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June 2003
Introduction from Alan Campbell, General Manager, Investment, Trade and Development, Department of Economic Development - Tasmania.
A recent visit to Tasmania by the Board of Directors of EFIC (Export Finance and Insurance Corporation) once again highlighted the need for exporters to closely examine the potential risks involved in international transactions. The risk of non-payment by an overseas buyer due to insolvency or political or economic conditions in the overseas market poses a significant degree of exposure to exporters.
Customers typically ask for credit terms in order to purchase goods with the terms of credit granted often dependent on the ability to assess the new customer’s ability to pay. Failure to grant credit can result in lost business.
A strategy to mitigate against the risk of non-payment is the use of credit insurance, whereby cover can be obtained for a range of eventualities, such as contract repudiation, currency inconvertibility, contract frustration due to war, import licence cancellation or payment default.
Export credit insurers will structure an insurance policy that takes into account as assessment of the exporter, the particular goods involved, the political and economic stability of the importing country, the prevailing legal system and, of course, the overseas buyer’s financial strength and ability to pay.
Credit insurance can provide businesses with the confidence to grow by managing much of the credit risk associated with developing new customers overseas.
Major providers of credit insurance in Australia are EFIC, QBE Trade Indemnity, Gerling and AIG. EFIC also provides regular newsletters and other material of interest to exporters, for example the organisation’s Market Watch provides useful comment on current conditions in a variety of countries. The newsletter is accessible through subscription at www.efic.gov.au.
EFIC also produces research and analysis on the world economy and emerging markets from the standpoint of exporters and direct investors, rather than the usual financial market commentary.
EFIC’s other resources include:
- research essays, reports and presentations
- country risk assessments
- EFIC's Schedule of Short Term Market Grades
More information can be found on the EFIC Country Information webpage.
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TRADE AND MARKETING ACTIVITIES:
Food and beverage industry Halal certification opportunity
Food and beverage companies that are Halal certified produce products that are permitted and fit for consumption by Muslims.
Having Halal certification opens up new market opportunities for food and beverage companies both nationally and internationally. There are approximately 400,000 to 600,000 Muslim residents in Australia, including 95,000 in Sydney and100,000 in Melbourne. There are about 1.6 billion Muslims worldwide, located primarily in the Middle East, Malaysia and Indonesia.
For products to be Halal, they must:
1. be free of, and not containing, any substance or ingredient taken or extracted from a haram animal or ingredient
2. processed in a certain manner
3. not come into contact with, touch or be close to a haram substance during preparation, processing or storage.
A haram product is ethanol, animals that eat both vegetable matter and meat, animals that eat other animals, animals not slaughtered in a halal manner, animals having protruding teeth (eg monkeys, cats), amphibious animals, insects, birds of prey and blood.
Economic Development’s Trade and Marketing Unit will arrange a seminar on Halal certification if there is significant industry support. To express interest in gaining further information about Halal certification, please contact Lisa Denny on 6233 5902 or email lisa.denny@development.tas.gov.au. More information can also be found on the Halal Certification Authority website.
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For other Trade and Marketing Unit upcoming and recent activities click here.
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2003 Australian Export Awards official launch
The Minister for Trade, the Hon. Mark Vaile, officially launched the 40th Australian Export Awards on 7 May 2003. The event was attended by a broad cross section of the Australian export community including corporate executives of exporting companies, previous national export award winners, key industry and trade groups and senior government officials.
At the launch, Mr Vaile announced the introduction of a new category for 2003 - the Tourism Award. This category is for outstanding export achievement in the inbound tourism sector, including accommodation, tour companies, attractions, airlines, cruise lines and other transport operators.
The launch of the Tasmanian Export Awards and application process is timed for mid-June. Any companies requiring additional information should contact Ann Atkinson on 6233 5838 or email ann.atkinson@development.tas.gov.au.
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2003 Tasmanian Export Awards
The Tasmanian section of the 2003 Australian Export Awards will be launched on 25 June 2003 in Hobart. The media launch will be held at the premises of the winner of the 2002 Information and Communications Technology Award, Hobart based SonarData. The call for nominations will be made by the Parliamentary Secretary to the Deputy Premier, Lara Giddings.
