This glossary is compiled from several sources* in an effort to help international companies seeking information about importing from Australia understand the unique Australian export and trade terminology as well as the acronyms and names of Government departments, organisations and initiatives that are specific to Australia. The glossary also lists standard international export, trade and financial terms along with Incoterms** and their common meanings and usage.

ABN	Australian Business Number
Acceptance Credit	A documentary credit which requires the beneficiary to draw a usance bill for subsequent acceptance by the issuing bank or the advising bank or any other bank as the credit stipulates - see Documentary Credits.
Accommodation Bill	In the context of fraud, a bill drawn without a genuine underlying commercial transaction.
Accountee	Another name for the applicant/opener of a documentary credit i.e. the importer = the person for whose account the transaction is made.
ACIS	Automotive Competitiveness and Investment Scheme
ACN	Australian Company Number
ACP (Group)	Group Automotive Component Producer
ACP	Automotive Component Producer
ACTO	Australian Capital Territory Office
Ad-Valorem Tariff	A tariff rate charged as a percentage of the value of goods being imported or exported
Advice of Fate	The Collecting Bank informs the Remitting Bank of non- payment/non-acceptance or (for D/A bills) of acceptance and the bill maturity date - see Handling Import Collections.
Advising	Act of conveying the terms and conditions of a DC to the beneficiary. The advising bank is the issuing bank agent, usually located in the beneficiary country - see Export - DC Advising. Advising also involves authentication i.e. advising bank should take reasonable care to check the apparent authenticity of the credit (ICC UCC 500 Art 7).
Affreightment	Contracts to carry goods by ship. A bill of lading is a contract of affreightment.
AGAL	Australian Government Analytical Laboratories
Agent	Authorised representative of a customer or group of customers.
AI	AusIndustry
Airway Bill	A contract to carry goods by air. Note that unlike the Bill of Lading, an Airway Bill is not a fully negotiable instrument.
AITC	AusIndustry Tax Committee (AusIndustry delegates of IR&D Board)
All Risks Clause	Indicates that a marine insurance policy covers a comprehensive range of risks to the cargo insured.
AMTP	Automotive Machine Tool Producer
ANAO	Australian National Audit Office
Anti-dumping duties	Duties imposed on goods that are deemed to have been exported below market value, causing injury to producers of competing products in the importing country. These duties are equal to the difference between the goods' export price and their normal value.
ANZCERTA	Australia style='font-family: Arial'> New-Zealand Closer Economic Relations Trade Agreement
ANZSIC	Australia New Zealand Standard Industry Code
APEC	Asia Pacific Economic Cooperation Forum; a forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.
Applicant	A customer that has taken the step of submitting an application for one or more products but a decision has yet to be taken on the application.
Application	A formal request by a customer for access to a product. Normally undertaken by completing and submitting the approved application form.
AQIS	Australian Quarantine Inspection Service (AQIS) provides quarantine inspection services for the arrival of international passengers, cargo, mail, animals and plants or their products into Australia, and inspection and certification for a range of animal and plant products exported from Australia.
ASEAN	Association of Southeast Asian Nations. Eight ASEAN members are members of the WTO - Brunei, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Thailand. The other ASEAN members - Laos and Vietnam - are negotiating WTO membership.
ASP	Automotive Service Provider
Assessment	Examination and analysis of the merits of claims, prior to a decision on whether the applicant or the activities claimed as part of an application for a competitive or entitlement product are eligible; a report produced as a result of the examination.
Assessor	A person who assesses the value of cargo for the purposes of settling insurance claims.
ATDP	Australian Tourism Development Program
ATO	Australian Taxation Office
ATS	National Australian Technology Showcase
AUSFTA	Australia-United States Free Trade Agreement
Audit	An external examination of processes, documentation and records involved in the delivery of a single product or service or in the activities of a specific functional centre. There are four types of audit relevant to AusIndustry: performance audits conducted by the ANAO; performance audits conducted by Quality Management; internal audits conducted by KPMG in its capacity as the Department's internal auditor; and financial audits conducted by KPMG
AusIndustry	The Australian Government's business unit designed to help the Australian business and research community become more innovative and internationally competitive. It delivers Australian Government programs, particularly those relating to industry, tourism and innovation.
Avalise	The act by a bank in guaranteeing payment of a bill of exchange or promissory note by endorsing the reverse with the words good per aval and signed by the bank, or by the issuance of a separate guarantee.
BAA	Backing Australia's Ability (Statement of Govt innovation policy Jan 2001)
Back-to-Back Credit	A credit issued against the security back of another credit (master credit) on the understanding that reimbursement will stem from documents eventually presented under the first credit (master credit) issued - see Special DCs. It follows therefore that each side of a B/B transaction covers the shipment of the same goods.
BAF	Bunker Adjustment Factor - charged by shipping companies to alleviate fluctuating bunkering costs (ie ship's fuel oil).
