Legal Aspects of International Trade and Enterprise in Australia

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Legal aspect of International trade and Enterprise

Executive summary
This report considers the fact that helps in understanding the legal aspect of international trade
and the enterprise in the Australian business market. This report considers the legal framework
that is required by the company to do the export and import transactions in Australia. The
company to work in the international market requires to comply with the laws that are specified
by the government of the country. The frequent legal requirement that the company needs to
follow is specified in this report that helps to achieve the objective of maximising the legal
compliance by the company. The report describes the different ways which help to ensure the
contractual obligation that the company has to enter or the treaty that the company has to sign
with the government so as to achieve the objective of maximising the compliance status.

Contents
The legal aspect of International trade and Enterprise....................................................................1
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................5
1. Identification of the multinational company operating in Australia........................................5
2. Identification of the legislative and the regulatory framework...............................................6
3. Identification of treaties, conventions or the agreement that impacts the products or the
services in Australia.....................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
The typical transaction of trade starts with the contract that takes place in the sale of goods act.
This is seen that the government of the country describes various rules and regulations that help
the business organisation to trade in the country and to invest in the company. Australia has
strong trade ties with global content in the world. Hence the location in which the continent lies
helps in joining the rest part of the world accordingly. The government of Australia has
formulated various policies and the trade-related rules that help different companies to achieve
the objective of trading in the continent (Deresky, 2017). The government of the company has
made various legislations that helps to promote trade in the organisation and with the help of
which different companies can enter into the continent. The United parcel service is a world
leader in the logistics industry. The company is based in the United States and has different
subsidiaries worldwide. The UPS Australis is considered as one of the leading service giver
company in Australia which relates to the logistics industry. The world headquarters of the
company is based on the USA. This report contains the study about the legislative and the
regulatory framework of the country which affects the company very much. Also, various
treaties would be identified in this report that the company has entered into so as to deliver the
product in the country.

Main Body
1. Identification of the multinational company operating in Australia
Description of the company
The company that is taken for the purpose of the study is united parcel service. The company
was founded in the year 1907 in the USA. The company is based in the USA. The company is
working in the logistics industry and is considered to be a market leader in the field (Lovelock
and Patterson, 2015). The company is working in e-commerce and the goods delivering service
that helps them to procure the objective of maximising the turnover.
Number of staff in Australia
The company is having a good amount of the employees in the Australian department and they
are having around 414 employees in Australia.
Number of staff globally
The company is having a huge number of employees worldwide. This includes around 481,000
employees worldwide.
Location of global headquarter of the company
The global headquarter of United parcel service is located in Atlanta, Ga, USA and the
Australian headquarter is located in UPS Pty Ltd, Building 3, 14A Baker St Botany NSW 2019
Australia.

2. Identification of the legislative and the regulatory framework
To trade in Australia there are various rules and regulations that the company requires to follow
so that they are able to achieve the objective of entering into the company and to trade
accordingly. The United parcel service company has to follow various obligations with the help
of which they entered into the Australian market and also resulted in increasing the companies
reach to the eastern part of the world (Meyer and Peng, 2016). The company for entering into the
market and to start the operations has to consider following legal regulations which includes:
 Australian postal corporation act 1989: This is the law is specified by the statutory
authority of the purpose of the public service act 1999 and it is also related to the
corporate Commonwealth entity for the purpose of the PGPA Act. This law helps in
establishing the main function of the Australia post and also relates to providing the
postal service in the region. The United parcel service organisation has to make a
registration under the Australian postal corporation act for starting the service in
Australia. This law does not have a separate constitution for the purpose and Australia
post is considered to be the wholly-owned subsidiaries which are considered to be of
commercial freedoms. The company has to abide by the laws through which they would
gain the objective of starting the business in the country.
 Taxation law in Australia: There are various types of tax reforms in the country which are
required to be followed by the company. The different level of government in Australia
contains the local as well as the federal government (Picciotto, 2017). These taxes are
collected by the government for the service that they provide. The tax that is collected is
then shared for the public welfare and for redistribution of the wealth. Corporations are
required to pay corporate tax for the purpose which enables them to pay the tax to the
government. The company that is having revenues of lower than $2Mn per year is known
as the small business enterprise and they have to pay a little amount of tax for the
purpose. The company has in the recent year earned a good revenue of $72Bn globally on
which the global tax was given of $263Mn. The company also has to comply with the
treasury law amendments act 2017. Where the business outside of Australia will have to
apply 10% of goods and the service tax on the sales of the low valued goods and service
which they are offering to the consumers in Australia. The threshold limit which is
defined in this sector was that the business has an annual turnover of AUD 75,000 and