The success of the 2002 Tasmanian Export Award program was demonstrated with a record 44 finalists. The winners were:
- PMP print Agribusiness Award won by Springfield Fisheries Pty Ltd
- Win Television Arts and Entertainment Award won by Despard Gallery
- The Examiner Newspaper Education Award won by University of Tasmania
- International Services Division AusIndustry Emerging Exporter Award won by King Island Dairy
- Tasmanian Electronic Commerce Centre Information and Communications Technology Award won by SonarData Pty Ltd
- Export Finance and Insurance Corporation (EFIC) Large Advanced Manufacturer Award won by ACL Bearing Company
- Austrade Minerals Award won by Pasminco Hobart Smelter
- Telstra Country Wide Regional Exporter of the Year Award won by Caterpillar Elphinstone Pty Ltd
- Clemenger BBDO Services Award won by ADEA Power Consulting Pty Ltd
- Aurora Energy Small to Medium Manufacturer Award won by Hazard Systems Pty Ltd
- The Premier’s Tasmanian Exporter of the Year Award 2002 won by Hazard Systems Pty Ltd
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Austrade Visitor Program
Austrade helps Australian companies win overseas business for their products and services. Austrade is represented in 105 locations in 58 countries including an extensive domestic network throughout Australia. One of the many Austrade services on offer is visits to businesses by their industry specialist Business Development Managers or Trade Commissioners from overseas offices.
Economic Development’s Trade and Marketing Unit works closely with Austrade and facilitates visits of incoming Austrade staff. If you wish to meet with an Austrade officer from a particular country, please contact Martin Turmine on 6233 5795 or email Martin.Turmine@development.tas.gov.au.
Austrade staff visiting Tasmania in the near future include:
Moin Anwar Dubai, United Arab Emirates, June 17 - Moin is responsible for food and beverages.
Jamie Myers, Fukuoka, Japan, June 18-19 - Jamie specialises in industries such as marine, food and beverages.
Mallee Karnasuta, Bangkok, Thailand, 23-24 June - Mallee's areas of responsibility include:
- education
- franchising/tourism
- health care/medical services
- film/arts/culture/legal/gaming
- services to business (legal, accounting services, advertising, environmental services, consulting engineering services etc)
- financial and government services
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Tasmanian produce flyers
The Department of Economic Development and the Department of Primary Industries, Water and the Environment have produced three flyers on Tasmanian produce, available on their websites.
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Fine Food and Wine from Southern Australia - Cold Storage Singapore
The soft-launch of Fine Food and Wine from Southern Australia at the Tanglin Mall Cold Storage Supermarket in Singapore is scheduled for mid-June. Given the current SARS situation in Asia, a larger launch is planned for September. Product selection is still being undertaken. Sixteen Tasmanian companies sent samples to Singapore and so far, eight of these have received orders for the promotion.
For further information, please contact Lisa Denny on 6233 5902 or email lisa.denny@development.tas.gov.au.
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ensure your entry is always current.
CeBIT Australia
The second CeBIT Australia and annual Australian Information Industry Association (AIIA) Software Showcase were held at the Sydney Convention and Exhibition Centre at Darling Harbour in Sydney from 6-8 May 2003.
Four Tasmanian ICT companies - Crank Media, GetBusi, Nunatak and ViewBuild - participated in a Tasmania grouping managed by the Intelligent Island Secretariat. Economic Development’s Investment, Trade and Development unit organised a networking function at the Tasmanian stand, which showcased Tasmanian food and wine.
Attendance at CeBIT Australia provided the participating companies with an opportunity to further investigate the market potential for their products and services by meeting prospective distributors, agents and customers. Outcomes reported by companies included generating sales and signing new contracts, agreements with value-added retailers or resellers, agreements to conduct field trials, and agreement to establish an interstate/overseas representation or office.
Services industries opportunity
Austrade has announced that it is organising a trade mission to the Asian Development Bank (ADB) in the Philippines in September this year.
Economic Development’s Trade and Marketing unit has scheduled activities to assist the service sector gain business through the projects of the World Bank, United Nations and ADB, subject to industry support and appropriate budget allocation.
