The Export Council of Australia supports the Governments industry and innovation initiative, but fails to understand the reduction to funding for the Export Market Development Grants (EMDG) scheme

The Export Council of Australia supports the Governments industry and innovation initiative, but fails to understand the reduction to funding for the Export Market Development Grants (EMDG) scheme.

“The two strategies seem to be in conflict”, Mr. Murray CEO of the Export Council of Australia said in response to the recent announcements. On one hand the Government is saying the manufacturing sector needs to be developed and innovation and export capability building are being encouraged, yet on the other, they want to take away the mechanism that is proven to assist Australian companies launch into export.

“The conflict”, Mr. Murray said, “goes further. Research clearly supports the fact that exporting companies embrace innovation, so why not support them as much as possible?”

Since 2010, the Government has reduced the EMDG scheme by 40% from a $200million cap to just $125million. Since that time there have been years when the payout has dropped to 60% off what exporters’ were expecting. This is despite every review undertaken by Government supporting the schemes excellent return on investment, as well as research by the Council showing that up to 26% of companies would never have entered into export without the program.

According to Mr. Murray this is one of the most difficult periods in the history for Australian business and particularly exporters. Countries around the world are pushing their export activity in an attempt to avoid recession. Low international currencies, low interest rates and strong government support is helping drive the export activity among our competitors.

“Now”, Mr. Murray said, “is not the time to pull back on supporting this important sector; a sector that contributes 22% to GDP and is responsible for one in five jobs.”

The recent changes to the scheme, apart from reducing the cap, include the reduction in support for established markets. Mr. Murray notes that nobody can argue against getting behind the trade opportunities presented by the Asian markets; after all Asian markets are expanding and contribute significantly to Australia’s export activity. However, it is imperative not to underestimate the value of established markets to new exporters. Many companies start out in the US and Europe and build from there. Reducing support in these markets, for what is a relatively small amount of money, simply doesn’t make sense.   

The Export Council of Australia encourages the Government to look at the big picture and ensure that programs designed to encourage industry development and innovation are closely linked with programs designed to build export participation and growth.    

For reference, the Export Market Development Grants Amendment Bill 2013 was introduced into Parliament on 13 February 2013 and contains some important changes to the Export Market Development (EMDG) scheme. A summary of key changes, are listed below:

• Excluding approved bodies and joint ventures, the maximum number of grants has been increased to 8
• Exclude expenses relating to the promotion of sales to the markets of the USA, Canada and the European Union in grant years six, seven and eight for all applicants except approved bodies
• Remove the limit on administrative expenditure from the legislation and introduce a power for the Minister to set the limit on administrative expenditure by determination
• Prevent further approval of joint ventures after 30 June 2013
• Remove event promoters from the EMDG scheme
• Prevent the payment of grants to applicants engaging an EMDG consultant assessed to not be a fit and proper person
• Enable a grant to be paid more quickly where a grant is determined before 1 July following the balance distribution
• Require applicants to acquit claims by individually paying for claimed expenses.

Moreover, the Gillard government released their Industry and Innovation Statement, A Plan for Australian Jobs, on 17 February 2013. Total Government investment in this scheme is $1 billion. Below is a brief summary of their key initiatives:
• A new Industry Participation Authority will help businesses build the capabilities and connections to win work
• Legislating Australian Industry Party (AIP) arrangements, requiring major projects worth $500 million or more to implement AIP Plan to give local industry opportunities to win work on a commercial basis.
• The Government will invest more than $500 million in establishing up to 10 Industry Innovation Precincts to drive business innovation and growth in areas of Australian competitive advantage.
• The first two Precincts will be a Manufacturing Precinct with locations in South East Melbourne and Adelaide and a Food Precinct headquartered in Melbourne.
• A new Industry Innovation Network will allow businesses around Australia to take part in Precinct activities, gaining access to knowledge, support, services and partnerships regardless of their location.
• A new $350 million round of the Innovation Investment Fund to stimulate private investment in innovative Australian start-up companies.
• Changes to venture capital tax arrangements to improve clarity and certainty for investors and encourage participation by "angel" syndicates.
• A new Growth Opportunities and Leadership Development (GOLD) initiative to provide focused support for SMEs with high growth potential.
• Extending the successful Enterprise Connect program for SMEs to more manufacturing firms and to new sectors like professional services, information and communication technologies, and transport and logistics
• A new Enterprise Solutions Program to help SMEs develop solutions to public sector needs and become better equipped to win work through public tenders.

