animals for export;
- animal welfare; and
- quarantine inspections.
Those products which are subject to Export Control Regulations under the Act include:
- animals;
- dairy produce;
- dried fruits;
- eggs;
- export meat;
- fish;
- fresh fruit and vegetables;
- game, poultry and rabbit meat;
- grain, plants and plant products;
- prescribed goods; and
- processed fruit and vegetables.
If you are unsure about your product’s classification, you should contact AQIS directly for clarification.
Incoterms
In export, Incoterms represent the foundation for the interpretation of trade terms between countries. The International Chamber of Commerce (ICC) published the first listing in 1936 with five amendments and additions being published over the last 8 decades, with the most recent being 2000.
There are many Incoterms, therefore it is important that you become familiar with the most frequently used terms as they are invariably quoted in the negotiation of contracts when determining price. For example, a buyer will often request the price per unit or shipment as CIF (Cost, Insurance, Freight), or FAS (Free Alongside Ship), or FOB (Free On Board). Therefore, you will need to know in advance of contract negotiations, what your freight, insurance and other logistical costs are in order to factor the cost into your pricing schedule.
The International Chamber of Commerce can supply a copy of the publication Incoterms 2000. For ease of use, this edition groups all the terms into one of four categories: E, F, C and D. In addition, the 2000 edition reflects the changes that have occurred as a result of Electronic Data Interchange (EDI) or “paperless trading”. Your freight forwarder and customs broker are best placed to advise you on the correct Incoterms.
