TRAINING MANUAL FOR

EXPORTERS
TRAINING FOR QUEENSLAND EXPORTERS 2005 ***** AIR & SEA FREIGHT COUNCILS OF QUEENSLAND

EXPORT P
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EXECUTIVE SUMMARY…………………………………………………………...3
1 CONTRACTS, FINANCE AND PREPARATION......................................4
1.1 QUOTING AND INCOTERMS .................................................................... 4
1.2 FINANCE.............................................................................................. 5
1.2.1 Export incentives ........................................................................5
1.2.2 Methods of payment...................................................................7
1.2.3 Risk and risk management.........................................................8
1.2.4 Marine Insurance........................................................................9
1.2.5 Costing .....................................................................................10
1.3 PACKING AND PACKAGING ...................................................................11
2 DOCUMENTATION................................................................................ 12
2.1 AUSTRALIAN G OVERNMENT DOCUMENTS ..............................................12
2.2 COMMERCIAL DOCUMENTS .................................................................. 13
2.3 TRANSPORT DOCUMENTS ....................................................................14
2.4 IMPORTING COUNTRY DOCUMENTS ......................................................15
2.5 SENDING SAMPLES OVERSEAS.............................................................15
2.6 SPECIAL DOCUMENTS TO TRADE OR INDUSTRY......................................18
3 TRANSPORTATION ..............................................................................20
3.1 SEA FREIGHT .....................................................................................20
3.1.1 LCL – Less than Container Load ..............................................20
3.1.2 FCL – Full Container Load .......................................................21
3.1.3 Break-bulk and Out-of-Gauge (OOG).......................................21
3.2 AIRFREIGHT .......................................................................................22
3.2.1 Unitised ....................................................................................22
3.2.2 Loose........................................................................................ 23
3.2.3 Charter .....................................................................................23
4 AUSTRALIAN CUSTOMS’ ROLE..........................................................25
5 FREIGHT FORWARDERS’ & CUSTOMS BROKERS’ ROLES ............26
6 APPENDICES ........................................................................................ 27
6.1 LIST OF I NCOTERMS 2000 AND DETAILED EXPLANATIONS .......................28
6.2 VARIATION OF INCOTERMS AND US PRACTICE ......................................32
6.3 PACKAGING / PACKING / PALLETS ........................................................ 33
6.4 DANGEROUS G OODS CLASSES ........................................................... 34
6.5 SEA FREIGHT CONTAINERS .................................................................. 35
6.6 AIRFREIGHT CONTAINERS ...................................................................36
6.7 COMMONLY USED INTERNATIONAL TRADE TERMS .................................. 38
6.8 RESOURCES AND FURTHER INFORMATION ............................................53
6.9 INDUSTRY SPECIFIC INFORMATION .......................................................74
6.9.1 Guide to Exporting Wine........................................................... 74
6.9.2 Boat Building ............................................................................76
6.9.3 Guide to Exporting Cosmetics ..................................................77
6.9.4 Guide to Exporting Works of Art...............................................79

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TRAINING FOR QUEENSLAND EXPORTERS 2005 ***** AIR & SEA FREIGHT COUNCILS OF QUEENSLAND

ACKNOWLEDGEMENTS

THE COUNCILS ACKNOWLEDGE THE EXPERT ASSISTANCE OF MRS

HEIDI HVAM (QUT POSTGRADUATE STUDENT IN INTERNATIONAL
BUSINESS) AND THE MANAGEMENT OF OBM INTERNATIONAL TRADE
SERVICES PTY IN COMPILING THIS EXPORTERS GUIDE. ALSO TO BE
ACKNOWLEDGED ARE THE MANY LOGISTICS ORGANISATIONS WHO
CONTRIBUTED TO THE INFORMATION CONTAINED IN THE GUIDE.

WE ALSO ACKNOWLEDGE THE SUPPORT OF

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Executive Summary
Exporting is the process, which delivers your product or services to a
consumer or client in a foreign market. The principles, practices, and
techniques of domestic and international marketing have much in common. A
company, which is successful in its market segment in Australia, should have
the basic abilities and qualities to be successful in an export market. The
biggest threat to potential success is to make the assumptions that the key
factors, which determine your success in Australia, will be the same in an
export market.

The purpose of this manual is to give exporters an accurate and detailed

explanation on many of these international trade activities in which they will
become involved as their overseas sales increase.

The manual covers air and sea freight, packing, packaging, classification of
dangerous goods and speciality industries such as wine, works of art, and
cosmetics. Documentation governs the whole area of export practice. It is
therefore vital to ensure the accuracy of your export documentation. Missing
or incorrectly completed documents can impact on your export order across
the supply chain.

Correct documentation reduces the chance of delay in shipment and delivery,

minimises customs clearance problems and, importantly, serves as evidence
of ownership. In this manual the five sets of documentation required for
successful exporting are clearly explained.

Naturally, no exporting transaction is successful until the exporter receives

payment. This manual will discuss the intricacies of contracts, finance and
preparation and, in particular, Incoterms 2000 and methods of payment
whether that be bills of lading or documentary collections. But with any
commercial transaction there are risks associated. Various ways to manage
these are outlined.

Effective transportation of an exporter’s goods or services is vital to the

success of the final transaction. This manual explains many of the acronyms
and terminology used in air and sea freight. A complete understanding of the
transportation modes is imperative for successful exporting.

Most successful exporters use the services of a freight forwarder and a

customs broker, who are vital to the operations of successful exporting
companies. An explanation is given in this manual of the roles of both freight
forwarders and customs brokers.

The manual has been compiled with the expert assistance of freight
forwarders and is a valuable guide to any company wishing to move into the
export market.

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1 Contracts, finance and preparation

There are many preliminary issues to take into account and decisions to make
before starting to export. Seeking professional advice is invaluable before
committing to contracts and financial agreements. While exports can generate
high profits for a company, a sound financial base is essential to minimise the
risk of investing in overseas projects. Thorough preparations, as well as highly
committed management, are crucial to a company’s export success.

1.1 Quoting and Incoterms

Quoting in export transactions requires clearly stated terms and conditions to
avoid uncertainty and to deal with unexpected circumstances. Quoting must
define accurately what is included in the total price, the agreed method of
payment and currency used in the transaction, as well as the type of
transport.

Choosing the method of payment is influenced by many considerations,

among which are; type of goods and its value, country of destination and
possible exchange restrictions, and length and nature of the relationship
between the exporter and the importer. The mode of transport is essential to
include in a quote or a contract.

Freight quotes are often given in USD, AUD or both (e.g. local charges in
AUD and freight charges in USD). The correct use of Incoterms is an
essential requirement for every shipment as it defines each party’s risk and
responsibilities.

Incoterms
Incoterms 2000 are the standard trade definitions most commonly used in
international contracts. The three letter acronyms indicate which party is
responsible for the different costs and functions, as well as the value of which
duty or tax should be calculated. A detailed description of each Incoterm is
provided in the International Chamber of Commerce’s publication ‘Incoterms
2000’. The named place and the edition of INCOTERMS must be stipulated
for it to be valid, e.g. “FOB SINGAPORE INCOTERMS 2000”. The following
points are worth noting;
 Incoterms are of themselves not associated with the terms of payment
of a contract of sale.
 Incoterms are concerned with the rights and obligations of the parties
involved in the delivery of goods in an export sale, however, they do
not cover the contract of carriage.
 As Incoterms do not cover all aspects of a contract of sale, using
standard sales contracts is recommended to cover all possible
scenarios (such contracts available at www.iccwbo.org).

Many factors may affect the choice of Incoterm, such as the level of
development (infrastructure, transport routes and the quality of port/airport
services) and protectionist policies in the country of destination.

More details on Incoterms are provided in Appendix 6.1 and 6.2.

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For more information on Quoting and Incoterms:

Incoterms 2000 are the official rules for the interpretation of trade
terms. It is strongly recommended that this book is used as an
Incoterm reference. Incoterms 2000 can be obtained from
http://www.iccwbo.org

1.2 Finance
Starting to export will require financial investments and commitment as well as
impose risks on your company. Many additional aspects need to be taken into
account before establishing business in overseas markets. Austrade suggests
the following steps to be taken to address financial issues1:
Discussing your plans with the international department of your bank to
ensure that you are in a position to finance your export investigations and
market entry.
Gaining an understanding of the advantages and disadvantages of various
international payment methods and the terms used in international trade.
Discussing costing for export with your accountant, including the issue of
marginal costing.
Determining transport and insurance costs with help from a customs
broker or forwarding agent who will also help establish packaging needs
(and costs).
Developing an understanding of options for quoting buyers for export
business. Common quotation modes will include FOB (free on board) and
CIF (cost of goods plus insurance and freight).
Where possible, applying for tax concessions on approved projects. This
assists the companies win contracts against international bids.

1.2.1 Export incentives

There are a number of schemes offered by government bodies to assist
exporters. Following is a brief outline of some of the more commonly used
schemes.

Duty Drawback
The Duty Drawback system enables exporting companies to obtain refunds of
Customs Duty paid on goods which have been imported and which are
subsequently exported.

Drawback is payable when:

the goods are exported in the same condition as when imported
the goods are subjected to a process or treatment after importation and
then exported
the imported goods are incorporated into other goods that are exported

1
Austrade 2005: Preparing your business for export - http://www.austrade.gov.au
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Tradex Scheme
The Tradex Scheme provides relief to exporting companies via an up-front
exemption from Customs duty and GST on imported goods intended for re-
export or to be used as inputs to exports. The Scheme removes the need to
‘drawback’ these charges after export.

Eligibility for entry into the Scheme extends to persons or organizations who
intend to import goods, whether these are to undergo industrial processing or
not, and which either:
comply with the requirements of Australia's Duty Drawback Regulations; or
are included in an exempt class of goods (goods that are exempt from
compliance with the Duty Drawback Regulations); and

in respect of these goods, they must be:

exported within one year after their importation; and
subject to appropriate record-keeping and accounting systems until they
are exported.

Export Market Development Grants (EMDG)

The Export Market Development Grants (EMDG) Scheme is designed to
assist Australian residents in the overseas marketing of their goods, services,
and industrial property or know how, which are substantially of Australian
origin. Its aim is to encourage Australian exporters to seek out and develop
overseas markets for goods and specified services.

Claimants are eligible for a grant of 50% of the eligible promotional

expenditure incurred in a grant year in excess of a $15,000 minimum
threshold (first time applicants can combine two years expenses). The
minimum grant is $5,000, and the maximum is $150,000.

New Exporter Development Program (NEDP)2

The New Exporter Development Program (NEDP) is focused on delivering
initiatives aimed at identifying and developing Queensland’s potential
exporters and assisting them to become sustainable exporters. The
Queensland Government in cooperation with Austrade offers a package of
services designed to assist small and medium sized companies develop their
business overseas and make their first export sale. The Queensland
Government has partnered with Austrade in the integrated service delivery of
initiatives to assist potential new exporters. The Air and Sea Freight Councils
of Queensland and industry associations are also partners in the delivery of
NEDP programs.

The Queensland Government delivers business assistance through the Trade

Division and an extensive network of regional State Development and
Innovation Centres and Queensland Government Trade and Investment
Offices. These offices provide practical business solutions to client’s business
development needs and will assist clients to become new and sustainable
exporters.

2
This information is extracted from Queensland Government’s website. See this site for more facts.
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Free Trade Agreements

Australia’s Free Trade Agreements (FTAs) with various countries offer new
opportunities of market access to many exporters, although some agreements
are still only in the initial stage. Australia has signed FTAs with New Zealand,
Singapore and the United States and Thailand. Negotiations on an Australia-
ASEAN-New Zealand FTA are scheduled to start in 2005. Additionally, there
are ongoing feasibility studies with Japan, as well as negotiations with China,
Malaysia and UAE (United Arab Emirates). Due to the negotiations and
recently implemented agreements, detailed information on each country and
professional advice should be sought close to the time of export.

For more information on export incentives:

Austrade’s website provides a guide to export grants, trade events,
export opportunities etc: http://www.austrade.gov.au - go to ‘For
Australian Exporters’
AusIndustry’s website displays a list of various grants, concessions,
incentives, funds and programs that companies can apply for; some
of which are industry specific: http://www.ausindustry.gov.au - go to
‘AusIndustry products’
Information about Australia’s Free Trade Agreements can be
accessed on Department of Foreign Affairs and Trade’s website
http://www.dfat.gov.au or http://www.fta.gov.au
Queensland Government’s website provides information on grants,
incentives and the Export Awards: http://www.export.qld.gov.au/
Trade consultants are invaluable in the process of obtaining grants

1.2.2 Methods of payment

An export offer of sale should stipulate the terms of payment. The four main
methods of payment are listed below, but it should be noted that variations
may be encountered.

Pre-Payment
With this method, payment is remitted to the seller prior to the shipment of
goods. Documents relating to the shipment are forwarded by the seller
directly to the buyer and not through the banking system.

Documentary Credits / Letter of Credit

A documentary credit is a (conditional) promise of payment issued by a bank.
It provides a degree of certainty of payment as the financial standing of an
individual or firm is replaced by the financial standing of a bank. The bank
ensures that all terms and conditions have been met and payment is made in
accordance with the terms of the credit.

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Documentary Collections
* Documents Against Payment
Using this method, the exporter retains control of the goods until payment is
received. The exporter presents shipping documents to his bank with
instructions to release the documents only after the buyer’s payment.

* Documents Against Acceptance

Using this method, the exporter loses control of the goods and relies on the
buyer’s credit standing for payment of the bill on its maturity date. The
exporter presents shipping documents and a bill of exchange (Draft) to his
bank, and the funds are remitted to the exporter upon the buyer’s payment at
maturity of the draft.

Open Account
Selling on open account involves payment at some future, unspecified time
after the goods have been delivered. As with the pre-payment term,
documents relating to the shipment are forwarded by the seller direct to the
buyer and not through the banking system.

1.2.3 Risk and risk management

Types of risk
International trading has a reasonably high level of risk due to geographical
distances and varying economic, political and cultural conditions.

Credit risk is the risk of the seller not receiving payment for the goods, due to
fraud, insolvency or the buyer’s unwillingness to accept the goods. It can be
reduced by; choosing the correct payment method, checking the financial
strength of buyer, and arranging credit risk insurance.

Exchange risk occurs when the value of currencies increase or decrease

between the time of quotation and the time of settlement. The risk can be
reduced by; entering into a forward exchange contract, conducting a foreign
currency account, offsetting export receivables against import payables, or
selling in Australian dollars.

Transfer risk occurs when the buyer is prevented by currency or trade controls
in his country from settling his financial obligations to the supplier. The risk
can be reduced by; arranging prepayment and transfer risk insurance.

Transit risk occurs when goods are transported overseas. Goods may be
stolen, lost or damaged in transit. The risk can be reduced by; ensuring
packaging and packing comply with the mode of transport and with carrier’s
recommendations/regulations, and consulting marine insurance agencies.

Country risk – political and legal – arises for many different reasons, such as
changes in government regulations, political instability, differences in law, and
the level of corruption. It can be reduced by; consulting trade indemnity
insurance companies and/or Austrade for specific country risk assessment,
and consulting export credit insurance agencies.
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Organizational risk occurs through lack of expertise and knowledge within the
organization, and/or cultural differences between the exporter and the buyer.
It can be reduced by ensuring the following aspects of your and the buyer’s
organizations function to a satisfactory level; the interrelationships among
people, knowledge, tasks, technology, as well as organizational goals.

*******

Export Finance and Insurance Corporation (EFIC) is Australia’s export

credit agency. It has sold its short-term credit insurance business but still
offers Medium-term Payment Insurance (2 years or longer) as well as Political
Risk Insurance. For short-term credit insurance, one of the following
organizations can be contacted; Atradius and QBE Insurance Group.

*******

Assessing export risk

It is recommended that the following aspects be taken into consideration
when assessing exporting risk3;

Product/industry attributes
Perishability – quality can be 
Specifically manufactured for
challenged buyer/country – affects resale
Conversion cycle affects the 
Your buyer’s expertise in your
payment terms a buyer may need product
End use of product

The market/country
Currency convertibility 
Banking stability
Political stability 
Legal system
Import controls 
Debt default/reschedule

Your buyer
Financial position 
Market reputation
Trading history 
Previous defaults

1.2.4 Marine Insurance

The contract terms (Incoterms) will determine whether you are responsible for
the transit insurance of the goods.

Modern vessels and transportation systems have reduced many of the

hazards that existed in the past. However, freight is still exposed to serious
damage or loss and transit insurance remains an essential component of
good risk management.

There are three main types of policies that may be arranged; single transit,
open policy and annual policy.

3
Austrade New Exporter Coaching Clinic
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
Single Transit - insures each shipment separately.

Open Policy - covers every shipment within the terms and limits of the
policy, operates from an agreed date and continues until cancelled by the
shipper or the insurance company.

Annual Policy - provides automatic cover for all shipments specified by
the policy. Unlike an open policy, the annual policy expires at the end of 12
months and must be renewed.

Marine insurance can be obtained from several different sources; directly from
your insurance company, from insurance agents and from insurance brokers.