- END -
Media contact
Ian Murray
Executive Director, Export Council of Australia
Tel: 02 8243 7410   M: 0438230245
E: ianmurray@export.org.au

Business Success in the US: Managing the Risk of Product Liability in the U.S.

- Patrick B. Fazzone, Partner Butzel Long Tighe Patton, PLLC

The attractiveness of the U.S. market for consumer products is often offset by the challenges, especially the confusing puzzle of product liability laws. Since it is the product manufacturer that is in the best position to ensure that its products are not injurious to consumers in their intended use, this is an issue that first and foremost must be addressed by that party. Appointment of U.S.-based distributors does not remove a manufacturer’s duty to exercise care in the design, manufacture, presentation and marketing of its products. 

The proper course for a manufacturer who wishes to minimize the incidence of product liability claims is first and foremost to understand the laws in this area. There is no single uniform product liability law in the United States. Rather the “law” is a patchwork of fifty jurisdictions plus the federal government, each of which may approach issues of product liability differently.

It is not unusual for a single U.S. product liability claim to be stated or brought in multiple counts or theories. Normally, product liability causes of action will claim negligence, breach of warranty and strict liability in tort. Statutory claims may also be brought under circumstances in the manufacturer or distributor breached a statutory obligation to the class of persons of which the plaintiff was a party.

Risks of suit may be substantially reduced through an aggressive and comprehensive program which seeks to eliminate possible hazards in product design, or product manufacture as well as by improving warnings and instructions on the products to be manufactured for distribution in the American market. Some of the potential cost from a claim can be shifted through product liability insurance. However, insurance coverage cannot and does not remove the underlying potential exposure for injury due to use or misuse of a product.

Creating an effective program is not an impossible task. Rather it simply requires the attention and commitment of a company’s senior management acting with advice from counsel on the risks and how best to address them.

Patrick B. Fazzone, Partner Butzel Long Tighe Patton, PLLCPatrick specializes in sophisticated commercial transactions, corporate law, technology transfers and international trade law. Patrick has advised Australian companies on companies on the protection of their intellectual property, establishment and structuring of U.S. start-up companies, joint ventures and other commercial arrangements, managing the risk of product liability, contracting with the United States Government, and the drafting of sales and technology agreements. Patrick is also Chairman of the Trade and Government Committee of the American Chamber of Commerce in Australia. He focuses on providing practical and effective advice and solutions to his clients.

Australian exporters managing to create positive business outcomes with the high dollar

The high Australian dollar has impacted on Australian exporters large and small; however, some companies have been better able to manage this challenge, creating positive outcomes which we can all learn from.

In the education sector, there is a greater level of collaboration with international universities, particularly in Asia, which has led to the creation of joint programs. Improvements to university infrastructure and campus facilities are also being used to attract international students when American and Asian universities are becoming increasingly competitive.

A number of NSW companies in the technology sector have focused heavily on R&D to create unique, innovative solutions to take to market. They are also applying R&D to their business’ operations to reduce costs through automation and innovative production processes.

Companies from a range of industries have managed the high Australian dollar by expanding into international markets, namely the United States. For some, the timing of the rise of the dollar worked in their favour, whereas for others, the large population and developed resources and services sectors have meant that their businesses have been able to flourish.

If your company has used innovation to sustain your business against the high Australian dollar, please post your comments below.

Stacey Mills

Export Council of Australia

Website: www.export.org.au

Export Council set to rock the ship in 2013

What an interesting seven months ahead, the election date is announced early, we are going to run a deficit in 2012/13 and the dollar seems far from being in retreat.

From an Export Council of Australia perspective its spells out an opportunity to hammer home to the politicians just how uncompetitive we are becoming and what we expect in terms of trade policy particularly in the areas of cutting red and green tape. Trade facilitation costs or simply put, the cost of doing business out of Australia, should be ringing alarm bells. We have slipped right down the ladder in terms of being competitive and much of that, I am sad to say, is self inflicted, or in many cases government inflicted and hidden under the guise of user pays.

