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Feature Article - Australia's Importers, 2002-03
INTRODUCTION
This is the fourth in a series of articles analysing the characteristics and international trading activities of Australia's exporters and importers, based on the Australian Business Number (ABN). Australia's Exporters, 2002-03 was released on the ABS web site, concurrently with the October 2003 issue of International Trade in Goods and Services, Australia (Cat. no. 5368.0), on 4 December 2003.
Estimates for importers of merchandise (businesses that import goods) are compiled from data sourced from the Australian Customs Service (Customs) and from the Australian Taxation Office (ATO) Australian Business Register. Estimates for importers of services, compiled from the ABS Survey of International Trade in Services (SITS), are also included.
The estimates are subject to limitations in terms of the data available and methodology applied:
a. consistent with previous studies, businesses which imported goods totalling less than $10,000 in 2002-03 are excluded from the estimates of number of importers;
b. service importers include businesses which receive services from off-shore businesses to their operations in Australia, i.e. supply modes 1 and 4 in the classification used by the World Trade Organisation (WTO). However, smaller and / or occasional service importers are unlikely to come to ABS notice and are therefore not included in the estimates. The number of excluded businesses may be significant, but the value of their imports is not thought to be appreciable in the totality of service imports. The ABS continues to try to identify these businesses and incorporate them into its surveys;
c. the number of service importers excludes businesses that only import insurance, financial, government or travel services, as estimates for these service types are not derived from the Survey of International Trade in Services. Travel services are the supply of goods or services to Australian residents while they are overseas (supply mode 2), such as hotels, restaurants, retail, tourist facilities, transport, theatres, educational institutions, etc. The estimates also exclude Australian-owned businesses located overseas receiving goods or services in the country in which they are located (usually called foreign affiliates trade - supply mode 3), because their trade does not directly contribute to Australia's imports of goods and services;
d. Australian businesses which receive goods or services from other businesses which undertake the importing function are excluded. For example, many products are imported into Australia by wholesalers who on-sell to the end consumer.
As the analysis has been undertaken on imports data extracted from earlier publication cycles, the value of imports of goods and services shown in the tables in this article are not necessarily consistent with those shown in the November 2003 issue of International Trade in Goods and Services, Australia (Cat. no. 5368.0). In addition, the value of goods imports is on a merchandise trade basis, while the value of service imports is on a balance of payments basis. This has no effect on the estimates of the number of importers and minimal effect on the analysis of import values.
NUMBER OF IMPORTERS
The number of importers in 2002-03 was estimated to be 58,523, as shown in Table F1. This was 3,168 more than the estimate for 2001-02 of 55,355 importers. In the same period, the total value of imports of goods and services rose by $13.8b to $166.0b. A rise in the value of the $A against most major currencies impacted on the price of imports in this period. Between 2001-02 and 2002-03, the average value of the $A increased by 12% against the $US and 3% against the trade weighted index.
The number of goods importers was estimated to be 57,313 in 2002-03, an increase of 2,928. The number of service importers fell by 59 to 2,241. Of the businesses engaged in service imports, 46% (1,031) were also goods importers. By eliminating the duplication, the total number of importers was derived at 58,523 (57,313 plus 2,241 less 1,031).
TABLE F1: IMPORTERS
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| | | IMPORTERS | | TOTAL IMPORTS |
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| | | 2001-02 | 2002-03 | | 2001-02 | 2002-03 | 2002-03 |
| | | no. | no. | | $m | $m | % |
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Goods importers | | | | | | |
| $100m or more | 163 | 182 | | 56,309 | 66,691 | 50.1 |
| $1m and less than $100m | 8,029 | 8,422 | | 56,325 | 58,985 | 44.3 |
| $100,000 and less than $1m | 16,864 | 17,821 | | 5,765 | 6,137 | 4.6 |
| $10,000 and less than $100,000 | 29,329 | 30,888 | | 1,058 | 1,113 | 0.8 |
| Other goods importers | -- | | | 193 | 204 | 0.2 |
| Total goods importers | 54,385 | 57,313 | | 119,649 | 133,130 | 100.0 |
| | | | | | | | |
Service importers | | | | | | |
| Businesses importing services | | | | | | |
| | $100m or more | n.a. | 29 | | n.a. | 10,057 | 30.6 |
| | $1m and less than $100m | n.a. | 782 | | n.a. | 6,625 | 20.1 |
| | Less than $1m (a) | n.a. | 1,430 | | n.a. | 3,072 | 9.3 |
| | Total | 2,300 | 2,241 | | 19,596 | 19,754 | 60.1 |
| Other service importers (b) | . . | . . | | 13,035 | 13,137 | 39.9 |
| Total service importers | 2,300 | 2,241 | | 32,631 | 32,891 | 100.0 |
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Total importers (c) | 55,355 | 58,523 | | 152,280 | 166,021 | . . |
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(a) Value of imports includes a component for freight services. No corresponding estimate has been made of the number of importers of freight services. |
(b) Includes travel, insurance, financial and government services. Numbers of importers cannot be estimated for these service types, as the Survey of International Trade in Services is not used to measure these imports. |
(c) Total excludes duplication from businesses which import both goods and services. |
GOODS IMPORTERS
Value of imports
As shown in Table F1, the 182 largest goods importers, each with imports worth $100m or more, accounted for half ($66.7b) of Australia's goods imports in 2002-03. There were 8,604 businesses that imported goods worth $1m or more, together accounting for $125.7b (94%) of goods imports.