For more information on Finance, Methods of Payment and Risk:

Atradius credit insurance and credit management company:
http://www.atradius.com/au/
AusIndustry: http://www.ausindustry.gov.au/
Australian Business Limited: www.australianbusiness.com.au
Australian Industry Group: http://www.aigroup.asn.au/
Australian Institute of Export: http://www.aiex.com.au/
Australian Government – Small Business:
www.smallbusiness.gov.au
Business Entry Point – An Australian Government Initiative:
http://www.business.gov.au/Business+Entry+Point/
Department of Industry, Tourism and Resources:
www.industry.gov.au
Export Finance and Insurance Corporation (EFIC) – Australia’s
export credit agency: http://www.efic.gov.au/
Invest Australia: http://investaustralia.hyperlink.net.au/
QBE Insurance Group: http://www.qbe.com.au
Queensland Government - www.qld.gov.au
*Department of State Development and Innovation:
www.sdi.qld.gov.au
*Commerce Queensland, Queensland's Chamber of Commerce
and Industry: www.commerceqld.com.au
*Trade and International Operations Division:
http://www.export.qld.gov.au/

1.2.5 Costing
An export transaction brings about many extra costs in comparison to a
domestic sale. In general, export costing should include the following;


Cost of production, e.g. administration, labour, manufacturing (additions
and modifications to products), financing and transportation costs.

Cost of distribution, e.g. packaging, packing, labelling and marking
(special requirements according to importing country regulations), local
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transport, insurance, international freight costs, overseas landing costs,

customs clearance and duty, and, finally, delivery to the importer and
overseas agent’s commissions.

Cost of marketing, e.g. travel/accommodation, communication,
translation, promotion, professional fees and agency costs.

Currency costs, e.g. foreign currency charges/bank charges, foreign
exchange risk, and protection against exchange rate fluctuations.

Credit costs, e.g. cost of providing credit (time to manufacture, transport,
time to receive payment), credit risk insurance costs, bank charges and
guarantees.

Special costs; occasionally special costs are applicable to certain
industries.

Using a costing sheet is advisable to ensure all costs are included in order to
produce a correct quotation.

1.3 Packing and packaging

Specific packaging and marking requirements exist in many foreign countries.
It is essential that exporters are fully aware of these requirements before the
goods are exported from Australia. Where and how the goods will be
transported is an important consideration when deciding on type of packaging
and packing. The package, pallet, and container should be fully utilised, both
to be cost effective and to protect the goods.

It is important that the exact contents of each package are recorded when
packing, and a detailed packing list given to the buyer with other documents.
There are also minimum labelling and marking requirements for each
destination country. Information regarding these requirements must be
obtained before exporting the goods. Some products used in packing goods
(e.g. wood or straw) may require quarantine approval or treatment. Certain
goods, such as chemicals, may be obliged to be marked with hazardous
labels.

See Appendix 6.3 for more information on packing and packaging, and
Appendix 6.4 for details on dangerous goods classes.

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2 Documentation
The amount of documents required for a shipment can be quite daunting for a
new exporter. While there are initiatives to transfer more of this information
electronically, many documents are still required as hard copies. The correct
and timely completion of documents is crucial to many aspects of the delivery.
This ensures the safety of the goods, avoidance of delays, and prevention of
overpayment or underpayment of duty.

2.1 Australian Government documents

Export Declaration Number (EDN) for Customs

All export shipments from Australia with an FOB value of AUD 2000.00 or
more must be cleared for export by the Australian Customs Service. This
function is generally carried out by your freight forwarder. It involves the
electronic reporting to Customs of specific details such as; exporting
vessel/aircraft, port of discharge and destination, description of goods and
AHECC - the Australian Harmonized Export Commodity Classification (used
to classify goods).

The Australian Customs Service issues an Export Declaration Number

(EDN) which must be clearly stated on all transport documents accompanying
the goods as the cargo will not be accepted without it.

Export permits
Certain classes of goods exported from Australia, especially primary produce
and foods, require application to be made to a number of Government
departments before they can be exported. Up-to-date information on this can
be obtained from Australian Customs or a freight forwarder.

AQIS documents
Australian Quarantine and Inspection Service (AQIS) controls and assists
export of goods from Australia. Required documentation varies depending on
the nature of your product, packaging, packing etc. AQIS’ quarantine and
export services provide detailed information on these regulations.

Dangerous Goods Declaration

A declaration must be completed by the exporter for shipments of dangerous
goods. It must state that the goods are; properly classified and packed,
marked, labelled, and are in a satisfactory condition for transportation.
Dangerous Good Declaration forms exist in different formats.

For more information on Australian Customs' role in export, see Section 4.

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2.2 Commercial documents

Purchase order
The purchase order is a request from the buyer to the seller requesting supply
of specified goods. It can be a request by telephone, or a request in writing,
transmitted by mail, facsimile or e-mail. On receipt of the order request it is
important to check details to ensure that all requirements can be met.

Order confirmation
On receipt of the buyer’s order, the seller should issue confirmation of his
ability and willingness to supply the items ordered. Ideally, confirmation
should be on the supplier's letterhead or document, re-stating all the
information pertinent to the order and agreeing to supply as ordered.

Pro-Forma invoice
A sample invoice provided by an exporter prior to shipment advising the buyer
the price, quantity, weights and measurements and description of the goods
to be despatched. The pro forma invoice thus acts as a contractual offer,
which when accepted by the receipt of a purchase order from the buyer,
completes the principal legal requirements for the formation of a contract of
sale.

Commercial invoice
The document presented by the seller to the buyer for payment of the goods.
A good international commercial invoice should contain all the information
about the consignment e.g. a complete description of the goods, unit and
extended prices, net and gross weights, cubic measurements, terms of sale
and payment (Incoterms), plus any other clauses or information required by
the terms of a documentary credit or importing authorities.

Bill of exchange (or bank draft)

An unconditional order used by exporters to obtain some security of payment
for the goods when dealing with overseas buyers. The exporter as Drawer
draws the Bill on the importer (Drawee) who pays at a fixed time to the Payee
(normally the exporter’s bank). The Bill normally accompanies documents
through the banking system and is then referred to as a documentary Draft.

Packing list
Packaging and marking must be in strict accordance with the order and, if
applicable, the Documentary Credit. The packing list should make reference
to; buyer’s order, seller’s invoice, number of packages, contents and shipping
marks of each package, and container and seal number.

A "Packing and Weight Note" may be required by the buyer. In this case the
document should include the net and gross weights plus measurements of
each package. The packing list should not show unit prices or invoice value.

Marine insurance certificate or policy

Marine insurance certificates can be prepared by the exporter’s insurance
company or broker. Such certificates are normally in a standard aligned

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format to match the aligned documentation system. Normally claims must be

capable of being settled at destination. Therefore the certificate or policy
should be negotiable, so the buyer can make the claim. This is done by
endorsing the reverse of the certificate / policy with the exporter’s company
stamp and signature i.e. “ blank endorsement”.

2.3 Transport documents

Shipper’s Letter of Instruction (SLI)

Document provided by the exporter to the freight forwarder or carrier to
communicate the relevant requirements for the completion of the shipping
documents. It contains declarations relating to Dangerous Goods and Security
and must be signed by the exporter. The SLI normally accompanies the
goods to the forwarder’s premises. By providing clear instructions, the
exporter avoids time consuming, unnecessary communication and has a
written record of instructions given.

Forwarding Instruction / Interim Receipt

These documents are only used for sea freight. They are usually the same
document, thus will be explained accordingly.

The Forwarding Instruction / Interim Receipt is prepared by the exporter or the

freight forwarder and is supplied to the shipping company to enable
preparation of the Bill of Lading. If the Forwarding Instruction / Interim
Receipt is used to deliver cargo to a wharf or container terminal, it must show
the Export Declaration Number (EDN) as well as any relevant permits.

Bill of Lading (B/L)

The bill of lading is the transport document commonly used for sea freight
shipments. It is a legal document under which cargo is accepted for carriage
on board a vessel. It acts as a receipt acknowledging that the goods have
passed from the exporter into the care of the carrier (ship owner or shipping
company). The Bill of Lading serves two purposes:
It is a document of title to the goods. The consignee may take delivery of
the goods at destination, or transfer them to another person by
endorsement of the Bill of Lading; and
It is evidence of the contract of affreightment between the exporter and the
carrier

On it will appear virtually all the information contained in the Interim Receipt /
Forwarding instruction.

The shipping line issues a “Master” Bill of Lading which covers the full
container. Other Bills of Lading are “house” Bills of Lading issued by freight
forwarders. “House” Bills of Lading cover individual shipments which may
have been loaded with other exporters shipments into one container packed /
consolidated by the freight forwarder.

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Pre-Receival Receival Advice (PRA)

The PRA replaces the previous ERA (Export Receival Advice). The main
difference is that the PRA is electronic, whereas the ERA was a paper
version. A Pre-Receival Advice for each container is prepared by the exporter
or the forwarding agent before delivery of the goods to the wharf. The PRA
shows details regarding the container and contents and must bear a valid
Customs Authority Number (CAN) or state an exemption code. The PRA is
presented electronically to the Container Terminal or Stevedore. This
information is then validated against the shipping line’s booking list as well as
details registered with Australian Customs.

Air Waybill (AWB)

This document is a waybill (consignment note) for transport by air. It is issued
by the airline, its agent or a freight forwarder as a receipt for the goods and as
a contract of affreightment. It is however, NOT a document of title and is not
negotiable. As for bills of lading, the air waybill issued by the airline or its
agent is referred to as a "master" air waybill, and a waybill issued by a
forwarder on its own form to each individual exporter for their goods in a
consolidation is called a "house" air waybill.

2.4 Importing country documents

Import Licence
Customs or other government authorities in many countries apply restrictions
(or prohibitions) on certain imported goods to assist development or protect
specific industries. To avoid delays, additional costs, and the possibility of
having to return the goods to Australia, exporters must fully investigate the
generic import restrictions applicable to the destination country, and any
restrictions applicable to their specific products.

Quarantine Declaration and Fumigation Certificate

Quarantine Declarations and Fumigation Certificates must be presented in
accordance with the requirements of the individual destination country. Details
of overseas country quarantine requirements can be obtained from reputable
freight forwarders or from the Austrade website.

Certificates of origin
A certificate of origin is a document issued by the Chamber of Commerce and
similar organizations, which certifies the goods described to be the stated
(normally national) origin. It is often required by importing customs authorities
as part of the inwards clearance procedures, for instance to grant preferential
tariff treatment.

2.5 Sending samples overseas

Many exporters are requested to send samples to an overseas buyer before

an export transaction can be concluded. Provided the value of the sample is
less than $2000 it does not have to have an Export Customs Approved
Number (CAN). If the samples are small enough and light enough they can

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TRAINING FOR QUEENSLAND EXPORTERS 2005 ***** AIR & SEA FREIGHT COUNCILS OF QUEENSLAND

be sent through Australia Post or with one of the international couriers like
DHL or FedEx. Exporters should ensure that the relevant description of the
goods is ample and clearly indicates what it is and that the dangerous good
declaration is complete. A commercial invoice must accompany the goods
but it is important that this commercial invoice is filled out completely and
accurately. Exporters should not use terms like “sample only of no
commercial value”. Check with your international courier.

ATA Carnét

A Carnét is an international Customs document that is used for the temporary

duty/tax free entry of goods eligible under international conventions. It is
effectively, a passport for eligible goods in the countries that subscribe to the
relevant conventions. A Carnét consists of a number of exportation and
importation voucher pages, and like a passport, the document is progressively
signed, stamped and acquitted by the relevant Customs administration on
arrival and departure of the goods. As the Carnét is designed to facilitate
cross-border movement of the goods by replacing normal customs
documents, formal import and export entry declaration documents are not
required.

The primary condition is that the goods must be exported from the country of
temporary import within 12 months of importation. Failure to comply will result
in duties being payable to the government concerned. Payment of the sum
demanded is effected by the issuing Chamber of Commerce, who in turn
deduct the amount from the security deposit lodged with them by the Carnét
holder at the time of issue.

The Carnét eliminates the need to lodge deposits or bonds with Customs in
the countries of temporary importation. Conveniently, like a passport, it is
fitted with the necessary pages to provide for customs stamping and signing
at each port of importation and exportation. It is an important aid to exporters
who send overseas samples or other goods for display and return.

The Australian Customs Service manual on this subject states that an ATA
Carnét can be used for the temporary admission of goods into countries that
are signatories to the relevant conventions, where the goods meet the terms
of one of the following Customs Conventions:


Exhibitions, Fairs and Events

Commercial samples and advertising material

Scientific equipment

Professional equipment

Welfare material for Seafarers

Pedagogic (educational) material

Facilities for touring

Containers

ATA Carnéts cannot be used for private motor vehicles another Carnét known
as an FIA/AIT Carnét is required for this.

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Which goods are allowed to travel on an ATA Carnét?


Goods for International exhibitions, conferences and lectures and
events

Commercial samples and advertising equipment and materials

Jewellery, opals, diamonds

Scientific equipment and equipment for use by surgeons, zoologists,
archaeologists

Musical instruments, theatrical costumes

Professional sound and television equipment

Photography equipment and materials

Equipment for testing and maintaining machinery

Personal laptop computers for business use only

Procedure to obtain an ATA Carnét

To secure a Carnét an application form must be completed. Although a fax

copy of this application is acceptable in order to help facilitate the preparation
of the Carnét, the original form, duly signed, must be produced when
collecting the Carnét. This is because the signed application form constitutes
an undertaking on the part of the applicant (see application for further
conditions).

The undertaking imposes the following requirements upon the Carnét holder:

1. the goods must be returned to the country of issue

2. if they are not repatriated, the Carnét holder is liable for applicable
duties and taxes to the Customs authorities in the country of
importation

Describing Goods

All goods must be clearly described and where possible photos and all
catalogues must be provided. Items that are not easily described or identified
such as jewellery, camera equipment should be accompanied y photographs,
serial nos.

Protecting the ATA Carnét document

To prevent loss, the Carnét should at no time accompany the goods

unattended. The Carnét should at all times remain in the possession of the
Holder unless being used by the Customs Broker/Forwarder in the customs
clearance process. If being cleared other than by the Holder a letter of
authority should accompany the Carnét.

In the case of goods moving by air, it is usual for the Carnét document to be
attached to the Air Waybill and sent in a document pouch on the same aircraft
as the cargo.
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Right to refuse issue

The Chamber of Commerce reserves the right, at all times, to refuse to issue
a Carnét to any applicant.

ATA Carnét Costs

The approximate cost of an ATA Carnét depends on the total export value,
the number of countries per trip, its origin, and any transiting countries, is
approximately $250-500. Check with your Chamber of Commerce or
Forwarding agent.

Steps in sending samples overseas

Step 1.
Investigate any special requirements for target market

Step 2.
Prepare sample for dispatch – take care with packing requirements as sample
may need to be returned

Step 3.
Arrange dispatch with Forwarder or Courier and ensure estimated arrival
times are communicated to your prospective client

Step 4.
Unless prior arrangements made to the contrary, ensure the goods are
Customs cleared and delivered so that your prospective client does not incur
any expense

Step 5.
Seek appraisal and feedback from your prospective client

Ref: Street Smart Guide to International Trade & Transportation R Burke 2003

2.6 Special documents to trade or industry

There are several documents and certificates relevant to trade and industry.
Information regarding these can be sought from sources such as Australian
industry associations, the importing country’s government departments,
Austrade, and freight forwarders. Examples of such certificates are;


Health Certificates/ Quality certificates (food & meat industry, hides &
skin industry)

Certificates of conformity – a statement that goods meet contract
specifications, when the contract, or the industry in the importing country,
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demands

Halal Certificates – required by certain buyers to certify animals have
been killed in accordance with religious beliefs and are disease free

Special certificates (SGS)

Laboratory analysis certificates

For more information on Documentation:

For specific up-to-date country information go to Austrade:
http://www.austrade.gov.au/
For customs requirements go to Australian Customs Service:
http://www.customs.gov.au/site/page.cfm
For quarantine requirements go to AQIS under the Australian
Department of Agriculture, Fisheries and Forestry:
http://www.affa.gov.au/content/output.cfm?ObjectID=3E48F86-AA1A-
11A1-B6300060B0AA00014&contType=outputs
Freight forwarders are experts in the documentation process of the
export transaction

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3 Transportation
There is a myriad of sea freight and airfreight services available from
Australia. On many routes there are several airlines/shipping lines offering
transportation; hence rates are often competitive. There are also a range of
different container services available. The nature of your goods and the
urgency of the delivery will determine which is best for your shipment.
Characteristics of sea freight and airfreight are described below; as are the
different containers sizes and services.

3.1 Sea freight

Sea freight is normally used for non-perishable and/or large consignments.
Transport by sea is typically inexpensive per unit; however, it is normally
much slower than airfreight. Five to six weeks sailing time is not unusual, and
transhipments frequently experience delays. Weather conditions can cause
loss and damage to cargo, especially to non-containerised and LCL cargoes.
Therefore packaging and packing the goods sensibly is crucial to ensure it
reaches its destination in a good condition.

There are mainly two sizes of shipping containers, 20 foot (6.1 m) and 40 foot
(12.2 m). The only difference between the two is the actual length. Both
containers are generally available as a dry container, a refrigerated container,
an open top container and a flat rack container. However, if you require a
special type of container it is wise to check availability in advance because
certain types are not always available in Australia. See exact measurements
of each in Appendix 6.5.

3.1.1 LCL – Less than Container Load

An LCL is a consignment, which by itself, is insufficient to fill a container. The
exporter will normally deliver the cargo to a container depot or freight
forwarder for consolidation with similar small consignments until there is
sufficient volume for a full container.