We will certainly let it be known what Australian exporters think and how many of these unnecessary costs are stifling business and costing jobs. Unless this issue is addressed soon, Australia will never be able to fully capitalise on the Asian agribusiness boom, which is often described as the next resources boom. 

Red tape is not the only issue we have on the agenda! The 40% reduction in the Export Market Development Scheme funding is unacceptable and so too the recent changes that reduce funding for ‘developed’ markets like the USA and Europe, where many SME see potential market growth and opportunities.  EMDG has been one of the most effective trade support programs the Government has introduced and today it is just a shadow of its former successful self. 

What else do we have on the agenda in 2013?

• The ECA will also promote the adoption of an Authorised Economic Operators (AEO) program to bring Australia into line with our international trading partners and reduce cost.

• The ECA will support other Australian business associations in promoting the inclusion of Investor-State Dispute Settlement (ISDS) provisions into Free Trade Agreements. Failure for its inclusion should not be allowed to stop the progress of Free Trade Agreements particularly when it results in giving competing markets like Chile a free ride for agriculture into Asian markets.

• The ECA is also a strong believer in building a closer relationship between industry/commerce and government on trade related issues, much like the successful model introduced to the United States under Obama.

• Finally, but by no means the least, the ECA will strongly promote adopting an all of  industry/government approach to winning major international projects, particularly in the services sector.  We currently compete against major economic powerhouses such as the UK, Germany, USA and France who all have strong government support initiatives for supporting their industries compete for major projects. So, why can we not have a similar Team Australia approach?

That, I suggest is enough from me, so please let’s hear your view.

Simply email me at ianmurray@export.org.au and let me know your thoughts; we can’t promise a fix but we can promise to try.

Good luck for the year ahead and Happy Exporting!

Ian Murray AM
Executive Director
Export Council of Australia

2013 FLEX Global Business Events Program confirmed

YOUR NETWORK, SHARED KNOWLEDGE, YOUR FUTURE

FLEX meetings are designed to be interactive and informal and they are the only place for professional networking with other global companies.

Forums are held each month with your peers and discuss critical issues relating to your business. Industry experts are on hand to lead the discussion and provide you with the answers you are looking for.

In 2013 the Export Council of Australia’s FLEX program has been designed by our members from across Australia and the various topics will fall under three main subject areas – Marketing, Risk & Offshore Expansion.

Please join us in 2013 and benefit from expert advice and shared peer experiences.

MARKETING ESSENTIALS FOR TAKING THE WORLD BY STORM

Milan Kundera wrote, “Business has only two functions – marketing and innovation.”  In today’s fast-paced, digitally-focussed world, marketing and innovation are almost synonyms, and that is both exciting and just a little scary.

In our first FLEx series of 2013, we will focus on some of the most important aspects of marketing as part of export strategy.  We’ll attempt to demystify the marketing machine while offering practical hints for success.

The new marketing mix

With the current emphasis on the so-called “new” media, one can be forgiven for thinking that only digital marketing matters, but is this really the case?  Our guest expert will examine the need for including the more traditional marketing elements in a successful marketing plan and give advice on the right marketing mix for your business.

Event Details

Melbourne, VIC
Date: Thursday 7th March
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 6th March
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 7th March
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Social media – hype or real marketing tools?

We’re all familiar with the major social media channels, but what is their value when it comes to marketing your business overseas?  Is it enough to just have a LinkedIn profile or a Facebook page?  Join us for a lively discussion on the importance and effective use of social media.

Event Details

Melbourne, VIC
Date: Thursday 4th April
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 3rd April
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 4th April
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Websites for export success

Is your website doing your business more harm than good?  This session will highlight the key elements of a good international website, while examining the pitfalls of an ineffective one.