The Austrade initiative is an opportunity for an Economic Development-led group of Tasmanian service sector companies to participate in an Australian-coordinated trade mission to learn about the ADB first hand.
If you are interested in this activity, please contact George Chambers on 03 6233 5639 or email George.Chambers@development.tas.gov.au.
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INDUSTRY NEWS
Waji’s
In this edition of ExportActive, we feature a Tasmanian chef who has released a unique range of chilli oils, cajun spices, chilli pastes, quince pastes, chutney and port and onion jams. This range is produced by local chef Waji Spiby.

Waji claims his biggest influence in cooking is the food itself. He takes pride in using local ingredients wherever possible with ingredients only coming from mainland Australia when local supply is insufficient. In fact, in the case of chillies, his demand has resulted in local growers increasing their crops to meet his needs.
“While I receive great support from local producers for the ingredients I use, my main problem is securing a facility where I can efficiently produce,” Waji said.
“A local partner would greatly assist my business development. I believe I have a great range of products but my output can’t keep up with my demand.”
More information about Waji’s range of products can be found on his web site www.waji.com.au.
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Tasmanian winery debuts at London fair Tamar Ridge Wines
Tamar Ridge Wines is one of six Australian wine producers making their exporting debut at the London International Wine and Spirit Fair in May as part of the Australian Trade Commission’s Wine Quest Europe. more
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Dairy awards
Four Tasmanian Dairy companies have walked away with a swag of awards from the Dairy Industry Association of Australia’s annual dairy products competitions.
King Island Dairy is no stranger to success and at this competition it was awarded the Cryovac Australia Award and four gold and seven silver certificates.
Bonlac Foods at Spreyton also won a Cryovac Australia Award and took home one gold and three silver certificates.
Smithton’s Lacrum Cheese walked away with two silver certificates and Lactos from Burnie was awarded one gold and eight silver certificates.
The dairy competitions have been running for 18 years and more than 100 companies entered products into the 83 classes covering various milks, butters, cheese, yoghurts, powders, custards, dips, ice-creams and gelati.
More than 750 individual samples were judged and companies can cash in on their success by displaying their gold and silver medals on product packaging.
- The Advocate, 14 May 2003, page 23
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Tassie fish eggs go north
Simon Pitney, from Tasmanian-based Springfield Fisheries, has been quoted as saying the company was launched onto the export stage by a combination of luck and a pristine environment.
In 1999, Mr Pitney, Peter Boden and Chris Dockray bought Springfield and began exporting Atlantic Salmon and rainbow trout eggs when the northern hemisphere was out of season.
“Ever since the eggs were introduced from the U.K. to Tasmania in the 1860s our stocks have never had any viruses. Our hatcheries have been certified disease-free since 1975. In fact, we are the oldest disease-free hatchery in the world,” Mr Pitney said.
“We are able to supply sea farms and fresh water farms in the northern hemisphere with a constant supply of eggs so that fish are hatching all the time.”
Exports to Poland, Italy, the US and the UK now represent approximately half the company’s turnover. However, Mr Pitney expects that in two years, exports will account for 70 per cent of turnover.
- Global Supermarket, Autumn 2003, page 43
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Apples exported to Japan Media Release Bryan Green MHA, Minister for Primary Industries, Water and Environment, Monday 12 May 2003
Tasmania’s fifth consignment of Fuji apples for export to Japan were being prepared for shipment in Hobart early last month.
The Minister for Primary Industries, Water and Environment, Bryan Green, said the Japanese Ministry of Food, Agriculture and Fisheries quarantine representative, Kenji Furusawa, arrived in Tasmania to pre-clear the apples for export.
The apples arrived in Japanese supermarkets within two weeks of leaving Tasmania by refrigerated sea-freight.
“There will be approximately 10 large containers of apples going to Japan this season, carrying 13,000 cartons, from individually registered orchards in the south and from the Tamar region,” Mr Green said.
“Our success in sending apples to Japan is a result of the effort we put in to maintaining and preserving Tasmania’s relative disease-free status and it is essential that our work continues to protect not only our natural environment but also to safeguard our export trade opportunities.
