Counter purchases. Compensation transactions on a commercial basis

Counter, parallel or advance purchases are understood as commercial transactions executed through several interconnected international sales contracts that provide for counter obligations of the exporter to purchase from the importer a consignment of goods equivalent in value to its export delivery (or in the amount of a certain share of this delivery) . In this case, two or more de jure independent but de facto related sales contracts are envisaged, the main content of which, despite the existence of a commodity interdependence of the related contracts, consists of the obligation of each party to pay in cash for the deliveries received.

The procedure for a typical transaction with counter purchase usually consists of two parts:

1. conclusion of a contract providing for the obligation of the exporter to make a counter purchase from the importer;

2. the conclusion of the main, or primary, export contract.

Sometimes, “for reliability”, the parties sign a third (basic, or framework) contract (counterpurchase agreement), which is a contract containing formal obligations to specify the timing and scope of both components of this transaction.

Among transactions with counter purchases, based on the correlation of the time of execution of deliveries of the parties, the following can be distinguished:

Parallel transactions;

Transactions with advance purchase;

Gentlemen's Agreements.

Parallel transactions involve the simultaneous signing of two separate contracts: one - for the original export, the second - for the counter purchase. The procedure for developing such transactions has the following features:

Two international sales contracts are negotiated and signed legally at the same time, but are executed separately.

The contracts contain paragraphs on sanctions/penalties for the exporter/importer for its full or partial non-performance;

The execution of the contract, by agreement of the parties, can be transferred to a third party while maintaining the responsibility for its execution on the exporter;

The costs that arise in the sale of the compensatory goods supplied to the exporter under this counterpurchase scheme should be included in the total cost of the goods supplied under the second contract.

Advance purchase transactions, in turn, are such parallel transactions in which the development over time occurs in the reverse order compared to parallel transactions. In fact, the exporter purchases the goods he needs (or is guaranteed to be liquid) from the importer, and only then executes the export delivery.

The gentleman's agreement, which may have various signs of relating the time of execution of the main export contract and the counterpurchase, does not contain a legally binding obligation of the exporter to counterpurchase, although it is assumed that he agrees to purchase goods from the importer in an unspecified quantity. Such transactions occur between firms in developed countries, and they are usually associated with government procurement programs. military equipment, aircraft, equipment for the production of nuclear fuel (enriched uranium) and nuclear power plants. Here behind the "gentlemanship" one can clearly see the national and bloc policy and the real alignment of forces in the geopolitical arena regarding the participants in the gentlemen's agreement, providing the latter with real guarantees of appropriate performance.

So, any counter-purchase agreements imply a counter-delivery of goods within a specified period, carried out on the basis of a complicated one, due to the article " Special conditions» an international sales contract, or the specified contract and the agreements attached to it on counter or advance purchases. Counterpurchases are considered one of the most popular forms of countertrade.

Advance purchase is also known in international trade practice under other names: “pre-compensation”, “tied pre-purchase”, “junctim” transaction.

It is clear that “physically” bargaining and signing of parallel contracts can take place in different time and in different places, however, the condition of entry into force of contracts and cross-references to the relevant articles/paragraphs of both contracts ensure their "legal simultaneity";

trading transactions in which the buyer agrees, concludes an agreement with the seller on the counter, reciprocal sale of their goods after a certain, sometimes long period of time. Such purchases are most often used in international trade and contribute to achieving a balance between exports and imports. Counterpurchase settlements can be made at the expense of own funds, on the basis of a loan or in the form of netting.

Great Definition

Incomplete definition ↓

Counter purchases

a type of counter-trade in which the exporter undertakes to purchase or arrange for the purchase by some other firm of the importer's goods, the value of which is a certain percentage of the value of the exporter's goods. In counter-purchases, two contracts are signed: one for export, the second for counter-purchase. The contracts do not specify specific goods supplied as part of counter deliveries, but only the terms of delivery and the amounts are fixed. Payments under these contracts are made independently of each other.

