(shipping) A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership (negotiable bill of lading) which can be bought, sold, or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order" Bill-of-Lading.

(a) A clean bill of lading is issued when the shipment is received in good order. If damaged or a shortage is noted, a clean bill of lading will not be issued.

(b) An on board bill of lading certifies that the cargo has been placed aboard the named vessel and is signed by the master of the vessel or his representative. In letter of credit transactions, an on board bill of lading is usually necessary for the shipper to obtain payment from the bank. When all bills of lading are processed, a ship's manifest is prepared by the steamship line. This summarizes all cargo aboard the vessel by port of loading and discharge.

(c) An inland bill of lading (a waybill on rail or the "pro forma" bill of lading in trucking) is used to document the transportation of the goods between the port and the point of origin or destination. It should contain information such as marks, numbers, steamship line, and similar information to match with a dock receipt.

See also bill of lading.

Offene Handelsgesellschaft (OHG)

(Austria) Designation for a general partnership, in which all partners have joint and several liability.

offer

(law) A proposal that is made to a certain individual or legal entity to enter into a contract, that is definite in its terms, and that indicates the offeror's intent to be bound by an acceptance. For example, an order delivered to a seller to buy a product on certain terms is an offer, but an advertisement sent to many potential buyers is not. See acceptance; counteroffer.

Office of Export Licensing (OEL)

(U.S.) Under the Bureau of Export Administration, the OEL administers export licenses. Address: Office of Export Licensing, U.S. Department of Commerce, 14th and Pennsylvania NW, Washington, DC 20230; Tel: [1] (202) 482-0436. See Bureau of Export Administration; Export Licensing Voice Information System.

Office of Management and Budget (OMB)

(U.S.) An executive office of the President which evaluates, formulates and coordinates management procedures and program objectives within and among federal departments and agencies. It also controls the administration of the federal budget. Address: Office of Management and Budget, New Executive Office Building, 726 Jackson Place NW, Washington, DC 20503; Tel: [1] (202) 395-3080.

Office of Munitions Control

See Defense Trade Controls.

official development assistance

(U.S.) Financial flows to developing countries and multilateral institutions provided by official agencies of national, state, or local governments. Each transaction must be:

(1) administered with the promotion of the economic development and welfare of developing countries as its main objective; and

(2) concessional in character and contain a grant element of at least 25 percent.

offset(s)

(general) In non-defense trade, governments sometimes impose offset requirements on foreign exporters, as a condition for approval of major sales agreements in an effort to either reduce the adverse trade impact of a major sale or to gain specified industrial benefits for the importing country. In these circumstances, offset requirements generally take one of two forms. In one formulation, an exporter may be required to purchase a specified amount of locally-produced goods or services from the importing country. For example, a commercial aircraft manufacturer seeking sales to an airline in another country might be required to purchase products as different from airplanes as canned hams. In other instances, an exporter might be required to establish manufacturing facilities in the importing country or to secure a specified percentage of the components used in manufacturing his product from established local manufacturers. See countertrade.

(defense related-U.S.) In trade of defense items, "offsets" are industrial compensation practices mandated by many foreign governments when purchasing U.S. defense systems. Types of offsets include mandatory coproduction, subcontractor production, technology transfer, countertrade, and foreign investment. Countries require offsets for a variety of reasons: to ease (or "offset") the burden of large defense purchases on their economies, to increase domestic employment, to obtain desired technology, or to promote targeted industrial sectors. See countertrade.

offshore

(banking) Refers to financial operations transacted outside the country in question.

offshore bank

(banking) Bank located outside the country in question.

offshore banking center

(banking) Financial center where many of the financial institutions have little connection with that country's financial system. Usually established for purposes of tax avoidance. Examples are the Cayman Islands, where many of the corporations are engaged in business in the U.S. and Europe, and London, where many of the financial institutions are engaged in Eurodollar trading.

offshore banking unit (OBU)

(banking) Department within a bank that, in certain countries (e.g., Bahrain), is permitted to engage in specific transactions (usually Euromarket business) that ordinary domestic banks are not allowed to do.

old-to-market (OTM)

(U.S.) A committed to export, experienced, larger-scale firm. A significant portion of manufacturing capability may be foreign sourced. Export sales volume is often in excess of 15 percent of total sales.

on board

(shipping) Notation on a bill of lading indicating that the goods have been loaded on board or shipped on a named ship. In the case of received for shipment bills of lading, the following four parties are authorized to add this "on board" notation: (1) the carrier, (2) the carrier's agent, (3) the master of the ship, and (4) the master's agent. See ocean bill of lading; bill of lading; negotiable bill of lading.

on deck

(shipping) Notation on a bill of lading which indicates that the goods have been loaded on the deck of the ship. In letter of credit transactions documents with an "on deck" notation will only be accepted if expressly authorized in the credit. See ocean bill of lading.

on deck bill of lading

(shipping) Bill of lading containing the notation that goods have been placed on deck.