“Our emphasis on biosecurity ensures the foundation for many of the state’s market access opportunities, including stonefruit to Taiwan, strawberries, tomatoes and capsicums to Japan, and cherries to the United States.”
Mr Furusawa was in the state for two weeks and inspected all consignments with Tasmanian Quarantine officers.
Mr Green said a special pest and disease program is applied pre-harvest to ensure that the fruit meets the Japanese import requirements. The apples are then packed according to Japanese specifications for the shipment.
The packaged fruit is road transported to the Hobart Ports Corporation Evans Street Cold Store in Hobart, where it is inspected, consolidated and containerised in an insect proof facility prior to shipment.
“Fujis have been our first success for apples into Japan and we are hopeful that this success will be followed by other varieties in the near future,” Mr Green said.
“There have been no quarantine problems with the fruit since the program began and we want to continue to take advantage of our market access opportunities and build on this achievement.”
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Incat’s military vessel a winner
An Incat vessel serving with the US Army in Iraq has won an international fast-ferry award. The Tasmanian-built theatre support vessel TSV-1X Spearhead won the Most Significant New Build Fast Ferry title at the Biennial Cruise and Ferry Event in London.
The award is given to the vessel judged to have made the most significant impact on the industry.
After a charter deal struck with the military, the Incat-Bollinger USA-owned craft sailed in November to the Persian Gulf where it has carried troops and more than 1500 pieces of military cargo. Incat, only out of receivership last month, has been building another 98m craft, HSV 2 Swift, for the US Navy.
Incat Chairman Robert Clifford said the US Army should be congratulated for having the foresight to support the high-speed vessel.
“In taking Spearhead to the fight, the US Army has taken the vision to the next step, not just studying and talking about the concept, but actually moving forward and doing it,” Mr Clifford said.
Speed, capacity, range, size and design were all potential vote-winners, he said.
- The Mercury, 20 May 2003, page 3
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Netcraft launches net strength tester
The ‘Net Breaking Strength Measurer’ designed for testing the quality and life of nets in use on the fish farms has been launched onto the market. more
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Australia’s most expensive pinot noir released in Tasmania
Australia’s most expensive pinot noir was released on Saturday 31 May in a ceremony fit for kings. Len Evans OBE, a leading wine commentator in Australia, and Tasmania’s Premier, Jim Bacon, were two of the guests at the release of 1000 bottles of Panorama Pinot Reserve 2001.
Panorama Vineyard, just 30 minutes south of Hobart, has meticulously developed, tested, tasted and produced award-winning pinot noirs for almost a decade and has now created one of the nation’s super premium pinots, not just on price, but taste and value for money. The Panorama Pinot Reserve 2001 has been extremely carefully handcrafted to make the finest quality fruit and wine and retails at $160 per bottle.
The release of the super-premium pinot reserve is the result of a dream, said Michael Vishaki, Panorama’s winemaker and owner.
“ For many years I have wanted to produce the ultimate world class pinot noir, and Tasmania is one of the best places in the world to do this,” he said.
This is recognised by Qantas First Class. Panorama was recently chosen to be served on Qantas First Class and joins three other Tasmanian wines noted for their premium qualities - Freycinet Vineyard, Wellington Wines and Pirie sparkling.
It seems Tasmania is quietly becoming a world-leading producer of premium cool-climate wines, with a firm emphasis on quality, rather than quantity. With four distinct seasons, clean air and water, freedom from many of the major pests and diseases, such as grape phylloxera, and its unique island status, Tasmania offers an unparalleled advantage for growing premium world-class wines.
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Russian mine favours MineCom system
Tasmanian communications company MineCom Australia and its Russian partner have received an order for stage two of the underground communications expansion for giant Russian miner Norilsk Nickel.
The project is value at more than A$900,000 and covers the supply of leaky feeder cable and in excess of 600 devices (amplifiers, branch units and termination boxes etc). The cable has been airfreighted to Russia, with the devices to follow.
The MineCom MCA1000 VHF underground leaky feeder system was selected by the Russian miner for stage one of the mine’s communications requirements in 2001,after the system was submitted and passed the stringent Russian Mines Department testing procedures to ensure that it was intrinsically safe.