LCL rates are normally charged on the volume (1m) or weight (1000kg),
whichever results in the higher revenue. Most goods are charged on volume,
with dense products (e.g. minerals and liquids) charged on weight. The
volume is determined by multiplying the minimum dimensions of length, width
and height. Cylinders are calculated diameter multiplied by diameter multiplied
by height, i.e. the charge is for the square they occupy.

Shipping LCL cargo is generally riskier than shipping FCL. Increased handling
of the goods may make it vulnerable to damage or theft. However, good
packaging and professional packing services by the freight forwarders will
reduce or eliminate this risk. Both packing and unpacking of LCL shipments
normally happen at a separate packing depot where staff are used to handling
all kinds of cargo.

Although there is a great demand for LCL refrigerated services across

Australia, there are few such services available. This is mainly due to cross
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contamination and temperature compatibility issues, which makes refrigerated

LCL very expensive. Goods that need refrigeration must therefore be sent
either as FCL cargo, or, in the case of small shipments, as airfreight.

3.1.2 FCL – Full Container Load

An FCL shipment is a consignment completely filling one container normally
travelling from the shipper’s premises to the consignee’s premises, usually on
one Bill of Lading and intended to be unpacked by the consignee.

FCL rates are charged on a base rate (normally USD) plus surcharges. Local
wharf charges are usually charged in the local currency. An example of this is
the following;


Ocean Freight - USD 
Terminal Handling – AUD

Security – USD 
Port Service Charge – AUD

Bunker Adjustment Factor – USD 
LoadOn/LoadOff – AUD

Bill of Lading Fee - AUD

If goods are transhipped there could be additional destination port charges, as

well as an onforward charge (usually in USD). When comparing freight rates it
is important to make sure that you are comparing like with like, as some rates
for instance include the Bunker Adjustment Factor (BAF) in the base freight.

FCL shipments offer far greater security and maintain the integrity of the
product. The main reason for this is that FCL normally travels ‘door to door’
whereas LCL is handled many times before final delivery to the buyer.

Refrigerated FCL services are available to most destinations from Australia.

Most refrigerated containers can keep stable temperatures between –25 and
+25 degrees Celsius; however, some shipping lines offer equipment that can
keep even lower temperatures.

3.1.3 Break-bulk and Out-of-Gauge (OOG)

Loose cargo is often referred to as ‘Break-bulk cargo’. This is generally rated
in the same manner as LCL cargo (refer Section 3.1.1). Many types of cargo
are not compatible with the typical cellular ships, in which case using the
break-bulk service is necessary. These ships carry equipment to lift and move
heavy and awkward cargo. Break-bulk services are available to many
destinations.

OOG or Out-of-Gauge is cargo which is loaded into an open top container or

flat rack where any of the dimensions of the cargo extend beyond the
parameters of the container. Because this causes protrusion into adjacent
cells a surcharge is applied. The quantum of this surcharge depends on how
many slots are compromised and also varies from trade to trade.

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For more information on sea freight and containers:

Port of Brisbane Corporation: http://www.portbris.com.au/
Sea Freight Council of Queensland:
http://www.seafreightcouncils.com.au/
Australian Maritime Safety Authority: http://www.amsa.gov.au/
Freight forwarders and shipping lines can provide details and
advice on containers

3.2 Airfreight
Airfreight is generally the most expensive mode of transport. Since it is by far
the fastest option, it is usually the best solution for perishables and cargo that
is required urgently. Airfreight is usually very reliable, and major delays are
infrequent. Consignments tend to be small, although charter of a freighter is
fairly common for certain types of cargo (see Section 3.2.3).

To rate airfreight charges, the unit weight and/or volume must be established.
The airlines base their rates on the higher of the two. The volume is measured
as a volumetric kg (1 kg = 6000cc). Most countries use kg as the weight unit,
however, one should be aware that pounds are sometimes used in the USA.
However, this would only affect the domestic sector as all International rates
under IATA (International Air Transport Association) regulations must be
expressed per kg. It is also possible to get rates for a full pallet or container.
Additionally, there are often several surcharges applicable. Fuel and security
surcharges are common, though the rate fluctuates.

In cases where one exporter utilises a full container, loading the container can
be done either at the exporter’s or freight forwarder’s premises. However,
strict regulations with regard to weight and security generally require loading
to be done by professionals. See Appendix 6.6 for exact measurements of
containers.

3.2.1 Unitised
Freight forwarders usually collect cargo from different shippers and
consolidate the goods into full container units. The full container is then
shipped as one unit to the receiving agent overseas. At the destination, the
container is collected by the agent, unpacked at his premises, then delivered
to the consignee or made available for collection.

The International Logistics and Freight Forwarding Manual4 lists the following
pros and cons of unitised airfreight:

Consolidation services provide several benefits for shippers and airlines:

4
Burke, R. 2004. International Logistics and Freight Forwarding Manual. (2004, p.89-90)
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
The airline operates more economically and efficiently if they can
receive built up unit loads as opposed to receiving many small
shipments from a multitude of shippers.

The lower cost structure involved means the airline can offer a much
lower freight price than normal to the consolidation forwarder. The
forwarder can then offer a lower price to the shipper than what would
otherwise be available directly from the airline.

The consolidation method can provide a greater degree of safety and
security against pillage when compared to moving loose cargo through
airport handling systems.

A dedicated forwarder will usually have a greater interest in the client’s
cargo than will an airport ground handler. This reduces the risk of
damage or loss due to incorrect stowage, misplacement or misdirection
of the goods.

However, consolidation services can be slower than higher cost direct airline
services due to various factors (such as more agents handling the cargo,
customs etc). This is not necessarily the case though; with efficient handling
by forwarders and agents, consolidated cargo can reach its destination within
the same time frame as full container loads.

3.2.2 Loose
Certain types of goods, among which are hazardous cargo, live animals, and
refrigerated cargo, are not suitable for consolidation. Other cargo is going to
destinations without or with infrequent consolidated services. In both cases,
the cargo is lodged as loose packages. The airline may load the packages
into a container or pallet, or they will place the goods in an area with other
loose packages.

Prices for loose cargo are often similar or the same as for consolidated cargo.
Exporters should bear in mind that the safety and security may be inferior.
However, flexibility is greater with loose cargo consignments because some
consolidation services only operate on certain dates.

3.2.3 Charter
Common chartered freighters in and out of Australia are McDonnell Douglas
MD-11 and Boeing 747, of which the latter offers more space and allows a
higher maximum weight. However, maximum capacity varies depending on
different conditions (such as the distance to destination). These freighters are
generally used for livestock (including horses and cattle), perishable,
expensive and fragile items, and when there are no scheduled services to
particular destinations. The freighter services offer main-deck capacity for
transport of over-sized shipments. Freighter aircraft are available for charter
services to most major cities worldwide.

Smaller aircraft (such as the 727 and Belfast) are available for smaller loads
to closer destinations. Additionally, there are some of the Russian specialised
Heavylift aircraft available for much larger consignments.

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Charters are usually arranged by freight forwarders or through charter

brokers. They make sure all the necessary arrangements are taken care of to
ensure a safe travel for the goods and compliance with commercial and
government requirements.

For more information on airfreight and containers:

Airfreight Council of Queensland:
http://www.australianairfreight.com/secondp.htm
Australian Airport Association - AAAL: http://www.aaal.com.au/
International Air Transport Association - IATA:
http://www.iata.org/index.htm
Freight forwarders and airlines can provide details and advice on
containers

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4 Australian Customs’ role

Australian Customs’ role in exports is, briefly, to 5;

ensure that all goods being exported from Australia are entered as
required
administer controls on behalf of Permit Issuing Agencies (PIA) on the
export of restricted goods and to prevent the export of prohibited goods
gather information regarding the nature and volume of exports to assist
government and industry in policy and decision making.

Another important aspect is to protect the reputation of Australian products

abroad by controlling the quality of exports.

The information below is provided by Australian Customs Service. Further

details can be obtained in their ‘Customs Guide to Importing and Exporting’.

Goods subject to export controls

An exporter must apply to the appropriate government department or agency
for a permit or licence to export where goods are subject to export controls
under customs or any other Commonwealth legislation.

Customs AHECC Classification System

While duty is not generally payable on exports, goods must still be classified
on an export entry using the Australian Harmonized Export Commodity
Classification (AHECC).

Export statistics
Data relating to exports is passed to the Australian Bureau of Statistics (ABS)
for use in the compilation of detailed export statistics.

Examination of export cargo and documents

Goods intended for export and related documents may be examined by
authorised officers at premises other than a place of export, only with the
consent of the occupier of the premises and prior to the goods coming under
Customs’ control.

Retention and production of documents and records

The owner of the goods, or those who hold themselves to be the owner of the
goods, must keep all relevant commercial documents for a period of five
years.

GST and exported goods

At the supply of goods for export is generally GST-free, the Australian
Taxation Office (ATO) requires exporters to keep appropriate records to verify
that goods have been exported.

5
Australian Institute of Export. 2000. Export Handbook. College of International Business (Ch. 2)
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5 Freight forwarders’ & customs brokers’ roles

Freight forwarders’ and customs brokers’ role in the export transaction is, in
short, to manage the logistics operations between the exporter and buyer.
They have close relationships with Customs, carriers, ports and terminals, as
well as a network of agents and warehouses overseas. This ensures
compliance with regulations and efficient transportation. A freight forwarders’
purchasing power means they can offer lower prices for the exporter, which
ensures cost-effective transportation of your goods.

The range of services offered by these companies varies from company to

company. It is crucial to take this into account before choosing one to assist
with your transactions. Your company’s needs must match the services
provided, and one should bear in mind that the forwarder’s and/or broker’s
reputation should be valued higher than the cost. Choosing a cheap forwarder
and/or broker may not be the best, and could eventually cause additional
costs and delays to your transaction.

The services mentioned below are commonly offered by freight forwarders

and customs brokers, although not all companies offer every single one.


Give advice on the most appropriate mode of transport and the most
suitable carrier

Give advice on packaging, packing, labelling and marking requirements

Take care of the documentation process

Assist with customs and quarantine clearance

Have up-to-date information on any changes in regulations, prices,
extra charges and procedures

Ensure compliance with domestic and foreign trade regulations

Offer training sessions in export procedures

Some forwarders and brokers offer consultancy services to assist exporters or

potential exporters in assessing and accessing foreign markets.


Assess & monitor companies’ export transactions

Minimise financial impediments

Maximise any opportunities for financial assistance

There is a large quantity of companies offering freight forwarding and customs

broking services in Queensland. A comprehensive, though not exhaustive, list
is provided in Appendix 5.8 – ‘Resources and further information’. Many of
these are of high quality, however, one should check a company’s reputation
before going into business with them.

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6 Appendices

6.1 LIST OF I NCOTERMS 2000 AND DETAILED EXPLANATIONS ............... ERROR!

BOOKMARK NOT DEFINED.
6.2 VARIATION OF INCOTERMS AND US PRACTICE .....ERROR! BOOKMARK NOT
DEFINED.

6.3 PACKAGING / PACKING / PALLETS ........ ERROR! BOOKMARK NOT DEFINED.

6.4 DANGEROUS G OODS CLASSES ........... ERROR! BOOKMARK NOT DEFINED.
6.5 SEA FREIGHT CONTAINERS.................. ERROR! BOOKMARK NOT DEFINED.
6.6 AIRFREIGHT CONTAINERS ................... ERROR! BOOKMARK NOT DEFINED.
6.7 COMMONLY USED INTERNATIONAL TRADE TERMS .ERROR! BOOKMARK NOT
DEFINED.

6.8 RESOURCES AND FURTHER INFORMATION ...........ERROR! BOOKMARK NOT

DEFINED.

6.9 INDUSTRY SPECIFIC INFORMATION ....... ERROR! BOOKMARK NOT DEFINED.

6.9.1 Guide to Exporting Wine............. Error! Bookmark not defined.
6.9.2 Boat Building .............................. Error! Bookmark not defined.
6.9.3 Guide to Exporting Cosmetics .... Error! Bookmark not defined.
6.9.4 Guide to exporting Works of
Art………………………………….Error! Bookmark not defined.

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6.1 List of Incoterms 2000 and detailed explanations

EXW - Ex works (named place)

“Ex-works” means that the seller fulfils his obligation to deliver when he has
made the goods available at his premises (i.e. works, factory, warehouse,
etc.) to the buyer. In particular, the seller is not responsible for the loading
operations at his premises. The buyer is responsible for clearing the goods
for export. The buyer bears all costs and risks involved in taking the goods
from the seller’s premises to destination. This term represents the minimum
obligation to the seller. It should not be used when the buyer cannot carry
out, directly or indirectly, the export formalities. In such circumstances, the
FCA term should be used.

FCA - Free Carrier (named place)

“Free Carrier” means that the seller fulfils his obligation to deliver when he
has handed over the goods, cleared for export, into the charge of the carrier
named by the buyer at the named place or point. If no precise point is
indicated in the contract, the seller may select the point at the place of
delivery which best suits his purpose.

FAS - Free Alongside Ship (named port of shipment)

“Free Alongside Ship” means that the seller fulfils his obligation to deliver
when the goods have been placed alongside the vessel at the named port of
shipment. This means that the buyer has to bear all costs and risks of loss of
or damage to the goods from that moment. The FAS term requires the seller
to clear the goods for export. This term can only be used for sea or inland
waterway transports.
This is a reversal from previous INCOTERMS versions which required the
buyer to clear the goods for export.

FOB - Free On Board (named port of shipment)

“Free on Board” means that the seller fulfils his obligation to deliver when the
goods have passed over the ship’s rail at the named port of shipment. This
means that the buyer has to bear all costs and risks of loss of or damage to
the goods from that point. The FOB term requires the seller to clear the goods
for export. The seller is also responsible for paying all loading costs and other
charges payable before the FOB point to the extent that they are not included
in the freight charges.

CFR - Cost and Freight (named port of destination)

“Cost and Freight” means that the seller must pay the costs and freight
necessary to bring the goods to the named port of destination but the risk of
loss or damage to the goods, as well as for any additional costs due to events
occurring after the time the goods have been delivered on board the vessel, is
transferred from the seller to the buyer when the goods pass the ship’s rail in
the port of shipment. The CFR term requires the seller to clear the goods for
export. This term can only be used for sea or inland waterway transport.

CIF - Cost, Insurance and Freight (named port of destination)

“Cost, Insurance and Freight” means that the seller has the same obligations
as under CFR but with the addition that he has to procure marine insurance
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against the buyer’s risk of loss of or damage to the goods during the carriage.
The seller contracts for insurance and pays the insurance premium. The
buyer should note that under the CIF term the seller is only required to obtain
insurance on minimum coverage. The CIF term requires the seller to clear
the goods for export. This term can only be used for sea or inland waterway
transport.

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DES - Delivered Ex Ship (named port of destination)

“Delivered Ex-Ship” means that the seller fulfils his obligation to deliver when
the goods have been made available to the buyer on board the ship uncleared
for import at the named port of destination before discharging. The seller has
to bear all the costs and risks involved in bringing the goods to the named port
of destination. This term can only be used for sea or inland waterway
transport.

DEQ - Delivered Ex Quay (named port of destination)

“Delivered Ex-Quay” means that the seller fulfils his obligation to deliver when
he has made the goods available to the buyer, not cleared for import, on the
quay (wharf) at the named port of destination. The buyer has to bear all risks
and costs including duties, taxes and other charges of clearing and delivery
the goods. This term can only be used for sea or inland waterway transport.
This is a reversal from previous editions of INCOTERMS which required the
seller to arrange for import clearance.

DDU - Delivered Duty Unpaid (named place of destination)

“Delivered Duty Unpaid” means that the seller delivers the goods to the buyer,
not cleared for import, and not unloaded from any arriving means of transport
at the named place of destination. The seller has to bear the costs and risks
involved in bringing the goods thereto, other than, where applicable, any
“duty” (which term includes the responsibility for and the risks of the carrying
out of customs formalities, and the payment of formalities, customs duties,
taxes and other charges) for import in the country of destination. Such “duty”
has to be borne by the buyer as well as any costs and risks caused by their
failure to clear the goods for import in time. This term may be used
irrespective of the mode of transport.

DDP - Delivered Duty Paid (named place of destination)

“Delivered Duty Paid” means that the seller delivers the goods to the buyer,
cleared for import, and not unloaded from any arriving means of transport at
the named place of destination. The seller has to bear all the costs and risks
involved in bringing the goods thereto including, where applicable, any “duty”
(which term includes the responsibility for and the risks of the carrying out of
customs formalities and the payment of formalities, customs duties, taxes and
other charges) for import in the country of destination. However, if the parties
wish to exclude from the seller’s obligations some of the costs payable upon
import of the goods (such as value-added tax: GST, VAT), this should be
made clear by adding explicit wording to this effect in the contract of sale.
This term may be used irrespective of the mode of transport.

Modes of transport and the appropriate INCOTERM 2000


 Any mode of transport:

EXW, FCA, CPT, CIP, DAF, DDU, DDP


 Sea transport:

FAS, FOB, CFR, CIF, DES, DEQ

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BUYER

DDU – DELIVERED DUTY

UNPAID
DDP – DELIVERED DUTY
CARTAGE TO STORE PAID

GOODS MUST BE
CLEARED THROUGH
CUSTOMS & QUARANTINE
INTO IMPORTING
COUNTRY

GOODS UNLOADED FROM

VESSEL AT DESTINATION
DISCHARGE WHARF DEQ – DELIVERED EX QUAY

PORT
DES – DELIVERED EX SHIP
FREIGHT GOODS
SHIPPED ON BOARD
VESSEL TO
DESTINATION
CFR – COST AND FREIGHT
CIF – COST INSURANCE FREIGHT
PREPARATION FOR
LOADING ONTO
EXPORTING VESSEL
FOB – FREE ON BOARD

FAS – FREE ALONGSIDE SHIP

GOODS UNLOADED FROM
TRANSPORT ONTO EXPORT
WHARF/PREMISES/DEPOT/
TERMINAL ETC

FOREIGN INLAND
FREIGHT

SUPPLIER’S
FACTORY
SELLER’S
WORKS
EXW – EX WORKS

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6.2 Variation of Incoterms and US practice 6

Obsolete Incoterms and terms that are not Incoterms

The below list shows some of the terms still in use that are obsolete Incoterms
or not Incoterms, and could cause incorrect billing etc if mistaken for
Incoterms 2000.


