Exporting Your Products

A guide for export growth from Bhutan to Australia

We all know that selling your products locally is a daunting task by itself. If you are thinking about exporting then you have to throw in the need to navigate the bureaucracies of foreign countries, the task can seem even more challenging. To make this process easier, we have developed Expanding Horizons which is a comprehensive set of resources for those new to exporting. We invite you to explore the website and linked resources below.

Exporter Checklists

01/ Product Selection

The first step to exporting to Australia is having a product to sell. Before putting yourself through the monumental but potentially rewarding journey (both in terms of time and money) of exporting to Australia, check to see if your product has a market in Australia. 

Food Demand Trends

This page on the Department of Agriculture, Fisheries, and Forestry’s website visualises food trends in Australia. Study to see if your produce has demand in the Australian market.

02/ Research and Compliance

Before you begin exporting to Australia, you need to have a valid trade licence and be registered with the proper authorities in Bhutan. For food products, the relevant agencies are listed below: 

G2C – Citizen Services

Before being allowed to export to Australia, you must have a valid trade license in Bhutan. If you don’t have one already, use this link to apply for a license. 

BFDA – Food Certification

In order to export food products to Australia, your produce and production process must be certified by BFDA in Bhutan. Learn about this certification process by going to this page. 

03/ Registration and Approval

Before you begin exporting to Australia, you need to have a valid trade licence and be registered with the proper authorities in Bhutan. For food products, the relevant agencies are listed below: 

G2C – Citizen Services

Before being allowed to export to Australia, you must have a valid trade license in Bhutan. If you don’t have one already, use this link to apply for a license. 

BFDA – Food Certification

In order to export food products to Australia, your produce and production process must be certified by BFDA in Bhutan. Learn about this certification process by going to this page. 

04/ Australian Import Regulations

Exporters will need to do research into the current Australian import standards and gain a good understanding of all relevant import regulations. It is essential for exporters to study the Food Standards Code and regulations set by the Australian Department of Agriculture, Fisheries and Forestry (DAFF), visit –  DAFF (agriculture.gov.au) for more information.

Austrade

Austrade is the Australian Trade and Investment Commission, a government agency with the mandate to facilitate Australia’s trade with the world. It provides programs, insights and advice to help exporters (in this case, it is Australian exporters), investors, the education sector and tourism.

Australian Border Force – Customs Brokers

Australia requires that all imports into Australia are assessed and may have to pay a customs duty. This fee must be paid by the importer in person or a registered customs broker. Due to the complexity of laws in customs, most businesses choose to employ a customs broker. The Australian Border Force page  has a list of registered brokers for you to choose from. 

DAFF – Food Demand Trends

This page on the DAFF’s website visualises food trends in Australia, review this page to see if your produce may find some demand in the Australian market.

Business.Gov.Au

Business.Gov.Au is a Government site that compiles information, grants, services and support from across the Australian government to help businesses succeed. The linked page has information you will need to export your products to Australia.

05/ Packaging and Labelling

Packaging and Labelling is not just about coming up with a creative branding that appeals to customers, it is also about ensuring that your labels pass relevant guidelines from the destination country market’s authorities. Labels should indicate all necessary information in the English language and must meet all the set criteria. 

Australian Border Force (ABF)

This page on the ABF website provides information on the labelling requirements for imported goods. Bhutanese producers exporting to Australia must ensure that their products comply with all applicable labelling requirements, including those for food products, country of origin labelling, and trade descriptions.

Remember these

  • Foods must be labelled with an accurate name or description that indicates the true nature of the food, for example ’Strawberry Yoghurt’ should contain strawberries. If it were to contain strawberry flavouring rather than real strawberries, the label should indicate that it is strawberry flavoured yoghurt.
  • Suppliers must label food products with accurate weights and measure information (the quantity of food contained in a package). Weights and measures declarations are regulated by the Australian National Measurement Institute.
  • The Food Standards Code requires that labels must be legible and prominent so they are distinct from the background, and in English. The size of the type in any warning statements must be at least 3 mm high, except on small packages where the size of the type must be at least 1.5 mm high.