MineCom is proud to have been selected over its competitors from around the world.
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PROFESSIONAL DEVELOPMENT AND EDUCATIONAL OPPORTUNITIES
Innovators in Australian agribusiness In-Market Scholarships
The New Industries Development Program is offering 15 In-Market Experience Scholarships of up to $30,000 each for small to medium-sized agribusiness enterprises to develop the skills needed to fully participate in alliances, build relationships with potential customers and gain experience in new areas of business and markets. Applications close 25 July 2003. Call 1300 884 588 or visit the New Industries Development Program at www.affa.gov.au/agribiz.
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Australian Wine Marketing Conference
The Australia Wine Export Council is holding its third Australian Wine Marketing Conference. This year is it being held at the Adelaide Conventional Centre from 28-29 July 2003. Following the conference, the University of South Australia’s Wine Marketing Research Group Workshops will be held on 30-31 July 30 2003.
For more information about this conference, visit the Australian Wine and Brandy Corporation.
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Export Practices Workshop
Following the success and benefit of the previous Export Practices Workshop, Economic Development’s Trade and Marketing Unit, in conjunction with the Australian Institute of Export, intends to conduct another two-day workshop and is currently seeking expressions of interest to participate.
The workshop is designed for staff involved in the various aspects of the export transaction. This may include marketing managers, production managers/supervisors and documentary/administration staff of small to medium-sized enterprises.
The workshop covers three major areas:
1. Export documentation - including information on incoterms, export logistics in regard to transport and packaging and documentation procedures.
2. International law - including international contracts, contracts of carriage, international payments and insurance.
3. Banking and finance - including documentary collections, bank products, currency risk management and fees and charges.
These topics are designed to provide an overview of the export transaction from negotiation through to payment, with an emphasis on documentary procedure and will be supplemented with practical exercises, discussion and case studies.
The workshop will be conducted using experts from interstate, arranged by the Australian Institute of Export. This leading institute, through the College of International Business, facilitates education programs and hands on training in export skills.
If you wish to register an expression of interest, please contact Debbie Marshall on 6233 5792 or email Debbie.Marshall@development.tas.gov.au. Further information can also be obtained from the Australian Institute of Export website.
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Women in Export
Austrade has been conducting a number of seminars throughout Australia addressing the issues of Women in Export. The seminars examine gender-specific issues confronted by women exporters in Asia through practical case studies and formulae for success. In particular, factors inherently linked with successful exporting, communication and market positioning are explored.
Economic Development’s Trade and Marketing Unit may help Austrade facilitate a Women in Export seminar in Tasmania if there is sufficient demand. To register your interest, please contact Lisa Denny on 6233 5902 or email lisa.denny@development.tas.gov.au.
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BRIEF NEWS AND OTHER OPPORTUNITIES
Rebuild Iraq
With the hostilities in Iraq now subsiding, the focus is on the rebuilding of the country’s infrastructure. Austrade, the federal agency for trade facilitation, held a series of informative seminars around Australia in May. There were two key messages from these seminars:
1. Any bidding for contracts will be very competitive and Australian companies should really only look for sub contracts.
2. Any company wanting to secure contracts must have a track record in the region. Having existing presence in the region is seen as a benefit.
If you are interested in finding out more about rebuild Iraq projects or the series of seminars, visit the Austrade web site. This link will also provide access to a registration form if you are interested in participating in any projects.
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Gourmet foods to Scandinavia Austrade Market Entry event
Austrade Scandinavia is organising an event offering export capable Australian gourmet food producers committed to entering the Scandinavian market the opportunity to showcase their products. A group of key Danish importers and buyers looking for new Australian products for retail in gourmet food outlets and inclusion in Christmas gift hampers will be invited to the showcase. The products must have a long shelf life at room temperature, be attractively packaged and preferably, but not necessarily, have an Australian uniqueness about them.
This is a particularly good opportunity for Tasmanian gourmet food and wine businesses given the current Danish focus on Tasmania.
