A contract between an exporter and an international carrier for transportation of goods to a specified foreign port. Unlike an inland bill of lading, the ocean bill of lading is a collection document, an instrument of ownership that can be bought, sold or traded while the goods are being shipped. There are two types of ocean bills of lading used to transfer ownership: – Straight (non-negotiable): provides for delivery of goods to the person named in the bill of lading. The bill must be marked non-negotiable. – Shippers Order (negotiable): provides for delivery of goods to the person named in the bill of lading or anyone designated. The shippers order is used with draft or letter-of-credit shipments and enables the bank involved in the export transaction to take title to the goods if the buyer defaults. The bank does not release title to the goods to the buyer until payment is received. The bank does not release funds to the exporter until conditions of sale have been satisfied.
On Board Bill Of Lading
A bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.
Open Account (O/A)
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious risk this method poses to the supplier makes it essential that the buyer’s integrity be unquestionable.
Open Insurance Policy
A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
See Issuing Bank.
A corporation, partnership, or person that operates a zone or subzone under the terms of an agreement with the Grantee.
All zone operators must submit to Customs a bond to assure compliance with Customs regulations.
The phrase To Order is sometimes shown on Bills of Lading against consignee: this means that the Bill of Lading must be endorsed in blank by the shipper (i.e. not to any particular named party which makes it bearer document and it becomes transferable by delivery.)
Order Bill Of Lading
A negotiable bill of lading made out to the order of the shipper.
Overseas Private Investment Corporation (Opic)
A wholly owned government corporation designed to promote private U.S. investment in developing countries by providing political risk insurance and some financing, including project financing.