C&F (Cost & Freight – still used in American Uniform Commercial
Code) / CNF (Cost & Freight) / CF (means the same as C&F in the
American Uniform Commercial Code)

FCR (Free Carrier) was changed to FCA in 1990

FOA (means FOB Airport)

FOB Truck (Free on Board Truck)

FOB Seller’s Works (Free on Board Seller’s works)

FOB Airport (Free on Board Airport – also known as F.O.A.)

FOB Destination (Free on Board Destination)

FOR (Free on Rail) / FOT (Free on Truck)

LIS (Landed into Store) / FIS (Free into Store)

US practice – The Uniform Commercial Code

The Incoterm FOB means ‘Free on Board a vessel at a named port of
shipment’. The seller has to bear all of the risks and costs in the goods until
they have passed over the ship’s rail and are loaded on board the vessel.
However, the FOB terms is provided with several different meanings under
US practice (the Uniform Commercial Code).

The provisions of the US Uniform Commercial Code, as they relate to the

FOB clause are as follows:
“(1) Unless otherwise agreed the term FOB at a named place, even though
used only in connection with the stated price, is a delivery term under which:
(a) when the term is FOB the place of shipment, the seller must at
that place ship the goods in the manner provided in this Article
(Section 2-504) and bear the expense and risk of putting them into
the possession of the carrier; or
(b) when the terms is FOB the place of destination, the seller must
at his own expense and risk transport the goods to that place and
there tender delivery of them in the manner provided in this Article
(Section 2-503)
(c) when under either (a) or (b) the term is also FOB vessel, car or
other vehicle, the seller must in addition at his own expense and
risk load the goods on board. If the terms is FOB vessel the buyer
must name the vessel and in an appropriate case the seller must
comply with the provisions of this Article on the form of the bill of
lading (Section 2-323).”

6
Adapted from International Logistics & Freight Forwarding Manual by Russell Burke
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6.3 Packaging / packing / pallets 7

 Consider the issues and plan for contingencies:


 The type and nature of the goods  The possibility of theft

 The modes of transport  The importing country laws

 Hazards the goods may encounter on   The cost
the journey, or at destination

 The dimensions and weight limits of containers, other unit devices, and road
vehicles that will carry the cargo

 Choose the type of packaging to be used, and where applicable, the kind of
pallet or other medium to be used for lifting and handling.
The packaging and pallets must:
 Be fit for the journey and capable of enduring all the hazards, stresses and
handling methods they will encounter.
 Be compatible with the handling equipment en-route. This includes the handling
equipment the cargo will encounter in storage and handling terminals,
warehouses and depots.
 Be compatible with the transportation equipment en-route, such as trucks, rail
vans, boats, barges, ships and aircraft. In some cases, very large, heavy, fragile,
or otherwise unusual cargo, this exercise, may involve extensive enquiry.
 Be suitable for and compatible with the weight and dimensional limits of shipping
containers and aircraft ULD’s (Unit Load Devices).
 In the case of cargo that cannot be carried in containers, or which, due its size,
must be carried on the deck of a vessel, or inside a R/O–R/O vessel, there must
be extra care taken to protect the cargo against the elements.
 Satisfy the requirements of the customer.

 From the above considerations, the following should be chosen:


 The most suitable outer package

 The type of desiccant you will use to control moisture

 The waterproofing methodology

 The type of cushioning and bracing material to be used – avoid plant derived
materials if possible

 The most suitable kind of pallet or other method of facilitating lifting and handling,
and avoid wood wherever possible because of the quarantine, health and
environmental implications.

 Take special note that:


 Dangerous goods packaging is regulated by law

 If using wooden packaging, ensure it is free of bark, pests and soil residues, and
will meet quarantine & health requirements of exporting & importing countries.

 If exporting product in second-hand units, check to ensure the packages are
sound and clean, and remove any old markings and labels

 Control moisture effects and waterproof where necessary

 Stow the goods properly within the package
 Seal and secure the packages
 Mark and label clearly
 Consolidate the packages onto pallets or into units

7
Text adapted from Burke, R. 2004. International Logistics and Freight Forwarding Manual, Chp. 7
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6.4 Dangerous Goods Classes

Class Name Example Labels

1 Explosives Fireworks
Amunition

2 Gases LPG
Nitrogen
Methyl bromide

3 Flammable liquids Petrol

Turpentine
Paint
Paint thinners

4 Flammable solids Hay

(spontaneously Safety Matches
combustible Celluloid
substances, water
reactive)
5 Oxidizing substances, Pool Chlorine
organic peroxides Hydrogen
peroxide
Ammonium nitrate
6 Toxic (poisonous) and Weedicide
infectious substances Pesticide
Rat poison
Hospital waste

7 Radioactive materials Radioactive

isotopes

8 Corrosives Caustic soda

Acids

9 Miscellaneous Bitumen
dangerous goods Molten candle
wax

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6.5 Sea freight containers

General Purpose
Inside length Inside width Inside height Door width Door height Capacity Tare height Maxi cargo
Standard 20’ General Purpose (GP)
19' 4" 7' 8" 7' 10" 7' 8" 7' 6" 1,172 Cft 4,916 Lbs 47,900 Lbs
5.900 m 2.350 m 2.393 m 2.342 m 2.280 m 33.2 Cu.m 2,230 Kgs 21,770 Kgs
Standard 40’ General Purpose (GP)
39' 5" 7' 8" 7' 10" 7' 8" 7' 6" 2,390 Cft 8,160 Lbs 59,040 Lbs
12.036 m 2.350 m 2.392 m 2.340 m 2.280 m 67.7 Cu.m 3,700 Kgs 26,780 Kgs

Refrigerated
Inside length Inside width Inside height Door width Door height Capacity Tare height Maxi cargo
20’ Reefer
17' 8" 7' 5" 7' 5" 7' 5" 7' 3" 1,000 Cft 7,040 Lbs 45,760 Lbs
5.425 m 2.275 m 2.260 m 2.258 m 2.216 m 28.3 Cu.m 3,200 Kgs 20,800 Kgs
40’ Reefer
37' 8" 7' 5" 7' 2" 7' 5" 7' 0" 2,040 Cft 10,780 Lbs 56,276 Lbs
11.493 m 2.270 m 2.197 m 2.282 m 2.155 m 57.8 Cu.m 4,900 Kgs 25,580 Kgs
40’ Reefer (High Cube)
37' 11" 7' 6" 8' 2" 7' 6" 8' 0" 2,344 Cft 9,900 Lbs 57,561 Lbs
11.557 m 2.294 m 2.500 m 2.294 m 2.440 m 66.6 Cu.m 4,500 Kgs 25,980 Kgs

Open Top
Inside length Inside width Inside height Door width Door height Capacity Tare height Maxi cargo
20’ Open Top
19' 4" 7' 7" 7' 8" 7' 6" 7' 2" 1,136 Cft 5,280 Lbs 47,620 Lbs
5.894 m 2.311 m 2.354 m 2.286 m 2.184 m 32.23 Cu.m 2,400 Kgs 21,600 Kgs
40’ Open Top
39' 5" 7' 8" 7' 8" 7' 8" 7' 5" 2,350 Cft 8,490 Lbs 58,710 Lbs
12.028 m 2.350 m 2.345 m 2.341 m 2.274 m 65.5 Cu.m 3,850 Kgs 26,630 Kgs

Flat Rack
Inside length Inside width Inside height Door width Door height Capacity Tare height Maxi cargo
20’ Flat Rack
18' 5" 7' 3" 7' 4" - - - 5,578 Lbs 47,333 Lbs
5.620 m 2.200 m 2.233 m - - - 2,530 Kgs 21,470 Kgs
40’ Flat Rack
39' 7" 6' 10" 6' 5" - - - 12,081 Lbs 85,800 Lbs
12.080 m 2.438 m 2.103 m - - - 5,480 Kgs 39,000 Kgs
20’ Flat Rack collapsible
18' 6" 7' 3" 7' 4" - - - 6,061 Lbs 61,117 Lbs
5.618 m 2.208 m 2.233 m - - - 2,750 Kgs 27,730 Kgs
40’ Flat Rack collapsible (Stak Bed)
39' 7" 6' 10'' 6' 5'' - - - 12.787 Lbs 85,800 Lbs
12.080 m 2.126 m 2.043 m - - - 5,800 Kgs 39,000 Kgs

Platform
Inside length Inside width Inside height Door width Door height Capacity Tare height Maxi cargo
20’ Platform
19' 11" 8' 00" 7' 04" - - - 6,061 Lbs 52,896 Lbs
6.058 m 2.438 m 2.233 m - - - 2,750 Kgs 24,000 Kgs
40’ Platform
40' 00" 8' 00" 6' 5" - - - 12,783 Lbs 86,397 Lbs
12.18 m 2.400 m 1.950 m - - - 5,800 Kgs 39,200 Kgs

Container details provided by Mediterranean Shipping Company (MSC)

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6.6 Airfreight containers

ID CODE: AA2, AAP

U.S. Domestic Code: LD-9
Aircraft Types & Main/Lower Decks: All 747's &767 &AB3, Lower Deck
Rate Class: 5
Internal Volume: 10.6 m3 (374 cu ft)
Limiting Internal Dimensions: 208 x 302 x 152 cm, (82 x 119 x 60 in)
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight:

ID CODE: AMP
U.S. Domestic Code: -
Aircraft Types & Main/Lower Decks: All 747's &767 &AB3, Lower Deck
Rate Class: 2BG
Internal Volume: 11.4 m3 (403 cu ft)
Limiting Internal Dimensions: 229 x 302 x 152 cm, (90 x 119 x 60 in)
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight: 266 kg (587 lb)
ID CODE: AAU
U.S. Domestic Code: LD-29
Aircraft Types & Main/Lower Decks: All 747's, Lower Deck
Rate Class: 5W
Internal Volume: 14.5 m3 (511 cu ft)
Limiting Internal Dimensions: 208 x 302 x 152 cm, (82 x 119 x 60 in)
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight: 260 kg (573 lb)

ID CODE: AQA, AQ6

U.S. Domestic Code: M-1
Aircraft Types & Main/Lower Decks: 747 Freighter, Main Deck
Rate Class: 2
Internal Volume: 17.5 m3 (619 cu ft)
Limiting Internal Dimensions: 229 x 305 x 229 cm, (90 x 120 x 90 in)
Maximum Gross Weight: 6800 kg (15000 lb)
Tare Weight: 330 kg (728 lb)

ID CODE: AKN, AVN, AVA, AVE, AKE

U.S. Domestic Code: LD-3
Aircraft Types & Main/Lower Decks: All 747's & 767 &AB3, Lower Deck
Rate Class: 8
Internal Volume: 4.3 m3 (153 cu ft)
Limiting Internal Dimensions: 140 x 147 x 152 cm, (55 x 58 x 60 in)
Maximum Gross Weight: 1587 kg (3500 lb)
Tare Weight:
ID CODE: AVC, AVJ, AKC
U.S. Domestic Code: LD-1
Aircraft Types & Main/Lower Decks: All 747's & 767, Lower Deck
Rate Class: 8
Internal Volume: 4.84 m3 (171 cu ft)
Limiting Internal Dimensions: 140 x 147 x 152 cm, (55 x 58 x 60 in)
Maximum Gross Weight: 1587 kg (3500 lb)
Tare Weight:

(Container details provided by Airfreight Council of Queensland)

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ID CODE: DLF, DQF

U.S. Domestic Code: LD-8
Aircraft Types & Main/Lower
Decks: 767, Lower Deck
Rate Class: 6A
Internal Volume: 7.2 m3 (253 cu ft)
Limiting Internal Dimensions: 140 x 233 x 152 cm, (55 x 92 x 60 in)
Maximum Gross Weight: 2449 kg (5400 lb)
Tare Weight: 128 kg (282 lb)
ID CODE: P1P, PAG, PAP, PAJ (Small)
U.S. Domestic Code: LD-7
Aircraft Types & Main/Lower
Decks: All 747's &767 &AB3, Lower Deck

Rate Class: 2C
Internal Volume: -
Limiting Internal Dimensions: -
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight: 110 kg (242 lb)
ID CODE: P1P, PAG, PAP, PAJ (Large)
U.S. Domestic Code: M-1
Aircraft Types & Main/Lower 747 Freighter, Main Deck
Decks:
Rate Class: 2C
Internal Volume: -
Limiting Internal Dimensions: -
Maximum Gross Weight: 6800 kg (15000 lb)
Tare Weight: 110 kg (242 lb)
ID CODE: P6P, PMC
U.S. Domestic Code: M-1
Aircraft Types & Main/Lower 747 Freighter, Main Deck
Decks:
Rate Class: 2H
Internal Volume: -
Limiting Internal Dimensions: -
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight: 110 kg (242 lb)
ID CODE: RAP (Refrigerated Container)
U.S. Domestic Code: -
Aircraft Types & Main/Lower
Decks: All 747's &767 &AB3, Lower Deck

Rate Class: 5
Internal Volume: 9.6 m3 (339 cu ft)
Limiting Internal Dimensions: 208 x 305 x 147 cm, (82 x 119 x 60 in)
Maximum Gross Weight: 4626 kg (10200 lb)
Tare Weight: 400 kg (880 lb)
ID CODE: RKN (Refrigerated Container)
U.S. Domestic Code: -
Aircraft Types & Main/Lower
Decks: All 747's & 767 &AB3, Lower Deck
Rate Class: 8
Internal Volume: 3.6 m3 (127 cu ft)
Limiting Internal Dimensions: 140 x 147 x 152 cm, (55 x 58 x 60 in)
Maximum Gross Weight: 1587 kg (3500 lb)
Tare Weight: 210 kg (462 lb)

(Container details provided by Airfreight Council of Queensland)

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6.7 Commonly used international trade terms

The following trade terms are comprehensive but not complete. For terminology which is not
fully understood or cannot be found in this section, refer to your freight forwarder or export
adviser.

ACCEPTANCE
The act of the Drawee to a Bill of Exchange (Draft) of signing the reverse of
the Draft as accepting to pay the specified amount on the stated due date. On
completion the Drawee becomes the Acceptor. (See Bill of Exchange)

ACCEPTANCE CREDIT
A Documentary Credit which requires a term Bill of Exchange (Draft) as a
condition of the Credit. It is common practice for the beneficiary of the Credit
to discount the Draft for prompt payment.

AD VALOREM DUTY
A duty rate levied by importing authorities as a percentage rate of the value of
the consignment as stated in the Commercial Invoice.

ADVANCE PAYMENT GUARANTEE/BOND

An unconditional bank guarantee provided by the party receiving advance
payments that the payments will be returned if they do not perform according
to the contract terms for which they have received the advance payment.

ADVISING BANK
A bank, normally located in the beneficiary’s country, that advises the
beneficiary of the opening of a Documentary Letter of Credit in the
beneficiary’s favour without commitment to payment under the terms of the
Credit.

AFFREIGHTMENT (CONTRACT OF)

The contract of carriage between the Ocean/Air carrier and the shipper. It is
evidenced by the conditions printed on the reverse of the original Bill of
Lading or Air Waybill.

AIR WAYBILL (AWB)

A non-negotiable consignment note used to cover the transport of goods as
air cargo (airfreight). Original Air Waybills specify the conditions of carriage
on the reverse. (See Affreightment above)

ALIGNED ELECTRONIC DOCUMENTATION

A term used to describe commercial documents conforming to the “United
Nations Layout Key for Trade Documents” format, and prepared on a
personal computer by specialised software. Common data ‘flows through’
from one document to the identical locations and fields on other export
documents, eliminating the need for repetitive typing and checking.

‘ALL RISKS’ (AR)

A term used in transport insurance and normally represented on modern
insurance policies and certificates by the Institute Cargo Clause (A).
Unfortunately it does not cover all risks and additional premiums are required
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to cover, for example, war risks, strikes and riot damage.

ATA CARNET
An abbreviation for the French/English ‘Admission Temporaire/Temporary
Admission’. The Carnet is an international customs document that allows
temporary entry into a country duty-free for the purpose of exhibition or
display. The document is issued by Chamber of Commerce who guarantee
that payment of duty will be made to local customs should the goods not be
re-exported against the provision of a bond by the carrier of the Carnet.

B.A.F. (Bunker Adjustment Factor)

A surcharge added to the freight according to the cost of ship fuel oil.
Sometimes combined with the CAF to give one combined adjustment factor of
‘BAF/CAF’. (Also see CAF below)

B.S.C. (Basic Service Charge)

The mount arrived at by multiplying the number of shipping units by the Basic
Service Rate. (See below)

B.S.R (Basic Service Rate)

The rate levied by the shipowner for the carriage of the shipper’s cargo. When
multiplied by the number of shipping units (either 1 cubic metre or 1,000
kilograms) which ever is the greater, result in the BSC. (See above)

B.S.R.A (Basic Service Rate Additional)

The fee levied for Australian port charges (including wharfage and
stevedoring charges) by some shipping companies as part of the freight
calculation when paid on the shipper’s behalf to the Port Authorities.

