Commercial
Terms - USA / Australia
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A
- ABS (Australian Bureau of Statistics)
- Federal Government Department responsible for collecting and disseminating
statistical information.
- ABOVE PAR
- A stock exchange term. Shares are said to be above par when their trading
price is above their nominal value.
- ACCEPTANCE
- When a contract is made there must be both offer and acceptance, unless
it is a contract by deed. If one person offers to do something for another,
the contract is not completed until the offer is accepted. Acceptance must
be in the same terms as the offer and must be communicated to the offeror.
A conditional acceptance is equivalent to an offer and is not an acceptance.
- ACCI (Australian Chamber of Commerce and Industry)
- Peak employer body representing in excess of 500,000 businesses, predominantly
small and medium sized enterprises.
- ACCOUNT, CREDIT
- Commonly, this means an account kept by a business for the benefit of a
customer, whereby the customer can obtain goods and/or services on credit
subject to payment at a later date, normally as stated at the time of sale.
- ACCOUNT, PROFIT & LOSS
- This shows the gross profit and net profit made by a trading enterprise.
It normally commences with gross profit on trading and, after adding exceptional
items of income and deducting operating and administrative expenses, shows
profit before taxation, profit after taxation, dividends, etc.
ACOS
- Australian Chamber of Shipping.
- ACS
- Australian Customs Service.
- ACT OF GOD
- A loss arising from a direct, irresistible act of nature. Contracts frequently
exclude liability arising from an Act of God. See also FORCE MAJEUR.
- ACTUAL TOTAL LOSS
- An insurance, especially marine insurance, term where the subject matter
is completely destroyed. No notice of abandonment is required by the insurers
in normal circumstances.
- ACTUARY
- A person normally employed in insurance who is skilled in the complicated
task of assessing and calculating risks and premiums.
- AD VALORUM
- According to the value. Customs and Stamp duties are often calculated according
to the value of the subject matter, e.g.: goods valued at $1000.00, the rate
of customs duty is 10% ad valorum, hence the customs duty payable is $100.00.
- ADJUSTMENT
- Settling the amount due by an insurer in a marine insurance claim.
- AFFIDAVIT
- A declaration in writing made on oath before a person entitled to administer
oaths, e.g.: Justice of the Peace, Notary Public, Commissioner for Oaths).
See also STATUTORY DECLARATION.
- AFP
- Australian Federal Police
- AG
- Attorney Generals Department (Australia).
- AGENT
- A person with express or implied authority to act for another person (the
principal), the object being to establish a contractual relationship between
the agent and third parties.
- AGENT, GENERAL
- An agent with unrestricted authority to contract on behalf of his principal
in all matters concerning a particular trade or profession, e.g.: customs
agent (customs broker).
- AGENT, SPECIAL
- An agent with authority to do one particular act or represent his principal
in one particular transaction.
- AGENT, UNIVERSAL
- An agent with unrestricted authority to contract on behalf of his principal,
e.g.: a person holding a Power of Attorney.
- AIEx (Australian Institute of Export)
- The peak professional body of exporters, both individual and corporate,
in Australia. It provides education from introductory courses through to diploma
levels. Members may be Associates (AAIEx), Members (MAIEx), Fellows (FAIEx)
or Corporate.
- AIMS (AQIS Import Management System (Australia))
- An AQIS electronic system that enables lodgement and processing of imported
consignments based on data entered manually or via the COMPILE System. See
also COMPILE.
- ALIGNED DOCUMENTATION
- A system devised by the ICC whereby all international trade documents are
designed to a common standard, printed on A4 size paper with each item of
information always appearing in the one location.
- ALL RISKS (AR)
- A marine insurance term meaning that the subject goods are insured against
all generally accepted risks, i.e.: risk of a fortuitous nature. The Institute
of London Underwriters All Risks clauses, now know as the A Clauses,
is added to a standard marine policy to cover such risks, amongst other things.
- APCA (Australian Port Charges Additional)
- The name for a charge made by shipping companies in addition to some freights
to cover Australian port charges that have not been included in the freight,
e.g.: wharfage, stevedoring. See also BSRA.