BAS	Business Activity Statement
Bank Draft (B/Dft)	A cheque drawn by one bank against funds deposited to its account in another bank.
Beneficiary	A payee or recipient, usually of money. A party in whose favour a documentary credit is established, usually the exporter.
BIF	Biotechnology Innovation Fund
Bill for Collection (BC)	Document(s) or cheque submitted through a bank for collection of payment from the drawee.
Bill of Exchange (B/E)	An unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.
Bill of Lading (B/L)	A receipt for goods for shipment by sea. It is a Document of Title: see Documents.
Bill Receivable (BR)	Bills which are financed by the receiving branch, whether drawn under a DC or not, are treated as BRs by both the remitting branch and the receiving branches - see Bills Receivable.
Blank Endorsed	When a bill of lading is made out to order or shipper order and the shipper has signed on the back of it, it is said to be blank endorsed. The bill of lading then becomes a bearer instrument and the holder can present it to the shipping company to take delivery of the goods.
Board (also IR&DB)	Industry, Research and Development Board as established by the Industry Research and Development Act 1986
Bond Store	A store where goods are held under Customs control pending the payment of duty.
BPA	Business Partnership Agreement
BSR	The Basic Service Rate (BSR) charged for wharfage and other port charges at both port of loading and port of unloading.
BSRA	Basic Service Rate Additional - usually an unpacking charge.
Business Advisers	Consultants engaged from the private sector to assist AusIndustry in the delivery of the COMET program by providing expert knowledge of industry and commercialising technology.
Cargo Inspectors	Perform independent and certifiable inspections of goods before they leave to confirm that they conform to the specifications called for in the contract of sale.
Carnet	The "ATA Carnet" is an international customs document that permits duty-free temporary import of goods (eg commercial samples) for up to one year. The initials "ATA" are an acronym of the French and English words "Admission Temporaire/Temporary Admission".
Carrier	Person or company undertaking for hire the conveyance of goods e.g. shipping company
Cash Against Documents (CAD)	A transaction where full shipping documents are sent to a bank or agent at the destination instructing they are only to be handed over in exchange for full payment by the receiver of the goods.
Case of Need	Agent nominated by a principal, to whom the collecting bank may refer in specified circumstances concerning collections - see the sections on Collections.
CDV	The Current Domestic Value of exported goods in the country in which they were produced.
Certificate of Origin (CO)	Document proving place of manufacture or origin of goods specified.
CFR	"Cost and Freight" - means that the exporter's price includes all charges up to the arrival of the goods at the point of discharge from the vessel. It does not, however, include the cost of insuring the goods against loss or damage whilst in transit to that point. Must be followed by the name of the port of discharge, eg. "CFR Singapore". This term should not be used for transport by airfreight or containerised seafreight - see "CPT".
Charter Party	An agreement, between a ship's owner and a charterer, for the hiring of a vessel for a specific purpose.
Chaser	Reminder sent by the collecting (or DC issuing) bank to the importer, repeating a request for payment - see Handling Import Collections.
CIF	Cost, Insurance and Freight. Very widely used, this term indicates that the exporter's price includes all charges up to the arrival of the goods at the point of discharge from the vessel including the cost of insuring them against loss or damage whilst in transit. Must be followed by the name of the port of discharge, eg. "CIF Hong Kong". This term should not be used for transport by airfreight or containerised seafreight - see CIP
CIM	Certain Inputs to Manufacture
CIP	Carriage and Insurance Paid (... to named place of destination). "CIP" indicates that the exporter is responsible for the cost of freight up to the point where the goods are delivered to a specified destination including the cost of insurance against loss or damage during transit. It is the importer's responsibility to clear the goods for import.
Claused Bill	A Bill of Lading claused to show that the goods received by the shipping company were not in good order and condition.
Clean Bill Purchased	A collection bill purchased with no shipping Purchase documents - see Financing Export Collections.
Clean Bill Receivable (CBR)	BR (Bill Receivable) with no shipping documents. The term is more often used for non-trade bills such as travellers cheques.
Clean Collection	A draft with no documents Collection attached
Clean Import Loan (CIL)	A loan granted to an importer for payment of import bills, without the Bank having any claim to the goods.
Client Managers	Individuals engaged to provide guidance to customers in the development of project proposals for EPIC grants. They are physically located within the offices of the Printing Industries Association of Australia (PIAA) in Sydney and Melbourne but are available to help customers throughout class=safetag>Australia regardless of PIAA membership
COC	Customs Owner Code
Collection Bank	Bank in the drawee country that is instructed to collect payment from the drawee - see Collections Introduction.
Collection Order	Form submitted, with documents, to the Remitting/Negotiating Bank by an exporter with his instructions - see Collections ?Introduction.
Combined Transport or Multimodal Bill of Lading	A contract of carriage which covers transport of cargo from one point to another - even though this may involve road, rail or other forms of transport as well as shipment by sea.