See ocean bill of lading; bill of lading.

on their face

(banking) In letter of credit and other documentary operations banks must examine documents with reasonable care to ascertain whether or not they appear, on their face, to be in compliance with the terms or conditions of the documentary letter of credit. See letter of credit; documentary collection.

open account

Credit extended that is not supported by a note, mortgage, or other formal written evidence of indebtedness (e.g., merchandise for which a buyer is billed later). Because this method poses an obvious risk to the supplier, it is essential that the buyer's integrity be unquestionable.

open conference

(shipping) A shipping conference in which there are no restrictions upon membership other than ability and willingness to serve the trade. U.S. law requires all conferences serving the U.S. to be open. See conference; closed conference.

open economy

(economics) An economy free of trade restrictions.

open-end contract

(law) An agreement by which the buyer may purchase goods from a seller for a certain time without changes in the price or the contract terms.

open policy

(insurance) An insurance contract (policy) which remains in force until cancelled and under which individual successive shipments are reported or declared and automatically covered on or after the inception date. The open policy saves time and expense for all concerned, whether underwriter, agent or assured.

The shipper gains many advantages from the use of an open policy.

(1) He or she has automatic protection (up to the maximum limits stated in the policy) from the time shipments leave the warehouse at the place named in the policy for the commencement of transit. The policyholder warrants that shipments will be declared as soon as practicable, but unintentional failure to report will not void the insurance, since the goods are "held covered," subject to policy conditions. In effect, this is errors and omissions coverage, and it forestalls the possibility that, because of the press of business, goods may commence transit without being insured.

(2) The open policy provides a convenient way to report shipments. It also relieves the shipper from the necessity of arranging individual placings of insurance for each shipment.

(3) Under an open policy the shipper has prior knowledge of the rate of premium that will be charged and thus can be certain of the cost. This in turn facilitates his quoting a landed sales price.

(4) The use of the open policy creates a business relationship that may exist over a long period of time. This permits the insurer to learn the special requirements of its assureds and so to provide them with individualized protection, tailor-made to fit the specific situation. This may be an important factor in the case of loss adjustments at out-of-the-way ports around the world, or in overcoming problems peculiar to a given commodity.

Some letter of credit transactions require evidence of an individual "policy" covering the specified shipment. In such cases it has become the practice to use a special marine policy.

See bordereau; declaration; special marine policy.

operating committees

(U.S.) There are four operating committees (OCs), which are the first step in resolving interagency disputes over the disposition of export license applications. The operating committees are: (1) the State Department's Subgroup on Nuclear Export Coordination (SNEC), (2) the State Department's working group on Missile Technology, (3) the State Department's working group on Chemical and Biological Warfare, and (4) the Department of Commerce's operating committee on all other dual-use items. Operating committees must make recommendations within 90 days of the date of the filing of an export license application. Operating committees generally meet a couple of times per month. See United States Department of Commerce; United States Department of State.

Operation Exodus

(U.S.) A U.S. Customs Service export enforcement program that was developed in 1981 to help stem the flow of the illegal export of U.S.-sourced arms and technology to the Soviet bloc and other prohibited destinations. See United States Customs Service.

operator

(U.S. foreign trade zones) A corporation, partnership or person that operates a foreign trade zone under the terms of an agreement with a foreign trade zone grantee. If there is no operator agreement and the grantee operates his own zone, the grantee is considered the operator for Customs Regulations purposes. See foreign trade zone; Foreign Trade Zone Board; Foreign Trade Zone Act; grantee; zone user; subzones.

option

(general) (a) A right to take up an offer. (b) The right to choose from several different possibilities. (c) A privilege to buy or sell, receive, or deliver property, given in accordance with the terms stated, with a consideration for price. This privilege may or may not be exercised at the option holder's discretion. Failure to exercise the option leads to forfeiture of the option.

(securities) A contract giving the holder the right to buy or sell a stated number of shares of a particular security at a fixed price within a predetermined period.

(foreign exchange) The contractually agreed upon right to buy (call option) or sell (put option) a specific amount of an underlying instrument at a predetermined price on a specific date (European option) or up to a future date (American option).

