🇦🇺Australia

Trade Description Labelling Non-Compliance

1 verified sources

Definition

The Mechanism: Due to Commerce (Trade Descriptions) Act 1905, sporting goods like footballs must carry English labels of country of manufacture from BOM-sourced components. Missing labels from poor sourcing records lead to seizure.

Key Findings

  • Financial Impact: AUD 2,220-50,000 per non-compliant batch (ACCC penalties)
  • Frequency: Per customs clearance
  • Root Cause: BOM lacks country-of-origin tracking for components

Why This Matters

The Pitch: Sporting goods firms in Australia 🇦🇺 risk AUD 10,000+ fines for labelling failures. BOM-tracked origin data automates compliance.

Affected Stakeholders

Quality Assurance, Sourcing Manager

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

GST Assessment on Import Valuation Errors

10% GST penalty plus interest on undervalued imports (minimum AUD 222 per BAS error)

BOM Inaccuracy Delays

AUD 5,000-20,000 per production stoppage (rush freight + idle costs)

Customs Duty Misclassification

AUD 5% of import value per misclassified shipment

EDI-Sanktionsgebühren und Vertragsstrafen im Einzelhandel

LOGIC-based: Chargebacks and invoice short‑pays of typischerweise ~1–3 % des B2B-Umsatzes mit großen Einzelhändlern, z.B. AUD 20.000–60.000 p.a. für einen Hersteller mit ~AUD 2 Mio. Jahresumsatz über große Retail-Accounts; zusätzlich Risiko des Komplettverlusts eines Accounts (Umsatzverlust im sechsstelligen Bereich) bei wiederholter Nichteinhaltung.

Manueller EDI- und Bestellbearbeitungsaufwand

LOGIC-based: Zusätzlicher manueller Bearbeitungsaufwand von ca. 300–600 Stunden pro Jahr für PO- und EDI-Verarbeitung bei einem mittelgroßen Hersteller, entsprechend ~AUD 12.000–36.000 p.a. an vermeidbaren Personalkosten (angenommen AUD 40–60 pro Stunde).

Verzögerter Zahlungseingang durch fehlerhafte EDI-Rechnungen

LOGIC-based: Zusätzliche Finanzierungskosten durch verlängerte DSO von typischerweise 10–20 Tagen bei B2B-Retail-Kunden; bei AUD 1 Mio. durchschnittlichem Forderungsbestand und 6–8 % Kapitalkosten entspricht dies ca. AUD 1.600–4.400 p.a., plus Opportunitätskosten der gebundenen Liquidität.

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