The event will be held from the 19-21 August 2003 for three hours each day and participating companies will be required to provide samples of no more than five products, but will not be required to attend. There will be a cost associated with the event. Economic Development's Trade and Marketing unit may provide subsidisation to participants. Confirmation of interest is required by 18 June 2003.
For information, please contact Lisa Denny on 6233 5902 email lisa.denny@development.tas.gov.au.
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North American agricultural program
The Australian Trade Commission in Toronto, Canada and Los Angeles in the United States is inviting Australian suppliers to the agricultural industry to participate in a strategic initiative aimed at exploring opportunities in the North American market.
The program focuses on two of the largest industry trade shows in North America - the Canadian International Farm Equipment Show in Toronto, Canada (3-6 February 2004) and the World Ag Expo in Tulare, California (10-12 February 2004). Austrade will exhibit at both shows.
The product assortment covered by these shows includes everything that is needed on the farm from combines to crop protection, feeding systems to fencing, genetics to GPS and some of the newest agricultural innovations.
Austrade offers the advantage of a dual market initiative to new and existing Australian companies as an opportunity to be involved in market exposure in two markets simultaneously. This will then increase chances of achieving sales and thereby provide a greater potential return on investment for program participants who choose to participate in both the US and Canadian parts of the program.
Given the variety and size of these shows, Austrade can only accommodate a limited number of participants. The selection and qualification process will take place on a first come-first served basis. Companies are encouraged to lodge participation application early to avoid disappointment.
For further information, please contact Lisa Denny on 6233 5902 or email lisa.denny@development.tas.gov.au.
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Cargo Management Re-engineering (CMR)
The Australian Customs Service is introducing a change to its dealings with freight being exported and imported. The Cargo Management Re-engineering project is being introduced in stages in 2003 and 2004. Some of the changes include:
- a replacement of current systems with an integrated IT system
- new tools to ensure timely identification of high risk goods
- more flexibility for industry in their dealings with Customs via better communications processes
- the existing EXIT system will be replaced with Integrated Cargo System in November 2003.
For comprehensive information on the new Cargo Management Re-engineering project, visit the Customs website
The Australian Institute of Export is conducting a series of seminars around Australia titled Creating the Essential Link to Customs CMR Training for Industry. A session will be held in Hobart on 27 June 2003. For more details, email nswinstitute@aiex.com.au.
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Severe Acute Respiratory Syndrome (SARS)
In an effort to ease the effect of SARS on Australian exporters, Austrade is providing services to help companies continue to trade with impacted countries. Australian companies should review their business strategies to ensure that they take into account the possible economic impact that SARS may be having on their business interests. More information can be found on the Austrade website.
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Austrade pilot for exporters to the United Kingdom
Austrade, in co-operation with Paymate P/L and DHL Danzas, is seeking Australian companies currently exporting to the UK who are interested in participating in a pilot project exploring online payment solutions for Australian exporters. The project is running throughout this month.
The project is designed to provide an export e-commerce service trusted by both exporters and importers that can be secured simply and cost effectively over the internet without paperwork or time delays. Broadly, the functionality will provide pre and post-payment options for lower value transactions.
To register your interest, visit www.myexports.com.au, email Edwin.kuller@austrade.gov.au or visit www.austrade.gov.au/exportingonline and look for the Austrade-Paymate Project in the related items section.
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Selling through agents and distributors
An article in the April edition of International Trade Forum sheds some light on contracts involving intermediaries. more
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DPIWE Tasmanian food opportunities
The Department of Primary Industries, Water and the Environment provides industry snapshots that are useful links and information for the food industry. Information can be obtained from the department’s website.
Current export opportunities more
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Travel advisories
Department of Foreign Affairs and Trade travel advisories are the Australian Government’s advice to its citizens regarding the perceived travel risks and precautions that individuals should exercise. More information can be found on the Department of Foreign Affairs and Trade website.
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Manufacturing facility for sale or lease
Tasmanian Technopark more
If you have any Trade and Marketing queries please email at info@development.tas.gov.au or call 03 6233 5888
If you wish to subscribe to Export Active please send an email to info@development.tas.gov.au with the words "Export Active Newsletter Subscription" in the subject heading.
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