WA Government invests $40 million to grow food and aquaculture industry

WA Government invests $40 million to grow food and aquaculture industry

The WA Government announced last week it will invest more than $40 million to grow WA’s food industries, develop the aquaculture industry, and support the expansion of premium food and beverage manufacturing.

A key initiative is the $16.7 million four-year Food and Beverage Fund, a State-wide investment in financial incentives, capacity development and professional services support for food and beverage businesses.

The first component of the Fund – the Value Add Investment Grants – is now open for applications. Information about the Grants and how to apply can be found on DPIRD’s website.
To get this information to as wide an audience as possible, can you consider sharing this information with your industry members via your communications channels.
You can email the team at AFTprograms@dpird.wa.gov.au if they have any further queries. The team is available to provide support to your members during the application process. They also want to hear your feedback to ensure that programs in the Food and Beverage Fund are aligned to your industry’s needs over the next four years.
Also last week, WA Government launched Investor Readiness Masterclasses program, in partnership with BDO. It aims to assist companies that have strong growth potential but have reached a point where future growth requires external funding. The Masterclasses support these companies to be ‘investor ready.’

China launches anti-dumping investigation into Australian wine exports

China launches anti-dumping investigation into Australian wine exports

China has launched an anti-dumping investigation into imported bottled wines from Australia, the country’s Ministry of Commerce announced on Tuesday (18th Aug).

The investigation will look into whether Australian producers have dumped ‘wines in containers holding 2 litres or less’ into the Chinese market below fair market value during the time period between Jan 1st 2019 to Dec 31st 2019.

An additional investigation on the injury to the domestic industry will focus on the time period from the beginning of 2015 until the end of 2019.
The investigation was launched amid rising political tension between China and Australia, causing further uncertainties to the wine trade of both nations, which are still suffering from the impact of COVID-19 earlier this year.
China stressed that relevant government departments will conduct the investigation in a ‘fair and just manner in accordance with the law’.
The incident coincides with China’s anti-dumping investigation into wine imports from the European Union in 2013 as a (though never officially admitted) countermeasure against the EU’s threat to raise tariffs on solar panels entering the EU from China.

China agreed to end the probe in March the year after following a series of negotiations with the EU.

The context: Australia and China wine trade relations

Taking advantage of the China-Australia Free Trade Agreement (ChAFTA) signed in 2015, wines from Australia are exempt from import tariff from the beginning of 2019.

Chinese customs figures show that Australia has now replaced France to become China’s biggest source of imported bottled wines. Mainland China is also the number one export destination by value for Australian wine, according to Wine Australia.

A total of 53,946,300 litres of wines worth 317,508,700 USD were imported from Australia into Mainland China in the first six months of 2020, according to China’s Association for Imports and Export of Wine Spirits (CAWS).

Though still suffering a significant drop in volume from the same period last year, wines from Australia are amongst the fastest recovering categories post-lockdown in China’s imported market compared to other major wine-producing nations.

The above is an excerpt from an article by Sylvia Wu in the Decanter magazine. 

So what is Anti-Dumping

Dumping 101 – sounds simple but it isn’t

If an exporter sells a product to a country at a price that is less than its home market price for the same product, or below-cost, and the price of the product causes injury to the that country’s industry that makes the same kind of product, then the Country’s government may impose a special customs duty (“anti-dumping measures”) to equalise the price with the exporter’s home market price or full product cost, whichever is higher. In that way it is hoped and intended that country’s industry receives some price relief. This is permitted under the WTO Anti-Dumping Agreement,[2] which many WTO Members have implemented into their domestic laws.

Australia’s Anti-dumping and countervailing system

An anti-dumping measure is an additional duty on dumped imports that have injured Australian industry.

A countervailing measure is an additional duty on subsidised imports that have injured Australian industry.

These duties are imposed by the Minister on the recommendation of the Commissioner.

The Anti-Dumping Commission helps Australian industry by managing Australia’s anti-dumping and countervailing system. They investigate claims that dumped and subsidised imports have injured Australian industry.

Dumping generally occurs when a company exports a product into Australia at a price that is lower than the price charged in the country of manufacture.

Subsidisation is a financial benefit an exporter receives from a government. This subsidy may allow the exporter to sell their goods to Australia at a lower price.

FAS – Free alongside ship (Named Place) Incoterms® 2020

FAS – Free alongside ship (Named Place) Incoterms® 2020

Article 5 in our series of Incoterms® 2020 – In each article we will identify the responsibilities of the seller in the transaction at different points in the shipping journey. Our fourth Incoterms® Rule is FAS – Free alongside ship (Named Place).