COMET	Commercialising Emerging Technologies
Commercial Bill	A fixed short-term finance facility (usually up to a maximum 6 months) at a fixed interest rate.
Commercial Invoice	The document that confirms all the details of the contract of sale that exists between the seller and the buyer.
Common Carrier	A firm which carries any type of goods.
Common Market	An agreement between two or more countries removing all trade barriers between themselves, establishing common tariff and non-tariff barriers for importers, and also allowing for the free movement of labour, capital and services between themselves.
Competitive Product	Product where successful applicants or applications are determined by a competitive, merit based selection process. The products in this group are R&D Start, CRC, MNRF 2001, TDP, IAccP, ATS, Comet, IIF, REEF, PDF, EPICS and BIF.
Compliance Check	An internal check, whether by AusIndustry staff or contracted parties, of whether activities have been undertaken by a customer and whether the activities undertaken as part of an approved project or set of activities are eligible under the provisions of the product.
Conference	In export contexts, a "conference" is an agreement between ship owners, which rationalises sailing schedules and stabilises freight rates.
Confirming Houses	Offer an alternative when finance is not available from a bank. The confirming house pays you for the goods you export and your buyer in turn pays the confirming house.
Consignment	Shipment of goods.
Consignee	The person/company/bank to whom the goods are delivered - usually the importer or the Collecting Bank - see Handling Import Collections.
Consignor	Also called shipper, is the person/company who sends goods by ship, by land or air.
Container Vessel	A vessel designed to carry ISO (International Standards Organisation) containers. These are generally 40ft (12m) or 20ft (6m) long and may be refrigerated, depending upon the type of cargo to be carried.
Contingent Liability	A liability that arises only under specified conditions, e.g. when a bank opens a DC it incurs an obligation to make a future payment on condition that the terms are fully met.
Countertrade	Where the seller of goods receives payment in other than monetary form.
Courier Services	Provide rapid, door to door delivery of documents and other communications around the world, outside of normal mail services.
CPT	Carriage Paid To (... named place of destination). Use of this term indicates that the exporter is responsible for the cost of freight up to the point where the goods are delivered to a specified destination, but is not responsible for insuring the goods against the risk of loss or damage while in transit. It is the importer's responsibility to clear the goods for import.
CTC	Change in Tariff Classification
CTH	Change in Tariff Heading
CTL	Change in Tariff Line
CU FT	Cubic Feet. 33.315 cubic feet = 1 cubic metre
Currency Adjustment Factor	A compensation factor for currency fluctuations, which might affect freight rates.
Customs	Australian Customs Service
Customs Brokers	Provide advice and services on all matters related to the movement of goods from you to the buyer such as customs rates and procedures, quarantine regulations, export documentation, freight forwarding and costings.
Customs Union	An agreement between two or more countries removing all trade barriers between themselves, and establishing common tariff and non-tariff barriers for importers.
DAF	Delivered At Frontier (... named place). Use of this term indicates that the exporter's obligation is fulfilled when the goods are delivered to a specified point at the frontier. There is no responsibility on the part of the exporter to declare the goods to the customs in the importing country, but it is the exporter's responsibility to clear the goods for export.
DC Bills	Bills drawn under documentary credits.
DDP	Delivered Duty Paid (... named place of destination). "DDP" means that the exporter's obligation is fulfilled when the goods have been made available at a specified point in the importer's country. In this case the exporter is also responsible for payment of duties, taxes and other customs clearance charges.
DDU	Delivered Duty Unpaid (... named place of destination). "DDU" means that the exporter's obligation is fulfilled when the goods have been made available at a specified point in the importer's country. The exporter bears all costs incurred in delivering them to that point. The importer is responsible for duties and taxes etc. payable when goods are cleared through customs.
Deferred Payment Credit (DPC)	A DC which allows the nomination of a bank, or the issuing bank to effect payment against stipulated documents at a maturity date as specified or determinable from the wording of the credit.
Demurrage	A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed.
DEQ	Delivered Ex Quay (duty paid) (... named port of destination). This term indicates that the exporter is responsible for making the goods available to the importer on the wharf at the port of discharge, The exporter must bear all costs and risks involved in placing the goods at the disposal of the buyer at the port of destination. This term cannot be used for airfreight shipments.
DES	Delivered Ex Ship (... named port of destination). Use of this term indicates that the exporter accepts responsibility to make the goods available to the importer on board the ship at the port of discharge. Obviously this term cannot be used for airfreight consignments. It is the exporter's responsibility to clear the goods for export but not for import at the port of discharge.
DFA	Duty Free Allowance
Disbursement	A sum of money paid by an agent on behalf of a principal, eg. a freight forwarder pays freight to a shipping company on behalf of an exporter. Usually such "disbursements" will be requested from the exporter prior to payment being made to the shipping company.
Dispute settlement	Resolution of conflict arising between governments over the interpretation of trade rules or the actions of one of them relating to trade. This can be through a compromise between opposing claims, and can involve the use of an intermediary. At other times, dispute settlement can be adversarial and rules-based.
