Unfair Gaps🇦🇺 Australia

Paint, Coating, and Adhesive Manufacturing Business Guide

8Documented Cases
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All 8 Documented Cases

Prohibited Item Shipment Losses & Customer Cancellations

Per incident: AUD $500-$2,000+ (item value + destruction fee + refund + re-shipping cost); Industry estimate: 5-10% of export order value lost annually to confiscation = AUD $100,000-$300,000+ per manufacturer annually (mid-sized firm)

Australia Post Prohibited Items List (May 2024) explicitly bans: aerosol deodorants, paint thinner, compressed gas cylinders, fuel, certain adhesives. Items shipped despite prohibition face confiscation (AUD $500+ destruction fee) and customer refund liability. Manufacturers must refund customer + cover destruction fees, losing 100% order margin + fees.

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Hazardous Goods Mislabelling & Documentation Non-Compliance

Felony charges (indeterminate); Typical confiscation losses: AUD $500-$5,000+ per non-compliant shipment; Manual compliance labour: 15-25 hours/shipment × AUD $80-120/hour = AUD $1,200-$3,000 per shipment

Adhesives and paint thinners are classified as Class 3 (Flammable Liquids) and Class 6 (Toxic & Infectious Substances) under Australian Dangerous Goods Code. Each shipment requires: UN classification, placard selection, transport documents, CASA approval, and leak-proof double-boxing. Manual processes create classification errors, mislabelled containers, and incomplete documentation. Enforcement is severe: unmarked hazmat shipping is a felony offense in most Australian jurisdictions.

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Excessive Quarantine, Inspection & Rework Costs Due to Non-Compliance

Destruction fees: AUD $150-$500 per shipment; Delayed inventory cost: AUD $2,000-$8,000+ per 2-4 week hold (lost sales, carrying costs); Manual re-inspection/rework: AUD $500-$1,500 per incident

Australian Customs clearance timelines: Standard 2-5 business days; Delayed for inspection 7-14 business days; Quarantine treatment 2-4 weeks. Non-compliant items are destroyed with owner liability of AUD $150-500+. Adhesives, paints, and solvents trigger automatic physical inspection, extending clearance by 2-3 weeks. Manual cleaning checklists and documentation create errors.

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Manual Hazmat Documentation Bottleneck & Order-to-Ship Delays

Manual labour cost: 150-250 hours/month × AUD $80-120/hour = AUD $12,000-$30,000/month per facility; Opportunity cost (lost sales): 20-30% capacity gain unmet = AUD $50,000-$150,000+ in foregone revenue monthly

Adhesive/coating shipments to Australia require: UN/DOT class identification, CASA Dangerous Goods declaration, hazard label selection, transport documentation, Australia Post/ABF pre-notification, and double-packaging verification. Manual process requires compliance specialist to: research classification, cross-reference prohibited items lists, draft documents, obtain approvals. Typical time: 15-25 hours/shipment. For 10+ shipments/month, this becomes 150-250 hours/month = 1 FTE blocked.

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