See call option; put option; American option; European option.

order

(law/banking/shipping) A request to deliver, sell, receive, or purchase goods or services.

order bill

(law) A bill of lading that states that goods are consigned to the order of the person named in the bill. See bill of lading; ocean bill of lading.

orderly marketing agreements

International agreements negotiated between two or more governments, in which the trading partners agree to restrain the growth of trade (limit exports) in specified "sensitive" products, usually through the imposition of import quotas. Orderly Marketing Agreements are intended to ensure that future trade increases will not disrupt, threaten or impair competitive industries or their workers in importing countries.

order notify

(shipping) A bill of lading term to provide for surrender of the original bill of lading before freight is surrendered; usually handled through a bank. See letter of credit; bill of lading; ocean bill of lading; documentary collection.

Organization for Economic Cooperation and Development (OECD)

The OECD is the primary forum for the discussion of common economic and social issues confronting the U.S., Canada, Western Europe, Japan, Australia, and New Zealand. It was founded in 1960 as the successor to the Organization for European Economic Cooperation which oversaw European participation in the Marshall Plan. The OECD's fundamental objective is "to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries while maintaining financial stability and thus contribute to the world economy." Members currently include: Australia, Austria, Belgium-Luxembourg, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. Address: Organization for Economic Cooperation and Development, 2 rue Andre Pascal, F-75775 Paris Cedex 16, France; Tel: [33] (1) 45-24-82-00; Fax: [33] (1) 45-24-85-00; http://www.oecd.org.

Organization of African Unity (OAU)

The OAU was founded in May 1963 with 32 African countries as original members; it had 51 members in 1990. The Organization aims to further African unity and solidarity, to coordinate political, economic, cultural, scientific, and defense policies; and to eliminate colonialism in Africa. Members include: Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central Africa Republic, Chad, Comoros, Congo, Côte d'Ivoire, Egypt, Equatorial Guinea, Ethopia, Gabon, the Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zaire, Zambia, Zimbabwe. Address: Organization of African Unity, PO Box 3243, Addis Ababa, Ethiopia; Tel: [251] (1) 517700; Telex: OAU 21046; Fax: [251] (1) 513036.

Organization of American States (OAS)

The OAS is a regional organization established in April 1948 which promotes Latin American economic and social development. Members include the United States, Mexico, and most Central American, South American, and Caribbean nations. Members include: Antigua and Barbuda, Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba (participation suspended), Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, the United States, Uruguay, and Venezuela. Address: Organization of American States, 17th Street and Constitution Avenue NW, Washington, DC 20006; Tel: [1] (202) 458-6046.

Organization of Arab Petroleum

Exporting Countries (OAPEC)

OAPEC was established in 1968 to safeguard the interests of its members and to provide a forum for cooperation in the petroleum industry. Approximately 25% of the annual world petroleum production is from the member states of OAPEC. OAPEC members include: Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, and the United Arab Emirates. Address: Organization of Arab Petroleum Exporting Countries, PO Box 108, Maglis Al Shaab, Cairo 11516, Egypt; Tel: [20] (2) 354-2660; Fax: [20] (2) 354-2601. Note: OAPEC moved to Cairo from Kuwait in 1990 as a result of the Gulf War.

Organization of Petroleum Exporting Countries (OPEC)

An association of the world's oil-producing countries, formed in 1960. The chief purpose of OPEC is to coordinate oil production and pricing policies of its members: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Address: Organization of Petroleum Exporting Countries, Obere-Donaustrasse 93, A-1020 Vienna, Austria; Tel: [43] (1) 21-1120; Fax: [43] (1) 26-4320.

Organization of the Islamic Conference (OIC)

The OIC, established in May 1971, promotes cooperation in cultural, economic, scientific and social areas among Islamic nations. Headquarters are located in Jeddah, Saudi Arabia. Members include: Afghanistan, Algeria, Bahrain, Bangladesh, Benin, Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cyprus, Djibouti, Egypt, Gabon, the Gambia, Guinea, Guinea-Bissau, Indonesia, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Niger, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria, Tunisia, Turkey, Uganda, the United Arab Emirates, and Yemen. Address: Organization of the Islamic Conference, Kilo 6, Mecca Rd., PO Box 178, Jeddah 21411, Saudi Arabia; Tel: [966] (2) 680-0800; Fax: [966] (2) 687-3568.

original documents

(banking/letters of credit) Unless otherwise stated in the letter of credit, the requirement for an original document may also be satisfied by the presentation of documents produced or appearing to have been produced:

(1) reprographically,

(2) by automated or computerized systems, or

(3) as carbon copies,

and marked as "originals" and where necessary appearing to be signed. See letter of credit.