Among other forms of modern foreign trade, a clearing agreement stands out - an agreement between states that provides for the mutual supply of goods at an equal cost. This form provides for the coordination of prices of mutually supplied goods and the balance, which can be repaid, depending on the agreement, in commodity deliveries or in money. The next form is a compensatory transaction, that is, the repayment of commodity loans with the supply of products from enterprises for the construction of which they were received. Freight-compensation transaction allows the payment of freight by commodity deliveries. Counter-purchases, or interconnected transactions involving an exchange, where the equality of the value of the supplies of the participating parties is not mandatory, have become widespread.

Counter purchases are one of the most important forms of counter trade, carried out, as a rule, within a period of 1 year to

In this chapter, eight characteristics of the purchasing process carried out by organizations have been identified. These are the nature and size of the buyer's organization, the complexity of the purchase, the economic and technical selection criteria, the risks, purchases according to special requirements, counter-purchases, derived demand, and negotiation features.

Counter purchases. The seller signs an agreement to sell their products to the buyer and receives cash. In this case, the original seller undertakes, within a certain period of time, to buy from the original buyer his goods for all or part of the amount of the original transaction.

Counterpurchases are carried out on account of obligations assumed by exporters in sales contracts

The amount of counter obligations can vary from 5 to 100% of the amount of export contracts. Counter purchases affect the change in export prices in the direction of their growth. This is necessary for exporters to compensate for losses arising from counter-purchases. Their growth can be from 3 to 20% of the original export price.

V.z. conditionally divided into two parts, firstly, the conclusion of a primary contract, which provides for the seller's obligation to make a counter purchase from the counterparty firm; secondly, the signing of a contract for the seller to import counter goods to the buyer. Deal V.z. drawn up by two or three contracts. V.z. were widely used in the practice of Eastern European countries, as well as Indonesia, Nigeria, Iran, Malaysia, etc.

The first type of K.s. is a modification of barter. When calculating the counter quantities of supplied raw materials, the factor of lending by a Western firm to a partner in a commodity form is taken into account. The second type of agreement is a modification of the counterpurchase transaction.

When supplying machinery and equipment, it is advisable to include separate articles on inspection and testing, on technical documentation. The contracts for the construction of facilities contain a number of additional articles, for example. design and survey work, conditions for installation, adjustment of equipment, start-up of an object (during construction on a turnkey basis), conditions for sending specialists. The articles of the contract include various kinds of clauses on permissible deviations, a possible change (revision) of the price, on the prohibition of resale, on counter purchases, on the conditions for entry into force depending on the receipt of an export permit by the seller and an import permit by the buyer, etc. However, some of the above articles may be missing. So, for example, if the goods are delivered in bulk, in bulk, in bulk, there is no packaging condition. Not all products come with quality guarantees. Articles on delivery and acceptance, transport conditions are not always necessary, it is enough to provide shipping instructions and delivery notices.

COUNTERBUYING - see Countertrade

COUNTER PURCHASES. The bottom line is that part of the cost of the machine is paid in foreign currency, and the other part - in rubles. With the ruble proceeds, the exporter, on his own or with your help, buys the goods he needs in Russia for a special fee or benefit.

Counter transaction - purchases made on the basis of obligations that are accepted by exporters as a condition for the sale of their goods to the country of importers.

After agreeing on the price, before signing the contract, the Buyer offers the company (everything depends on the amount of the contract and the nature of the equipment) to resolve the issue of counter purchases. An indicative procedure for negotiating a counterpurchase is shown in the example.

An example of the terms of a counter-purchase offered by V/O Avtopromimport

COUNTER PURCHASES - see COUNTER PURCHASES

Types and subjects of foreign economic activity. The main types of foreign economic activity are the export of goods, works and services, the import of goods, works, services5, re-exports, re-imports, barter operations, compensatory operations, counter-purchases, operations on tolling raw materials, the purchase of obsolete products, production cooperation, industrial cooperation, combined operations.

Counterpurchases (ounter pur hases) - trade in which the recipient of equipment is calculated by the supply of goods, regardless of imported products, technology or equipment. Reciprocal deliveries may include products of all industries with different degrees of processing. V.z. are usually carried out within a period of 1 to 5 years. The parties pay for the products received in cash, sometimes a short-term loan is also used.