BILL OF EXCHANGE (OR DRAFT)

An unconditional order used by exporters to obtain some security of payment
for their goods when dealing with overseas buyers. The exporter as Drawer
draws the Bill on the importer (Drawee) who pays at a fixed time to the Payee
(normally the exporter’s bank). The Bill normally accompanies documents
through the banking system and is then referred to as a documentary Draft. It
is normally drawn in duplicate and can be made negotiable by endorsement. It
is also frequently used in Documentary Credits.

BILL OF LADING (B/L)

A transport document issued by the shipping company as a receipt for the
shipper’s cargo. It also serves as evidence of the transport contract and a
‘document of title’ (ownership of the goods). The B/L is normally issued in sets
of two or three originals, one of which must be surrendered to the shipping
company at destination to obtain possession of the goods.

BOLERO (Bill of Lading Electronic Registration Organisation)

Originally a system for transmission of electronic bills of lading. It is now being
expanded by SWIFT into an electronic platform for the transmission of all
trade documents.

BOYCOTT CERTIFICATE
Some Middle East countries request this document for use in their boycott of
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Israel. It is normally issued by the shipping company/airline to certify that the

carrying vessel or aircraft is not Israeli owned and will not call at Israeli ports
or airports nor is on the Arab Israeli Boycott Blacklist.

BOYCOTT CLAUSE (COMMERCIAL INVOICE / CERTIFICATE OF

ORIGIN)
Letters of Credit to the Middle East may contain such a clause. It encourages
the boycott of Israel and Israeli products. The clause requires the exporter to
make a statement to the effect that the company is not Israeli owned or uses
Israeli origin materials.

CAD – CASH AGAINST DOCUMENTS

Normally taken to be the arrangement whereby a seller despatched the
consignment and sends the documents to the buyer who pays the value of the
consignment on receipt. Sometimes used in a documentary collection with a
sight Draft accompanying the documents.

C.A.F. (Currency Adjustment Factor)

A factor applied to freight calculations to compensate the shipping company
for currency fluctuations, which exceed certain agreed parameters.
Sometimes combined with BAF to give one combined BAF/CAF factor. (Also
see B.A.F. above)

CARGO/WHARF SHED
Goods are held in these areas, adjacent to the loading berth, after receipt
from the shipper and prior to being loaded aboard the carrying vessel.

CARRIER (INCOTERMS 2000 DEFINITION see FCA)

Any person who, in a contract of carriage, undertakes to perform or to procure
the performance of transport by rail, road, air, sea, inland waterway or by a
combination of such modes. If the buyer nominates a person other than a
carrier to receive the goods, the seller is deemed to have fulfilled his
obligation to deliver the goods when they are delivered to that person.

CARTAGE
The charge levied by carriers for the carriage of goods by road.

CERTIFICATE OF INSPECTION
A document certifying as to the quality, quantity, price, condition and
conformity of a consignment. The certificate may be required as part of the
importing country’s import regulations when it will form part of the Pre
Shipment Inspection procedures (PSI). This type of document is frequently
required under the terms of documentary letters of credit.

CERTIFICATE OF ORIGIN (C of O)
A document issued by the Chamber of Commerce and similar organisations,
which certifies the goods described to be the stated (normally national) origin.
The document must be signed by an authorised signatory of the exporter’s
company and the Chamber of Commerce to be valid. It is often required by
importing customs authorities as part of the inwards clearance procedures, for
instance to grant preferential tariff treatment.

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C & F, CNR, C + F - COST AND FREIGHT

These are all non-standard terms meant to represent Cost and Freight. They
have now been replaced by the universally accepted Incoterms abbreviations
of CFR (Cost and Freight) or CPT (Carriage Paid To) and should on no
account be used believing them to be Incoterms.

CHARTER PARTY
A contract under which a charterer agrees to hire the use of a ship or part of a
ship from a shipowner. On some occasions the charterer issues his own bills
of lading referred to as Charterparty bills of lading, which are subject to the
conditions of the Charterparty. When it is intended to use such documents
under a documentary letter of credit, there are special requirements for their
acceptance stated in ‘UCP 500’.

CLAUSED, ‘FOUL’ OR ‘DIRTY’ BILL OF LADING

A Bill of Lading containing clauses that qualify the admission that the goods
were receive, or shipped, in good order or condition, e.g. ‘leaking drums’. Dirty
bills are not normally acceptable to banks under the terms of Letters of Credit,
unless allowed by the credit. (Refer UCP 500)

CLEAN BILL OF LADING

One which does not contain any clauses qualifying the admission that the
goods were received or shipped in good order and condition.

CLIP-ON UNIT (COU)

Equipment that is attached to a refrigerated container (reefer) to maintain the
appropriate temperature while the reefer is on land and hence not attached to
a ship’s refrigerating system.

COLLECT CHARGES
This term covers a variety of charges collected by the carrier on behalf of the
shipper. For instance in airfreight movement these charges are added to
those on the AWB to cover the carrier for the additional costs incurred in
obtaining reimbursement of the freight costs from the consignee. (Collection
Fee)

COLLECTING BANK
Normally the bank acting as an agent for the seller’s bank in collecting
payment or acceptance of a term Draft from the buyer to be forwarded to the
seller’s bank (the remitting bank).

COMBI-SHIP
A ship designed to carry both conventional and containerised cargo.

COMMERCIAL INVOICE
The document presented by the seller to the buyer for payment of the goods.
A good international commercial invoice should contain all the information
about the consignment e.g. a complete description of the goods, unit and
extended prices, net and gross weights, cubic measurement, terms of sale
and payment (Incoterms), plus any other clauses or information required by
the terms of a documentary credit or importing authorities.

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CONFERENCE (OR SHIPPING CONFERENCE)

A group of shipping companies/lines, which have formed an association to
offer regular liner services at agreed rates on specific routes, normally offering
loyalty rebates to signatories of conference agreements. Non-conference lines
may offer cheaper rates but without the guarantee of regular departures.

CONFIRMING BANK – CONFIRMED LETTER OF CREDIT

An exporter’s local bank adds its irrevocable undertaking to pay according to
the terms of the letter of credit to a credit issued by a foreign bank and thus
confirms it. This bank thus becomes known as the confirming bank and will
charge a confirmation fee for its services. Exporters will normally request this
additional safeguard if they have a concern that the issuing bank may default
on payment, particularly where there is political or financial unrest in the
country of the issuing bank or the standing of the bank is unknown.

CONSULAR INVOICE
An invoice covering a shipment of goods certified by the consul of the country
for which the merchandise is destined. This may be the exporter’s commercial
invoice, sometimes accompanied by a certificate of origin, which has been
‘legalised’ by the consul’s stamp for a fee. The invoice is required by the
importing country’s authorities to determine import duty and to ensure
‘dumping’ is not taking place.

CONTAINER
A metal box normally measuring either 20 feet or 40 feet x 8 feet x 8 feet 6
inches (or 9 feet 6 inches) built to ISO (International Standards Organisation)
standards. It is constructed with doors at one end and is used for stowing
cargo for shipment on special-purpose container vessels. Includes any
equipment used to unitise cargo, e.g. all types of containers and/or flats,
whether ISO rated or not, including trailers, swap bodies, RO/RO equipment,
igloos – applies to all modes of transport. (See TEU, RTEU, FEU, RFEU)

CONTAINER DEPOT
An area incorporating storage sheds and loading facilities where goods are
received for loading into containers on behalf of shippers not possessing the
facility at their own premises. (Refer Less than Container Load – LCL)

CONTAINER SEAL
A device capable of being passed through apertures on the container door
and pushed into a non-return mechanism in such a way that it provides
evidence of tampering should unauthorised persons attempt to open the
container once the seal has been applied. Seals are numbered, and the
number is shown on the Bill of Lading and other transport/commercial
documents.

CONTAINER SHIP
A special-purpose vessel constructed to carry containers in vertical cells in the
holds, and stacked four or more high on ‘deck’. Hence they are also referred
to as ‘Cellular vessels’. Pure container vessels can normally only be loaded or
unloaded at a container terminal. They do not have on-board cranes, or
derricks, with which to unload them, as do conventional vessels.

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CONTAINER TERMINAL
A berth using specially designed, land-based equipment, for loading container
vessels. The containers are delivered by road, rail, sometimes direct or via the
container depot.

CONVENTIONAL BERTH
A berth suitable for handling conventional vessels and some roll-on/roll-off
ships. Loading and discharge is by use of the ship’s derricks or land-based
equipment.

CONVENTIONAL OR BREAKBULK CARGO

Cargo not shipped in a shipping container.

CONVENTIONAL SHIP
A vessel designed with conventional holds and derricks/cranes for cargo
handling. They have the advantage of being able to use most types of
berthing facilities but have the disadvantage of being very labour intensive.
As such they have, to a large extent, given way to container and roll-on/roll-off
vessels.

CORRESPONDENT BANK
A bank that performs certain operations on behalf of another bank, usually in
a different country. Correspondent banks hold deposits with each other, and
accept and collect items on a reciprocal basis. It is through networks of
correspondent banks that trade banks are able to service and support
international business transactions. Banks issuing documentary letters of
credit will normally do so through their correspondent bank in the beneficiary’s
country and not necessarily through the beneficiary’s bank. The
correspondent bank then becomes the advising bank.

CRONER’S REFERENCE BOOK FOR EXPORTERS – ‘Croners’

A publication issued in the United Kingdom providing information about the
location of the country, principal ports, population, currency, time zone,
voltage, documentary requirements, information required for quoting and
packaging requirements. It can be obtained in electronic format for ready
access on personal computer.

DEADFREIGHT
A penalty charge levied by shipowners against shippers that book space and
fail to deliver the cargo without notifying the carrier. This type of fee is
normally only charged when vessels are continually fully booked and the
shipowner loses revenue by the shipper’s failure to cancel the space in good
time.

DELIVERY ORDER – D/O

An order normally addressed to a terminal superintendent or warehouse
manager, releasing specified cargo to a particular person or company.
Frequently issued by shipping company offices after receipt of an original Bill
of Lading from an importer or his customs broker and presentation of a clear
inward customs clearance. Can also be issued in airfreight consolidations
where the de-consolidating agent receives the cargo against the master air
waybill and issues each individual consignee in the consolidation with a
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delivery order for their cargo only.

DEMURRAGE
Additional charges levied by a shipowner or carrier when a specified period
for loading or unloading has been exceeded. Frequently container in
Charterparty contracts to avoid lengthy delay in unloading. Also charged to
users of containers who exceed the free period allowed for unloading.
Normally the demurrage will then be charged at a fixed daily rate.

DISCREPANT DOCUMENTS, DISCREPANCY

A term used in documentary credit operations. It refers to documents
presented under a Credit that do not confirm to the terms and conditions of
the Credit. These are generally as the result of an error, contradiction,
omission or variance with another document (nonconformity). The negotiating
bank has a fiduciary duty to the issuing bank not to make payment against
discrepant documents, unless the issuing bank issues an amendment or the
applicant agrees to accept the discrepant documents.

DOCUMENTARY LETTER OF CREDIT

An advice issued by a bank, authorising the payment of money to a named
party (the beneficiary – normally the exporter) against delivery by the
beneficiary of specified documents evidencing the shipment of described
goods. The terms of the Credit must be strictly complied with if the exporter is
to receive the protection and the funds available under the terms of the Credit.
(See Discrepant Documents above)

DRAFT
(See Bill of Exchange)

DUMPING
The practice of selling a product in an overseas market at an unfairly low price
i.e. one that is lower than the cost in the domestic market for a sale on similar
terms, in order to gain a competitive advantage over local suppliers. Dumping
is considered an unfair trade practice under World Trade Organisation (WTO)
agreements. Where dumping is proven, a prohibitive duty rate will be levied
on the offending goods.

EURO (EUR) – European Currency Unit

The common currency unit developed by the states of the European Union for
use in most EU countries with effect from 1 January 2002.

EDI – ELECTRONIC DATA INTERCHANGE

The computer-to-computer transmission of electronic documents (purchase
orders, invoices etc.) formatted in an agreed standard such as EDIFACT.

E.T.A.
Estimated time of arrival (of an aircraft or vessel at destination).

E.T.D.
Estimated time of departure (of an aircraft or vessel from the port/airport of
departure).

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FREIGHT OF ALL KINDS (FAK)

The collective term given to a full container load of a large variety of small
consignments; at least five items where no one item exceeds 6000 kilograms.

FULL CONTAINER LOAD (FCL)

A consignment completely filling one container normally travelling from the
shipper’s premises to the consignee’s premises, usually on one Bill of Lading
and intended to be unpacked by the consignee.

FORTY FOOT EQUIVALENT UNIT (FEU)

A container twice the length of the normal 20 foot equivalent unit (TEU). (See
Container above)

FORWARDING INSTRUCTION
A document initially introduced for container cargo delivery, but now in
widespread use. It is normally a multi-page form, which allows copies to be
issued to customs, container depot staff, shipping company staff and the
haulier. The document is used to advise the shipping company of the
shipper’s requirements for completing the Bill of Lading and also acts as an
interim receipt and advice to customs of the ECN.

FREIGHT
The common name for the monetary consideration paid by the shipper to the
carrier for the transport of the shipper’s goods. Can also be used to describe
the goods themselves.

FREIGHT FORWARDER
Organisations that are expert in the international movement of goods,
respective documentation and procedures. First-time exporters would be wise
to consider using the services of a freight forwarder.

FORWARDER’S or HOUSE BILL OF LADING

A document often issued by freight forwarders acting as consolidators of
export LCL cargo. Forwarders obtain the B/L for the full container from the
carrier and, in turn, issue the individual LCL shippers with a Bill of Lading on
the forwarder’s letterhead for their respective shipments. NB: Forwarder’s Bills
of Lading may not be acceptable under the terms of Letters of Credit unless
specifically allowed and must be signed as agents for the carrier and stating
the carrier’s name.

GROSS WEIGHT
The total weight of a package including the weight of the contents and the
weight of the packing materials. (See Net Weight and Tare Weight)

HALF HEIGHT
A container one half the normal height. (See Container above)

HAZARDOUS CARGO
Generally taken to mean cargo classed as dangerous by the International
Maritime Dangerous Goods Code (IMDG). In Australia this is contained in the
Dangerous Goods Act, which specifies labelling, handling and stowing
regulations and is controlled by the Department of Transport. The
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International Air Transport Association (IATA) controls air cargo.

HEAVY LIFT
Cargo which is especially heavy, requiring special care and equipment during
loading, transit and unloading. Cargo of this kind normally attracts an
additional surcharge over and above the freight rate for similar type of cargo,
but of normal weight.

HOUSE AIR WAYBILL (HAWB)

An Air Waybill issued by consolidators to shippers as receipt for their
respective consignment in lieu of the Master Air Waybill issued to the
consolidator for the total consolidation.

IATA – INTERNATIONAL AIR TRANSPORT ASSOCIATION

An air transport industry association headquartered in Geneva Switzerland
comprising in excess 230 airlines from 130 countries. It has a wide range of
responsibilities, which include passenger and cargo rate structures, financial,
legal, technical medical, hazardous goods transport and traffic regulation.

IBCC – INTERNATIONAL BUREAU OF CHAMBERS OF COMMERCE

An International Chamber of Commerce administered network of Chambers of
Commerce, which administers the ATA Carnet system for temporary duty-free
admission of samples and exhibition goods.

‘INCOTERMS 2000’
A document issued by the International Chamber of Commerce, Paris
containing 13 internationally accepted trade terms. The responsibilities of
buyer and seller are stated clearly and unambiguously. Copies of Incoterms
may be obtained from national Chambers of Commerce or the International
Chamber of Commerce (ICC) Paris, France.

INSTITUTE CLAUSES
Internationally accepted clauses prepared by the Institute of London
Underwriters which are common to most Insurance Certificates/Policies. The
Institute Cargo Clauses (A, B and C) provide different levels of protection in
descending order of cover from A (sometimes referred to as ‘All Risks’) to C
as the least form of cover, suitable mainly for bulk cargoes. Additional cover
is provided for such risks as War, Strikes, Riots and Civil Commotions
(SRCC), Theft, Pilferage and Non-Delivery (TPND) and similar standard
clauses for the payment of an additional premium. (Refer also to SRCC and
TPND)

INTERIM RECEIPT (‘MATE’S RECEIPT’)

A receipt for cargo given by the carrier to the shipper indicating receipt of the
goods pending the issue of the Bill of Lading, and subject to the same terms
and conditions as the B/L. It is surrendered to the carrier in exchange for the
B/L. Adverse comments regarding the condition of the goods or packing can
render the receipt ‘claused’ or ‘dirty’, which in turn will be transferred to the Bill
of Lading. (See also Forwarding Instruction and Claused Bill of Lading)

ISSUING BANK
The issuing bank is normally the buyer’s bank that issues the documentary
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letter of credit on instructions from the buyer in favour of the beneficiary. Also
sometimes referred to as ‘the opening bank’.

LESS THAN CONTAINER LOAD (LCL)

A consignment, which by itself is insufficient to fill a container. The exporter
will normally deliver the cargo to a container depot or freight consolidator for
consolidation with similar small consignments until there is sufficient for a full
container load (FCL).