DOCITA	Department of Information Technology Communications and the Arts
Documentary Credit (DC)	A conditional undertaking by a bank to make payment, often abbreviated to credit. More precisely, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request of the buyer (applicant) to pay a sum of money against presentation of documents complying with the terms of the credit within a set time limit.
Documents Against Acceptance (D/A)	Instruction for commercial documents to be released to the drawee on acceptance of the Bill of Exchange - see Collections ?Introduction.
Documents Against Payment (D/P)	Instruction for documents to be released to the drawee only on payment.
Documents of Title	Documents that give their owner the right to the goods, i.e. Bill of Lading.
Draft	Bill of exchange issued by an exporter and submitted to his bank for collection, or under a DC - usually submitted with attached shipping documents - not to be confused with a bankers draft which is sometimes used as a vehicle for reimbursement.
Drawback	The repayment of customs duties paid on merchandise that later is exported either "as is" or as part of a finished product.
Drawee	Party on whom a bill is drawn and the one to whom presentation is to be made according to the collection order - the importer (NB: for DC bills, the drawee is usually the DC issuing bank).
Drawer	The exporter, who draws the Bill of Exchange/draft which in itself is a claim for payment.
Dumping	When goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost.
Duty	A levy, tax or impost charged by governments within their entire jurisdiction on production, transactions and ownership of an asset.
ECN	Export Clearance Number - a permit required for all exports over the value of AU$2000.00 per consignment.
EFS	Export Facilitation Scheme
Entitlement Product	A product where customers are entitled to benefits if they meet defined eligibility criteria. Often assessment against the criteria is undertaken primarily by the customer before registration. The products in this group are R&D Tax Concession, Tradex, PICS, TCF products, PBL, Ships products, ACIS, PPFSS  and other motor vehicle products.
Entrepot	A place where goods are transhipped.
EPBS	Enhanced Project By-law Scheme
EPICS	Enhanced Printing Industry Competiveness Scheme (Book Production)
Express Integrator	An agent who arranges transport of export cargo by integrating road and air transport services for time-critical delivery
Export Agents	Usually operating on a commission basis, export agents undertake sales activity on your behalf, arrange the export of the goods and look after the documentation. The actual sales transaction however is still between you and the client in the destination country.
Export Consultants	Provide market research services and specialist advice on marketing, export incentives, management and planning.
Export document form	To see an animation about the movement of export documents click here. See also the definitions for Airway Bill, Bill of Exchange, Bill of Lading, Letter of Credit.
Export Merchants	Purchase goods destined for export directly from you in your home country and export the goods to their overseas clients in their own right.
Export Packers	Specialised packing companies that ensure your goods are packed to withstand the rigours of handling, storage and climatic differences that may damage the goods in transit.
EXW	Ex Works (... named place). This term signifies that the price quoted is for supply of goods, packed for export, at the exporter's premises. The exporter's contractual obligation is discharged when the goods are made available to the buyer. The exporter is not responsible for any element of transport or insurance cost or the cost of compliance with export formalities.
FAS	Free Alongside Ship (... named port of shipment). This term means that the exporter's obligations are fulfilled when the goods are placed alongside a ship. It is the exporter's responsibility to clear the goods for export.
FCA	Free Carrier (... named place). This term means that the exporter's obligations are fulfilled when goods are delivered to a carrier nominated by the buyer. It is the exporter's responsibility to clear the goods for export.
FCL	Full Container Load. One shipment from one exporter which fully utilises one or more shipping containers.
Financed Bills	Bills sent on collection in which the remitting branch has a financial interest.
FIS (Free Into Store)	In addition to freight and insurance the exporter is responsible for the cost of all entry costs, including import duty, unloading, inland freight, broker's fees and custom house's fees.
FOB	Free On Board (... named port of shipment). "FOB" means the exporter is responsible for all costs up to the point where the goods actually cross the ship's rail. This term should only be used for non-containerised sea transport.
FOI	Freedom of Information
Foreign Bill Purchased (FBP)	A bill remitted to a correspondent bank in which the remitting branch is financing the exporter - see Financing Export Collections.
Forty Foot Unit	Standard ISO (International Organisation for Standardisation) large shipping container, forty feet long (about 12 metres).
Force Majeure	An event outside the control of the parties to the contract.
Forward Exchange Contract	Contract between the Bank and its customer to buy/sell a fixed amount of foreign currency at a future date at a specified rate. This could be for a customer to make payment under a DC or to sell the proceeds received from an export negotiation.
Forwarding Agent	An agent who looks after all the freight matters on behalf of the exporter.
Free Trade Agreement (FTA)	A contractual agreement between two or more parties under which they give each other preferential market access. The agreement must apply to substantially all the trade in goods between the two parties and must not erect new barriers to other countries. Modern FTAs typically also cover trade in services, as well as other non-tariff issues such as the recognition of standards, customs cooperation, protection of intellectual property rights and regulation of foreign investment.