Counterpurchase (ounterpur hase) - the seller agrees to sell his products to the buyer and receives cash, pledging to subsequently purchase goods from the original buyer for all or part of the amount received by him.

The main manifestations that characterize countertrade are counter-purchases, barter, buyout (buyback) of obsolete products, operations with give-and-take raw materials.

Currently the most common form of countertrade in international commercial practice.
The UNECE Manual "International Countertrade Treaties" (ECE/TRADE/169), United Nations Edition, Geneva, November 1989 (hereinafter the Manual) defines counterpurchase as follows:
Counter purchase. In a counterpurchase, the seller and the buyer in the first transaction agree that the seller will subsequently purchase (or obtain from third parties the purchase) products from the buyer (or third parties in the buyer's country) - this is actually a counterpurchase agreement. In this case, both product flows, namely the products sold in the first transaction, on the one hand, and counter products, on the other hand, are paid for in money. The value of products purchased under the buy-back agreement may be less than, equal to or higher than the value of products sold in the first transaction (Guidelines, introduction, section
2, point A).
Buy-back contract means the contract that the seller and the buyer enter into simultaneously with the purchase contract and which governs their rights and obligations as parties to the buy-back contract in relation to the sale of counter-products.
The buy-back contract must contain, in one of its first paragraphs, a clear indication of the buyer's obligation to purchase, on agreed terms, the product that is the subject of the contract, as well as an equally express obligation of the seller to sell the named product.
The rights and obligations of the parties in the first transaction, as a rule, do not differ from the rights and obligations agreed in the usual international treaty purchase and sale of goods. The same applies to the rights and obligations of the parties under the sales contracts, which will subsequently be concluded in relation to specific compensation products.
A characteristic feature of the buy-back transaction, as opposed to buy-back (industrial buy-back agreements), is the absence of any relationship between the products sold in the first transaction and the products supplied under the buy-back agreement.
Based on the commercial practice of countertrade, as well as the main provisions of the Guide, the main problem areas in such agreements can be identified:
Contract structure
In the course of negotiations by the parties, one of the first questions that they must decide is the following: will the various rights and obligations of the parties be fixed in a single contract, or will several contracts be drawn up for this purpose??
The answer to this question will depend on the specifics of the particular transaction. Inclusion of all the rights and obligations of the parties in one contract is expedient in the case when, during the negotiation of a countertrade transaction:
the parties are able to provide exact specifications of counterproducts;
no third parties are involved in the transaction;
there is no need to draw up several contracts, for example, for financing purposes.
When multiple contracts are used, the buy-back commitment can be included in either the initial sale contract or the buy-back contract.
Deal specifics:
the possibility of export is conditioned by the obligation to buy back;
when signing a contract, specific goods purchased under counter obligations are often not indicated, but only the amount and delivery time are fixed Operations are common;
in transactions with developing countries (commodity trade-in obligation);
for deliveries industrial equipment, weapons and military equipment.
Notifying a partner of a counterpurchase request
Advance notice of the buy-back request is necessary for both parties, prior to commencement of negotiations on the merits of the sales contract, as this will allow the original seller to examine, before the parties spend time and money negotiating, whether he is willing and able to able to take on the buy-back commitment offered by the original buyer.
A clear definition of products (the subject of a counter-purchase) and guarantees of the availability of goods. The parties need to draw up in the buy-back agreement (attached to it) an exhaustive list of products, or they can use more general but still precise terms when referring to products manufactured and/or placed on the market, for example, by the seller himself or specifically indicated commercial organizations in the country of the seller, etc. It is advisable for each of the parties to indicate the existing risk in terms of the availability of products, using two opposite formulations: either the seller guarantees the availability of goods at the time of fulfillment of the obligation, or, conversely, he does not give such a guarantee. In both cases, the buy-back contract must stipulate the legal consequences of the failure to ensure the availability of the goods in the future.
Disclaimer on the legal consequences of non-compliance. The parties need to consider whether the non-conformity of the product will have consequences for the rights and obligations of the parties in the buy-back contract and, if so, agree on the consequences. The parties may consider the relationship between the sales contract and the buy-back contract, in which the non-conformity of the counter-products should have consequences for the rights and obligations of the parties under the sales contract. Or they may consider whether the non-conformity of the counter-product would have consequences for the counter-purchaser's obligations under the counter-purchase agreement.
The need for a clear indication of the basis for calculating the value of the buy-back commitment. The value of the counterpurchase commitments can be agreed in absolute monetary terms or as a percentage of the total price of goods sold in accordance with the contract of sale. At the same time, it is necessary to determine whether the prices in the respective following specific contracts will be expressed in FOB or in CIF. If settlement under specific purchase contracts will be made in a currency other than the one in which the total value of the buy-back commitment is determined in the buy-back contract, the parties should specify the exchange rate to be applied in the specific contracts in relation to the buy-back commitment. on counter-purchase.
The problem of determining prices for counterproducts. The main question regarding the prices of counterproducts is this: who should set them? Should they be set by the actual sellers and buyers involved in specific contracts, or should they be predetermined by the parties in the buy-back contract? The parties to the buy-back agreement should discuss this issue and, if necessary, include appropriate provisions in their agreement.