- AQIS
- Australian Quarantine Inspection Service. A division of the Federal Government
Department of Primary Industry. Responsible for policing and controlling quarantine
matters in respect of imports to and exports from Australia.
- ARBITRATION
- Method of settling disputes which is usually binding on parties.
- ASAP
- As soon as possible.
- ASUG
- Australian Shipping Users Group.
- ATO
- Australian Taxation Office.
- AWA
- Australian Workplace Agreement (Australian). An industrial agreement negotiated
directly between an enterprise and its employees, certified by the Federal
Industrial Commission, covering employment conditions and rates of pay. See
also EBA.
- AWB
- Air Way Bill. a document of affreightment used to cover the movement of
goods by air. See also HAWB.
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B
- BACKLETTER
- Where a seller/shipper issues a 'letter of indemnity' in favour of the carrier
in exchange for a clean bill of lading. May have only a limited value. Example:
P & I problems.
- BAF
- Bunker Adjustment Factor. An adjustment factor representing variations in
the price of bunkers, expressed as a plus/minus percentage which is applied
to freight calculations. See also CABAF.
- BILL OF LADING (B/L, BL)
- A document by which the Master of a ship acknowledges having received in
good order and condition (or the reverse) certain specified goods consigned
to him by some particular shipper, and binds himself to deliver them in similar
condition, unless the perils of the sea, fire or enemies prevent him, to the
consignees of the shippers at the point of destination on their paying him
the stipulated freight. A bill of lading specifies the name of the master,
the port and destination of the ship, the goods, the consignee, and the rate
of freight.
- BONDED WAREHOUSE (BOND)
- A privately owned warehouse which is licensed by the Customs Authorities
in which goods subject to the control of Customs may be stored without the
payment of duties. The owners of the warehouse must normally give a bond to
Customs for the duty on the goods held in the store, hence the common name,
BOND. See also FREE STORE.
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- BSR
- Basic Service Rate. The basic freight rate (generally European).
- BSRA (Basic Service Rate Additional)
- The name for a charge made by shipping companies in addition to BSR (freight)
to cover Australian port charges that have not been included in the freight,
e.g.: wharfage, stevedoring. See also APCA.
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C
- CABAF (Currency and Bunker Adjustment Factor)
- An adjustment factor representing variations in the price of bunkers and
exchange rates, expressed as a plus/minus percentage which is applied to freight
calculations. See also BAF, CAF.
- CACCI
- Confederation of Asian Cambers of Commerce and Industry.
- CAF (Currency Adjustment Factor)
- An adjustment factor representing variations in exchange rates expressed
as a plus/minus percentage which is applied to freight calculations. See also
CABAF.
- CBCA (Customs Brokers Council of Australia)
- The peak body of customs brokers in Australia. Members may be Licentiates
(LCBCA), Associates (ACBCA), Senior Associates (SACBCA), Fellows (FCBCA) or
Corporate.
- CBF
- Cubic feet
- CBM (or M3)
- Cubic metres
- CERTIFICATE OF ORIGIN
- Certificate issued by an approved body in the country of origin which attests
to the origin of goods. Chambers of Commerce are normally approved bodies.
- C & F (Cost and Freight)
- A trading term used in the sale of goods to denote that the price includes
the main freight to the named port of destination.
- C & I (Cost and Insurance)
- A trading term used in the sale of goods to denote that the price includes
the costs to the port of export and marine insurance to the destination.
- C.I.F. (Cost, Insurance and Freight)
- A trading term used in the sale of goods to denote that the price includes
the main freight and marine insurance costs to port of destination.
- COA
- Contract of affreightment
- COMMON CARRIER
- One who holds himself out for hire to the general public. Must post rates
and cannot discriminate against customers whose cargo he is equipped to carry.
- COMPILE - Customs On-line Method of Producing
from Invoice Logeable Entries (Australia).
- An Australian-wide computer network run by ACS and subscribed to by most
Customs Brokers whereby the Customs Brokers can directly enter details of
imported goods into the Australian Customs Service (ACS) and Australian Quarantine
Inspection Service (AQIS) systems, pay customs duties and other charges by
EFT and receive clearance of the cargo. Some brokers, using their own computer
systems, interface COMPILE with document data, including EDIFACT standard
documents. See also EDIFICE.