Free Trade Area	A group of two or more countries that have eliminated tariff and all or most non-tariff measures affecting trade among themselves. Members set their own tariffs on imports from non-members.
Free rider	A casual term used to imply that a country, which does not make any trade concessions, profits from tariff cuts and concessions made by other countries in negotiations under the most-favoured-nation principle.
Freight	Goods OR the cost of transporting goods.
Freight Forwarder	An agent who arranges transport of export cargo.
Freight Rate	The rate at which the amount charged for transporting cargo is calculated.
FCL	Full Container Load (FCL). One shipment from one exporter which fully utilises one shipping container.
GATS	The WTO's General Agreement on Trade in Services; a multilateral, legally binding set of rules covering international trade in services.
GATT	General Agreement on Tariffs and Trade, which has been superseded as an international organization by the WTO. GATT 1947: The official legal term for the old (pre-1994) version of the GATT. GATT 1994: The official legal term for new version of the General Agreement, incorporated into the WTO, and including GATT 1947.
Geographical Indications (GI)	Indications which identify a good as originating in a territory of a country, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin. See Article 22 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Government Procurement	Purchasing of goods and services by governments.
Gross Weight	The weight of the merchandise in its shipping form, i.e. including all its packaging.
GST	Goods and Services Tax
Harmonised System (HS)	An international classification system for traded goods developed by the World Customs Organization, arranged in six-digit codes. Beyond the six-digit level, countries are free to introduce national distinctions for tariffs and many other purposes. The classification is divided up into: Chapter (2 digits), Headings (4 digits), Sub-headings (6 digits) and Split-subheadings (7-11 digits).
HAWB	House Airway Bill - this is a document issued by the Freight Forwarder, acting as a carrier, clearly showing the contract of affreightment between the freight forwarder and the exporter.
Hazardous Cargo	Cargo, which is deemed to be hazardous by the carrier by reason of its flammable, corrosive, poisonous nature or other inherent vice.
HBL	House Bill of Lading (the Bill of Lading issued by a Freight Forwarder), acting as a carrier, clearly showing the contract of affreightment between forwarder and exporter.
IAccP	Innovation Access Program - see also IRDTA
IBIS	Integrated Bounty Information Systems
ICC 322	Uniform Rules for Collections
ICC 323	Standard Forms for Issuing Documentary Credits
ICC 420	Guide to the Prevention of International Trade Fraud.
ICC 460	Incoterms 1990. Explains the 13 standard Incoterms.
ICC 500	Uniform Customs and Practice for Documentary Credits (1993 revision) replaced the previous ICC 400 as from 1 January 1994.
ICC 522	Uniform Customs and Practice for Documentary Credits (1995 revision) replaced the previous ICC 322 as from 1 January 1996.
IIF	Innovation Investment Fund
Import License	A permit issued by the importing country's authorities in respect of goods subject to import licensing restrictions.
Incoterms	Shipping Terms - see "Introduction to International Trade.
Indemnity	Also known as Letter of Guarantee (L/G), it is an undertaking given in respect of discrepancies in documents presented under a credit. The beneficiary who issues the indemnity is primarily liable to repay funds received from the negotiating bank in settlement under the credit, if the negotiating bank cannot obtain reimbursement from the issuing bank as a result of documents being rejected by the applicant.
Inherent Vice	The propensity of a commodity to self-destruction which gives rise to a high insurance risk, therefore cover is given only after payment of an additional premium (e.g. fruit rots, coal-dust spontaneously ignites).
In quota rate	The tariff applicable to a product imported within the limits of a tariff quota.
Intellectual Property	Non-tangible property that derives from the intellect or mind. Includes patents, copyrights, business methods and industrial methods.
International Chamber of Commerce (ICC)	The international body which promotes and facilitates world trade, and which codifies world trade practices in various publications.
Investment	The commitment of capital in the expectation of a return, with the assumption of risk. Investment can include (amongst others) enterprise, equity participation in enterprise (shares, stocks), debt instruments (bonds, debentures), derivatives (futures, options) and intellectual property rights.
Investor state dispute settlement (ISDS)	A dispute settlement process focused on resolving investment disputes between a party to an FTA (i.e. the government) and an investor of another party.
IR&D	Industry Research and Development
IRA	International Research Alliances
IRDTA	International Research and Development and Technology Access (The competitive grants component of IAccP, administered by AusIndustry)
Irrevocable Credit	Constitutes a definite undertaking of the issuing bank and the confirming bank, if any, to honour the credit provided the terms of the credit are observed. It may be advised to the beneficiary without engagement by the advising bank, and cannot be amended or cancelled unless the issuing bank, the confirming bank and the beneficiary agree.
Issuing Bank	The bank that opens a documentary credit at the request of its customer, the applicant.
