Is exporting products to Australia on your wish list? If so, there is no need to worry. You can quickly learn the steps involved in exporting your products to Australia. Moreover, 2021 has brought good news for Indonesia, a year marked by a steady increase in the country's export value. This achievement was made possible by the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which came into effect on July 5, 2020.

What exactly are the benefits of this economic partnership between the two nations? Since 2020, thanks to the IA-CEPA, customs duties on exports to Australia have been eliminated. That is quite advantageous, isn't it? It certainly is—especially for those intending to export to Australia, as it opens up greater opportunities for your products to enter the Australian market.

However, before celebrating the benefits offered by the IA-CEPA, it is wise to first understand the necessary steps for exporting to Australia. What are these steps? Let’s find out in the paragraph below!

Steps for Exporting Products to Australia (IA-CEPA Applies)

1. Know the product in detail
Raw materials, manufacturing process, equipment used, certifications held, unique selling points, and offered price.

2. Choose the right trading partner

Get to know potential trading partners, study their track record, and examine their business ethics.

3. Consumer preferences

Demographics
Culture
Trends
4. Understand the applicable legal regulations/provisions for your product:

Familiarize yourself with domestic regulations applicable to your product, including the following categories:
– Goods free for export

– Goods subject to export controls

– Goods prohibited for export

Regulations regarding food product imports into Australia:
– Biosecurity Act 2015 – Imported Food Control Act 1992

5. Pay attention to labeling and packaging

Use English
Include Country of Origin
Nutrition Facts/Nutrition Information Panel (NIP)
Include relevant certifications
Product descriptions and facts must be accurate
Must include the exporter's and importer's addresses
6. Commercial contracts must cover:

The parties involved
Rights and obligations of the supplier or buyer
Delivery timetable
Price, invoicing, and payment terms
Insurance and product liability
Breach of contract and force majeure
Dispute resolution

7. Prepare for transportation

Sea freight
Air freight
Cost calculation
8. Regulations regarding labeling and packaging

The Food Act 1984 (VIC)
ANZ Food Standards Code
Australian Border Force Requirements
Country of Origin Food Labelling Information Standard 2016

Requirements for Food Product Label Completeness

1. NIP (Nutrition Information Panel)
2. Nutritional content
3. Ingredients
4. Allergen content
5. Country of origin

These are the requirements Indonesian exporters must meet to demonstrate that their products are eligible for export to Australia. However, fulfilling these steps alone does not guarantee that the products can actually be exported there. Why? Because before a product can be exported, the necessary export fees—another mandatory requirement—must be paid.

Determining Export Costs

Now that you are familiar with the necessary prerequisites for exporting to Australia, the next step is to understand the factors involved in calculating the export costs. Naturally, exporting entails significant expenses. To learn what you need to consider when determining the cost of exporting products to Australia, please take a look at the points outlined in the following paragraph.

5 Key Steps to Determine Export Costs to Australia (Under IA-CEPA)

• Custom Value

Used to calculate tariffs, taxes on goods and services, and import duties based on the products being shipped.

• Exchange Rate

The currency exchange rate between the Rupiah and the Australian Dollar applicable at the time the product is to be exported.

• Tariff

A tariff is a tax imposed by the Australian government on products exported to the country.

• GST (Goods and Service Tax)

Australia’s Goods and Services Tax (GST) applies to almost all products. It is calculated as 10% of the taxable value of the product.

• Other Additional Costs

Be sure to account for additional costs related to export documentation, in accordance with regulations applicable in Australia.

Have you carefully reviewed the steps for exporting products to Australia outlined above? What do you think? It is quite easy to understand, isn't it? Hopefully, the information provided in the preceding paragraphs helps you leverage the benefits of the IA-CEPA partnership and implementation. Good luck with your exports!

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