- CONSIGNEE
- The person to whom cargo is consigned.
- CONSIGNOR
- The person named in a freight document as the one from whom the goods have
been received for shipment.
- CONTRACT OF AFFREIGHTMENT (COA)
- A service contract under which a ship owner agrees to transport a specified
quantity of fuel products or specialty products, at a specified rate per ton,
between designated loading and discharge ports. This type contract differs
from a spot or consecutive voyage charter in that no particular vessel is.
specified.
- CPI Consumer Price Index.
- CUSTOMS BROKER
- A broker, or agent, who acts on behalf of importers and exporters in the
clearance of imported goods through Customs, Quarantine, shipping and other
requirements.
- CUSTOMS TARIFF ACT
- Australian Act of Parliament imposing customs duties on imported goods.
- CUSTOMS VALUE
- The value of imported goods as assessed by the Customs Authorities according
to the legislation of the importing country. This may be based on the actual
value but, in certain cases, may be a notional value. In many countries this
value relates to the CIF cost of the goods, but some (E.G.: Australia) relate
to point of export or FOB costs.
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D
- DFAT
- Department of Foreign Affairs and Trade (Australia).
- DELIVERY ORDER
- A document issued by a shipping company of freight forwarder authoring delivery
of cargo from is place of landing and storage.
- DELIVERY ORDER FEE
- A charge for issuing a delivery order.
- DEMURRAGE
- 1. A fee levied by the shipping company upon the consignee for not returning
a shipping container within the specified time after taking delivery.
- 2. A fee levied by Australia Post upon the consignee of imported parcel
post articles which are not cleared through Customs and delivered within the
specified time, normally 5 days.
- DIST
- Department of Industry, Science & Resources (Australia).
- DOD
- Department of Defense.
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- DUNNAGE
- A term applied to loose wood or other material used in a ship's hold or
in a shipping container for the protection of cargo.
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E
EBA
- Enterprise Based Agreement (Australia). An industrial agreement between
an enterprise and its employees, involving the representative Union and certified
by the Federal Industrial Commission, covering employment conditions and rates
of pay. See also AWA.
- EC
- European Community. Formerly known as the European Economic Community.
- EDIFICE - EDI For the Input of Customs
Entries (Australia).
- An Australian-wide computer network run by ACS and subscribed to by Customs
Brokers whereby the Customs Brokers can batch process and enter details of
imported goods into the Australian Customs Service (ACS). It can be interfaced
with document data, including EDIFACT standard documents. See also COMPILE.
- EFIC
- Export Finance and Insurance Corporation (Australia). A Federal agency that
aids in financing exports of Australian goods and services through loan guarantees,
and insurance.
- ENTRY
- A customs form used for the clearance of ships or merchandise. See also
COMPILE, EDIFICE.
- ETA
- Estimated time of arrival
- ETD
- Estimated time of departure
- EXPRESS WAYBILL
- See OCEAN WAYBILL.
- EXW (Ex Works)
- A trading term used in the sale of goods to denote that the price includes
only the cost of the product at the warehouse/factory gates before any transport
costs are included. In USA this is normally referred to as
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F
- FAC
- 1. Fast as can
- 2. Federal Airports Commission (Australia).
- FAS (Free Along Side of ship)
- A trading term used in the sale of goods to denote that the price includes
the costs to the port of export.
- FHEX
- Fridays, holidays excluded (USA).
- FHINC
- Fridays, holidays included (USA).
- FIFO
- First in, first out.
- FIO
- Free in and out.
- FIOST
- Free in and out, stowed and trimmed
- FOB (Free on Board)
- 1. Export trading term in which the price quoted by the exporter does not
include the costs of ocean transportation, but does include loading on board
the vessel. Not generally used in USA, where the term FAS is more common.
- 2. USA: Cost of a product before transportation costs are figured in. Other
countries tend to use the term Ex Works.
- FOF
- Fix on failure.
- FORCE MAJEURE
- Clause limiting responsibilities of charterers, shippers and receiver of
cargo, due to forces beyond the control of man - Act of God.
- FREE STORE
- A store in which goods not subject to the control of Customs are stored,
as opposed to a bonded store.