Event Details

Melbourne, VIC
Date: Thursday 2nd May
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 1st May
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 2nd May
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Perth, WA
Date: Wednesday 1st May
Time: 8.00-9.00am
Venue: CCI Boardroom, Level 4, 180 Hay Street, East Perth Road & Ogg Road, Murrumba Downs
RSVP: Ian Whitaker @ Ian.Whitaker@cciwa.com

Maximising your trade show investment

Trade show participation is an expensive exercise, both in dollar and resource terms.  It is vitally important that you make the most of every trade show at which you exhibit or that you attend.  This session will give you practical information on how to choose a trade show, how to plan and execute your show stand, how to maximise your exposure, and how to effectively use your trade show time.

Event Details

Melbourne, VIC
Date: Thursday 6th June
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 5th June
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 6th June
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Perth, WA
Date: Wednesday 5th June
Time: 8.00-9.00am
Venue: CCI Boardroom, Level 4, 180 Hay Street, East Perth Road & Ogg Road, Murrumba Downs
RSVP: Ian Whitaker @ Ian.Whitaker@cciwa.com

Adelaide, SA
Date: Thursday 4th April
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.au

CROSSING THE T’s & DOTTING THE I’s

Your export success hinges on your doing your homework.  No matter how good your product or service, your business will fail if you don’t have sound business practices in place. This FLEx series focuses on the basics and getting them right.

International trade law refresher

What is International Trade Law?  And how does it impact your overseas business?  Our guest expert will talk you through the basics and leave you with a checklist of information to help smooth your path through the minefield of trade law.

Event Details

Melbourne, VIC
Date: Thursday 4th July
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 3rd July
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 4th July
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Adelaide, SA
Date: Thursday 2nd May
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.aupard@export.org.au

Contracting for international success

Your contract with a customer lays the groundwork for any future business relationship.  It is vital that when negotiating a contract you get it right, particularly when conducting business internationally.  This session will cover the key elements of contracting, with the emphasis on international transactions.

Event Details

Melbourne, VIC
Date: Thursday 1st August
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 31st August
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 1st August
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Perth, WA
Date: Wednesday 5th June
Time: 8.00-9.00am
Venue: CCI Boardroom, Level 4, 180 Hay Street, East Perth Road & Ogg Road, Murrumba Downs
RSVP: Ian Whitaker @ Ian.Whitaker@cciwa.com

Adelaide, SA
Date: Thursday 6th June
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.au

Office, subsidiary, distribution agreement, joint venture?  Finding the correct path to international expansion for YOUR business

Starting with the definitions of different business models and moving onto the practical implications of how you then action your offshore expansion, this session will leave you with a clear idea of which is the correct path for your global business expansion.

Event Details

Melbourne, VIC
Date: Thursday 5th September
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 4th September
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 5th September
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Perth, WA
Date: Wednesday 4th September
Time: 8.00-9.00am
Venue: CCI Boardroom, Level 4, 180 Hay Street, East Perth Road & Ogg Road, Murrumba Downs
RSVP: Ian Whitaker @ Ian.Whitaker@cciwa.com

Adelaide, SA
Date: Thursday 4th July
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.au

Setting up overseas – dos & don’ts for success

We will touch on the most important aspects of setting up an international operation – from renting office space to employment regulations, from local legislation to banking requirements and transfer pricing.

Event Details

Melbourne, VIC
Date: Thursday 3rd October
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 2nd October
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 3rd October
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Adelaide, SA
Date: Thursday 1st August
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.au

International tax structures – the basics

Every jurisdiction has its own tax laws and these will have a serious impact on your overseas business operations, particularly if you don’t do the right thing!  Throw the ATO into the mix and you have a recipe for a potential disaster.  Join us as we attempt to untangle the web that is international tax to leave you with a checklist for getting it right.

Event Details

Melbourne, VIC
Date: Thursday 7th November
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 6th November
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 7th November
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

Perth, WA
Date: Wednesday 6th November
Time: 8.00-9.00am
Venue: CCI Boardroom, Level 4, 180 Hay Street, East Perth Road & Ogg Road, Murrumba Downs
RSVP: Ian Whitaker @ Ian.Whitaker@cciwa.com

Adelaide, SA
Date: Thursday 1st August
Time: 8.00-9.00am
Venue: Hunt & Hunt Boardroom, Level 10, 400 King Street, Adelaide, SA
RSVP: Bob Shepard @ bobshepard@export.org.au

Quarantine & Customs matter!  Find out how to stay on the right side of these important Government agencies

Whether exporting or importing, customs and quarantine play an important part in your international business.  Find out how to make Customs and AQIS your allies.