LETTER OF INDEMNITY
A document used to obtain delivery of goods from a shipping company if the
Original Bill(s) of Lading is/are not available e.g. lost by shipper, or not
received by consignee. The shipping company will require the company
requesting the indemnity to be joined in indemnifying them by their bank. This
is normally achieved by the bank issuing a Bank Guarantee to the shipping
company indemnifying them against wrongful release and promising to pay
any outstanding freight or disbursement costs due against the B/L. The
indemnity will be required for at least double the value of the cargo, and in
some countries three times the value.

LIFT-ON/LIFT-OFF FEES (LO/LO)

The costs incurred in handling FCL containers at the terminal/depot. Normally
charged as a component of the freight cost charged by the shipping company
for the carriage of the goods.

MULTI-MODAL/COMBINED TRANSPORT BILL OF LADING

A document used for the door-to-door transport concept combining sea, land
and air transport. One B/L covers either the entire journey (FCL movement) or
alternatively, container depot to container depot (LCL movement). This is
opposed to the ‘ocean’ or port-to-port concept, where the B/L covers only the
transit between the named ports of loading and discharge.

NEGOTIABLE DOCUMENT
A written document that can be used to transfer the rights embodied in it by
mere delivery (in the case of instruments made out to bearer), or by
endorsement and delivery (in the case of instruments made out to order).
Some documents, such as the Bill of Exchange or cheque, are negotiable
unless their negotiability is explicitly excluded, while the Bill of Lading is
negotiable only if made negotiable by the shipper.

NET WEIGHT
The weight of the contents of a package, excluding the weight of the packing.
(See Gross Weight and Tare Weight)

NVOCC
An abbreviation for Non Vessel Owning Common Carrier. Freight forwarders /
Consolidators lease space from carriers for carriage of their clients’ cargoes –
they neither own nor charter ships upon which their cargoes are shipped. The
LCL cargo is consolidated for individual shippers in the carrier’s container and
shipped under the carrier’s Bill of Lading issued to the NVOCC who, in turn,
issues House Bills of Lading to the individual shippers. (See House Bill of
Lading)
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OPEN POLICY (OP)

A type of insurance policy intended to cover an indefinite number of future
shipments. The insurance contract remains in force until cancelled. Under the
open policy, individual successive shipments are periodically reported or
declared to the insurer and automatically covered on or after the inception
date. Open policies can provide efficiency and savings for all parties
concerned, especially when the insured conducts a significant volume of
highly similar transactions.

OPEN TOP (CONTAINER)

A container constructed without the normal metal top to allow the shipment of
unusual shaped cargo. Normally supplied with a tarpaulin top to protect the
contents after stowage of the goods.

OPTIONAL DISCHARGE
A B/L claused to allow the discharge of the cargo at one of several ports at
consignee’s option. Normally encountered in bulk commodity trade.

PACKING LIST / WEIGHT NOTE / PACKING SPECIFICATION

A document issued by the exporter providing details of the contents of each
individual package together with dimensions, cubic measurement and net and
gross weights.

PERFORMANCE BOND / UNCONDITIONAL BANK GUARANTEE

A bond or bank guarantee, which has been issued as security for one party’s
performance (normally used in large government contracts). If that party (the
principal) fails to perform the beneficiary under the bond/guarantee may
obtain payment. In the case of the unconditional bank guarantee, the
beneficiary merely advises the bank that he wishes to draw on the guarantee
without having to prove default. Some performance bonds demand that the
beneficiary submit a statement to the effect that the principal is in default in
order to be paid.

PRE-SHIPMENT INSPECTION (PSI)

An inspection of contract goods, prior to shipment, to ascertain their quality,
quantity, price or condition. Importers may insist in PSI, requiring the exporter
to furnish a certificate of inspection (commonly issued by neutral
internationally respected organisations such as SGS or Bureau Veritas), so
that the importer is assured of receiving the contracted goods. Government
agencies may require inspection certificates as regards price, so as to prevent
parties from under or over invoicing in an attempt to pay lower duties or evade
foreign exchange regulations. They are frequently used to establish the
correct duty rate and pre-prepare the import customs entry.

PRO FORMA INVOICE

A sample invoice provided by an exporter prior to shipment advising the buyer
the price, quantity, weights and measurements and description of the goods
to be despatched. The pro forma invoice thus acts as a contractual offer,
which when accepted by the receipt of a purchase order from the buyer,
completes the principal legal requirements for the formation of a contract of
sale. It is intended that the commercial invoice finally submitted with the
goods should exactly replicate the pro forma invoice so that the buyer
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receives no surprises. Importers may also require formal pro forma invoices to
establish import licences, foreign exchange permission and letters of credit in
some countries.

PSC / APCA
An abbreviation for Port Service Charge Additional/Australian Port Charge
Additional. (Also see Wharfage)

REFRIGERATED CONTAINER (‘REEFER’)

A container designed to carry goods that require maintenance at low
temperatures, from cool to freezing. Refrigeration may be either mechanical,
which means receiving power supply from a clip-on unit or the vessels power
supply or by expendable refrigerant (dry ice, liquefied gasses etc). (See also
COU and INTEGRAL UNIT)

RFEU
Refrigerated Forty-foot Equivalent Unit. (A refrigerated 40’ Container or
equivalent)

RO/RO BERTH
A berth designed specifically for the processing of roll on/roll off ships – not all
RO/RO vessels require such a facility, as some are able to use a conventional
berth. (Refer RORO vessel below)

RTEU
Refrigerated Twenty-foot Equivalent Unit. (A refrigerated 20’ Container or
equivalent)

ROLL-ON/ROLL-OFF VESSEL (‘RORO’)

A vessel specially constructed to allow the loading of cargo by units, which
drive on board under their own power, using a bow or stern door or ramp, e.g.
forklifts, container straddle carriers or normal road haulage vehicles (semi-
trailers). Such cargo is normally containerised or palletised but any type of
cargo may be handled. Loading is normally by means of a bow or stern ramp
lowered from the vessel. These vessels normally require specially
constructed berths to allow berthing at the correct angle for the lowering of the
ramp.

SHIPPER’S LETTER OF INSTRUCTION (SLI)

This is a document provided by the exporter to the airfreight forwarder as an
instruction for the completion of the Air Waybill. The SLI normally
accompanies the goods to the forwarder’s premises.

SEA WAYBILL
The sea transport document that has similar functions to the Air Waybill in that
it is a non-negotiable consignment note evidences the contract of carriage
and is a receipt for the goods.

SHORT FORM BILL OF LADING

A simplified Bill of Lading, frequently without the conditions of carriage printed
on the reverse, which carries a reference to or an abbreviation of the carrier’s
full Bill of Lading or carriage instruction.
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SIDE-LOADER
A road vehicle fitted with specialised equipment for container handling.
Normally used when the exporter needs to load an FCL container ’on the
ground’. The empty container is delivered to, and the packed container
collected from, the exporter’s premises by the side-loader.

SIGHT DRAFT
A Bill of Exchange (or Draft) drawn at ‘sight’ and payable on presentation, or
‘on demand’. (Also refer Term Draft)

‘STALE’ BILL OF LADING

A Bill of Lading presented to a bank for negotiation with other shipping
documents more than 21 days after the shipment date on the Bill of Lading, or
dated later than the expiry date for shipment allowed by a documentary letter
of credit.

STANDBY LETTER OF CREDIT

This document is similar in operation to the unconditional bank guarantee.
Primarily used in USA, its origin lies in the fact that in the 1800’s American
legislation did not allow the issue of bank guarantees. The standby credit was
resorted to as a method of circumventing the legislation. Under a standby
credit the beneficiary usually obtains payment by presentation to a bank of
draft and a statement that the principal is in breach of contract. A standby
credit may be issued subject to the terms of UCP 500. Quite frequently
standby credits are used to back up extended payment terms. The exporter
will grant the buyer say 90 day terms subject to a standby credit issued to the
exporter as beneficiary. Should the buyer default in payment at the end of the
90 day period, the exporter has the right to draw down on the standby credit,
which is paid unconditionally.

STC – SAID TO CONTAIN

A term used by shipping companies on bills of lading to limit their liability as
they cannot establish the declared contents of packages shown on shipping
instructions by shippers. Also sometimes shown as ‘Shippers Load and
Count’ (S&C).

SRCC
An internationally accepted term used by banks as an abbreviation for Strikes,
Riots, and Civil Commotions Clause. Can appear within a Letter of Credit in
the abbreviated form (SRCC) under insurance requirements. Refer Institute
Clauses, Commonly replaced by ‘Institute Strike Clauses (Cargo)’ on
Insurance Certificates/Policies.

STRIPPING AND STUFFING

The act of unloading or loading (respectively) goods into a container.

SWIFT – Society for Worldwide Inter-bank Financial

Telecommunications
An organisation established by the international banking community initially
for international electronic funds transfer and transmission of secure
documentary letters of credit. Has now initiated the Bolero system for the
transmission of electronic documentation and bills of lading. (Refer to
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BOLERO)

T.A.C.T. – THE AIR CARGO TARIFF RULES AND RATES

IATA publication providing information on air cargo rates. Air consolidators will
normally be able to provide rates below the TACT rate. Also provides
information on documentation requirements for air transport to overseas
destinations, methods of preparing Air Waybills, customs formalities at
airports and similar valuable information regarding the movement of air cargo.

TANK CONTAINER
A 20-foot container frame, containing a tank suitable for the transport of bulk
liquids.

TARE WEIGHT
The weight of the packaging only, to which has to be added the net weight (of
contents) to arrive at the total gross weight of the package. (See also Net and
Gross Weights)

TENDER OR BID BOND

An unconditional bank guarantee provided by a company responding to an
invitation to tender (normally for large government projects). The bond is
normally set as a percentage of the contract price say 2-3% and is required to
discourage frivolous bids. Consequently, if a company bids, is awarded the
contract but fails to execute the contract, the bond will be drawn down to
compensate for the administrative costs in re-instating the tender.

TERM DRAFT
A Bill of Exchange (or Draft) demanding payment at a fixed future date, or
specified period after sight or the stated date on the Draft e.g. 30 days after
Bill of Lading date, 30 days after sight, 90 days after invoice date. Such drafts
are also referred to as usance drafts (usance being the period of credit
allowed).

THC – TERMINAL HANDLING CHARGE

The charges assessed for the use of container terminal facilities when
processing container shipments. When using the multi-modal Incoterms it is
advisable to specify precisely which party will be responsible for THC at the
loading and discharge ports.

TPND
An internationally accepted term used by Banks as an abbreviation for Theft,
Pilferage and Non-Delivery. Can appear within a Letter of Credit in the
abbreviated form (TPND). (Refer Institute Clauses)

TRANSHIPMENT
The transfer of goods at intermediate ports or airports, and the changing of
vessels or aircraft, to allow the goods to reach a destination not served by a
direct service from the originating country.

TRANSPORT TERMINAL
A railway terminal, a freight station, a container terminal or yard, a multi-
purpose cargo terminal or any similar receiving point.
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TWENTY FOOT EQUIVALENT UNIT (TEU)

A shipping term describing a piece of cargo or package taking up the space
that a standard 20 foot container would occupy. Can also be used to measure
the carrying capacity of container vessels. E.g., if a vessel is said to have a
capacity of 4000 teu’s it indicates that it is able to carry roughly equivalent to
4000 x 20’ containers.

UCP500 – UNIFORM CUSTOMS & PRACTICE FOR DOCUMENTARY

CREDITS
Issued by the International Chamber of Commerce, Paris. This publication
sets out standard rules governing international documentary credit practice.
UCP attempts to fill in the ‘grey’ areas where credits are not specific in their
instructions. Documentary credits that are subject to UCP will bear a
statement to that effect. NB. Not all credits are subject to UCP. The current
publication, International Chamber of Commerce Publication No. 500 sets out
Uniform Customs and Practice for Documentary Credits (1983 Revision).

UNCITRAL – United Nations Commission on International Trade Law

UNCITRAL is a UN agency based in Vienna, Austria specialising in the
development of model legal instruments and conventions in the area of
international trade law. Probably its most notable success being the 1980
Vienna Convention on the International Sale of Goods (CISG) or more
generally known as VSC or Vienna Sales Convention. (See VSC)

VSC – 1980 Vienna Convention on the International Sales of Goods

Normally referred to as the Vienna Sales convention or just VSC, this
international treaty was signed by approximately 45 nations. It amounts to a
virtual commercial code for international sales transactions (excluding
contracts for services, securities, electricity). Parties may opt out of coverage
by the VSC by explicitly stating so in the contract of sale.

WAREHOUSE TO WAREHOUSE CLAUSE

A term quite often used in documentary credit insurance requirements.
Referred to as the Transit Clause in the A, B and C Institute cargo clauses, it
normally covers transit from the seller’s warehouse to the buyer’s warehouse
and for a maximum of 60 days after discharge. There are provisos to this
cover and it is advisable to read the Transit Clause to understand their
ramifications.

WHARFAGE
A charge levied by Port Authorities on goods loaded on to a vessel over a
wharf. If is a charge for the use of the port facilities such as storage sheds,
forklifts and cranes. Wharfage may be paid direct to the Port Authorities but is
quite often included in the freight rate and paid on the shipper’s behalf by the
shipping company. (Also see APC and BSRA)

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6.8 Resources and further Information

The Export Handbook 2005 (by the Australian Institute of Export) is recommended reading
for a detailed account of issues facing an exporter. It can be obtained from: www.aiex.com.au
International Logistics and Freight Forwarding Manual by Russell Burke is an excellent
and detailed description of freight forwarding. It can be obtained at www.wcbm.com.au
Austrade is an invaluable source of information and assistance for exporters. Much
information is available at www.austrade.gov.au
The appropriate industry association is normally another good source of information for the
exporter. See list of industry associations below.
AusIndustry’s website displays a list of various grants, concessions, incentives, funds and
programs: www.ausindustry.gov.au - go to ‘AusIndustry products’
Queensland Government - www.qld.gov.au
*Department of State Development and Innovation: www.sdi.qld.gov.au
*Commerce Queensland: www.commerceqld.com.au
*Trade and International Operations Division: www.export.qld.gov.au/
Information about Australia’s Free Trade Agreements can be accessed on Department of
Foreign Affairs and Trade’s website www.dfat.gov.au or www.fta.gov.au
Incoterms 2000 contains the official rules for the interpretation of trade terms, and this book
should be used as an Incoterm reference. It can be obtained from www.iccwbo.org

LINKS TO RELEVANT STATE AND FEDERAL GOVERNMENT ORGANIZATIONS

Agriculture Advancing Australia (AAA): www.daff.gov.au/aaa

Airfreight Council of Queensland: www.australianairfreight.com
AusAID: www.ausaid.gov.au
Australian Airport Association - AAAL: www.aaal.com.au/
AusIndustry: www.ausindustry.gov.au
Australian Bureau of Statistics: www.statistics.gov.au
Australian Competition and Consumer Commission (ACCC): www.accc.gov.au
Australian Customs Service: www.customs.gov.au
*Customs’ information centre: [email protected]
*Cargo support desk: [email protected]
Australian Government: www.australia.gov.au
Australian Government Regional Information Service: www.regionalaustralia.gov.au
Australian Government – Small Business: www.smallbusiness.gov.au

Australian Maritime Safety Authority: www.amsa.gov.au/

Australian Quarantine and Inspection Service (AQIS): www.aqis.gov.au
Australian Securities and Investments Commission (ASIC): www.asic.gov.au
Australian Taxation Office: www.ato.gov.au
Business Entry Point: www.business.gov.au
Commerce Queensland: www.commerceqld.com.au
Department of Agriculture, Fisheries and Forestry: www.daff.gov.au
Department of Foreign Affairs and Trade: www.dfat.gov.au
Department of Industry, Tourism and Resources: www.isr.gov.au
Department of Transport and Regional Services: Regional Partnerships:
www.regionalpartnerships.gov.au
Department of Environment and Heritage and Environment Australia:
* www.deh.gov.au / www.environment.gov.au
* www.biodiversity.environment.gov.au/wildlife
Export Finance and Insurance Corporation (EFIC): www.efic.gov.au
Food Standards Australia New Zealand (FSANZ): www.foodstandards.gov.au
Food technology research and services: http://www.dpi.qld.gov.au/food
Grantslink: www.grantslink.gov.au

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Great Barrier Reef Marine Park Authority: www.gbrmpa.gov.au

Invest Australia: www.investaustralia.gov.au
Levies Management Unit (DAFF): www.daff.gov.au/levies
National Residue Survey: www.nrs.gov.au
New Industries Development Program (NIDP): www.daff.gov.au/agribiz
Office of the Gene Technology Regulator: www.ogtr.gov.au
Queensland Department of Primary Industries and Fisheries: www.dpi.qld.gov.au
Queensland Government:
* www.qld.gov.au
* www.sdi.qld.gov.au (Department of State Development and Innovation)
* www.smartsmallbusiness.qld.gov.au/gobis
* www.smartsmallbusiness.qld.gov.au/smartlicence
* www.fairtrading.qld.gov.au
Queensland Rural Adjustment Authority: www.qraa.qld.gov.au
Queensland Transport: www.transport.qld.gov.au
Rural Industries Research and Development Corporation (RIRDC): www.rirdc.gov.au
Safe Food Queensland: www.safefood.qld.gov.au
Sea Freight Council of Queensland: www.seafreightcouncils.com.au/
Therapeutic Goods Administration (TGA): www.tga.gov.au
Wheat Export Authority (WEA): www.wea.gov.au