- FREIGHT
- Money payable on delivery of cargo in a mercantile condition.
- FREIGHT FORWARDER
- A business or person who arranges shipments for customers usually break
bulk and issues a HBL (sea) or HAWB (air). The freight forwarder then consolidates
a number of shipments under one BL or AWB. The freight forwarder does not
actually carry the cargo or conduct business for the ship.
- FREIGHT RATE
- The charge made for the transportation of freight. See also BSR.
- FRONT LINE
- An Australian Customs initiative whereby the ACS forms partnerships with
approved importers, customs brokers, shipping companies and the like to jointly
detect and report smuggling, especially narcotics and other dangerous goods,
false declarations, etc.
- FUMIGATION
- Quarantine treatment using a fumigant gas (Note: methyl bromide, previously
commonly used, is now prohibited in certain countries, e.g.: USA) to kill
and/or prevent infestation by insects, etc.
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G
- GATT
- General Agreements on Tariffs and Trade. Now known as WTO - World Trade
Organization.
- GDP
- Gross Domestic Product: The total of goods and services produced by a nation
over a given period, usually 1 year.
- GNP
- Gross National Product: GDP plus the net income accruing from foreign sources.
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H
- HARD CURRENCY
- A currency which is sound enough to be accepted internationally and which
is usually fully convertible. See also SOFT CURRENCY.
- HAWB
- House Air Way Bill. A document of affreightment issued by an air freight
forwarder used to cover the movement of goods by air. The air freight forwarder
consolidates a number of HAWB's under one AWB fro transport by an airline.
See also AWB.
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-
I
- IATA
- International Air Transport Association - the peak body for airfreight.
- INCOTERMS
- A Set of internationally accepted, fully defined trading terms, devised
by the ICC in order to minimize differences of interpretation of such terms,
for use by any company, person, etc. When used in a Contract of Sale it normally
is followed by the revision date to ensure the parties are aware of the correct
edition (E.G.: FAS Rotterdam Incoterms 1995). Includes EXW, FAC, FAS, FOB,
CFR, CIF, CPT, DAF, DES, DEQ, DDU, DDP.
- ICC
- International Chamber of Commerce.
- ILO
- International Labor Organization; Based in Geneva, it is one of the oldest
components of the UN system of specialized agencies and has been involved
over the years in appraising and seeking to improve and regulate conditions
for seafarers. In its unusual tripartite way, involving official representatives
of government, employer and employee interests, its joint Maritime Commission
have had in hand moves on the employment of foreign seafarers to urge the
application of minimum labor standards, on crew accommodation, accident prevention,
medical examination and medical care, food and catering and officers competency.
- IMDG
- International Maritime Dangerous Goods Code. See also HAZCHEM.
- IMF
- International Monetary Fund.
- IMO
- International Maritime Organization: Formerly known as the Inter-Governmental
Maritime Consultative Organization (IMCO), was established in 1958 through
the United Nations to coordinate international maritime safety and related
practices.
- INTERIM RECEIPT
- Given when the goods are received by the ship prior to the issue of a bill
of lading. It used to be given by on on behalf of the Mate and is sometimes
called a Mates Receipt.
- INTERMODALISM
- The concept of transportation as a door-to-door service rather than port-to-port.
Thus efficiency is enhanced by having a single carrier coordinating the movement
and documentation among different modes of transportation. See also TRADE
FACILITATORS.
- ISO
- International Standards Organization.
- ITF
- International Transport Workers Federation (Trade Unions)
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J
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K
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L
- L/C (Letter of credit)
- A banking document (usually) whereby a bank guarantees payment of a bill
of exchange (draft)
- LCL
- Less than Container Load. A consignment of cargo which is inefficient to
fill a shipping container. It is grouped with other consignments for the same
destination in a container at a container freight station.
- LIEN
- Retention of property until outstanding debt is paid
- LIFT-ON/LIFT-OFF (LO/LO)
- A charge made, usually by a container freight station or depot, for lifting
a container onto and/or off of a vehicle (e.g.: truck).