Another 17,821 businesses imported goods valued between $100,000 and $1m, accounting for $6.1b (5%) of goods imports in 2002-03. Over half (30,888) of Australia's goods importers had imports valued between $10,000 and $100,000 during 2002-03, accounting for $1.1b (1%) of goods imports in that period.
Industry
Most goods imports were by the wholesale trade (44% by value) and manufacturing (36%) industries, as shown in Table F2. Together these accounted for $106.7b (80%) of Australia's $133.1b of goods imports during 2002-03. The next most significant industry was retail trade with $7.6b (6%) of goods imports.
Imports by machinery and equipment manufacturers, and machinery and motor vehicle wholesalers, together accounted for almost $50b (37%) of Australia's total goods imports.
TABLE F2: IMPORTS OF GOODS, INDUSTRY OF IMPORTER
| | IMPORTERS(a) | | TOTAL GOODS IMPORTS |
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| | 2001-02 | 2002-03 | | 2001-02 | 2002-03 | 2002-03 |
Industry of importer | no. | no. | | $m | $m | % |
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Agriculture, forestry and fishing | 928 | 977 | | 455 | 491 | 0.4 |
Mining | 282 | 303 | | 4,407 | 5,237 | 3.9 |
Manufacturing | | | | | | |
| Food, beverage and tobacco manufacturing | 761 | 828 | | 2,833 | 3,193 | 2.4 |
| Textile, clothing, footwear and | | | | | | |
| leather manufacturing | 1,246 | 1,273 | | 1,968 | 2,007 | 1.5 |
| Wood and paper product manufacturing | 428 | 458 | | 1,256 | 1,448 | 1.1 |
| Printing, publishing and recorded media | 673 | 698 | | 1,269 | 1,325 | 1.0 |
| Petroleum, coal, chemical and | | | | | | |
| associated product manufacturing | 1,204 | 1,261 | | 12,485 | 16,016 | 12.0 |
| Non-metallic mineral product manufacturing | 375 | 409 | | 357 | 389 | 0.3 |
| Metal product manufacturing | 1,105 | 1,194 | | 4,263 | 4,659 | 3.5 |
| Machinery and equipment manufacturing | 3,201 | 3,303 | | 17,906 | 17,865 | 13.4 |
| Other manufacturing | 1,120 | 1,188 | | 1,226 | 1,176 | 0.9 |
| Total | 10,113 | 10,612 | | 43,563 | 48,078 | 36.1 |
Electricity, gas and water supply | 104 | 111 | | 132 | 109 | 0.1 |
Construction | 1,232 | 1,560 | | 1,061 | 1,227 | 0.9 |
Wholesale trade | | | | | | |
| Basic material wholesaling | 2,126 | 2,467 | | 8,097 | 6,850 | 5.1 |
| Machinery and motor vehicle wholesaling | 5,099 | 5,439 | | 28,292 | 31,959 | 24.0 |
| Personal and household good wholesaling | 8,602 | 9,057 | | 18,299 | 19,802 | 14.9 |
| Total | 15,827 | 16,963 | | 54,687 | 58,610 | 44.0 |
Retail trade | | | | | | |
| Food retailing | 373 | 460 | | 468 | 540 | 0.4 |
| Personal and household good retailing | 5,734 | 6,368 | | 5,560 | 6,037 | 4.5 |
| Motor vehicle retailing and services | 896 | 961 | | 886 | 1,000 | 0.8 |
| Total | 7,003 | 7,789 | | 6,914 | 7,577 | 5.7 |
Accommodation, cafes and restaurants | 230 | 279 | | 42 | 185 | 0.1 |
Transport and storage | 717 | 744 | | 2,943 | 5,864 | 4.4 |
Communication services | 252 | 275 | | 371 | 367 | 0.3 |
Finance and insurance | 933 | 985 | | 1,344 | 1,311 | 1.0 |
Property and business services | 3,409 | 3,948 | | 1,876 | 2,053 | 1.5 |
Government administration and defence | 176 | 173 | | n.p. | n.p. | n.p. |
Education | 173 | 209 | | 50 | n.p. | n.p. |
Health and community services | 386 | 396 | | 171 | 125 | 0.1 |
Cultural and recreational services | 619 | 694 | | 207 | 264 | 0.2 |
Personal and other services | 509 | 608 | | 184 | 208 | 0.2 |
Other | 54 | 130 | | n.p. | n.p. | n.p. |
Industry not known | 11,438 | 10,557 | | (b) | (b) | (b) |
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Total goods importers | 54,385 | 57,313 | | 119,649 | 133,130 | 100.0 |
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(a) Includes only those businesses that imported at least $10,000 of goods.