above then they have to register themselves with the Australian taxation office so as to
obtain the ATO reference number.
 Safeguard measures: The procedure of safeguarding the measures are published in the
commonwealth gazette no. S297. The productivity commission and the Commonwealth
advisory body which is under the treasury department is authorised as per the
productivity commission act through which investigation and the reference from the
government are warranted with the general procedure. These are done by the commission
to safeguard the companies which are already working in this sector and through this,
they are able to produce maximum results for the same.
 Fair work ombudsman: This is important for the organisation to work as per various laws
and the regulations that are developed by the government of the country. The legislation
that governs this is the Fair work legislation act, 2009 which is considered as the act that
helps in protecting the well-being of the employees working in this industry (Rose,
2017). This act helps in building a good relationship between the employee and the
employer of the company which are working in the within the country. This act provides
the provision of minimum wages, fairness at the work stations, working arrangements
and also enables flexibility in employees from any kind of discrimination that arise
within it. United parcel service follows the fair ombudsman by providing a flexible work
environment and treats the individuals in a better manner. They also follow the provision
of providing the employees with minimum wages and also provides the employees with
safety at the work station. Through this act the company allows the employees to share
the opinion and views regarding the working environment of the company.

3. Identification of treaties, conventions or the agreement that impacts the products or the
services in Australia.
The treaties are considered as the agreement that is entered under the international law by the
government or the companies which desire to enter into the continent or the country to trade with
the country. The treaties can also be considered as the conventions, covenants or the protocol
that constitutes the multinational organisations. This can also be termed as the most formal type
of treaty that is entered into between two or more than two companies (Salacuse, 2017). This can
be seen as the international document which is signed so as to perform the obligations as per the
agreed terms. There are two types of agreement that are framed by the countries which include
bilateral agreement and the multilateral agreement. This is considered that there are various types
of agreements in the country which are made between the province of the United States and
Australia. Some of these treaties which are required by the company to follow include the
following:
 Australia- United States free trade Agreement: It is considered as the preferential trade
agreement which commenced in the year 2005. The treaty contains the outline of the rule
which contains the rule of origin so that they are able to safeguard the domestic market of
both the countries. This agreement related to the mechanising various emergency
situation in the country through increasing the import duties with the help of which they
would be able to save their domestic market (Sandholtz, 2015). This deal impacted the
company in various ways as this increased the duty that the company had to pay on the
goods that they import in Australia. The company has to balance between various imports
related duties and the tariff reduction practices so that they are able to supply the service
on a reduced cost to the consumers.
 Anti-dumping measures and the countervailing measures: there are various anti-dumping
duties that are made by the government of Australia which helps the domestic market
from the lower price goods and services that are provided by the importers. International
world trade organisation law has specifically agreed on the implementation of the article
VI which is considered to the general agreement of tariff and trade. The remedies that are
provided by the government of the country include that company is levied with the extra
tax on the name of anti-dumping duty through which the price of the goods is increased
so as to come at a competitive price of the domestic market. This is the measure taken by

the Australian government against the foreign assistance given the foreign exporters so as
to export the goods at Australia (Steffen, et. al., 2015). This treaty impacts the company
as the company has to provide the services at a higher rate as compared to the rate that
they provide in other countries. Due to this factor, the company is not able to provide a
discounted service to the customers that they desire.
 Japan-Australia economic partnership agreement: it is considered as the agreement which
took place in the year 2015. This agreement resulted in giving concession for certain
items that are being imported to and exported to both the countries. The company got
benefited through this agreement as they were receiving subsidies and were able to
provide the services at a lower price which helped them to build good customers (Voon
and Mitchell, 2016). This helped the country and the company to bring economies and
the societies so that they are able to bring a linkage between the strengthening
relationships between them.

Conclusion
From the above study, this is understood that there are various laws and regulations in the
country which impacts the international business enterprises. The company has to gain access to
various legal provisions to enter into any country. The overview which helps in analysing the
functions of the company are given in this report. There are various treaties that are entered into
by the country which the company has to abide so as to work within the legal requirement of the
country. Australia has framed various regulatory frameworks which help the company to work in
the country in an ethical manner these regulatory framework impacts the business into both
positive as well as negative way.

References
 Deresky, H., 2017. International management: Managing across borders and cultures.
Pearson Education India.
 Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
 Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
 Picciotto, S., 2017. Rights, responsibilities and regulation of international business.
In Globalization and International Investment (pp. 177-198). Routledge.
 Rose, C.V., 2017. The “new” law and development movement in the post–Cold War era:
A Vietnam case study. In Law and Society in East Asia (pp. 91-138). Routledge.
 Salacuse, J.W., 2017. BIT by BIT: The growth of bilateral investment treaties and their
impact on foreign investment in developing countries. In Globalization and International
Investment (pp. 25-45). Routledge.
 Sandholtz, W., 2015. How domestic courts use international law. Fordham Int'l LJ, 38,
p.595.
 Steffen, W., Broadgate, W., Deutsch, L., Gaffney, O. and Ludwig, C., 2015. The
trajectory of the Anthropocene: the great acceleration. The Anthropocene Review, 2(1),
pp.81-98.
 Voon, T. and Mitchell, A.D., 2016. Denunciation, termination and survival: the interplay
of treaty law and international investment law. ICSID Review-Foreign Investment Law
Journal, 31(2), pp.413-433.
Online
 UPS Australia Fact Sheet, 2019. [Online]. Available through
<https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?
ConceptType=FactSheets&id=1426321549949-957>