Assignment of the counterpurchase agreement. The legal consequence of the cession is the termination of all rights and obligations of the counterpurchaser in relation to the assigned part of the counterpurchase obligation and their transfer to the assignee. If, in accordance with the intention of the parties, the buyer of counterproducts will have to share with the assignee responsibility for the fulfillment of the obligations entrusted, then the parties must include an appropriate clause in the contract.
If necessary, the parties should take steps to ensure that the assignment is approved by the relevant authorities and/or financial institutions.
The parties may also agree that if the buyer of the counterproducts cedes to the assignee his rights and obligations arising from the contract, the assignee must notify the seller of the counterproducts, the contract may include provisions on the legal consequences of failure to fulfill the obligation about such notice.
The parties should provide in the buy-back contract that the buy-back purchaser includes in his agreement with any assignee a clause under which the assignee undertakes to comply with the terms of the buy-back contract in respect of the assigned portion.
The parties may also agree, in respect of the assigned part, that the seller of counterproducts will, for his part, be bound by obligations towards the respective assignee.
The problem of fulfillment of the counterpurchase obligation in the event of an assignment.
In the case of a cession, the buyer of counterproducts is usually not very interested in monitoring the performance of the ceded share; his rights and obligations in respect of that share will cease.
Therefore, it is advisable to include in the buy-back agreement an agreement under which the buy-back buyer, together with the assignee, will remain responsible for fulfilling the obligation
buyer of counterproducts. In this case, the buyer of counter-products must require the assignee to inform him of all cases of securing offers for sale by him and of the purchase contracts that he concludes under the counter-purchase agreement. If this condition is met, the counterpurchaser will be able to follow the progress of the case and, when necessary, take appropriate measures to ensure that the counterpurchase obligation is fulfilled in a timely manner.
Coordination of the mechanism for concluding subsequent specific agreements.
Both parties to the countertrade agreement are interested in the systematic and controlled fulfillment of the purchase obligations agreed in it, primarily in terms of total value. If it is not possible in the buy-back contract to agree on the details of subsequent specific contracts, the parties may agree in the buy-back contract at least on the mechanism by which subsequent individual contracts will be concluded and the time limits to be followed.
For example, you can agree that:
one party will be responsible for securing offers from sellers in a subsequent transaction in respect of the goods that are the subject of a counterpurchase;
both parties will have the duty - or at least the right - to secure such proposals.
In the second case, the parties may agree that both parties should play an active role (make joint efforts) in securing offers for the sale of products as counterpurchase. For example, it may be agreed that each party is responsible for ensuring that bids are submitted for a certain value, which may or may not be the same for both parties. It is advisable to stipulate what details each offer should contain, for how long it should bind the offeror, and what the minimum value of the proposed deliveries should be.
Terms of conclusion, payments, registration. It is expedient for the parties to agree in the counterpurchase agreement on the terms for the implementation of further actions. For example, they may agree on the need to conclude subsequent individual purchase contracts for a value equal to that specified in the buy-back contract within the time limits specified in the contract.
The counterpurchase agreement must specify how and under what documents payment will be made for deliveries under subsequent specific contracts, whether the buyer of the counterproducts or, depending on the specific circumstances, the assignee must ensure the presentation of any guarantees, for example, a letter of credit (s) , and what requirements the guarantees must meet, as well as which party will be responsible for the costs associated with the implementation of the payment arrangements.
Execution control. The parties must agree in the buy-back agreement on how the various obligations of the parties will be monitored.
According to the Recommendations, this problem can be solved on the basis of a rather simple mechanism, in accordance with which each party registers the steps that it has taken in fulfillment of the relevant obligations under the counterpurchase agreement. Thus, this register (sometimes called the "confirmation register") can be entered into entries:
on each concluded procurement contract;
each delivery made;
every payment made.
The buy-back contract should provide that the confirmation registers of the parties will be compared and agreed on a regular basis. The parties may also stipulate in the contract that the confirmation registers so matched and agreed upon will constitute final and irrefutable evidence of their fulfillment of their obligations under the buy-back contract.
Termination of the sales contract or subsequent specific contract. Both the contract of sale and subsequent specific contracts are in most cases contracts that can be terminated independently by each party, if necessary, subject to the rules of applicable law.
However, since the counterpurchase agreement is connected, on the one hand, with the sale and purchase agreement, and on the other hand, with each subsequent specific agreement, it is advisable for the parties to include clauses in it regarding the rights and obligations of the parties in the event that when either a contract of sale or a particular contract is actually terminated.
With regard to the purchase contract, the issue that the parties need to settle in the buy-back agreement is whether the buy-back purchaser will remain bound by his buy-in obligation despite the termination of the buy-sale agreement, or whether he, in turn, , will have the right to terminate the countertrade agreement and under what conditions.
With regard to subsequent specific contracts, in this case, too, the question to be settled is whether and under what conditions the counterpurchaser will be considered as having fulfilled, despite the termination of the specific contract, that part of his counterpurchase obligation , which corresponds to the value of a particular contract at the time of its termination.