(b) The value of imports with 'Industry not known' was $261m. These imports were prorated across the industries that imported the same commodities. |
Size of business
Two different size measures are used for goods importers in this article. They are the value of imports (see Table F1) and size of business (Table F3). Traditionally, the ABS has only used employment to determine the size of a business because this has been the only sizing variable generally available. Many significant importers were found not to have large employment.
For the purpose of this analysis, size of business has been defined in terms of three variables - employment, estimated annual turnover (both from the ATO business registers) and value of imports (from Customs):
- small businesses - having fewer than 20 employees and estimated annual turnover less than $1m and imports of less than $1m during 2002-03;
- large businesses - having 200 or more employees or estimated annual turnover of $20m or more or imports of $20m or more during 2002-03; and
- medium businesses - all businesses other than those defined as small or large.
There were 4,417 large goods importers in 2002-03, accounting for $109.9b (83%) of goods imports. The 20,121 medium sized importers accounted for $21.0b (16%) of goods imports. They were most prevalent in the manufacturing and wholesale trade industries, accounting for 53% and 47% of importers in those industries. Almost 60% (32,775) of Australia's goods importers were small businesses. They contributed $2.2b (2%) of goods imports.
TABLE F3: IMPORTS OF GOODS, SIZE OF BUSINESS BY INDUSTRY OF IMPORTER -- 2002-03
| | NUMBER OF IMPORTERS(a) | | VALUE OF IMPORTS |
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| | Large | Medium | Small | Total(b) | | Large | Medium | Small | Total |
Industry of importer | no. | no. | no. | no. | | $m | $m | $m | $m |
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Mining | 111 | 108 | 84 | 303 | | 5,107 | 122 | 8 | 5,237 |
Manufacturing | 1,448 | 5,573 | 3,591 | 10,612 | | 43,057 | 4,688 | 334 | 48,078 |
Wholesale trade | 1,223 | 7,931 | 7,809 | 16,963 | | 45,576 | 12,073 | 962 | 58,610 |
Retail trade | 349 | 2,576 | 4,864 | 7,789 | | 5,241 | 1,918 | 418 | 7,577 |
Transport and storage | 163 | 298 | 283 | 744 | | 5,628 | 212 | 24 | 5,864 |
Finance and insurance | 135 | 259 | 591 | 985 | | 1,006 | 248 | 57 | 1,311 |
Property and business services | 277 | 1,385 | 2,286 | 3,948 | | 1,050 | 810 | 192 | 2,053 |
Other | 711 | 1,941 | 2,760 | 5,412 | | 3,221 | 962 | 216 | 4,400 |
Industry not known(b) | 0 | 50 | 10,507 | 10,557 | | (c) | (c) | (c) | (c) |
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Total goods importers | 4,417 | 20,121 | 32,775 | 57,313 | | 109,886 | 21,034 | 2,210 | 133,130 |
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PERCENT |
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Mining | 36.6 | 35.6 | 27.7 | 100.0 | | 97.5 | 2.3 | 0.2 | 100.0 |
Manufacturing | 13.6 | 52.5 | 33.8 | 100.0 | | 89.6 | 9.7 | 0.7 | 100.0 |
Wholesale trade | 7.2 | 46.8 | 46.0 | 100.0 | | 77.8 | 20.6 | 1.6 | 100.0 |
Retail trade | 4.5 | 33.1 | 62.4 | 100.0 | | 69.2 | 25.3 | 5.5 | 100.0 |
Transport and storage | 21.9 | 40.1 | 38.0 | 100.0 | | 96.0 | 3.6 | 0.4 | 100.0 |
Finance and insurance | 4.5 | 33.1 | 62.4 | 100.0 | | 69.2 | 25.3 | 5.5 | 100.0 |
Property and business services | 7.0 | 35.1 | 57.9 | 100.0 | | 51.2 | 39.5 | 9.4 | 100.0 |
Other | 13.1 | 35.9 | 51.0 | 100.0 | | 73.2 | 21.9 | 4.9 | 100.0 |
Industry not known(b) | 0.0 | 0.5 | 99.5 | 100.0 | | (c) | (c) | (c) | (c) |
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Total goods importers | 7.7 | 35.1 | 57.2 | 100.0 | | 82.5 | 15.8 | 1.7 | 100.0 |
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(a) Includes only those businesses that imported at least $10,000 of goods. | | | |
(b) Importers who did not report an ABN have been allocated a size of business based only on the value of their imports: large business if imports valued at $20m or more, medium business if imports valued between $1m and $20m, small business if imports valued at less than $1m.