Event Details

Melbourne, VIC
Date: Thursday 5th December
Time: 8.00-9.00am
Venue: Servcorp, Boardroom, Level 18, 101 Collins St, Melbourne.
RSVP: Collins Rex @ collinsrex@export.org.au

Logan, QLD
Date: Wednesday 4th December
Time: 8.00-9.00am
Venue: Springwood Towers Hotel, 9 Murrajong Rd, Springwood
RSVP: Lisa McAuley @ lisamcauley@export.org.au

Moreton Bay, QLD
Date: Thursday 5th December
Time: 9.00-10.00am
Venue: Murrumba Downs Tavern, Dohles Rocks Road & Ogg Road, Murrumba Downs
RSVP: Brian Nooney @ Brian.nooney@moretonbay.qld.gov.au

EXPORT BASICS WEBINAR SERIES

If you’re thinking of exporting or just starting out, or you just need an export refresher, our export basics webinar series will provide a wealth of information. Topics will include:

WHO's WHO IN THE EXPORT ZOO?

From Austrade & EFIC to AusIndustry, from AIG to the State Chambers of Commerce & State Government Departments, we untangle the web of whose who and what they can do to assist your international business growth. 

Event Details

Date: 28 March 2013
Time: 8.00-9.00am
Location: Remote access via GoTo Webinar
RSVP: https://www4.gotomeeting.com/register/239939239

Grants & assistance packages

Find out what’s available & how you can get your share.

Event Details

Date: 30 May 2013
Time: 8.00-9.00am
Location: Remote access via GoTo Webinar
RSVP: https://www4.gotomeeting.com/register/786992583

For further information, please contact the Export Council of Australia’s head office:
Export Council of AustraliaE: info@export.org.au
W: www.export.org.au

New securities imposed on steel imports

- Andrew Hudson, Director of the Export Council of Australia and Partner at Hunt & Hunt Lawyers

Hunt & Hunt has previously advised ECA members on investigations into alleged dumping and subsidies on exports of certain galvanised and aluminium zinc coated steel initiated at the application of BlueScope Steel Limited.

By way of notice in The Australian newspaper today, the Australian Customs and Border Protection service ("Customs") has advised of the imposition of securities on such steel products.  Securities do not require the payment of additional duty but represent the promise from importers to pay such additional duties if it is finally determined that such duty is properly payable on imports.

They are imposed if Customs believe that the imports represent an immediate threat to the Australian industry while the investigation continues.

The securities are on account of alleged dumping of those products.  The levels differ as set out in the notice depending on the identity of the exporter.

These range from a finding of no dumping for some exporters to significant levels on galvanised steel from the People's Republic of China, Korea and Taiwan. The highest level applies to exports of galvanised steel from the PRC at 55.3% for selected "non-cooperating exporters. There is a long history of non-cooperating exporters receiving high margins as Customs can resort to its own calculations of export price and normal value rather than using the exporter's figures.  As a result it continues to be mystifying while any exporters (including large-scale exporters) do not engage and co-operate during an investigation.

Details of the decision are to be found in the associated Preliminary Affirmative Determination number 190. Hunt & Hunt is awaiting a decision as to whether securities are to be imposed on these products on account of alleged subsidies.

As always, Hunt & Hunt and the Export Council of Australia will be pleased to assist our members should we be aware that the securities will apply immediately to imports.
CONTACT
Andrew Hudson, Partner
+61 3 8602 9231
ahudson@hunthunt.com.au

18 essential tips for doing business with India

Stephen Manallack compiled the secrets of Indian business success and cross cultural issues while preparing his new book for the Indian market, Soft Skills for a Flat World (Tata McGraw-Hill). He has led several trade missions to India and is a Cross-Cultural Trainer.

Don’t assume things are westernised

Visitors to China are visually reminded all day that they are in a vastly different culture. But often India can appear quite westernised and individuals also give that impression. You might be lulled into a false sense that business there is done much the same way as home. Better to open your mind and see things and people more clearly, looking beyond the surface level “westernisation”.

