To be eligible for the Export Partnership Program export goods or services must be:
- Produced in South Australia; or
- If they are not made in South Australia, you must show how South Australia would derive a significant net benefit from the sale of the goods outside Australia.
If your goods are not made in South Australia and you want to apply for the Export Partnership Program, you need to check their eligibility:
- Check the eligibility of the goods under the ‘made in South Australia’ definitions as set out in Section 1 below. If the goods fall under the listed criteria, no further information about the goods is required.
- If the goods do not fall under the criteria for 'made in South Australia', check if they are likely to be eligible for Export Partnership Program purposes under the listed criteria in Section 2. If you believe they do meet these criteria, you must provide a submission explaining how they do so, in your application.
Section 1 - What goods are 'made in South Australia' for the Export Partnership Program purposes?
Goods are considered 'made in South Australia' if your company's manufacturing process:
- results in the manufacture of a new product; or
- substantially transforms the nature of the materials or components; or
- represents an important stage of manufacture of a product created from an imported component.
In addition, goods are considered 'made in South Australia' provided that your process or operation is:
- not designed to circumvent the correct origin of the product; or
- not simply grading, packing or sorting of imported components.
If your goods or services meet these criteria you may indicate on your application that they are 'made in South Australia'.
Section 2 - What if my goods are 'not made in South Australia'?
If your goods or services do not meet the requirements as 'made in South Australia' they are only eligible for the Export Partnership Program if it can be shown that South Australia would derive a significant net benefit from the sale of those goods outside Australia. To determine this, the Department of State Development will take into account whether:
- the business assets used in making the goods ready for sale (other than assets used in manufacture) are primarily or substantially based in South Australia; and
- the activities (other than manufacture) that result in the goods being made ready for sale are primarily or substantially conducted in South Australia; and
- a significant proportion of the value of the goods is added within South Australia; and
- any sale of the goods generates, or would generate, substantial economic benefits for Australia, including employment.
If your goods are not made in South Australia, you must prepare a detailed submission addressing the above criteria and providing factual information about your goods and your business, as part of your Export Partnership Program application.
However, before preparing your submission, please consider the information below.
Goods not made in South Australia - Submission
The Department of State Development assesses all submissions concerning goods not made in South Australia on the individual circumstances, based on the information submitted and the relevant guidelines. Successful applicants can show some substance to their business operations and that they are promoting goods that are developed in South Australia.
A successful submission will:
- provide a list of the relevant business assets used in making the goods, including intellectual property, and can make available information to confirm the value of these assets
- explain where the relevant business activities – such as design, research and development, sourcing components, design and manufacture of machinery to make the goods, marketing, administration, etc - take place, and can confirm this information with financial statements
- detail the staffing profile of your business, including the number and roles of staff
- cost the South Australian value-added component of any sales of the goods or services, and can confirm with financial statements
- can show how sales lead or would lead to economic benefits for South Australia, such as creation of higher-value jobs; income creation; introduction of new technologies and value-added operations; increased productivity, profits and/or business competitiveness; or increased South Australian brand value.
Your submission is not likely to succeed if it displays an overall lack of substance, relates to goods developed outside South Australia, relies largely on planned activities rather than things achieved to date, provides few or no dollar values, and/or suggests that any benefits to South Australia claimed would be minimal.
Unsuccessful applicants often:
- have few business assets based in South Australia, their brands have no significant commercial value, and/or they are unable to confirm the value of these assets
- do not show that significant activities – such as product development – are or have been primarily or substantially conducted in South Australia, and/or cannot place a realistic dollar figure on the South Australia-based activities
- are not adding significant value (e.g. margin) on any sales achieved, and/or cannot show through financial statements how much value they are adding
- cannot provide evidence of economic benefits for South Australia, such as payments made to South Australian employees or contractors.
To meet the submission requirements outlined above, you will need to provide details about each of the following in your Export Partnership Program application.
- Description of the goods not made in South Australia
- Explanation of the production process
Explain where the different parts of the goods are made, the origin of the components, where the goods were designed and where the production process occurs.
- South Australian base of business assets
Where are the business assets (other than assets used in physical manufacture) that are used in making the goods ready for sale? Are these business assets primarily or substantially based in South Australia, and what is their estimated dollar value? Who owns any intellectual property, patents, copyright relating to the goods? List which assets are used and how the assets are used to make the goods ready for sale, including specific details.
- Australian base of business activities
Where are the activities based (other than physical manufacture) which result in making the goods ready for sale? Are these activities – including research and development logistics etc – primarily or substantially based in South Australia? Please provide specific details including a staffing profile.
- Value added
What proportion of the value of the goods is added within South Australia, i.e. how much of the final sales price of the goods is attributable to South Australian inputs such as components, research and development, and intellectual property? Please provide specific details and a costing report for each product made overseas.
- Employment impact
Does or would the sale of the goods generate employment in South Australia? Please provide specific details.
- Substantial economic benefits
Does or would the sale of the goods generate economic benefits for South Australia?