(c) Imports for which no ABN was reported (valued at $261m) were prorated across the industries that imported the same commodities. |
State of destination
New South Wales and Victoria were the state of destination of almost three quarters of Australia's goods imports in 2002-03, as shown in Table F4. These two States accounted for 81% ($47.6b) of imports by the wholesaling industry and 65% ($31.1b) of imports by the manufacturing industry.
TABLE F4: IMPORTS OF GOODS, INDUSTRY OF IMPORTER BY STATE OF DESTINATION OF COMMODITY(a) -- 2002-03
| | New | | | | | | | Total |
| | South | | Queens- | South | Western | | | goods |
| Wales | Victoria | land | Australia | Australia | Tasmania | Other(b) | imports |
Industry of importer | $m | $m | $m | $m | $m | $m | $m | $m |
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Mining | n.p. | n.p. | 967 | 48 | n.p. | 32 | 399 | 5,237 |
Manufacturing | 15,565 | 15,546 | 6,952 | 3,741 | 5,848 | 333 | 94 | 48,078 |
Wholesale trade | 29,232 | 18,391 | 5,987 | 1,358 | 3,529 | 62 | 50 | 58,610 |
Retail trade | 3,292 | 2,418 | 1,119 | 241 | 480 | 13 | 13 | 7,577 |
Finance and insurance | n.p. | n.p. | 104 | 32 | n.p. | 6 | 2 | 1,311 |
Property and business services | 922 | 660 | 278 | 64 | 122 | 3 | 5 | 2,053 |
Other | 4,516 | 3,341 | 939 | 249 | 492 | 317 | 410 | 10,263 |
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Total goods imports | 55,280 | 42,257 | 16,348 | 5,732 | 11,775 | 765 | 973 | 133,130 |
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(a) State estimates in this table differ slightly from those published in International Trade in Goods and Services, Australia (cat no. 5368.0) because the estimation system used to allocate data with no ABN ($261m) is based on industry not state. |
(b) Includes imports into Northern Territory and the Australian Capital Territory. |
Goods exporters and importers
Table F5 shows that of the 57,313 businesses with goods imports worth $10,000 or more during 2002-03, 14,046 (25%) also exported goods valued at $10,000 or more. Of the 8,604 businesses with goods imports of $1m or more, 21% (1,778) also exported goods valued at $1m or more in 2002-03. Businesses with imports valued between $10,000 and $100,000 were the least likely to have also exported goods. 3372 (11%) of these exported goods worth $10,000 or more in 2002-03.