If you want it in a week, it will take a month

What takes a week in your home country will surely take four times as long in India, despite the assurances of delivery. This means to succeed there you need incredible patience, so don’t send your least patient executive to India.

You are not that important

Even if you represent a top 100 company, you are not that important to Indians. The rest of the world is chasing them too, so they have choices.

Work harder for specific outcomes

Indians have acceptance of change hardwired into their psyche – they thrive on it. It also means they are less specific in plans and contracts, which can be disturbing for newcomers. Getting the specifics set down can take a long time.

Choosing Delhi for HQ makes sense

While Mumbai is the financial capital, it is a tough place and most business people find they have to visit Delhi regularly anyway. It is more liveable, and is more than a political capital – it is a powerful business city.

Expect to travel a lot

You can be an executive in London, New York or Melbourne, and not have to travel too much. But wherever you are based in India, expect to travel, because there are at least 35 cities where you can do business, and that’s just the beginning.

Start and end the day late

Indian breakfast meetings can be set for 10am or even later – they are late starters. But your dinner meeting at the end of the day might not start until 9pm or later. Hours are long and weekends are for working because “work is life” is the mantra.

Things will change at the last minute

Despite your expectation, India runs to its own rhythm. One westerner tried to break convention by running an early (6.30pm) dinner meeting, and his guests showed up at 9.30pm anyway. Often you will be called minutes before a meeting to change time or venue – going with the flow is an asset over there.

Expect to be interrupted

Indians like to do several things at once, so expect your presentations to be interrupted by other visitors, cell phones, papers to sign and other distractions. At formal conferences and lunches, cell phones are rarely switched off and often answered at full voice.

Be prepared for paradox

The visitor can be shocked and unprepared for the speed of modern India. Businesses need to go prepared to deliver on a product or service right now, not just having some idea for a future opportunity. Trade missions from around the world arrive weekly, so they have plenty of choice.

 

There is still a language barrier

Your Indian counterpart almost certainly speaks English, which creates the illusion of communication and understanding. We speak English and think western – your Indian partner speaks English and thinks Indian, so take care to build real understanding.

Watch out for religious holidays

Check the calendar for holidays and although they are often fun it is a hard time to do business. A holiday listed for one day might run for four, so check it out first.

Be more formal

Addressing people by a title and their last name is a good policy in a country where status and formality underpin good manners. Casual forms of address can come later, but only once you have really got to know the Indian partner very well. On the other hand, things are changing so fast in India…

Shaking hands with women

Conventional wisdom is no physical contact whatsoever in a business context, but few people over there seem to really worry. A good policy is to wait and see if the woman extends her hand, but if you hold your hand out first it is not such a big deal.

Don’t read anything into the handshake

In the west we tend to read a lot into handshakes – too soft, too firm, too long and so on. Most of your handshakes in India will be pretty limp by western standards, but it is not a sign of lack of interest or indifference. It’s just how it is done over there, almost like a formality to get over and done with.

Prepare for the collective

Most westerners come from a culture of the individual, but the Indians they meet are firmly placed in a collective culture. One visitor will often find four or five Indians in the meeting, and often it is not clear who is in charge. Many Indian leaders will not speak up or even at all in these meetings – in the collective someone else does the talking while they do the evaluating.

Navigate through the spider web

While the west strives for simplicity and certainty, Indian business leaders know that life is like trying to find your way through a spider web – where does it begin, where does it lead, who can tell? Consistent with this view, most Indian corporations offer an incredibly diverse range of products and services – whereas western business tends to focus on just one area.

Dealing with non-conformity

Indian culture provides masses of room for non-conformists. Diversity of dress, styles of doing business and differing reactions to personal contact are to be expected over there. Your host might want to talk about diet or spirituality instead of your product and it is wise (and fun) to go with the flow.

If you are thinking of going, India’s great thinker Rabindranath Tagore can be your inspiration: “You can’t cross the sea merely by standing and staring at the water.”

Stephen Manallack is a published author and speaker in India. His new book is Soft Skills for a Flat World (Tata McGraw-Hill). EMAIL stephen@manallack.com.au