Buying direct from an overseas factory is not hard to start and surprisingly hard to do well. We manage the whole process for Australian buyers: finding and auditing the right manufacturer, running the RFQ, controlling quality, and handling freight and customs so parts land at your dock at a known price.
India has deep capability in exactly the kind of work Australian industry struggles to buy locally at sensible prices: fabrication, machining, castings, forgings and hardware. Two things have changed the equation for Australian buyers.
First, the Australia-India Economic Cooperation and Trade Agreement (ECTA), in force since 29 December 2022, has removed or reduced customs duty on a large share of goods imported from India, including many engineered products. Second, Australian manufacturers have faced long domestic lead times and rising input costs, which has made a properly managed offshore supply chain more attractive than it was a decade ago.
To claim the preferential duty rate you need a valid certificate of origin, and the correct tariff classification for your part. We prepare the documentation, and we recommend your customs broker confirms the classification, because it is their professional responsibility and it protects you.
Being straight about this matters more than a headline number. Savings are largest where labour and tooling make up a big share of the cost:
| Strong candidates | Fabrications and weldments, machined components, castings and forgings, special fasteners, assemblies with multiple operations |
|---|---|
| Sometimes worthwhile | Standard hardware in volume, sheet metal parts, wear components, spares packages |
| Usually not worth it | Very bulky low-value items where freight dominates, extremely urgent one-offs, parts with tiny annual usage and high tooling cost |
On suitable parts we have seen landed cost reductions of up to 40 per cent. That is an upper figure on the right components, not a promise on everything. If a part is not a good candidate, we would rather tell you early than waste both our time.
| Commission sourcing | 5 to 15% of order value. You contract directly with the manufacturer; we source, manage and inspect. Best for occasional orders and full transparency. |
|---|---|
| Managed buy and sell | Landed price plus margin. We buy, inspect, ship and invoice you one figure in Australian dollars, under Australian trading terms. Single point of accountability. |
| Retainer & supply chain management | From AUD $2k per month for ongoing programs with recurring BOMs, dedicated sourcing management, forecasting and inventory buffering. |
Offshore sourcing goes wrong in predictable ways. Being honest about them is part of managing them:
| Feasibility response | 1 to 3 business days |
|---|---|
| Quotation | 3 to 7 business days from a complete drawing pack |
| Tooling, where required | 3 to 6 weeks for patterns; longer for forging dies |
| First-article samples | 2 to 5 weeks depending on process |
| Production | 4 to 10 weeks depending on part and quantity |
| Sea freight | Typically 4 to 6 weeks port to port, plus customs and local delivery |
A realistic first-order cycle from enquiry to delivered goods is therefore commonly three to five months. Repeat orders are much faster because tooling, approvals and the inspection plan already exist.
Australian manufacturers, machine builders, trailer and equipment makers, mining and METS suppliers, agricultural equipment businesses and distributors who buy engineered parts in repeat quantities and want either a lower landed cost, an alternative to a constrained local supplier, or capacity relief without adding headcount.
The Australia-India Economic Cooperation and Trade Agreement, in force since 29 December 2022, has removed or reduced customs duty on many goods imported from India. A valid certificate of origin is required, and your customs broker should confirm the tariff classification for your part.
It varies. Labour-intensive parts such as fabrications, machining and castings often show the largest gains, up to around 40 per cent on landed cost. Bulky low-value items may save little. We will tell you when a part is not worth moving.
Under managed buy and sell we buy from the factory and sell to you, so you deal only with an Australian company. Under the commission model you contract directly with the manufacturer and we act as your sourcing and quality manager.
Report it within the period set out in our Terms and Conditions of Trade with photographs and measurements. We investigate with the factory and agree rework, replacement or credit. Pre-dispatch inspection means most issues are caught in India.
No. Under managed buy and sell we handle import, customs and delivery, and invoice you in Australian dollars. You receive goods at your door as you would from a local supplier.