LINKS TO OTHER USEFUL ORGANIZATIONS AND INTERNATIONAL ORGANIZATIONS

APEC tariff database: www.apectariff.org

Asia-Pacific Economic Cooperation (APEC): www.apecsec.org.sg
Atradius credit insurance and credit management company: www.atradius.com.au
Ausmeat: www.ausmeat.com.au
Australian Business Limited: www.australianbusiness.com.au
Australian Environmental Labelling Association: www.aela.org.au
Australian Institute of Export: www.aiex.com.au/
AusVet Animal Health Services: www.ausvet.com.au
Business Council of Australia (BCA): www.bca.com.au
Codex Alimentarius, FAO/WHO Food Standards: www.codexalimentarius.net
Commonwealth Scientific and Industrial Research (CSIRO): www.csiro.au
Custom Brokers & Forwarders Council of Australia Inc: www.cbfca.com.au/
European Union On-Line: www.europa.eu.int
Export Magazine (Australian Institute of Export): www.exportmagazine.com.au
Food and Agriculture Organization of the UN: www.fao.org
International Air Transport Association - IATA: www.iata.org/index.htm
International Business Culture Guides: www.executiveplanet.com
International Chamber of Commerce: www.iccwbo.org
International Enterprise Singapore: www.iesingapore.gov.sg
Japan External Trade Organization: www.jetro.go.jp
Maritime Global Net: www.mglobal.com
National Association of Testing Authorities (NATA): www.nata.asn.au
New Zealand Ministry of Agriculture and Forestry: www.maf.govt.nz
QBE Insurance Group: www.qbe.com.au
Standards Australia: www.standards.com.au
UK Department of Environment, Food and Rural Affairs: www.defra.gov.uk
UK Food Standards Agency: www.food.gov.uk
Universal Currency Converter: www.xe.net/currency
USA Animal and Plant Health Inspection Service (APHIS): www.aphis.usda.gov
USA Department of Agriculture, Foreign Agriculture Service: www.fas.usda.gov
USA Food and Drug Administration: www.fda.gov
USA Food Safety and Inspection Service (FSIS): www.fsis.usda.gov
World Customs Organization: www.wcoomd.org
World Trade Organization (WTO): www.wto.org
Worldwide Gateway – A to Z: www.azairfreight.co.uk

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LINKS TO INDUSTRY ASSOCIATIONS

Agribusiness Association of Australia: www.agrifood.info

Air Conditioning and Mechanical Contractors’ Association Qld: www.amcaqld.com.au
Australian Agriculture and Natural Resources Online: www.infoscan.com.au
Australian Citrus Growers Inc. (ACG): www.austcitrus.org.au
Australian Electrical and Electronic Manufacturer’s Association: www.aeema.asn.au
Australian Fodder Industry Association: www.afia.org.au
Australian Food and Grocery Council: www.afgc.org.au/
Australian Food Industry Organizations: www.ausfoodnews.com.au/food_org.htm
Australian Hide, Skin and Leather Exporters Association Ltd.: www.ahslea.com.au
Australian Horticultural Export Association: www.ahea.com.au
Australian Industry Group: www.aigroup.asn.au
Australian Information Industries Association (AIIA): www.aiia.com.au
Australian Institute of Food Science and Technology: www.aifst.asn.au
Australian Marine Industries Federation: www.amif.asn.au
Australian Ostrich Association: www.aoa.asn.au
Australian Pork Limited: www.apl.au.com
Australian Tropical Foods: www.australiantropicalfoods.com/
Australian Wheat Board (AWB): www.awb.com.au
Australian Wine and Brandy Corporation: www.awbc.com.au
Australian Wool Innovation Limited (AWI): www.wool.com.au
Australian Seafood Industry Council (ASIC): www.asic.org.au
Boating Industry Association of Queensland: www.biaq.com/
Dairy Australia: www.dairyaustralia.com.au
FoodProcessing Online: www.buynet.com.au/food/admin/links.asp
Food Processing in Regional Australia Program: www.daff.gov.au/regionalfood
Gold Coast Food Forum: www.goldcoastfoodforum.org.au/
Gold Coast Marine Industry Association: www.goldcoastmarineindustry.org/
Grains Research and Development Corporation: www.grdc.com.au
Growcom: www.growcom.com.au
Horticulture Australia Ltd: www.horticulture.com.au
Kangaroo Industry of Australia Association (KIAA): www.kangaroo-industry.asn.au
Livecorp: www.livecorp.com.au
Meat & Livestock Australia: www.mla.com.au/
National Food Industry Strategy: www.nfis.com.au and www.foodbiz.net.au
Packaging Council of Australia: www.packcoun.com.au/
Queensland Agricultural Merchants: www.qam.org.au
Queensland Farmers’ Federation: www.qff.org.au/
Queensland Livestock Exporters Association: 07 3366 7688
Queensland Seafood Industry Association Inc: www.seafoodsite.com.au/
Queensland Trucking Association: www.qta.com.au
Queensland Wine Industry Association Incorporated: www.queenslandwine.com.au/
Winemaker’s Federation of Australia: www.wfa.org.au/

FREIGHT HANDLING
 (07)
Port and transport facilities:
Australia Post: www.auspost.com.au 131118
Australian Customs Service (Brisbane): www.customs.gov.au 3835 3444
Australian Quarantine & Inspection Service (AQIS): www.aqis.gov.au 3246 8709
Queensland contact: [email protected]
Brisbane Airport: www.bne.com.au 3406 3000
Cairns Port Authority, Air and Sea: www.cairnsport.com.au 4052 3888
Gold Coast Airport, Coolangatta: www.goldcoastairport.com 5589 1100
Gladstone Port Authority: www.gpa.org.au 4976 1333
Patrick (Stevedore): www.patrick.com.au 3895 8555
P&O (Stevedore): www.poports.com.au 3895 9222
Port of Brisbane Corporation: www.portbris.com.au 3258 4888
Port of Townsville: www.townsville-port.com.au 4781 1500
Ports Corporation of Queensland: www.pcq.com.au

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Queensland Rail: www.qr.com.au 3235 7221

Rockhampton Port Authority: www.rpaport.com.au 4927 2133
Townsville Airport: www.townsvilleairport.com.au 4727 3211

Customs brokers and freight forwarders:

ACA International Pty Ltd: www.acaint.com.au 3868 1515
Advanced International Freight Forwarders & Consultants P/L: 3852 1500
AFS Freight Management 2000 Pty Ltd: www.afs.com.au 3868 2888
AFS Projects & Logistics Pty Ltd: www.afslogistics.com.au 3868 3899
Aim Logistics Queensland: 3277 2459
F L Air Freight Pty Ltd: 3256 0066
Air Sea Cargo International: 3260 5588
Air Sea Transport (Australia): http://www.airsea.com.au 3252 0006
Airmark Ocean & Air Logistics: www.airmark.com.au 3267 3088
All Ports International Logistics (Qld) Pty Ltd: www.allports.com.au 3862 1544
Alliance Freight International: 3267 1933
APC Logistics: www.apclogistics.com.au 3262 3500
ASA Logistics Pty Ltd: 3396 3099
Asean Cargo Services: www.asean.com.au 3252 3656
Associated Customs Services Pty Ltd: 3868 1801
Aurora Global Logistics Pty Ltd: www.auroralogistics.com 3268 7333
Aust-Asia Worldwide Shipping Pty Ltd: http://www.aust-asia.com.au 3630 6166
Australian Groupage Services: http://www.agsworld.com 3632 4300
Australia Trade and Shipping: 3808 1200
Baldwins Customs Service Pty Ltd: 3208 6088
Barry Taylor & Partners Customs Brokers Pty Ltd: www.btap.com.au 3262 7419
Bax Global (Aust) Pty Ltd: www.baxglobal.com.au 3860 7500
BCR Freight (Qld): www.bcr.com.au 3252 0177
Bonnell Customs Agencies: 4035 4733
Brennan International: See NACA Logistics Group
Brisbane Shipping & Marketing Services: 3267 1730
BTI Logistics Pty Ltd: www.btilogistics.com.au 3262 8444
Cargo Chart International Pty Ltd: www.cargonetwork.com.au 3832 5533
Cargo Network International Pty Ltd: www.cargonetwork.com.au 3260 1166
Cargoclear International Pty Ltd: www.cargoclear.com.au 3630 1244
CDS Overseas Pty Ltd: www.cdsoverseas.com.au 3868 2899
Chief Container Services: www.chiefcontainerservices.com.au 3302 3300
Colless Young Pty Ltd: www.collessyoung.com.au 3890 0800
Commercial Customs Services Pty Ltd: www.commercialcustoms.com.au 3216 4579
Complete Global Solutions: www.cgs.net.au 3216 4744
Comtern Consolidation Services: See NACA Logistics Group
Containers International Pty Ltd: 3219 0666
Crossocean Forwarding Services Pty Ltd: www.crossocean.com.au 3906 9890
CT Freight Pty Ltd: www.ctfreight.com.au 3621 1288
Customs & Forwarding Services (Australia) Pty Ltd: 3252 5515
Customs Brokers & Forwarders Council of Australia: www.cbfca.com.au 3252 1348
Deep Blue Australia Pty Ltd: www.mydeepblue.com 3267 3666
Deugro Projects Australia: www.deugro.com 3257 3492
DHL Danzas Air & Ocean: www.dhl.com 3845 7777
Direct Container Line: (See NACA Logistics Group)
EDI Customs Brokers Pty Ltd: www.edicustoms.com.au 3862 4788
EGL Eagle Global Logistics Pty Ltd: www.eaglegl.com 3633 6300
Euro-Pacific Logistics: www.europacific.com.au 3267 9111
Exel Australia Pty Ltd: www.exel.com 3860 1900
Expeditors International: www.expeditors.com 3266 8877
Export Freight Services: See NACA Logistics Group
Express Freight Management: 3268 2411
Famous Pacific Shipping (Australia) Pty Ltd: www.fpsqld.net.au 3907 4888
Focus International Freight: 3267 1158
Four Winds International Movers: 3890 6800
FRACHT Australia Pty Ltd: www.frachtag.ch 3868 4990

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Freight Systems International Pty Ltd: 3256 9022

Freightnet International Pty Ltd: 3862 2477
Gary Williams Customs Agency: 3267 0575
Gateway Customs Brokers: 3868 2341
Global Logistics Management: www.glm-corp.com 3224 1900
Global Transport Systems: 3267 1222
GTS International: 3868 3533
A Hartrodt Queensland Pty Ltd: www.hartrodt.com.au 3630 6700
Hellmann Worldwide Logistics Pty Ltd: 3267 1555
Hinton McNeil Customs Pty Ltd: 3268 7255
Intergroup Australia: 3390 8377
International Cargo Express Pty Ltd: www.icecargo.com.au 3868 1777
International Cargo Solutions: 3393 1144
International Trade Management Pty Ltd: 3348 9899
Interport Cargo Services (Brisbane) Pty Ltd: www.interportcargo.com.au 3268 5244
Intramar Pty Ltd: 3868 3122
ITC Consultants Pty Ltd: www.itcconsultants.com.au 3348 3588
J&D Bell International Freight Services: 3212 7200
Keith Thomas Enterprises: 3869 3975
Kilby Customs & Forwarding: 3267 8999
Kuehne & Nagel Pty Ltd: www.kuehne.nagel.com 3621 6900
LEP International Pty Ltd: www.lep.com.au 3268 9100
W Love Customs Services: 3252 5799
LC Loynes & Associates: 3393 1888
Lynair International (Qld): www.lynair.com.au 3868 1870
Mac Customs Pty Ltd: 3868 1590
McAfee Customs & Forwarding Pty Ltd: www.mcafeecustoms.com.au 3899 3122
Mainfreight International Pty Ltd: www.mainfreightinternational.com.au 3906 9890
Manton Woodall & Associates Pty Ltd: www.mantonwoodall.com.au 3252 9955
NACA Logistics Group of Companies: 3868 2888
Norfolk Forwarding Services: 5497 8769
North Queensland Customs Services: www.nqcs.com.au 4772 2400
NYK Logistics Australia Pty Ltd: www.nyklogistics.com.au 3868 9400
OBM International Trade Services Pty Ltd: www.obmpl.com.au 3854 1227
Ocean Air Customs & Forwarding Pty Ltd: www.universalgroup.com.au 3268 7618
Overseas Packers & Shippers: www.overseaspackers.com.au 3268 6200
Owens International Freight (Australia) Pty Ltd: www.owensglobal.com 3906 9890
Paccon Logistics Pty Ltd: www.paccon.net.au 3252 2922
Pacific Consolidators Pty Ltd: www.paccon.net.au 3252 2922
Pacific Network Cargo: www.pacnet.com.au 3260 5622
Panalpina World Transport: 3860 6955
Patrick International Freight: www.patrick.com.au 3860 4166
Phoenix International Freight Forwarding: www.piff.com.au 3633 0999
Powerhouse International Pty Ltd: www.powerhouse.au.com 3868 2468
Precision Worldwide Logistics Pty Ltd: 3883 4232
Procurement & Consignment Services: www.pacship.com.au 3345 8122
Queensland Cargo Service: www.qldcargo.com 3860 5655
Queensland Customs Brokers: www.qldcustoms.com.au 3872 9222
Queensland International Freight Services: 3868 1770
Rohlig Australia Pty Ltd: www.rohlig.com.au 3268 5933
Schenker International Australia Pty Ltd: www.schenker.com.au 3621 8000
Sherwood Worldwide Logistics Pty Ltd: www.swl.com.au 3267 3700
Show Travel & Show Group: www.showgroup.com.au 3252 7090
Skelton Tomkinson: www.shipST.com 3348 7810
Skoda International Pty Ltd: 3868 3033
Stockwell International Pty Ltd: www.stockwellint.com.au 3262 9888
Strang International Pty Ltd: www.stxgroup.com.au 4725 2077 / 3267 8022
Strategic Global Logistics Pty Ltd: 3267 3700
Sunstate Customs & Cargo: 3868 4106
Swire Forwarding Services: 3302 3300
TACS International, Cairns: 4031 2055
TFI Global: www.tfi.com.au 3252 5811

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Toll International: www.toll.com.au 3860 8188

Tony Warr International Pty Ltd: www.shipping-people.com 3848 8088
Townsville Customs and Forwarding Services Pty Ltd: 4771 5422
Tradewinds Customs and Freight: www.tradewindscustoms.com.au 3868 3388
Transit Freight International: www.transitfreight.com 5569 0996
Transways Express: www.transways.com.au 3262 9522
Universal Cargo Services Pty Ltd: www.universalgroup.com.au 3868 1870
UPS Supply Chain Solutions: www.ups-scs.com 3390 4377
UTI (Aust) Pty Ltd: www.go2uti.com 3268 8600
Vanguard Logistics Services (Aust) Pty Ltd: See NACA Logistics Group
Visa Australia Pty Ltd: www.visa-aust.com.au 3273 2944
Vision International Forwarding Pty Ltd: www.visionint.com.au 3866 7900
Wallace International Pty Ltd: www.wallaceintl.com.au 3212 7233
WDM International: www.wdm.com.au 3621 7100
Williams Global Freight: 3267 0575
Wilson Logistics Pty Ltd: www.wilsonlogistics.com 3268 1855
World Cargo Traders: 3260 5588

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8
Liner services by region – (Information from Port of Brisbane )

Region Shipping Lines Agent Phone ( 07 )

Africa CMA-CGM ANL Container Line Pty Ltd 3233 2233

(east, west, Evergreen Marine Corp Evergreen Marine Australia 3237 7377
south) HUAL Seaway Agencies Pty Ltd 3839 3373
"K" Line "K" Line (Australia) Pty Ltd 3227 4900
Lloyd Triestino Evergreen Marine Australia 3237 7333
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Safmarine Safmarine Australia Pty Ltd 3026 0199
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

Europe APL APL Lines (Australia) 3218 2400

(incl UK, Baltic China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
& Scandinavia CMA-CGM ANL Container Line Pty Ltd 3233 2233
Contship Containerlines Contship Containerlines Ltd 1300137443
Evergreen Marine Corp Evergreen Marine Australia 3237 7377
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
HUAL Seaway Agencies Pty Ltd 3839 3373
Lloyd Triestino Evergreen Marine Australia 3237 7333
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Marfret Adsteam Agency Pty Ltd 3252 1733
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800

Mediterranean China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
(incl Black Sea) CMA-CGM ANL Container Line Pty Ltd 3233 2233
Consortia Hispania Lines Hetherington Kingsbury Shipping 3257 0755
Contship Containerlines Contship Containerlines Ltd 1300137443
Evergreen Marine Corp Evergreen Marine Australia 3237 7377
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
HUAL Seaway Agencies Pty Ltd 3839 3373
Lloyd Triestino Evergreen Marine Australia 3237 7333
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Marfret Adsteam Agency Pty Ltd 3252 1733
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956

8
Port of Brisbane: www.portbris.com.au More details can be obtained from this website
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NYK Line NYK Line (Australia) Pty Ltd 3835 1811

P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

Middle East ANL Container Line ANL Container Line Pty Ltd 3233 2233
APL APL Lines (Australia) 3218 2400
China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
CMA-CGM ANL Container Line Pty Ltd 3233 2233
Contship Containerlines Contship Containerlines Ltd 1300137443
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Regional Container Lines RCL (Aust) Pty Ltd 3835 6888

