MD11 FLT CREW MISUNDERSTANDS CLRNC AND HAS RWY INCURSION AT VABB.

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POSITIONED ON TXWY H HOLDING SHORT OF RWY 27; TWR CTLR ISSUED CLRNC 'ACR X HOLD IN POS RWY 27.' FO RESPONDED 'TWR; CONFIRM ACR X; POS AND HOLD RWY 27.' TWR CTLR RESPONDED 'ACR X; HOLD IN POS RWY 27.' FO RESPONDED 'POS AND HOLD RWY 27; ACR X.' WITH A CLR RWY AND NO INCOMING TFC DISPLAYED ON TCASII; WE BEGAN TAXIING TOWARD RWY 27; AND THE TWR CTLR CALLED 'ACR X HOLD YOUR POS.' AT THIS POINT; WE WERE POSITIONED BEYOND THE TAXI HOLD LINE BY A FEW FT; BUT NOT YET ON THE RWY. AN ACFT ON FINAL APCH TO RWY 27 WAS BEYOND 5 MI AND ABOVE 2700 FT AS CONFIRMED BY THE TCASII (NO TARGET DISPLAYED). THE ACFT WAS ORDERED TO GAR BY THE TWR CTLR LONG BEFORE IT WAS IN CLOSE PROX TO THE RWY. SUBSEQUENTLY; WE WERE CLRED INTO POS ON RWY 27; FOLLOWED BY A TKOF CLRNC. THE CREW WAS PUT INTO AN UNSAFE SIT AS A RESULT OF THE CTLR'S FAILURE TO USE STANDARD ICAO TERMINOLOGY. THE ABOVE EVENT WAS COMPOUNDED BY THE CTLR DISCUSSING THE INCIDENT ON TWR FREQ IMMEDIATELY FOLLOWING ROTATION AND DURING OUR INITIAL CLBOUT; RESULTING IN A DISTR FROM OUR FLYING DUTIES DURING A CRITICAL PHASE OF FLT. THIS INCIDENT UNDERSCORES THE CHRONIC PROB OF INTL CTLR'S FAILURE TO USE AND LACK OF UNDERSTANDING OF STANDARD ICAO TERMINOLOGY.