Export Market Development Grants Act 1997 Determination (1/1997 ATH) Guidelines for the approval, variation of approval, and cancellation of approved trading houses (Cth)
EXPORT MARKET DEVELOPMENT GRANTS ACT 1997
Determination
(1/1997 ATH)
Guidelines for the approval, variation of approval, and cancellation of
approved trading houses
I, Tim Fischer, Minister for Trade, pursuant to paragraph 101(1)(c) of the Export Market Development Grants Act 1997 (the Act), determine the following guidelines.
OBJECTIVE
The trading house provisions under the Act are designed to encourage large organisations to pursue specific activities, projects or purposes for the export of products of those small to medium sized Australian businesses, which, whilst having a competitive product, may not have the resources and know-how to export successfully and where those activities, projects or purposes can bring significant net benefit to Australia.
CRITERIA
1. In deciding whether to grant approval to a person as a trading house, Austrade will consider whether the applicant meets the objective by reference to the assessment requirements.
Without limiting clause 1, the objective will be met where Austrade is satisfied that:
a)The applicant has the necessary resources and commitment to assist small to medium sized Australian businesses to gain entry to export markets that would otherwise be unattainable to them;
b)The applicant has a record of business achievements;
c)The applicant has financial strength;
d)The applicant’s activity, project or purpose proposed on behalf of the small to medium sized Australian businesses is new;
e)The applicant’s activity, project or purpose proposed on behalf of the small to medium sized Australian businesses is financially feasible;
f)The applicant’s activity, project or purpose proposed on behalf of the small to medium sized Australian businesses is planned;
g)The applicant has a genuine commitment to achieving the promotion of exports for the small to medium sized Australian businesses it represents;
h)The activity, project or purpose proposed can bring significant net benefit to Australia.
ASSESSMENT REQUIREMENTS
In assessing whether the criteria have been satisfied, Austrade will give weight to the following considerations:
a)The necessary resources and commitment of the applicant will be assessed having regard to;
· the size of the applicant’s business operations,
· the size of the applicant’s established overseas network,
· the applicant’s annual income in general would be expected to exceed $50 million,
· the skills and abilities of the applicant’s key personnel,
· the applicant’s experience and track record in international business,
· the applicant’s experience and track record in the development of successful new exports,
· the applicant’s experience and track record in the sourcing of new Australian products,
· the applicant’s corporate structure and how the corporate structure will assist small to medium sized Australian businesses to develop export markets (including details of parent, subsidiaries and associates, Australian and overseas).
b)The record of business achievements of the applicant will be assessed having regard to;
· the number of years in operation,
· the applicant’s annual export earnings in general would be expected to exceed $25 million,
· existing levels of export promotional expenditure,
· the types of export promotional activities already being conducted,
· existing export markets,
· existing products.
c)The financial strength of the applicant will be assessed having regard to;
· the applicant’s balance sheet and profit and loss statements for the past three years,
· cash flow projections for the applicant for the next three years.
d)The applicant’s activity, project or purpose will be considered new where the applicant has not previously pursued the export of products of those small to medium sized Australian businesses into the target markets.
e)The financial feasibility of the applicant’s activity, project or purpose will be assessed having regard to;
· the arrangements for funding the proposed activities for the small to medium sized businesses,
· the consequences for the small to medium sized businesses if the activity, project or purpose fails,
· financial projections for the activity, project or purpose for the next three years.
f)The planning of the activity, project or purpose will be assessed having regard to;
· whether market research has been conducted for each of the small to medium businesses on whose behalf the applicant proposes to act,
· the specific promotional activities to be undertaken for each of the small to medium sized businesses,
· a list of objectives and milestones to be achieved and a timetable for their achievement.
g)The genuine commitment of the applicant to achieve the promotion of exports for the small to medium sized Australian businesses it represents will be assessed having regard to;
· the names/details of the potential small to medium sized businesses for whom the applicant proposes to act,
· the contracts/agreements between the applicant and the small to medium sized businesses,
· the specific products the applicant will promote on behalf of each of the potential small to medium sized businesses and the target markets,
· details of sales turnover and previous export earnings achieved by the potential small to medium sized businesses over the past two years.
h)The ability of the activity, project or purpose to bring significant net benefit to Australia will be assessed having regard to whether the activity, project or purpose may result in;
· the expected value of additional exports to be generated for each of the proposed small to medium sized businesses for which the applicant proposes to act,
· increased employment opportunities in Australia,
· increased capital investment in Australia,
· any other additional benefits to Australia.
EXCEPTIONS
Approval will generally not be granted in the following cases:
Where the applicant is unable to show that it is working on behalf of specific clients.
Where the application is in support of the traditional business of the trading house.
Where the application is in support of businesses which have an annual income in excess of $50 million or export earnings in excess of $25 million.
VARIATION OF APPROVAL
In deciding whether or not to vary an approval Austrade shall consider the proposed variation against the guidelines as in force on the day on which the approval took effect and Austrade shall not vary the approval unless it is satisfied that it could do so if the approval as proposed to be varied were an application under section 88 of the Act.
CANCELLATION OF APPROVAL
1. Austrade shall cancel an approval where it is not possible to vary the approval to meet the guidelines for the approval of a person as a trading house as in force on the day on which the approval took effect.
2. Austrade shall cancel an approval where there has been a failure to comply with the conditions to which the approval is subject.
3. Austrade shall cancel an approval where the activity, project or purpose for which the person is approved ceases to be the activity, project or purpose of the person and where the approval is not correspondingly varied by Austrade.
Signed: ____________________________
Tim Fischer, Minister for Trade
Dated: 1/7/97
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