ITR	Department of Industry, Tourism and Resources
Joint Trade Committee/Commission (JTC)	A mechanism usually included in FTAs comprised of officials at a senior level to oversee ongoing implementation and enforcement of an FTA.
Landed Cost (or Landed Price)	The total cost comprising goods, insurance, freight, loading, unloading, inland transport and anything else involved in clearing the goods at the port of destination.
LCL	Less than Container Load (LCL). Small shipments from several exporters consolidated into one shipping container.
Letter of Credit (L/C)	American term for documentary credit. In the United States, the terms D/C can often be confused for documentary collection.
Letter of Hypothecation	A promise to hold goods as security taken from customers who are granted loans against goods imported on a collection basis.
Loan Against Imports (LAI)	Loans granted to import customers for payment of bills.
LO/LO	Lift On / Lift Off - these are charges levied by Terminal operators.
Manifest	A list of the cargo loaded on a carrying vessel.
Marine Insurers	Provide specialist advice and cover for the most suitable form of insurance against exporting risks such as loss or damage in transit.
Master Credit	In back-to-back operations, the original export credit against which the second credit is opened
Merchant Banks	Provide export finance, foreign exchange settlements, currency hedging and trade and credit information services.
MIS	Management Information System
MVP	Motor Vehicle Producer
NAFTA	North American Free Trade Agreement, comprising Canada, Mexico and the US.
National Manager	Consultants engaged from the private sector to assist AusIndustry in the delivery of the COMET program by providing expert knowledge of industry and commercialising technology and manage the Business Adviser network.
Negotiable/Non-Negotiable	Usually used with regard to Bills of Lading: a negotiable B/L is a valid document of title, while a non-negotiable B/L is not - the beneficiary of a DC (the exporter) may send the importer a non-negotiable B/L for information.
Negotiation	Purchase of drafts under a documentary credit which the issuing bank has undertaken to pay.
Net Weight	The weight of the merchandise before any packaging.
Non-DC Bills	Bills not drawn under DC i.e. sent on a collection basis (D/P or D/A). In common usage we distinguish between Non DC bills which are financed collections and DCs which are non-financed.
Non-Financed Bills	Bills sent on collection in which the remitting branch has no financial interest.
Non-originating good	A good which does not satisfy the requirements of an originating good. See 'Originating Good'.
Non-Tariff Barriers (NTB)	Measures other than tariffs that restrict trade flows. These include import licensing, prohibitions, voluntary restraint arrangements and variable levies.
Non-Tariff Measures (NTM)	Anything, including non-tariff barriers such as technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), and safety standards that have an effect on trade flows. These effects are not necessarily negative.
NSWSO	New South Wales State Office
On-consignment	Goods for which payment will be made to the exporter after they have been sold by the importer.
Open Cover	A blanket insurance policy, which covers all consignments, shipped by the insured within the terms of the open cover. Individual shipments are declared against the open cover as and when they are made.
Opening Bank	See Issuing Bank.
Order (To)	The phrase To Order is sometimes shown on Bills of Lading against consignee: this means that the Bill of Lading must be endorsed in blank by the shipper (i.e. not to any particular named party which makes it bearer document and it becomes transferable by delivery.)
Originating good	A good that is either wholly obtained or produced within a country, produced in a country wholly from originating materials, or produced in a country partly from originating materials but complies with particular Rules of Origin of the FTA. style='font-family:Arial'>See 'Non-originating good'.
Out-of-quota rate	The tariff rate applied to products imported in excess of a tariff quota. This is meant to discourage imports above the tariff quota.
P3	Pharmaceuticals Partnerships Program
Packing Credit	A loan given to the beneficiary by the bank to enable him to purchase raw materials. The beneficiary is usually requested to deposit the DC with the bank as security.
Past Due	Bill or loan that has not been paid on the maturity date/due date.
Paying Bank	The bank that makes payment to the beneficiary of a payment DC after presentation to it of documents stipulated in the DC.
PBL	Policy By Laws Program
PDF	Pooled Development Fund
Perils of the Seas	They are accidents or casualties of the sea. The ordinary actions of the winds and waves are not included. Heavy or tempestuous weather on a voyage is of sufficient violence to constitute a peril of the sea.
PICS	Printing Industry Competitiveness Scheme
PMV	Passenger Motor Vehicles
Power of Attorney	Authority given to one party to act for another.
PPFSS	Petroleum Products Freight Subsidy Scheme
Preferential Rules of Origin	A system for deciding whether a product exported from one party to an FTA to another will be considered as having originated from that party, and therefore qualify for preferential treatment. See 'Rules of Origin'.
Presenting Bank	The bank that requests payment of a collection bill - may be the Collecting Bank or its nominated branch or local correspondent, which is better placed to contact the importer.
Price undertaking	Undertaking by an exporter to raise the export price of the product to avoid the possibility of an anti-dumping duty. See 'Anti-dumping duty'.
Procurement	All of the processes involved in requesting, ordering, auditing, and paying for goods and services style='font-family:Arial'>.
