Australia and Bangladesh have developed a strong trade relationship, making Australia a highly lucrative market for Bangladeshi exporters. The strategic importance of this partnership is underscored by the recent signing of the Trade and Investment Framework Arrangement (TIFA) in 2021, which has bolstered bilateral trade relations, according to a report by The Daily Star.
Over the last decade, trade between Bangladesh and Australia has increased dramatically from less than AU$300 million to over AU$4 billion, as per the same source. This marks it as the fastest-growing among Australia's trading partnerships.
With Australia now positioned as the 10th largest export market for Bangladesh, and trade expanding at an average annual rate of over 11%, Bangladeshi businesses have a significant opportunity to tap into a receptive and expanding market.
This guide aims to equip businesses in Bangladesh with essential insights and strategies for navigating the complexities of logistics and exporting to Australia, covering critical aspects from product categories to import regulations when importing and exporting to Australia.
Key product categories exported from Bangladesh to Australia
According to data from the Consulate General of Bangladesh in Sydney, Bangladesh's exports to Australia are predominantly focused on the textile sector, which makes up 93% of its total exports to the country. This includes a vast range of readymade garments, encompassing both knitwear and woven wear, that cater to the diverse fashion market in Australia.
Besides textiles, Bangladesh also exports leather goods and footwear, showcasing the country’s expertise and skilled craftsmanship in these industries. Additionally, processed food and fish, along with jute goods, are also significant exports, contributing to the diversity of products shipped to Australia. These sectors together highlight the broad range of Bangladesh’s export capabilities.
Australian customs regulations
Navigating the intricacies of Australian import regulations is imperative for Bangladeshi exporters seeking to penetrate the Australian market successfully. Understanding customs requirements, including duties and import and export taxes in Australia, is paramount to ensuring seamless transactions and compliance with Australian regulatory frameworks.
1. Duties and taxes
Understanding the customs regulations is crucial for any exporter. Australia has a well-defined system for import duties and taxes, which typically depends on the value of the goods imported.
In Australia, imported goods are subject to duties and taxes unless exempted; items under AU$1,000 typically face no charges except for regulated products like tobacco and alcohol, which are always taxed. For goods over AU$1,000, all applicable duties, taxes, and an import processing charge apply. Compliance with these rules is essential for smooth international trade.
For successful customs clearance, the Harmonized System (HS) code is essential. This standardised numerical code classifies traded products, helping customs authorities worldwide to identify items for duty assessment, tax calculations, and statistical purposes
Additionally, the Australia-Bangladesh Trade and Investment Framework Arrangement (TIFA) bilateral agreement aims to enhance trade relations and economic cooperation between the two countries, potentially lowering tariffs and facilitating smoother and more cost-effective import processes for businesses engaged in trade between Bangladesh and Australia.
2. Restricted and prohibited items
Australia maintains strict controls on certain items entering its borders to protect its biosecurity and maintain public safety. Understanding these restrictions is crucial for exporters to prevent legal complications and customs delays.
Prohibited items: Some items are completely banned from entering Australia. These prohibitions help prevent harm to the community, environment, and economy. Prohibited items include drugs, steroids, weapons, and any products or parts of endangered species under the Convention on International Trade in Endangered Species (CITES)
Restricted items: Other items can be imported but require specific permits or must meet stringent conditions to be allowed entry. These restrictions typically apply to items that pose potential risks to health, safety, or the environment. For example, pepper, whether whole or ground, must be commercially prepared, properly packaged, and labelled with the full botanical name of a permitted species to enter Australia. It must be declared upon arrival and may be inspected, with non-compliant products either exported or destroyed at the importer's expense.
Exporters should consult the Australian Border Force or a logistics providor before shipping goods that might fall under these categories.
3. Export documentation
Export documentation is essential for facilitating international trade and ensuring that goods can cross borders efficiently and legally. These documents serve as the foundation for customs clearance, proving compliance with the import and export regulations of the destination country. Here's a list of the minimum documentation required for customs clearance in Australia:
- Customs Entry or Informal Clearance Document (ICD): A formal document used to declare the details of the shipment to customs authorities.
- Air waybill (AWB) or bill of lading (BLAD): This document acts as a receipt for the goods and a contract of carriage between the exporter and the carrier.
- Commercial invoice: Must include comprehensive details of the transaction such as the total value of goods, description, terms of sale (e.g., FOB, CIF), and all parties involved.
- Receipts: Proof of purchase or transaction between the selling and buying parties.
- Other relevant documents: Depending on the nature of the goods and the specific requirements of the shipment, additional documents like certificates of origin, permits, and licenses may be required.
These documents should provide essential information including the name and address of the seller (Consignor), the monetary unit referred to on the invoice (e.g., AU$, US$), and the country of origin of the goods. Accurate and complete documentation is critical to facilitate efficient and timely customs clearance.
It’s essential to ensure all documentation is correctly filled out to avoid delays and additional charges.
4. Labelling and packaging
Labelling
When importing goods into Australia, it is crucial to adhere to specific labelling requirements to ensure compliance and inform consumers. Here is how these requirements are organised, as per information from International Trade Administration:
Trade description:
- Goods must be marked with a true description of the contents and the country of origin.
- The description must be applied prominently and in legible characters on the packages.
- Any additional information on the package must be true and should not contradict or obscure the mandatory trade description.
Quantity information
- The quantity of a commodity in a package must be accurately stated on the main display panel.
- Quantities must be expressed in units of the metric system with the word “net” used when expressing mass.
Nutritional labelling for packaged Food (under the joint Australia New Zealand Food Standards Code):
- Labels must include detailed nutritional information, specifying amounts of fat, protein, energy, carbohydrates, and salt.
- The percentage of key ingredients used and a list of all main ingredients that may cause allergies must also be displayed.
These labelling requirements are designed to provide transparency and protect consumer interests, ensuring that all necessary information is clear and accessible at the point of sale.
Packaging
Australia's packaging standards are crafted to ensure that goods are not only transported safely but also arrive at their destination in prime condition. Key aspects of these standards include:
- Durability: Packaging must be robust and resilient, capable of withstanding the physical demands of transit. This includes protection against shifts in temperature, humidity, and the physical handling by various logistics services.
- Protection: The primary purpose of packaging is to safeguard the contents from damage during transportation. Effective packaging reduces the risk of product damage, which is crucial for minimising returns and associated costs for businesses.
- Design: Well-designed packaging takes into account the specific needs of the product, including size, shape, and fragility. Innovative packaging solutions that offer enhanced protection and are easy to handle can significantly improve efficiency in shipping and logistics.
These standards are integral to maintaining product integrity throughout the shipping and handling process, ensuring that businesses can deliver their goods in excellent condition, thereby enhancing customer satisfaction and trust. Read our packaging guide to learn more about how to ship your products efficiently while complying with Australia's rigorous packaging standards.
Exporting to Australia from Bangladesh presents immense opportunities for businesses seeking to expand their global reach and diversify their market presence.
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DHL Express' extensive network and infrastructure ensure timely deliveries and enable businesses to confidently expand their global footprint, fostering long-term growth and success in the Australian market.
Our commitment to reliability, efficiency, and customer satisfaction enables businesses to easily navigate the complexities of international trade, driving growth and success in the Australian market and reaching success from Australia to Bangladesh’s courier service.
