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What’s New

EMDG Scheme Extended for Five Years
Australian Wood Packaging Certification Scheme for Exports
Food Shipments to the USA Now Require Prior Notice
Wine Export Opportunities Opening Up in India
New Guidelines Pertaining to Solid Wood Packaging Material Used in Exporting Products From Australia

EMDG Scheme Extended for Five Years

The Export Market Development Grants Scheme, known as the EMDG scheme administered by Austrade, helps small and medium-sized Australian enterprises start and develop sustainable export markets by reimbursing up to half their eligible promotional costs above a threshold amount.

At the end of January, 2006 the Federal Government announced the continuation of the scheme until the end of 2010/11.

The purpose of the scheme is to encourage small and medium-sized Australian businesses to develop export markets.  EMDG reimburses up to 50% of expenses incurred on eligible export promotion activities, less the first $15,000.

To access the scheme for the first time, businesses need to have spent $15,000 over two years on eligible export marketing expenses.  The scheme supports a wide range of industry sectors and products, including inbound tourism and the export of intellectual property and know-how outside Australia.

Check out the following links for more information and how to apply for an EMDG:

Australian Wood Packaging Certification Scheme for Exports

In recognition of the plant health risk associated with wood packaging, the International Plant Protection Convention (IPPC) has adopted a wood packaging standard:  International Standards for Phytosanitary Measures - Guidelines for Regulating Wood Packaging in International Trade (ISPM 15).

This Standard aims to significantly lessen the risk of unprocessed raw wood being used as a pathway for the introduction and spread of pests and diseases through international trade.  As a signatory to the IPPC, Australia is obliged to implement this Standard.

ISPM 15 applies to (coniferous softwood and non-coniferous hardwood) unprocessed raw wood packaging material.  The Standard does not apply to wood packaging made wholly of wood-based products such as plywood, particle board, oriented strand board, medium density fibreboard or products created using glue, heat and pressure or a combination of these.

To meet the requirements of ISPM 15 wood packaging material must undergo either heat treatment or fumigation with methyl bromide.  To verify that treatment has occurred and to provide traceability to the country of origin, an internationally-recognised certification mark must be applied to the treated wood packaging.  Importing countries may apply quarantine treatments or refuse to accept any commodity with wood packaging that does not carry the official mark.

Under ISPM 15, the National Plant Protection Organisation (NPPO) of the exporting country must develop a regulatory system that ensures all wood packaging material exported to countries that have implemented ISPM 15 meets the requirements of the Standard.

The Australian Quarantine Inspection Service (AQIS), in conjunction with the Joint Accreditation Systems-Australia New Zealand (JAS-ANZ), has developed the Australian Wood Packaging Certification Scheme (AWPCS) to meet this obligation.

What is the AWPCS and How Does it Work?

The AWPCS is a certification scheme that will ensure that Australian treatment providers and wood packaging manufacturers produce wood packaging material that meets the requirements of ISPM 15.

Under this scheme wood packaging manufacturers and treatment providers which meet the requirements of ISPM 15 will be authorised by AQIS to apply an internationally-recognised mark to wood packaging material produced for use in the export trade.  Participation in the scheme is not mandatory.  The AWPCS is one option that will be available to assist exporters in meeting the importing country's conditions of entry.

JAS-ANZ will accredit third party certification bodies, which will assess the company's applications, conduct initial site audits and carry out on-going verification audits.  Once a company has passed inspection, the certification body will advise AQIS which will assign the company a unique certification number.  The company will then be approved to apply the internationally-recognised mark to wood packaging material that has been treated by an approved method.

Please note JAS-ANZ is in the process of accrediting certification bodies and a list will be provided once AQIS has received confirmation of who these entities are.

For a detailed report, please click here.

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Food Shipments to the USA Now Require Prior Notice

In 2002 the US Congress passed the Bioterrorism Act as part of its ongoing effort to combat terrorism - in this instance by reducing the ability of international terrorists to carry out attacks in the US by contaminating imported foods.

The Act requires that, as of 12 December 2003, the Food and Drug Administration (FDA) in the USA must be notified in advance of any shipments of food for humans or animals into the USA unless the food is excluded from prior notice.