FAS should only be used for sea and inland waterway transport. Under the Incoterms® 2020 rules, FAS means the seller has fulfilled its obligation when the goods are placed alongside the ship. However, it is not recommended to use this rule if the buyer is not able to pay the costs related to the export of the goods.

The FAS Incoterms rule considers a delivery complete when the seller delivers the goods by placing them alongside the ship indicated by the buyer or at the point of loading/port (if any) or when purchasing already delivered goods.

In the case of FAS Incoterms, it is recommended to determine as clearly as possible the loading point at the named port of shipment where the goods are to be transferred from the quay or barge to the ship. This is because handling charges and the transport of goods from the quay or barge may vary depending on the port’s practice.

The risk or liability for the goods transfers from the seller to the buyer when the seller delivers the goods by placing them alongside the ship indicated by the buyer.

Quick overview

What are the seller’s obligations?

  • Carrying out all the duties under the terms of delivery specified in the contract. This means delivery of the goods along with a commercial invoice in conformity with the contract of sale and other related documents.
  • Delivering goods by placing them alongside the ship within the prior specified period and at the named port indicated by the buyer.
  • Informing the buyer in advance of the delivery of the goods.
  • Providing at his own expense a document confirming delivery of the goods to the buyer. If such proof is a transport document, the seller must assist the buyer, at his request, risk, and cost, in obtaining it.
  • At the buyer request, risk and cost in obtaining any documents necessary for transit and import clearance formalities.
  • Packaging and marking the goods.
  • Operating according to all transport-related security requirements until delivery of the goods to the buyer.

What are the buyer’s obligations?

  • Concluding the contract of carriage from the named port of shipment, except where the contract of carriage is made by the seller (at the buyer’s expense and risk).
  • Assisting the seller, at his request, risk, and cost, in obtaining any documents necessary for the export clearance formalities.
  • The buyer must notify the seller in advance of any safety requirements related to transport, ship name, loading point and the delivery date within the period agreed in the contract.

Incoterms 2020 FAS rules are used only and exclusively in maritime transport or inland waterway transport. The use of FAS is not recommended for container transport.

What are Incoterms® used for?

Incoterms® are primarily used for determining how the sale of equipment for delivery across international boundaries will be handled and who will pay for what in the transaction. They will not address the consequences of a breach of contract or exemptions of liability. Incoterms® relate to the terms between the exporter and importer.

Incoterms® cover the following broad points:

  • Delivery – Incoterms® 2020 specify when seller delivers to buyer:
  • Risk – Incoterms® 2020 specify when risk transfers from seller to buyer. Risk passes from seller to buyer when seller has fulfilled his obligation to deliver the goods
  • Costs – Responsibility of costs passes from seller to buyer at a point up to which the seller is obliged to pay transport (and insurance) cost

If you missed our previous Incoterms® 2020 articles, you can catch on them here:

  1. What Are the Incoterms® Rules?
  2. EXW–Ex Works (Named Place) Incoterms® Rule
  3. FCA–Free Carrier (Named Place) Incoterms® Rule
  4. FOB – Free on Board (Named Place) Incoterms® Rule

Advanced Trade Marks Oppositions and Hearings webinar – IP Australia

Advanced Trade Marks Oppositions and Hearings webinar – IP Australia

You have a trade mark, but what if it’s being challenged?

This free webinar will explain trade mark oppositions and hearings and provide you with the tools you will need if your trade mark is being opposed.

In this webinar you will learn:

  • The types of opposition
  • How to file an opposition to the registration of a trade mark
  • What to do if your trade mark is being opposed
  • The life cycle of an opposition to registration
  • The removal of a trade mark for non-us
  • What a hearing is
  • What happens at a hearing

If you have not already viewed the Understand Trade Marks webinar, it would be helpful to do so before attending this session. IP Australia also has a range of on-demand webinars on their website.

PUMP COVID-19 story: Think positive and adapt fast

PUMP COVID-19 story: Think positive and adapt fast

PUMP is a haircare company with over 40 Australian made, plant and botanical based, organic hair care products. The products have been sold to customers in over 100 countries around the world and are stocked in over 200 salons.

PUMP Haircare is our fortnightly Featured member. Read on as Natasha Jay, founder of PUMP shares her story on how they’ve been navigating through #COVID19 crisis:

Managing a company through a global crisis has had a fair share of ups and downs. Surprisingly, my business has experienced both negative and positive effects during COVID-19. In the weeks following our nation’s lockdown, our sales increased five-fold. However, while our orders increased, our access to supply and shipping options decreased, which created major complications in our supply chain and logistics.