Trade Description is a description or statement about how or by whom the goods being imported were made or prepared. The trade description has to be in English and should be prominent and visible, it should include the country of origin, and a “true description” of what the goods are. The description must be prominently visible and should be as permanently fixed as possible.

If your product is  a food, it must meet the standards set by the Food Standards Code for Australia and New Zealand.

  • FSANZ – This page on the Food Standards Australia New Zealand (FSANZ) website provides comprehensive information on food labelling requirements in Australia and New Zealand. Bhutanese producers exporting food products to Australia must ensure that their products comply with all applicable food labelling requirements, including those for nutrition information, allergens, and health claims.
    • Allergen labelling​ – Some foods can cause allergic reactions in some people. Australia has a list of foods that must be declared even if it is only contained in small quantities. These foods must be listed in bold font on the label.
    • Country of origin labelling – The name of the country your product is coming from (i.e., Bhutan) should be displayed on the label. If your product is a food, then the label must also include the name and contact details of your supplier in Australia. This is to ensure that Australian consumers can directly contact someone in Australia regarding your product in the event of an issue with the product.
    • Ingredients list and percentage labelling – The guideline on the ingredients list in Australian guidelines is straightforward.
      • You must list all the ingredients that went into the production of your export. The list must go from the most used ingredient to the least (by weight – so, if you used 1kg of rice and 0.8kg of wheat, the list must show Rice – 1kg, Wheat – 800g, etc)
      • If your product uses an ingredient that is made up of other ingredients (for example, you are exporting Jangbuli, which is made from flour, egg, and water), then you must declare the sub-ingredients as well, unless the sub-ingredient forms less than 5% of the sub-product (in this case, the Jangbuli). 
      • To make it easier for consumers to compare products, all products that claim to be of a special ingredient must list what % the ingredient is. For example, if you are selling Strawberry Yoghourt, it must state what % of the product’s final weight is from Strawberries (so the label might read, “9% strawberry.”)
    • Nutrition, health and related claims – You can only make health-related claims about your product based on the guidelines set by the Australian Government. The most relevant one is the Standard 1.2.7, found here. You can either make a general-level health claim that is already accepted by the Standard or you can make a unique claim specifically about your product. If you are making the second type of claim (called a “self-substantiating” claim), you must get it approved by the FSANZ before putting it on your label. 
    • Pregnancy warning labels – All packaged alcoholic beverages with more than 1.15% alcohol by volume for retail sale in Australia and New Zealand must have a pregnancy warning label.
    • Warning and advisory statements – A food must have a warning statement when people may be unaware of a severe health risk posed by a food or an ingredient. For example, food containing the product royal jelly from bees is required to have a warning statement, which states that: This product contains royal jelly which has been reported to cause severe allergic reactions and, in rare cases, fatalities, especially in asthma and allergy sufferers. You can find the full list of which foods need these statements and what the statements should be on here.
    • Country of Origin Labelling – This page on the Australian government’s Business.gov.au website provides resources on country of origin labelling for food products. Bhutanese producers exporting food products to Australia must ensure that their products are labelled with the correct country of origin.

06/ Customs/GST

GST

It is important to remember that Australia implements Goods and Services Tax (GST). GST is calculated as 10% of the total value of your products. This value is calculated by adding:

  • the customs value of the imported goods themselves. 
  • the cost of transporting your goods from Bhutan to Australia
  • the cost of insurance for transporting your goods. 
  • customs duty
  • a wine tax, in some cases. 

Notice that there is a “customs duty” under the GST value calculation. This is because GST is not the same as a customs duty. So, when exporting your products, be aware there is another source of expenses. It’s important to know about GST and prepare financially to avoid feeling like this was a hidden cost. If the shipment is of a high value then the GST on it could be a big expense too. GST is added to the customer invoice so this will be reclaimed by the importer in due course but will require careful cashflow management.  

Customs

The amount of customs duty payable on imports to Australia will vary depending on several factors, including the type of goods being imported, the country of origin, and the value of the finished goods.

The rates of customs duty can vary widely depending on the type of goods being imported, with some goods attracting higher rates of duty than others.

Generally, most general cargo attracts a standard rate of 5% import duty on Free on Board (FOB) value.

