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All about EMDG


What you need to know about
Export Market Development Grants (EMDG)
What is EMDG:
The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, 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.
The EMDG scheme:
Encourages small and medium sized Australian businesses to develop export markets
Reimburses up to 50% of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000
Provides up to eight (8) grants to each eligible applicant.

Export Market Development Grants (EMDG) applications for the 2013-14 grant year, not lodged through EMDG Consultants approved under the EMDG Consultant Quality Incentive Program, must be lodged from 1 July 2014 to mid-night (Australian Eastern Daylight Time (AEDT) i.e. Canberra time) Monday 1 December 2014.
Applications through EMDG Consultants approved under the EMDG Consultant Quality Incentive Program can be lodged from 1 July 2014 to mid-night (Australian Eastern Daylight Time (AEDT) i.e. Canberra time) 3 March 2015.

Who can apply:
Any Australian individual, partnership, company, association, co-operative, statutory corporation or trust that has carried on export promotion activities during the year for which they wish to apply for an export grant.

To be eligible, the business must have:
income of not more than $50 million in the grant year
incurred at least $15,000 of eligible export expenses under the scheme (first-time applicants can combine two years expenses)

principal status for the export business (some exceptions apply, e.g. non-profit export focused industry bodies)

The business also must have promoted one of the following:
the export of goods and most services
inbound tourism
the export of intellectual property and know-how
conferences and events held in Australia
Under Austrade’ s Export Market Development Grants (EMDG) scheme, certain organizations and groups, who would not otherwise be eligible to apply for a grant under the general provisions of the EMDG Act can obtain approved status to enable them to apply for a grant in their own right. The two categories of approved status available include approval as an Approved Body and Joint Venture.

Grants entry
First-time applicants are required to satisfy grant entry requirements, which include providing financial statements and some information that explains your business and your product or service.



What is an eligible product:
To qualify for an EMDG grant, your business must have:
promoted your product for export
And your product must be one of the following:
a good made in Australia
a good made outside Australia where Australia will derive a significant net benefit from its sale overseas
all services except those specified as ineligible in the EMDG Regulations
a tourism service (including accommodation, passenger transport or tours)
a conference or event held in Australia
an intellectual property right that mainly resulted from work done in Australia
a trademark that was owned, assigned or first used in Australia
know-how that mainly resulted from work done in Australia

What can you claim:
Nine categories of promotional activities can be claimed
You may claim for expenditure on specific export promotional activities undertaken during the financial year before the application period. For your first grant you may claim expenses incurred over the last two financial years.

1. Overseas representatives
You can claim:
all reasonable costs that you pay to have an overseas representative act on your behalf on a long-term basis to market/promote your product
The portion of the fee or expense paid to your overseas representative that relates to promotion of your Australian products. You cannot claim the costs of non-promotional activities your representative carries out for you such as supplying after-sales service, post-contractual training, sourcing of products, arranging clearance, warehousing or collection of goods, importing or promoting products from other countries
A maximum of $200,000 per application is claimable under this category. However you should include all eligible expenses that you wish to claim in your application to ensure your grant is maximized
Note: Austrade conducts detailed checks on overseas representative claims and may contact your representative by phone or in person as part of these checks. If you are claiming expenses for overseas representatives, you may be asked to provide additional supporting documentation with your application form.

2. Marketing consultants
You can claim:
the cost of engaging an arm’s length consultant to undertake export market research or marketing activities
a maximum of $50,000 per application is claimable under this category. However you should include all eligible expenses that you wish to claim in your application to ensure your grant is maximized.


3. Marketing visits
You can claim:
the cost of travel during the marketing visit eg airfares, taxi fares, departure taxes, etc (only 65 per cent of first class airfares may be claimed)
an allowance of $300 per day is claimable for overseas marketing visits to help defray accommodation, entertainment and living expenses

4. Communications
You can claim:
the costs of communications to promote your product e.g. fax, emails, phone
Note: if you do not claim your actual communication expenses, you will receive an automatic 3 per cent addition to your grant

5. Free samples
You can claim:
the cost of providing free samples of the product you are promoting for export

6. Trade fairs, seminars, in-store promotions
You can claim:
the cost of participating in an international trade fair, seminar, in-store promotion, international forum, private exhibition, or similar activity
the money it costs to participate, e.g. entry fees, stand rental charges and the cost to freight your promotional materials to the trade fair

7. Promotional literature & advertising
You can claim:
external costs of promotional material, such as brochures, videos, DVDs, advertising and website development

8. Overseas buyers
You can claim:
the cost of bringing potential buyers who are non-residents to Australia for an approved export promotion purpose
up to a maximum of $7,500 per buyer per visit
up to a maximum of $45,000 per application

9. Registration and/or insurance of eligible intellectual property
You may claim:
a cap of $50,000 cap per application
payments made to third parties, e.g. patent and trademark attorneys, for the grant, registration or extension of the period of registration of intellectual property for countries other than Australia or New Zealand
The cost of insurance premiums paid for protection against possible infringement, in countries outside Australia, of eligible intellectual property.
To be able to claim EMDG for any of the above activities:
you must have spent the funds to seek out, create demand for or develop an export market for your product
you must be the intended principal in export transactions (exemptions apply for manufacturers, Approved Trading House or Approved Body applicants, events promoters, suppliers to inbound tour operators or in situations where a company closely related to the applicant owns the product intended for export)
the expense must have been paid by you during the financial year (i.e., it must be taken up as an expense in your books of account, not just in consolidated accounts or in the accounts of a related entity)
the item paid for must have been provided to you
You must have evidence of the expense and of what it was incurred for (i.e., invoices, bank statements etc.)
if you are claiming expenses under the overseas representatives or marketing consultants categories, you must have documentary evidence that shows the role and function of the representative or consultant
if you are claiming expenses under the marketing visits category you must have trip reports, boarding passes, diary notes and/or other evidence which substantiate the details of the trip


Ineligible expenses
As EMDG is designed to assist export promotion, it does not support expenses arising from production or from product development, distribution or certification.
Also, you cannot claim expenses that:
are not substantiated
were incurred by a related business entity
relate to business with the Democratic Peoples Republic of Korea (DPRK) (North Korea), Iran and New Zealand
are not promotional
were incurred by you when you were not a resident of Australia
relate to after-sales activities
have or will be subject to reimbursement by a third party (other than EMDG)
relate to an illegal or unlawful activity
are a commission or discount
are in payment of an Australian tax, levy or charge (except Australian departure tax)
relate to any form of pornographic material with a classification equivalent to the X-rating for films
are cash payments exceeding $10,000 per application


Ineligible Exports
You cannot claim export earnings from Democratic Peoples Republic of Korea (DPRK), Iran and New Zealand.