These changes have been a roller coaster to navigate, requiring me to think positive and adapt fast. The outcome? I created and released five new products, and an entirely new line as our standard products were selling out. I discovered a new supplier who offers zero carbon footprint packaging, which we are transitioning to. I doubled my staff and provided jobs for people who had lost employment.
When in crisis, I believe it is every business owner’s responsibility to assess and strategises on how to build a company that improves and supports our world, and my strategy moving forward is to continue doing that, the best I can, by creating products I believe in.
As all business owners know, there are always things to worry about, but regardless, I feel positive about the future of PUMP and of the e-commerce community. I believe in what I have created, and I believe e-commerce is the future.
Although this crisis creates a lot of uncertainty for business owners, I hope it also inspires creativity in my fellow Australian exporters, as it has for us at PUMP.

Australia Awards Women Trading Globally participant continues commitment to sustainability and fair trade principles

Australia Awards Women Trading Globally participant continues commitment to sustainability and fair trade principles

In 2016, Taslima Miji of Bangladesh founded Leatherina, a company that adheres to principles of social inclusion, fair trade, ethical business and reducing environmental harm in its production of leather bags and other small leather goods, combining jute and fabric to make the products environmentally friendly.

Participating in the 2019 Australia Awards Women Trading Globally program delivered in Melbourne and Sydney motivated Taslima to implement fair trade principles in her business and to stay resilient in a time of crisis. As a result of COVID-19, Taslima is focusing on how to efficiently manufacture more standardised face masks for the local and global market. Taslima shares her inspiring story in the Q&A below:

Q&A with Taslima Miji, Managing Director, Leatherina Pvt Ltd

What led to you establishing your company, and what drove you to commence international expansion?

I started my business Leatherina after a huge loss in my previous business where I was selling IT hardware. In a business, all I wanted was making a significant contribution to my country’s economy besides making my own living. The journey aimed at finding a better living soon became my centre of all passion and dream. One of my major focuses is uplifting the manufacturing standard of leather bags in Bangladesh for the global market in a sustainable manner. My business model also includes social inclusion, fair trade, ethical business and reducing environmental harm in fashion goods manufacturing which is my socio-political commitment and I found my business a great field to work on these.

I chose to work in leather bags industry as I wanted to work with natural materials and thus I came into leather goods business. Typically leather industry in Bangladesh is a heavily male-dominated business. Naming my venture Leatherina was a candid reaction to doing the business from a woman’s perspective.

I named my leather bag brand “Gootipa” when I was looking for a name which is genuinely me and reflects what’s going in my own world. During my early days when my journey began, I thought Gootipa, which means baby steps in my language, is the name which talks about starting of my rocky journey in which I was none but a baby who wants to learn walking soon.

I was already into the export market with my leather bags before I participated the WTG program. I have been exporting to Netherlands since 2017 and at this moment I am working on expanding to the Australian and American market. After WTG, I am designing my business plan to expand in global market in a more constructive way.

What did you learn from participating in the Women Trading Globally program?

Among them: I learnt that export plan prior to approaching a new market is very important. I also learnt this is important to do enough research about the country’s trade policy, rules and regulation, preferential agreements, standard and persona of buyer and brand etc. The most important takeaway was the experiences to visit some Australian companies.

The program gave me the opportunity to meet a handful of successful South Asian women entrepreneurs who are showing the way to many in their respective societies. Sharing and learning with them had a powerful role in my understanding of global business. The course was designed well to fulfil our knowledge gap in understanding of global business. I believe knowledge is power and the training gave us an appropriate environment to enhance our business knowledge and thus empowered us. I believe I am more confident now than before dealing with my day to day business challenges.

The training gave me huge confidence besides learning technical issues. The sessions on digital media and branding classes have had an immense impact on my own brand building. I have used them in my building of brand identity and creating digital marketing policy. My local business has made a significant success in growth thanks to application in branding.

How have you been impacted by COVID-19 and how have you responded?

Like the rest of the world, my business has also been hit hard by the sudden pandemic. For a moment we felt we were suddenly nowhere and no hope in front of me when the home lockdown started without indication when it will stop. This situation left me hopeless with no work and no income with my team of 50 people. I started to look for a solution to it and I noticed the huge demand for cloth facemask as WHO was emphasizing on using a facemask in public settings to reduce pressure on medical masks supply chain. As a bag manufacturing company, I found my technical skill workable enough for making cloth masks to engage in crisis mitigation and at the same time to create a new business opportunity for me.