Product Manager	The officer responsible for the overall delivery of a product. Responsibilities include the following maintenance of all product documentation; operational policy specific to the product improvement of delivery arrangements; and monitoring, recording and reporting on performance of the product and delivery arrangements.
Pro-forma Invoice	A specimen invoice, requested by the buyer for the purpose of applying for such things as an import license, or foreign exchange allocation prior to the sale.
Promissory Note	A signed statement containing a written promise to pay a stated sum to specified person at a specified date or on demand.
QSO	Queensland State Office
R&D	Research and Development
Received Bill of Lading	A Bill of Lading which clearly shows only that the goods have been received for shipment, unlike a Shipped on Board Bill, which clearly shows that the goods are actually on board a named vessel.
Recourse	The right to claim a refund from another party which has handled a bill at an earlier stage.
Red Clause Credit	A credit with a clause which authorises the advising bank to make an advance payment to the beneficiary - see special DCs.
Reimbursing Bank	The bank nominated by the DC issuing bank that will pay the value of the DC to the negotiating/paying bank.
Remitting Bank	The exporter's bank in collection transactions, which remits the bill to the collecting bank. The exporter's bank in DC transactions, which dispatches the documents to the issuing bank.
Retirement	The act of paying or settling an outstanding bill or import loan; i.e. payment by the importer to the Bank.
Revocable Credit	One that may be amended or cancelled without notice to the beneficiary.
Revolving Credit	A credit automatically reinstated after each drawing or upon receipt of authorisation from DC issuing bank, with limits as to the duration of the facility and as to the (cumulative or non-cumulative) amount involved for each drawing - see Special DCs.
REEF	Renewable Energy Equity Fund
Ro-Ro Vessel	A Ro-Ro (Roll on/Roll off) vessel is constructed so as to allow cargo to be driven directly on board from the dockside.
Rules of origin	Laws, regulations and administrative procedures which determine a product's country of origin for specific purpose. A decision by a customs authority on origin can determine whether a shipment falls within a quota limitation, qualifies for a tariff preference or is affected by an anti-dumping duty. These rules can vary from country to country.
Safeguards	Temporary measures to allow industry to adapt to altered trading circumstances such as elimination of duties or increased competition from importers following the implementation of an FTA. They typically aim to slow imports.
SAFTA	Singapore-Australia Free Trade Agreement.
SANTO	South Australian Northern Territory Office
SB	Shipbuilding Bounty
SBAP	Small Business Answers Program
SBBRP	Small Business Bushfire Relief Program
SBECP	Small Business Enterprise Culture Program
SBIP	Small Business Incubator Program
SDG	Shipbuilding Delivery Group
SEAS	Shipbuilding Expenditure and Administration System
Self-Liquidating	A transaction is said to be self-liquidating when there is a known source of funds available for its settlement on due date.
Shipment Date	The date inserted on the bills of lading evidencing goods received on board is regarded for documentary credit purposes as being the date of shipment.
Shipper	See consignor
Shipping Guarantee (SG)	Guarantees of this nature are required to enable customers to obtain goods before the arrival of the documents of title, and are issued to the shipping companies by the Bank against an undertaking to forward the bills of lading when they are received. The Bank normally take 100% cash margin against the value of the goods if the customer does not have T/R facility.
Shipping Terms	See Incoterms
Sight	A bill payable at sight is payable on presentation to the drawee i.e. on demand.
SIS	Shipbuilding Innovation Scheme
Stakeholder	Parties that have an interest in the performance of AusIndustry. This interest may be expressed through a formal agreement. Examples of stakeholders include the Portfolio Ministers, the Government and Parliament, the Department of Industry, Tourism & Resources, other Government agencies, Industry Research & Development Board, Industry organisations, Research organisations, Staff of AusIndustry.
Standby Credit	This may be established as security for facilities granted at another branch or bank, usually to a subsidiary of the DC applicant. - see Special DCs.
Status Report	Produced by a bank's TCI department or a credit information bureau, giving details of the creditworthiness and business background of traders and manufacturers.
State or Territory Manager	An officer than leads one of the 7 State and Territory offices which provide a range of services to customers in a specific geographic area.
Subsidy	Financial or in-kind assistance by governments to producers or exporters of commodities, manufacturers and services. They are paid in order to, for example, support inefficient production structures, raise income in one sector, promote regional development, or to develop export markets. *
Substitution	The act whereby the prime beneficiary substitutes his own documents i.e. invoices and drafts, in back-to-back and transferable credit operations prior to negotiation of the master credits.
TAFTA	Thailand-Australia Free Trade Agreement.
Tariff binding	Commitment not to increase a rate of duty beyond an agreed level. Once a rate of duty is bound, it may not be raised without compensating the affected parties.
Tariff escalation	The setting of a tariff in such a way that it rises with the increasing transformation of the product. This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate.