- LOGISTICS, INTEGRATED GLOBAL LOGISTICS
- Person of enterprise that facilitates trade, especially international trade,
from the seller to the buyer by arranging and/or providing all necessary services
including all or some of: ordering, order tracking, packing, domestic & international
freight forwarding and shipping, customs clearance, warehousing and distribution,
domestic delivery, landed into store costing (unit costing), etc. See also
TRADE FACILITATORS.
- LOI
- Letter of indemnity.
- LONG TON (LT, L/T)
- Imperial ton of 2,240 pounds = 1016 kg.
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M
- M3 (or CBM)
- Cubic metres
- MARINE INSURANCE
- Specialized insurance of ships and/or cargo against risks incidental to
a marine adventure. Usually covered by a marine insurance policy with extra
clauses to deal with specific risks.
- MATES RECEIPT
- See INTERIM RECEIPT. MFN
- Most Favored Nation.
- MILLENNIUM BUG
- Many systems, especially computers and equipment with embedded computer
chips, are likely to fail on 01/01/2000. This is because such equipment stores
years by the last 2 numbers (e.g.: 1999 = 99, 2000 = 00) and many computers,
etc., are programmed to understand the year 00 to be 1900, etc. See also Y2K.
- MIRAID
- Maritime Institute for Research and Industrial Development (USA).
- MOA
- Memorandum of agreement.
- MORTGAGE
- Loan issued against some security
- M/T
- 1. Empty Container
- 2. Metric tons (1000kg = 2,204 lbs.)
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N
- NONCONTIGUOUS
- A country which has no access to a port.
- NVO, NVOCC
- Non-vessel-operating common carrier, a ships agent, conducts business for
the ship but does not operate the vessel.
- NUW
- National Union of Workers (Australia). Replaces, in part, the former Stormen
and Packers Union (SPU).
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O
- OCEAN WAYBILL
- A document, issued by a shipping line to a shipper which serves as a receipt
for the goods and evidence of the contract carriage.
- OECD
- Organization for Economic Cooperation and Development. The Maritime Transport
Committee is part of this organization.
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P
PALLET
- A flat tray, generally made of wood but occasionally of steel, on which
goods particularly those in boxes, cartons or bags, can be stacked. Its purpose
is to facilitate the movement of such goods, mainly by the use of forklift
trucks. Note that were goods are presented for shipment packed onto a pallet,
then the number of packages = 1, not the number of packages on the pallet.
- PER CONTAINER RATE
- Rates and/or changes on shipments transported in containers or trailers
and rated on the basis of the category of the container or trailer.
- PI
- Professional Indemnity Insurance.
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Q
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R
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S
SAECCI
- South Australian Employers Chamber of Commerce and Industry. Peak employers
body in South Australia representing in excess of 3,500 businesses.
- SBC
- Small Business Coalition of Australia.
- SHEX
- Sundays, holidays excluded (USA)).
- SHINC
- Sundays, holidays, included
- SHIP'S AGENT
- A person or firm who transacts all business in a port on behalf of shipowners
or charterers. Also called shipping agent; agent.
- SHIPPERS
- Individuals or businesses who purchase transportation services or commodities.
- SHIPPER'S COUNCIL
- An organization of shippers formed to collectively and services with the
conferences of ship operators.
- SHORT TON
- 2,000 pounds (USA)
- SIDE-LIFTER
- A skeletal road trailer, normally drawn by a prime-mover, which is fitted
with lifting equipment (cranes) to lift an ISO shipping container on/off itself.
t may be of either 20' or 40' configuration of be adjustable for either.
- SKELETAL TRAILER
- A road trailer, normally drawn by a prime-mover, which has no floor but
only struts fitted with locks to hold ISO shipping containers in either 20'
and/or 40' configurations.
- SME
- Small to medium size enterprises. Used to describe businesses with up to
about 100 employees.
- SOFT CURRENCY
- Currency which is not fully convertible to all currencies but only to some
other soft currencies. See also HARD CURRENCY.
- STACKING AND HANDLING
- A charge, usually made by a stevedoring authority, for handling cargo being
unloaded from a ship (Australia).
- SUBJECT TO
- Depending upon as a condition
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T
- TBN
- To be named/to be nominated
- TEMPERATURE-CONTROLLED STORAGE
- A storage facility in which the temperature is controlled to a required
level for the storage of temperature-sensitive commodities, which may include
freezing through to cool.