As the crisis is huge and there is a massive gap in the supply chain of facemasks in compared to the soaring demand I also intended sharing my knowledge of making masks with many other fellow entrepreneurs who became jobless due to COVID-19 pandemic. At this moment I am focusing on how to make more efficient facemasks, how to standardize them by testing to make them more effective and acceptable to users in the local and global market. I have already received many RFQs for facemask supply from overseas market. My latest development is deaf-care transparent facemasks, a special mask for people to communicate with hearing-impaired people.

Read more about Taslima’s response to COVID-19 here.

What inspires you?

I always get inspired by people around me in my society living in the ocean of crises, both man-made and natural, the courage and ability to thrive and smile amidst the challenges. Their struggle and staying resilient to troubles make me think, life is an endless struggle and I must do my part. A human’s opportunity lies within them and no one creates it unless we take an initiative. I have always found my spark in obstacles and I have discovered my sparks as early as my girlhood when I encountered gender discrimination and stereotype myself in my family and society. I thought I must do my part which would contribute to changing the system.

NSW Government backs exporters to go global

NSW Government backs exporters to go global

Small and medium-sized businesses and regional communities across the State are set to benefit from a coordinated NSW Government push to showcase local products and develop global export sales.

Deputy Premier and Minister for Regional NSW, Industry and Trade John Barilaro yesterday launched the NSW Government’s $12 million Going Global Package which includes grants of up to $10,000 for eligible businesses through the Export Assistance Grant scheme.

“Helping home-grown businesses succeed in the global marketplace is more important than ever before and here in NSW we have some of the best produce in the world,” Mr Barilaro said.

“That is why the NSW Government is coordinating export assistance across a range of initiatives including market tailored workshops, business matching and exporter grants of up to $10,000.

“We are promoting NSW businesses globally, just like we promote our fantastic regional products state-wide through our Buy Regional campaign.

“Our Export Assistance Grants, together with intensive, direct assistance through the Going Global program will complement existing support and advice services to forge new business connections and sales offshore.”

The Going Global Package includes:

  • A $1.8 million Going Global program which will provide export coaching, networking and in-market assistance for export-ready firms. The initiative includes 15 tailored programs covering nine markets and ten sectors.
  • A $10 million Export Assistance Grant scheme reimbursing 50 per cent of eligible expenses up to a maximum of $10,000 per eligible business
  • Connections to international consumers via the Buy Regional Goes Global initiative
  • Online webinars to help businesses upskill
  • Ongoing support through the NSW Government’s network of trade advisors in regional locations and Sydney, and its international trade and investment offices around the world
  • Access to information on the Global NSW website
  • Other support, tools and resources available online

Treasurer Dominic Perrottet said trade would be vital to restoring growth after COVID-19, with exports making up 16 per cent of the State economy before the global pandemic.
“We know our exporters have faced big hurdles in recent months, especially in regional areas also affected by bushfires and drought,” Mr Perrottet said.

“Applications for the Going Global program can be submitted now, and the Export Assistance Grants application will be available soon. I urge small and medium-sized firms in regional areas and across NSW to apply.”

Graham Gilmore from Black Springs-based agribusiness TattyKeel, said exporting was a great way for regional businesses to stay competitive and build resilience, despite the challenges of COVID-19.

“We’re a family farm that’s changing the boundaries. We’re doing R&D and we’re actually creating a new product that’s got some pretty unique eating qualities,” Mr Gilmore said.

“Developing markets overseas is an important part of our plan to support that work.”

TattyKeel’s innovative new brand Margra Lamb is among the enterprises profiled in Buy Regional.

In addition to the initiatives announced today, export advisors remain available to assist the business in regional locations throughout the State and, under the Global NSW strategy, the Government is expanding its network of trade and investment offices around the world from 11 to 21. The Buy Regional platform will continue to promote regional businesses and exporters.

More information is available at NSW Government webpage.

​Export boost for South Australian farmers and fishers

Export boost for South Australian farmers and fishers

Tonnes of South Australian produce will be on its way to export markets across the Middle-East and Europe with Qatar Airways which have just commenced flights out of Adelaide to the key freight hub of Doha.

It’s expected each twice-weekly flight from Adelaide to Doha will be able to carry up to 15 tonnes of high-quality South Australian produce including beef, lamb and chilled seafood.