Tariff peaks	Relatively high tariffs, usually on "sensitive" products, amidst otherwise generally low tariff levels. For industrialised countries, tariffs of 15% and above are generally recognised as "tariff peaks".
Tariff quota	The application of a reduced tariff rate for a specified quantity of imported goods. Imports above this specified quantity face a higher tariff rate.
Tariff schedule	A comprehensive list of the goods which may be imported into a country, and the duties applicable to each product.
Tariff	A customs duty levied at the border on goods going from one customs territory (generally a country) to another. It can be either levied either on an ad valorem basis (percentage of value) or on a specific basis (e.g. $7 per 100 kgs.). Tariffs give price advantage to similar locally-produced goods and raise revenues for governments.
Tax Invoice	The suppliers advice to the recipient of goods or services of the amount of Goods and Services Tax payable on the supply, which is the input tax credit the recipient is entitled to claim.
TAX RED	Tax Concession Regional Delivery Program
TCC	Tax Concession Committee (of IR&D Board)
TCF	Textiles Clothing and Footwear
TCF (SIP)	Textiles Clothing and Footwear (Strategic Investment Program) Scheme
TCF EOAP	Textiles Clothing and Footwear Expanded Overseas Assembly Provisions
TCF ICS	Textiles Clothing and Footwear Import Credit Scheme
TDP	Technology Diffusion Program
Technical barriers to trade (TBT)	Barriers to trade relating to standards, technical regulations, conformity assessment procedures etc. for a specific market.
Tenor	Term or Period of credit granted by the drawer. See Usance Bill.
Tracer	See Chaser.
Trading Banks	Provide a broad range of services for exporters including export finance, foreign currency dealings and credit assessments on overseas buyers.
Tradex	This is not an acronym or abbreviation but the official name of the product
Trade and Credit Information (TCI)	A bank department that prepares and distributes status reports on its own customers, and maintains records of traders and manufacturers with whom its customers deal.
Trade facilitation	Removing obstacles to the movement of goods across borders (e.g. simplification of customs procedures).
Trade liberalisation	A general term for the gradual or complete removal of impediments to trade in goods and services.
Trade Negotiations Committee (TNC)	A committee usually established at the start of a multilateral or bilateral round of trade negotiations to assist in the coordination of negotiating rounds.
Trade Remedies	Under the WTO rules, members have access to trade remedies such as anti-dumping, countervailing and safeguard measures to protect their domestic industries and allow for rapid adjustment to trade liberalisation. These remedies are not diminished under FTAs.
Transferable Credit	Permits the beneficiary to transfer all or some of the rights and obligations under the credit to a second beneficiary or beneficiaries - see Special DCs.
Transferee	A party (2nd beneficiary) to whom a transferable credit is transferred in whole or in part.
Transferor	A party (1st beneficiary) at whose request a transferable credit is transferred to a second beneficiary in whole or in part.
Transparency	Degree to which trade policies and practices, and the process by which they are established, are open and predictable.
Transshipment	Usually means where goods are transferred from one vessel to another at a port other than the port of destination.
TRA	Targeted Research Alliances
TSO	Tasmanian State Office
TT	Technology Transfer
Twenty Foot Equivalent Unit (TEU)	Standard ISO (International Organisation for Standardisation) small shipping container twenty feet long (about 6 metres).
Usance Bill	A Bill of Exchange which allows the drawee a term or period of credit (this period is also called usance). The term is usually stated in days (e.g. 30 days) or months and starts either from the date of the bill (e.g. 30 days date) or from the date of bill of lading, or from sight by the drawee (e.g. 30 days sight) which in practice means from the date of acceptance. An essential feature of acceptance credits and D/A collections.
Value for Duty	The value which is declared to the customs at the port of discharge for the purpose of assessing customs duty
VCLP	Venture Capital Limited Partnerships Program
Waive	To relinquish a right: used in collections with BC charges and/or interest to be collected from the drawee: these can be waived in certain circumstances as set out in ICC 522.
Wharfage	Fees for use of wharf in loading and unloading cargo.
WASO	West Australian State Office
World Trade Organization (WTO)	The international organisation dealing with the global rules of trade between nations. It was created, and replaced GATT, following the conclusion of the Uruguay round of world trade negotiations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It was established following signature of the Agreement Establishing the WTO , in Marrakesh, Morocco, 1994.

* Glossary compiled from the following sources:

• www.hsbc.com.au/utility/glossary/international.html
  
• www.exporters.sbdc.com.au/04_10_glossary.asp
  
• www.fta.gov.au/
  
• http://www.business.vic.gov.au/
  

** Incoterms are internationally recognized trading terms as defined by the International Chamber of Commerce (ICC). Incoterms signify to the buyer what is and is not included in the selling price. They also indicate where the exporter's responsibility ends and the importer's responsibility begins in respect of the goods exported. It is important to use the appropriate term in export quotations in order to determine the responsibilities of both parties in the contract of sale.