- TEU
- Twenty Foot Equivalent Unit - shipping containers. 1 x 20' container = 1
TEU, 1 x 40' container = 2 TEU, 2 x 40' containers = 4 TEU, etc. See also
FEU.
- TIME BAR
- Time after which legal claims will not be entertained.
- TONNE
- Metric: 1 tonne = 1,000Kg.
- TRADE FACILITATOR
- Person of enterprise that facilitates trade, especially international trade,
from the seller to the buyer by arranging and/or providing all necessary services
including all or some of: ordering, order tracking, packing, domestic & international
freight forwarding and shipping, customs clearance, warehousing and distribution,
domestic delivery, landed into store costing (unit costing), etc. See also
LOGISTICS.
- TRADING TERMS
- A term used in a contract of sale to indicate what the sale price includes
and excludes e.g.: EXW, FOB, CIF. These terms are often interpreted differently
between the various trading nations and, sometimes, between various trades.
Accordingly, the ICC has devised a set of internationally accepted, fully
defined trading terms in order to minimize these differences of interpretation
of such terms, for use by any company, person, etc. When used in a Contract
of Sale it normally is followed by the revision date to ensure the parties
are aware of the correct edition (E.G.: FAS Rotterdam Incoterms 1995). Includes
EXW, FAC, FAS, FOB, CFR, CIF, CPT, DAF, DES, DEQ, DDU, DDP.
- TWU
- Transport Workers Union (Australia).
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U
- UTLC
- United Trades and Labour Council. The peak body of trade unions in Australia.
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V
- VALUE ADDED
- A term for the increment added by each partry involved in the manufacture
of a particular item, becoming part of its price.
- VENDOR
- A person selling goods
- VERTICAL INTEGRATION
- The linking of a number of business concerns, each operating at a different
stage in the same industry. This is opposed to horizontal integration, being
the linking of a number of business concerns at the same stage.
- VESTED INTEREST
- Interest now in being, as opposed to interest anticipated. It is a term
frequently used with regard to the title of goods or land. Property is said
to vest when the absolute owner is finally established and that owner's interest
is in no way capable of being terminated by anyone but that owner.
- VISIBLE IMPORTS AND EXPORTS
- Goods actually shipped or otherwise sold as opposed to invisible imports
or exports which are services earning or costing foreign exchange, e.g.: freight,
insurance, etc.
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W
- WARRANTY
- A statement of fact in a contract, either expressed or implied. If it is
unfulfilled the injured party cannot repudiate the contract but may be able
to claim damages. The difference between a warranty and a condition is that
a condition is fundamental to a contract, whereas a warranty is not.
- WITHOUT RECOURSE
- When added to a Bill of Exchange (Draft), these words indicate that the
holder has no recourse to the person from whom he took the Bill, should it
not be paid. It often appears after an endorsement.
- WHARFAGE
- A charge, usually made by a port authority, for cargo being unloaded from
a ship. See also APCA, BSRA.
- WORK STUDY
- A study concerned with improving work methods and deciding how long particular
jobs should take. Its aim is to reduce effort involved in various operations,
to organize labour in the most economical manner and to provide data for planning,
estimating and financial incentive schemes.
- WORKING DAYS
- Days on which work is normally done. In Australia this normally means Monday
- Friday.
- WORKING DIRECTOR
- A Company Director who works for the company in a full or part-time capacity.
This term is mainly used for taxation purposes.
- WORLD BANK
- International Bank for Reconstruction and Development
- WRIT
- A legal document summoning a person to attend at a certain place or to perform
a certain act. There are penalties for failure to comply.
- WRITTEN DOWN VALUE
- An accounting term for the cost or valuation of an asset, less the written
-off depreciation. It is no indication of the present selling price or true
valuation of that asset.
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X
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Y
- Y2K
- Year 2000. Many systems, especially computers and equipment with embedded
computer chips, are likely to fail on 01/01/2000. This is because such equipment
stores years by the last 2 numbers (e.g.: 1999 = 99, 2000 = 00) and many computers,
etc., are programmed to understand the year 00 to be 1900, etc. See also MILLENNIUM
BUG.
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