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Australian Exporters can now obtain Export Licences for goods of "Chinese Origin" held in stock in Australia.
Background
Over the past decade, Australian clothing manufacturers have increasingly established export markets in the USA and EU for locally made products.
More recently these manufacturers have been forced to source certain product lines from China in order to be price competitive in the local market or to supplement core local product lines.
Whilst this sourcing approach has enhanced their competitiveness in the local market, it has also restricted access to overseas markets that heavily control the importation of Chinese made products.
Import Restrictions
Most textile articles imported into the US and Europe which are of Chinese origin are prohibited unless accompanied by a valid Export Licence.
Export Licences are used to control the quantum of textiles and textile products which are allowed entry into the US and EU markets from China and other third world countries.
Implications for Australian Exporters
Any shipment that contains a product of Chinese origin which is to be exported to the US or EU will not be allowed to be imported unless it has the required Export Licence.
As such, any shipment containing goods without the required Export Licence will be rejected and returned to the shipper.
Quota Allocation
Currently, an Export Licence can only be obtained if requested at the time of placing orders on Chinese manufacturers for goods destined for the US or EU markets. The exporter makes an additional charge on top of the normal selling price to cover the insurance of the required Licence.
Issue for Australian Exporters
The barrier confronted by an Australian exporter occurs when it wishes to supply Chinese origin textile products ex stock from its Australian based distribution centre. If the exporter is unaware of export sales in terms of quantities and styles at the time of placing the production order ex China, Export Licenses cannot be requested or issued. So at present, local companies are simply unable to supply their overseas clients ex stock, only on forward order. This creates the need to work with a longer lead time from order to delivery. This also makes it impossible to re-stock fast selling items in a similar way as it was with the local market.
The TCF Way
In recognition of the barrier, TCF Services have researched, tested and proven a viable solution, which can overcome this logistical problem. Australian exporters can now obtain Export Licences for goods of Chinese origin held in stock in Australia. TCF Services have been able to establish a process that allows the issue of the required Export Licence by the Chinese authorities in a manner that is acceptable to both EU and US Customs authorities.
Please contact us to discuss the process in greater detail.
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