Who Must Submit Prior Notice

Any individual with knowledge of the required information can give prior notice - for example, producers, packers, exporters, brokers, importers and US agents.

When Must Prior Notice be Submitted

Prior notice must be received and confirmed electronically by the FDA no more than five days before arrival and no fewer than four hours for shipments by air and eight hours by sea.

What Types of Food Require Prior Notice

Examples "food" include:

  • dietary supplements and dietary ingredients;
  • infant formula;
  • beverages (including alcoholic beverages and bottled water);
  • fruits and vegetables;
  • fish and seafood;
  • dairy products and shell eggs;
  • raw agricultural commodities for use as food or components of food;
  • canned and frozen foods;
  • bakery goods, snack food and candy (including chewing gum);
  • live food animals;
  • animal feeds and pet food.

What Foods are Excluded from the Prior Notice Requirement

  • Food carried by or otherwise accompanying an individual arriving in the US for that individual's personal use.
  • Food that is exported without leaving the port of arrival until export.
  • Meat food products, poultry products and egg products that are subject to the US Department of Agriculture (USDA) Inspection Acts.
  • Food that was made by an individual in his/her personal residence and sent by that individual as a personal gift.

Note:  Samples are not exempt from Prior Notice.

If you fail to give prior notice, the product is subject to refusal.

Prior notice must be given electronically through the FDA Prior Notice System Interface at www.access.fda.gov.  The system is available 24 hours a day, seven days a week.

Facilities that manufacture, process, pack or hold goods for human and animal consumption that are subject to prior notice must register with the FDA.

There is no fee for registration with the FDA.  The form and further details are available on the FDA website at www.fda.gov.

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Wine Export Opportunities Opening Up in India

The Indian Government has issued a new policy which offers an opportunity for Australian wine producers to increase exports.

The policy (Policy Circular No. 4 of 14 May, 2003), issued by the Ministry of Commerce, announces a duty free import facility for the service sector (as per paragraph 3.8 of the Exim Policy) for units which have average foreign exchange earnings of 1 million or more rupees in the previous three years.

This allows hotels which have foreign exchange earnings of 1 million rupees or more to import wine and beverages (falling under HS Chapter 22) duty free up to a limit equal to 5% of their average foreign exchange earnings during the previous three licensing years.

In the case of other service sector units, they are allowed 10% of their average foreign exchange earnings in the previous three years.  The entitlement and the goods are non-transferable.  Applications from hotels are now being considered and processed.

Australia's Minister for Trade, Mark Vaile, led a business delegation in February, 2003 to India.  In his discussions with Cabinet members, Mr Vaile urged the Indian Government to continue to open its economy and explore ways of expanding its commercial relationship with Australia, including lowering India's tariffs on wine and other agricultural products.

The Australian Government sees the recent policy measure as a useful step in increasing the range of opportunities available to the business sectors of both countries.

Austrade India is focussing on the Indian wine sector and is currently working on a number of initiatives for Australian wines in the Indian market.

For further details contact Mahesh Krishnan, Australia, Mumbai phone (91 22) 2218 1071.

Source:  Department of Foreign Affairs and Trade, 30 June, 2003.

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New Guidelines Pertaining to Solid Wood Packaging Material Used in Exporting Products from Australia

Australian Quarantine and Inspection Services (AQIS) advises that, under a new arrangement coming into effect in the first half of 2004, pallets, wooden bins/crates and dunnage that are associated with produce leaving Australia must be treated and certified before leaving the country.

All such timbers must be treated against wood pests and there are only two approved treatments:

  • Heat treatment to attain a core temperature of 56 degrees for 30 minutes;
  • Fumigation with methyl bromide.

Apart from AQIS-certified produce, there are many other industries that will be affected - for example, aluminium, steel, confectionery, etc.

Under the new arrangement, each miller, wholesaler, manufacturer of wood packaging material will be accredited by Agriculture, Fisheries, Forestry - Australia/AQIS to have a stamp applied to all timbers.

Please contact Brian Tucker on phone 6272 5792 or email brian.tucker@aqis.gov.au for further information.

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