New Zealand ANZDL Australia New Zealand Direct Line 132611

Chief Container Service Swire Shipping Agencies 3302 3300
CMA-CGM ANL Container Line Pty Ltd 3233 2233
Contship Containerlines Contship Containerlines Ltd 1300137443
FESCO New Zealand Express Line Fesco Lines Australia Pty Ltd 3832 1117
Gearbulk IMT Lines Beaufort Shipping Agency Co 3895 9272
Hamburg Sud Ham burg Sud Australia Pty Ltd 3834 0400
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
Kiwi Car Carriers Seaway Agencies Pty Ltd 3839 3373
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Marfret Adsteam Agency Pty Ltd 3252 1733
Oceanbridge Aust-Asia Worldwide Shipping 3630 6166
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800

North America ANZDL Australia New Zealand Direct Line 132611

East Coast APL APL Lines (Australia) 3218 2400
(incl US Gulf) CMA-CGM ANL Container Line Pty Ltd 3233 2233
Contship Containerlines Contship Containerlines Ltd 1300137443
C&S Shipping C&S Shipping Agency Pty Ltd 3899 4511
Evergreen Marine Corp Evergreen Marine Australia Pty Ltd 3237 7377
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
HUAL Seaway Agencies Pty Ltd 3839 3373
Maersk Sealand Maersk Sealand 3026 0111
Marfret Adsteam Agency Pty Ltd 3252 1733
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Safmarine Safmarine Australia Pty Ltd 3026 0199
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800

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Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

North America ANL Container Line ANL Container Line 3233 2233
West Coast ANZDL Australia New Zealand Direct Line 132611
APL APL Lines (Australia) 3218 2400
Contship Containerlines Contship Containerlines Ltd 1300137443
Evergreen Marine Corp Evergreen Marine Australia 3237 7377
FESCO New Zealand Express Line Fesco Lines Australia Pty Ltd 3832 1117
Gearbulk IMT Lines Beaufort Shipping Agency Co 3895 9272
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
HUAL Seaway Agencies Pty Ltd 3839 3373
Indotrans Pacific Swire Shipping Agencies 3302 3300
Maersk Sealand Maersk Sealand 3026 0111
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

North and ANL Container Line ANL Container Line 3233 2233
East Asia APL APL Lines (Australia) 3218 2400
China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
China Shipping Container Lines China Shipping (Aust) Agency Co 3832 3449
Evergreen Marine Corp Evergreen Marine Australia 3237 7377
FESCO Asia Line Fesco Lines Australia Pty Ltd 3832 1117
FESCO New Zealand Express Line Fesco Lines Australia Pty Ltd 3832 1117
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
HMM Hetherington Kingsbury Shipping 3257 0755
HUAL Seaway Agencies Pty Ltd 3839 3373
"K" Line "K" Line (Australia) Pty Ltd 3227 4900
Kiwi Car Carriers Seaway Agencies Pty Ltd 3839 3373
Lykes Lines Lykes Australia Pty Ltd 1300785955
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Project Asia Services Horizon Shipping Agencies 3332 8558
Spliethoff Asiaworld Shipping Services 3839 4235
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600
Pacific Islands ANL Pacific Express ANL Container Line 3233 2233
ANZDL Australia New Zealand Direct Line 132611
Asia Pacific Islands Line Swire Shipping Agencies 3302 3300
Chief Container Service Swire Shipping Agencies 3302 3300
CMA-CGM ANL Container Line 3233 2233
FESCO New Zealand Express Line Fesco Lines Australia Pty Ltd 3832 1117

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Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400

HUAL Seaway Agencies Pty Ltd 3839 3373
Kambara Kisen Seaway Agencies Pty Ltd 3839 3373
Moana Shipping Seaway Agencies Pty Ltd 3839 3373
Neptune Shipping Line Neptune Shipping Agency 3332 8560
New Guinea Pacific Line Swire Shipping Agencies 3302 3300
Pacific Direct Line Neptune Shipping Agency 3332 8560
Pacific Forum Line Swire Shipping Agencies 3302 3300
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Project Asia Services Horizon Shipping Agencies 3332 8558
Reef Shipping Hetherington Kingsbury Shipping 3257 0755
Sofrana Lines Sofrana Shipping Agency Pty Ltd 3854 0711
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

South America ANZDL Australia New Zealand Direct Line 132611

(East & West CMA-CGM ANL Container Line Pty Ltd 3233 2233
Coast) Evergreen Marine Corp Evergreen Marine Australia 3237 7377
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Maersk Sealand Maersk Sealand 3026 0111
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Safmarine Safmarine Australia Pty Ltd 3026 0199
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

Indian ANL Container Line ANL Container Line 3233 2233

Subcontinent APL APL Lines (Australia) 3218 2400
China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
Lloyd Triestino Evergreen Australia Pty Ltd 3237 7333
Maersk Sealand Maersk Sealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Regional Container Lines RCL (Aust) Pty Ltd 3835 6888
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

South East ANL Container Line ANL Container Line 3233 2233
Asia APL APL Lines (Australia) 3218 2400
Austral Asia Line Horizon Shipping Agencies 3332 8558
China Ocean Shipping Company Five Star Shipping & Agency Co 3215 1100
China Shipping Container Lines China Shipping (Aust) Agency Co 3832 3449
Contship Containerlines Contship Containerlines Ltd 1300137443
Djakarta Lloyd Djakarta Lloyd Agencies (Aust) 1800265352
Evergreen Marine Corp Evergreen Marine Australia 3237 7377
Hamburg Sud Hamburg Sud Australia Pty Ltd 3834 0400
Hanjin Shipping Flinders Shipping Agency Pty Ltd 3252 6800
Hapag Lloyd Hapag-Lloyd (Aust) Pty Ltd 3868 2137
"K" Line "K" Line (Australia) Pty Ltd 3227 4900

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Lloyd Triestino Evergreen Australia Pty Ltd 3237 7333

Maersk Sealand Maersk S ealand 3026 0111
Malaysia International Shipping Corp C Piesse & Co Pty Ltd 3902 7660
Mediterranean Shipping Company Mediterranean Shipping Co (Aust) 3831 2211
MOL Mitsui OSK Lines (Australia) 3211 2956
New Guinea Pacific Line Swire Shipping Agencies 3302 3300
NYK Line NYK Line (Australia) Pty Ltd 3835 1811
OOCL OOCL Australia Pty Ltd 3899 3380
Pacific International Lines Pacific Asia Express Pty Ltd 3630 6100
P&O Nedlloyd Lines P&O Nedlloyd Ltd 3226 9222
Regional Container Lines RCL (Aus t) Pty Ltd 3835 6888
Wallenius Wilhelmsen Lines Wallenius Wilhelmsen Lines Aust 3000 7800
Zim Integrated Shipping Services Globe Star Shipping Pty Ltd 3105 7600

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Airline Contacts

Airlines Website Phone (07)

Air Nauru www.airnauru.com.au 3229 6455
Air New Zealand www.airnz.com.au 3860 4133
Air Niugini www.airniugini.com.pg 3860 4161
Air Pacific www.airpacific.com 3860 4203
Air Vanuatu www.airvanuatu.com.au 3221 2566
Aircalin www.aircalin.nc 3210 6965
Cathay Pacific Airways www.cathaypacific.com.au 3860 5387
Emirates Skycargo www.sky-cargo.com 3307 9999
EVA Airways www.evaair.com 3860 5552
Freedom Air www.freedomair.com 1800 122000
Garuda Indonesia www.garuda-indonesia.com 3210 0688
Japan Airlines www.jal.co.jp/en/jalcargo 3860 5257
Jecraft Aviation www.jetcraft.com.au 3274 1241
Korean Air www.koreanair.com 3860 5222
Malaysia Airlines www.malaysiaairlines.com.au 3860 4801
Norfolk Jet Express www.norfolkjet.com.au 3221 6677
Qantas Airways www.qantas.com.au 3860 8880
Royal Brunei Airlines www.bruneiair.com 3017 5010
Singapore Airlines www.siacargo.com 3860 4528
Solomon Airlines www.solomonairlines.com.au 3860 4228
Thai Airways International www.thaicargo.com 3860 4755

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6.9 Industry specific information

6.9.1 Guide to Exporting Wine
The quality of Queensland wines is now recognised as among the best in
Australia. Overseas exports are increasing, particularly to international
markets seeking premium quality boutique wines.
Queensland Wine Exports
Over the past 3 years Queensland Wines have been exported to the USA,
UK, Hong Kong, Korea, Japan, Canada, Switzerland, Philippines, Taiwan,
Singapore and the Netherlands, Iceland, New Zealand, China.
Target markets
The Wine Industry Development Division in partnership with the Department
of Premier and Cabinet’s Trade Division have a number of activities planned
to assist both ready and emerging wine producers.
Target markets for 2005/6 are Japan and Korea. Details of activities are
outlined on the Queensland Wine Industry Development Strategy.
Australia
Australia is the world’s seventh largest wine producer, crushing over 1.15
million tonnes of grapes in 1999-2000 to produce 806.4 million litres of wine.
The yield for 2000-2001 is estimated at 1.43 million tonnes, an increase of 25
per cent on the previous year.
AWEC also supports promotional programs for Australian wine, which are
delivered through Wine Importer Committees in Singapore, Malaysia and
Hong Kong.
The Australian Wine Export Council
Adelaide SA 5000
PO Box 2733
Kent Town SA 5071
Ph: +61 8 8228 2040
Fax: +61 8 8228 2048
E-mail: [email protected]

When is compliance with the Export Regulations necessary?

If an export shipment of Australian wine or brandy exceeds 100 litres
(regardless of the quantity of each individual product) full compliance with the
regulations is required and you will need an export licence.
To obtain an export licence an application form must be completed. The
application form is available from the AWBC and is included with the 'Guide to
Export' (www.awbc.com.au). There are certain prescribed criteria that are
taken into consideration when assessing the application. They include the
financial standing of the applicant; the applicant’s ability to obtain grape
products from Australian suppliers, and other matters applicable to the
applicant's experience relating to the promotion of wine, including any that
may adversely affect the export of wine. The applicant must have a place of
business in Australia.

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You need approval for each product

One of the objectives of the AWBC is to ensure that Australian wines intended
for export are sound and merchantable and do not detract from the
established reputation Australian wine exporters have developed. This is
achieved by preventing the export of wines that have faults.
The AWBC maintains a panel of wine inspectors of the highest integrity,
qualification and experience. The inspectors are industry members and ideally
have experience in wine show judging at a regional or state level. The
inspectors are rostered in pairs; one inspector must have a
technical/winemaking background, whilst the other may have a commercial
background in wine sales or marketing.
The process for obtaining continuing approval involves sending two finished
samples to the AWBC, accompanied by copies of the labels and by a
Continuing Approval Application (enclosed within the 'Guide to Export'). The
wine undergoes several examinations. The labelling and analytical detail
provided is checked for compliance with domestic requirements, including the
blending regulations. Compliance with the Australia New Zealand Food
Standards Code (FSC) is required where the import market has no
requirements that conflict with the FSC. Where the destination country has
specific requirements, the product must comply with the import markets
requirements and with the FSC in every other respect. Finally the product is
masked and presented to the wine inspectors for a sensory evaluation.
Following the evaluation the inspectors must satisfy themselves that the wine
reasonably reflects the grape varieties claimed on the label, that there is
nothing on the label or certificate which is questionable in light of their
evaluation, and may require a subsequent independent analysis if necessary.
A wine may be rejected if, in the inspector's judgement, it is faulty. An exporter
may resubmit the wine for a second evaluation by a different panel of
inspectors.
Approval for bottled product is granted for 12 months. Wine in alternative
packaging (including bulk wine) is approved for 3 months (6 months in the
case of fortified wine).

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6.9.2 Boat Building

The main exporters of boats in Queensland are Riviera, Quintrex and

Mustang.

The boat building cluster on the Gold Coast is centred on the Coomera River
at the Marine Precinct with a new development yet to be completed at
Murarrie in Brisbane.

Queensland is becoming a major exporter of boats with boats varying from

family, fishing boats to power cruisers and sail boats up to 30 metres. The
technology for boat building in Australia is a leader in world’s best practice
and the industry is faced with many challenges not the least of which is
logistics and getting their product to overseas markets. Many boats have to
be shipped as deck freight, which could be expensive whilst others can be
made to fit into shipping containers and be exported as FCL.

Exporters have to be aware of the dangerous goods regulations when

exporting boats and not have fuel tanks filled with petrol or diesel. Any timber
packing must have been certified as fumigated before despatch from Australia
to certain countries (see AQIS web site www.affa.gov.au). As far as
protection of the craft is concerned, exporters should consider specialised
cradles if boats are to go deck freight and shrink wrapping to protect against
the elements of salt water and humidity.

Exporters should consider the importing country’s requirements and

documentation and check the necessity of CVOs and COs for a particular
country. More importantly, exporters should check with Austrade to see if
there are any special quotas, which may be imposed regarding value of craft
and limits on quantity.

A helpful web site is www.amif.asn.au

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6.9.3 Guide to Exporting Cosmetics

Ingredients in cosmetics are regulated by the National Industrial Chemicals

Notification & Assessment Scheme (NICNAS) or the Therapeutic Goods
Administration (TGA). Products are determined to be either "cosmetics" or
"therapeutic goods" based on two factors: the composition of the product and
the proposed use of the product. (Example: Cosmetics- Deodorant.
Therapeutic- Anti-perspirant)

The labelling of cosmetic products is regulated by the Australian Competition

and Consumer Commission (ACCC): http://www.tga.gov.au

Certain substances are subject to export controls under customs

import/export legislation, requiring an annual licence and permit. A list of
these can be found at:
http://www.tga.gov.au/docs/html/bringmed/customs.htm#permission

Therapeutic goods, which are intended to be exported from Australia for

commercial supply, must first be included in the Australian Register of
Therapeutic Goods (ARTG) in the name of the sponsor of the goods.

In the case of medicines intended for sale overseas, a key issue for
commercial suppliers is whether the goods are intended SOLELY for export or
intended for supply in Australia as well as export. Medicines intended solely
for export are required to be listed (not registered) on the ARTG before
export. If the goods for export are already available in Australia, they will be
on the ARTG, and you can export them without further regulation, provided
that you are either the sponsor or the agent of the sponsor.

Following listing or registration in the ARTG, a sponsor may apply to the TGA
for an export certificate to be issued for the product. The TGA, as part of its
responsibilities under the WHO Certification Scheme, issues Certificates of a
Pharmaceutical Product (CPP) to commercial exporters.

Information from NICNAS - http://www.nicnas.gov.au:

Many ingredients in cosmetic products are classed as industrial chemicals,
even those described as naturally occurring.
If you import and/or manufacture chemicals or chemical products, you may
need to comply with Australian Government legislation governing
chemicals assessment and registration. The national scheme for the
assessment and registration of industrial chemicals is the (NICNAS).
Australian Inventory of Chemical Substances (AICS) is a tool that lists all
industrial chemicals available for use in Australia. This can provide
information on any conditions or restrictions that may apply to chemicals
that are imported and/or manufactured and exported. AICS is maintained
under NICNAS.
Certain hazardous industrial chemicals are subject to national and
international import and export controls. The PIC procedure of Rotterdam
Convention applies to: (a) Banned or severely restricted chemicals; and
(b) Severely hazardous pesticide formulations. Of the total of 41 chemicals

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currently subject to the PIC procedure 11 are industrial chemicals.

Exporting parties need to take appropriate measures to comply with
decisions taken by importing parties, in order to ensure that a chemical
listed in annex III is not exported to an importing party that has decided not
to import it.

The Rotterdam Convention:
http://www.nicnas.gov.au/Treaties/Rotterdam_Convention.asp

Information from ACCC - http://www.accc.gov.au:

The mandatory information standard applies to cosmetics and toiletries
manufactured in or imported into Australia after 31 October 1993. The
following goods are exempt from the mandatory information standard:
o therapeutic goods within the meaning of the Therapeutic Goods Act
1989; or
o cosmetics/toiletries manufactured in Australia for export; or
o free samples of cosmetic/toiletry products; or
o testers of a cosmetic/toiletry product.

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6.9.4 Guide to Exporting Works of Art

To export works of art meaning paintings and sculptures, specialised freight

forwarders are available to undertake the task of organise the exporting of
these commodities. Works of art can be shipped by either sea or air freight
depending on the size. In the case of paintings special consideration should
be given to whether or not the artwork is shipped stretched over the frame or
rolled and re-stretched overseas. Many artists prefer to send paintings as
stretched on a frame.

Consideration must be given for protection of the artwork in terms of

accidental banging, dropping, as well as humidity and temperature
fluctuations hence it is important to have correct packing – your forwarding
agent can advise on this. Some works of art are of the size where it is not
feasible to send them air freight so sea freight is a consideration. Check with
your shipping agent as to the appropriate TEU.

In some countries wooden artefacts may be subject to Quarantine regulations

and it would advisable for exporters to check first before exporting.

It is not always easy for an exporter of paintings and sculptures to apply for an
ATA carnet. Checking with your export adviser is important.

The export of Australian indigenous art requires special licences from the
Australian Customs Service.

Customs
Sue Hines, Supervisor [email protected]
Tariff & Exports
Phone 07 3835 3378
Customs
Julieanne Stratford [email protected]
Community Protection Policy
Phone 02 6275 6114
Cultural Heritage Unit at Phone 02 6274 1810
Dpt Environment & Heritage Fax 02 6274 2731
[email protected]
www.deh.gov.au/heritage/awh/movable/index.html
Kevin Wohlers
Director
Peter Mitchell
Deputy Director
Glen Schwinghammer
Policy Officer

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