ORM (other regulated material)

See hazardous materials; restricted articles; ORM; ORM-A, B, C, D, E.

ORM-A

(shipping) Material with an anesthetic, irritating, noxious, toxic or other properties that can cause discomfort to persons in the event of leakage. Examples are trichloroethylene, 1,1,1-trichloroethane, dry ice, chloroform, carbon tetrachloride.

ORM-B

(shipping) Material specifically named or capable of causing significant corrosion damage from leakage. Examples are lead chloride, quicklime, metallic mercury, barium oxide.

ORM-C

(shipping) Material specifically named and with characteristics which make it unsuitable for shipment unless properly packaged. Examples are bleaching powder, lithium batteries (for disposal), magnetized materials, sawdust, asbestos.

ORM-D

(shipping) Material such as consumer commodities which present a limited hazard due to form, quantity and packaging. They must be materials for which exceptions are provided. Examples are chemical consumer commodities (e.g., hair spray and shaving lotion) and small arm ammunition (reclassified because of packaging).

ORM-E

(shipping) Material that is not included in any other hazard class, but is regulated as ORM. Examples are hazardous waste and hazardous substances.

other regulated materials

See ORM.

ouguiya

The currency of Mauritania. 1UM=5 khoums.

out-of-the-money

(foreign exchange) An option is out-of-the-money in the following cases:

(1) Call option: market price less than the strike price.

(2) Put option: market price greater than the strike price.

For European options, replace the market price by the forward price of the underlying instrument on the expiry date of the option. See also call option; put option; option; in-the-money.

output contract

(law) An agreement by which one party agrees to sell his or her entire production to the other, who agrees to purchase it.

outright

(foreign exchange) A forward purchase or sale of foreign exchange which is not offset by a corresponding spot transaction, i.e. which has not been contracted through swaps. See foreign exchange.

outward swap

(foreign exchange) Spot purchase of foreign exchange and forward resale of the same currency against domestic currency. See foreign exchange.

overland common point (OCP)

(shipping) A special rate concession made by shipping lines, rail carriers, and truckers serving the U.S. West Coast for export and import traffic intended to benefit midwest shippers and importers by equalizing rates to and from other coastal areas, and offering these Midwest companies a comparable alternative. The steamship companies lower their rates and their inland carriers pick up the terminal charges, which consist of handling charges, wharfage charges, and carloading or unloading charges. OCP rates apply to cargo shipped from or consigned to the states of North Dakota, South Dakota, Nebraska, Colorado, New Mexico and all states east thereof. OCP rates in Canada apply to the provinces of Manitoba, Ontario and Quebec.

overnight

(foreign exchange) Swap from settlement date until the following business day, i.e., one day or three days over the weekend. See foreign exchange.

Overseas Business Reports (OBR)

A series of publications by the U.S. Department of Commerce providing basic background data on the major trading countries of the world. Each report is a marketing study which provides updated export and economic outlooks, industrial trends, trade regulations, distribution and sales channels, transportation, and credit situation in individual countries. Source: Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402; Tel: [1] (202) 512-1800.

Overseas Private Investment Corporation

(U.S.) OPIC is a self-sustaining U.S. agency, under the International Development Cooperation Agency, whose purpose is to promote economic growth in developing countries by encouraging U.S. private investment in those nations. The Corporation assists American investors in three principal ways: (1) financing investment projects through direct loans and/or guaranties; (2) insuring investment projects against a broad range of political risks; and (3) providing a variety of investor services including investor counseling, country and regional information kits, computer-assisted project and investor matching, and investment missions. OPIC does not support projects that will result in the loss of domestic jobs or have a negative impact on the host country's environment or worker's rights. Address: Overseas Private Investment Corporation, 1100 New York Ave. NW, Washington, DC 20527; Tel: [1] (202) 336-8799. See International Development Cooperation Agency.

over the counter (OTC)

(finance) Securities trading which takes place outside the normal exchanges. In contrast to normal exchanges, it is not tied to a central set-up in any one place but is conducted mainly by telephone and telex between traders, brokers and customers.

over the counter small package service

See small package service.

oxidizing material

(shipping) These items are chemically reactive and will provide both heat and oxygen to support a fire. (UN CLASS 5.) Examples are calcium permanganate, calcium hypochlorite, barium perchlorate, hydrogen peroxide and ammonium nitrate. Hazards/precautions are: may ignite combustibles (wood, paper, etc.); reaction with fuels may be violent; fires may produce poisonous fumes; vapors and dusts may be irritating; contact may burn skin and eyes; and peroxides may explode from heat or contamination.

---

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z