Federal Trade Minister Simon Birmingham was delighted to welcome Qatar Airways back to Adelaide with these flights providing critical market access for South Australian exporters as well as provide another pathway home for returning Australians.

“South Australian exporters continue to face export barriers as a result of the COVID-19 crisis and the re-commencement of these flights will reduce some of the pressures our local exporting businesses have been feeling,” Minister Birmingham said.

“This opens up another door for South Australian farmers and fishers get their high-quality produce onto planes and into markets across the Middle East and Europe.

“South Australia has a strong reputation for safe, reliable and premium products and more direct freight routes means we’re keeping South Australian producers connected to their overseas customers and the export dollars flowing into our state.

South Australian Minister for Trade and Investment Stephen Patterson said the return of Qatar Airways flights was a great win for South Australian producers and farmers.

“Restoring freight routes is not only vital to supporting South Australian producers get their product overseas but also helps to protect local jobs,” Minister Patterson said.

“This is a great result for South Australia and I would like to acknowledge the Morrison Government and Qatar Airways for supporting our incredible South Australian businesses.”

Exporters with produce on these Qatar Airways flights will be eligible to apply for grant assistance under the Morrison Government’s $350 million International Freight Assistance Mechanism (IFAM).

IFAM continues to support freight flights from Adelaide to Singapore and Hong Kong, with 25 flights so far carrying 550 tonnes of premium South Australian produce including abalone, mussels, lobster, tuna, meat lamb, beef, poultry, almonds, Brussel sprouts and dairy products.
For more information, please go to the IFAM Page.

Questions over exports as air cargo volumes nosedive

Questions over exports as air cargo volumes nosedive

Australia’s peak export body says government air freight subsidies will need to be extended to ensure local agricultural products can get to overseas buyers, with an existing $350 million support package set to dry up at the end of the year.

The government’s closure of Australia’s borders in March to stem the spread of COVID-19 has significantly reduced air freight capacity because around 80 per cent of air cargo is traditionally transported to and from Australia by passenger aircraft.

Export Council of Australia chair Dianne Tipping said a $350 million federal government scheme to subsidise air freight had been a “godsend” that ensured local agricultural and seafood products could get to lucrative overseas markets, especially in Asia.

However, with the scheme’s announced funding set to run out by the end of the year, she said further support would be needed to keep export channels open.

“I don’t see that January is going to be back to normal at all,” Ms Tipping said. “We need to consider that this will go on longer until flights are back to the normal sense of regularity.”

Data released by the Department of Infrastructure and Transport last week show that inbound and outbound air freight fell to 26,5151 tonnes in the four months from March to the end of June, a fall of 26 per cent from the same period last year and a 30 per cent drop from 2018.

Total exports of fresh and processed foods grew by 5 per cent in the year to June 30, according to the Department of Foreign Affairs and Trade.

Trade minister Simon Birmingham topped up the program’s initial $110 million funding with $242 million at the start of July, which he said would extend to program until the end of 2020. The program subsidises airlines to use empty passenger aircraft for otherwise unviable cargo-only flights and has so far supported 62,000 tonnes of exports to 63 destinations worth $1.1 billion.

Air cargo represents less than 1 per cent of Australia’s imports and exports by volume but accounts for 21 per cent by value, worth $43 billion a year, according to a 2019 report by Infrastructure Partnerships Australia and BIS Oxford Economics.

Singapore Airlines, the biggest international air freight operator in Australia both before and since the pandemic, last week flew six dedicated freighter aircraft return flights to Australia, along with 26 flights using passenger jets carrying only cargo and 10 flights carrying both passengers and cargo.

Singapore Airlines’ general manager for cargo in Australia and New Zealand, Nicholas Kok, said many of its cargo flights would not be viable without the IFAM program.

“The very sudden removal of more than 80 per cent of our cargo capacity in March this year placed a huge strain on the cargo industry,” he said.

“We know in normal times, cargo operations make up a small percentage of our overall revenue. Now, it is the only meaningful source of revenue for the business.”

Ms Tipping said that exporters of non-perishable or non-urgent exports had largely been able to shift to sea freight.  Airlines are plotting a long recovery for passenger travel from the COVID-19 crisis. Qantas boss Alan Joyce said in June that he did not expect to be doing any meaningful flying within the next 12 months.

Some airlines have started to return capacity to Australia however, with Qatar Airways resuming twice-weekly flights from Adelaide to Doha on Sunday.

This article was first published in Sydney Morning Herald on 17 August 2020