TABLE F5: GOODS EXPORTERS AND IMPORTERS -- 2002-03
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| | VALUE OF IMPORTS | |
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| | $100m | $1m and | $100,000 | $10,000 and | | Total |
| | or | less than | and less | less than | | goods |
| | more | $100m | than $1m | $100,000 | Other(a) | exporters |
| | no. | no. | no. | no. | no. | no. |
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Value of exports |
| 27 | 54 | 20 | 9 | 84 | 194 |
| 123 | 1,574 | 644 | 412 | 1,406 | 4,159 |
$100,000 and less than $1m
| 18 | 2,226 | 1,627 | 1,050 | 4,614 | 9,535 |
$10,000 and less than $100,000
| 7 | 1,714 | 2,640 | 1,901 | 9,726 | 15,988 |
| 7 | 2,854 | 12,890 | 27,516 | . . | . . |
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Total goods importers | 182 | 8,422 | 17,821 | 30,888 | . . | (c) |
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(a) Includes businesses whose imports are not known or valued at less than $10,000. |
(b) Includes businesses whose exports are not known or valued at less than $10,000. |
(c) Total goods exporters were 29,876 and total goods importers were 57,313. |
SERVICE IMPORTERS
Value of imports
As shown in Table F1, businesses importing services were dominated by a small number of importers, with just 29 businesses accounting for 31% ($10.1b) of Australia's total service imports in 2002-03. There were 782 (35%) service importers with imports worth between $1m and $100m, accounting for 20% of total service imports. Almost two-thirds (1,430) of identified importers of services had service imports worth less than $1m in 2002-03.
Service type
The service types with the highest numbers of importers in 2002-03 were Other business services (1,963), Royalties and licence fees (1,378) and Computer and information services (1,296), as shown in Table F6. Transportation services had the highest value of imports per business, averaging $164m per importer in 2002-03.
TABLE F6: IMPORTS OF SERVICES, TYPE OF SERVICE -- 2002-03
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| | | | Average service |
| | Total service | Total service | imports per |
| Importers(a) | imports | imports | business |
Type of service | no. | $m | % | $m |
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Transportation services | 67 | 10,960 | 33.3 | 163.6 |
Travel services | (b) | 11,012 | 33.5 | (b) |
Communication services | 938 | 1,407 | 4.3 | 1.5 |
Insurance services | (b) | 856 | 2.6 | (b) |
Financial services | (b) | 585 | 1.8 | (b) |
Computer and information services | 1,296 | 967 | 2.9 | 0.7 |
Royalties and licence fees | 1,378 | 1,828 | 5.6 | 1.3 |
Other business services | 1,963 | 3,746 | 11.4 | 1.9 |
Personal, cultural and recreational services | 948 | 846 | 2.6 | 0.9 |
Government services n.i.e. | (b) | 684 | 2.1 | (b) |
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Total service importers | 2,241 | 32,891 | 100.0 | . . |
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(a) Businesses may import more than one type of service. |
(b) Number of importers cannot be estimated as the Survey of International Trade in Services is not used to measure imports of this service type. |
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Industry
As shown in Table F7, the industries with the largest number of service importers included in the overall estimate in 2002-03 were the property and business services industries (724 service importers) and manufacturing industry (475 service importers). Service importers in both these industries averaged about $2.5m of service imports per business. The businesses with the highest average value of service imports were the transport and storage ($107m) and communication services ($32m) industries.
TABLE F7: IMPORTS OF SERVICES, INDUSTRY OF IMPORTER -- 2002-03
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| | | | | | Average service |
| | | | Total services | Total services | imports per |
| | | Importers | imports | imports | business |
Industry of importer | no. | $m | % | $m |
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Businesses importing services | | | | |
| Agriculture, forestry and fishing | | 14 | 11 | 0.0 | 0.8 |
| Mining | | 83 | 456 | 1.4 | 5.5 |
| Manufacturing | 475 | 1,220 | 3.7 | 2.6 |
| Construction | 36 | 38 | 0.1 | 1.1 |
| Wholesale trade | 324 | 1,428 | 4.3 | 4.4 |
| Retail trade | 66 | 147 | 0.4 | 2.2 |
| Transport and storage | 112 | 12,034 | 36.6 | 107.4 |
| Communication services | | 42 | 1,358 | 4.1 | 32.3 |
| Property and business services | 724 | 1,792 | 5.4 | 2.5 |
| Education | | 63 | 87 | 0.3 | 1.4 |
| Cultural and recreational services | 149 | 792 | 2.4 | 5.3 |
| Personal and other services | 13 | 19 | 0.1 | 1.5 |
| Other | | 140 | 372 | 1.1 | 2.7 |
| Total | | 2,241 | 19,754 | 60.1 | 8.8 |
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Other service importers (a) | (a) | 13,137 | 39.9 | (a) |
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Total service importers | 2,241 | 32,891 | 100.0 | . . |
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(a) Numbers of importers cannot be estimated as the Survey of International Trade in Services is not used to measure imports of all services. This includes imports of travel, insurance, financial and government services. | |
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SYMBOLS AND OTHER USAGE
The following symbols and abbreviations have been used in this article: |
. . | not applicable |
n.a. | not available |
n.p. | not available for publication |
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