It is recommended that you consider working with a licensed customs broker or a freight forwarder to handle the export customs clearance process. It is important to ensure that all required documents are submitted (i.e. import declaration) to the relevant authorities for a smooth clearance.

Customs Brokers

This page on the ABF website provides information about customs brokers. Customs brokers are licensed professionals who can assist importers and exporters with the customs clearance process. Bhutanese producers exporting to Australia may want to consider working with a customs broker to ensure that their shipments are cleared through customs smoothly and efficiently.

List of Customs Brokers

This page on the ABF website provides a list of registered customs brokers in Australia. Bhutanese producers exporting to Australia can use this list to find a customs broker in their area.

07/ Shipment

Shipping your products from Bhutan will be a large part of the process – both in terms of the work required and expenses. Freight shipping has a high overhead, meaning that the cost of shipping 100kgs of products would be the same as shipping 300kgs. To keep the per unit (per kg) cost of shipping down, you may want to send larger shipments. 

The problem with that is it will take you a long time to prepare the shipment and a long time for your suppliers in Australia to sell the shipment, which can delay your payment. For Bhutan Blossoms, the first shipment took 3 months to prepare and months to deliver to Australia. 

Tristan Harris, CEO of Harris Farms, recommends a workaround for this. He says Bhutanese producers should consider pooling their exports together, which would cut down the need for individual large shipments, as many suppliers can contribute to a single shipment and share the overhead costs. 

It is also recommended that you choose a reliable freight company with prior experience in shipping to Australia. For example Tamu Worldwide Shipping was involved in the shipment of the Bhutan Blossoms products to Australia. 

Tamu Shipping

This is the website of Tamu Worldwide Shipping, a freight company that specializes in shipping goods to Australia. Bhutanese producers exporting to Australia may want to consider using Tamu Worldwide Shipping to ship their products.

08/ Insurance

Your export project and investments will likely be a significant upfront expense on your part. And until your supplier receives and starts selling it, the export is a liability for your business. It is recommended that you negotiate the most favourable payment terms and also purchase insurance on the export – to make sure your investments are protected in the event of a mishap. 

RICBL

This is the website of the Royal Insurance Corporation of Bhutan (RICBL). RICBL offers marine cargo insurance, which can protect Bhutanese producers from financial losses in the event that their shipments are damaged or lost during transit to Australia.

09/ Food Safety and Inspection

Exporters must undergo food safety checks and quality control during production, packaging and storage. Food safety is a crucial aspect of Australian imports that must be carefully studied and observed by exporters. All imports must comply with the Food Standards Code

10/ Sanitary and Phytosanitary

Sanitary and Phytosanitary (SPS) measures are quarantine and biosecurity measures which are applied to protect human, animal or plant life or health from risks arising from the introduction, establishment and spread of pests and diseases and from risks arising from additives, toxins and contaminants in food and feed. All WTO Members are required to uphold the principles and obligations of the SPS agreement.

Sanitary and Phytosanitary Measures (SPS) – DAFF

This page on the Australian government’s Department of Agriculture, Fisheries and Forestry website provides information on SPS measures. SPS measures are quarantine and biosecurity measures that are applied to protect human, animal, or plant life or health from risks arising from the introduction, establishment, and spread of pests and diseases. Bhutanese producers exporting food products to Australia must ensure that their products comply with all applicable SPS measures.

11/ Export Documentation

Exporters must prepare all necessary documentation before executing an export to Australia. It is important to familiarise yourself with the required declarations and exemptions ahead of time (i.e N10, N20, SAC etc.).

Import Declarations

This page on the ABF website provides information on import declarations. Bhutanese producers exporting to Australia must complete an import declaration for each shipment. The import declaration provides the ABF with information about the shipment, such as the type of goods, the value of the goods, and the country of origin.

12/ Refund

Exporters are entitled to a customs duty refund upon specific conditions. This information can be accessed through the ABF website.

13/ Exchange Rates

Information on the exchange rates for import costs can be found on the ABF website.

14/ Import Processing Charges

Import processing charges (IPC) will be incurred when you make a declaration for imported goods. For more information on IPC visit the ABF website.

The organisations below provide you essential information to assist you in planning for exporting, please review to gain more insights and contacts.