Under counter (parallel or advance) purchases (counterpurchase) refers to commercial transactions executed through several interconnected international sales contracts that provide for counter obligations of the exporter to purchase from the importer a consignment of goods equivalent in value to its export supply (or in the amount of a certain share of this supply). In this case, two or more de jure independent but de facto related sales contracts are envisaged, the main content of which, despite the existence of a commodity interdependence of the related contracts, consists of the obligation of each party to pay in cash for the deliveries received.

The procedure for a typical buy-back transaction usually consists of two parts:

• 1) conclusion of a contract providing for the obligation of the exporter to make a counter purchase from the importer (A->B);
• 2) the conclusion of the main, or primary, export contract
• (A->?).

Sometimes, for reliability, the parties sign a third (basic, or framework) contract (counterpurchase agreement), which is a document containing formal obligations to specify the timing and scope of both components of this counterpurchase transaction.

Counterpurchase transactions are subdivided depending on the time of execution by the parties of deliveries:

• ? parallel transactions (paralleled deal)",
• ? pre-purchase transactions (advanced purchase)",
• ? gentlemen's agreements (gentlemen's agreement).

The simplest definition of a counterpurchase (otherwise - "parallel barter"), or an international counterpurchase contract, reads:

Counterpurchase- an agreement between two individuals or

legal entities for the purchase of goods or services from each other,

usually done at different times.

For example, Company BUT may purchase goods from the Company AT in March 2015 and then sell other goods to the Company AT in September 2015. It is logical that counter-purchases should be carried out only for the mutual benefit of both companies.

In other words, the company BUT obligated to buy from the Company AT goods and/or services that are not normally related to the goods and/or services sold by the Company BUT. These counter-purchases entail two separate contracts. As the practice of counter-purchases shows, these deliveries are possible in a period of time from several months to five years. It is noted that "counter purchase" is only one of a number of international transactions such as "international counter trade transactions" [Pravovoe guide..., 1992].

Parallel deals (paralleled deal ) suggest (Fig. 7.8) the simultaneous (parallel) signing of two separate contracts: one for the initial export (A => B), the second - for the counter purchase (B => A). Sometimes these two separate contracts are linked by a basic contract, or framework agreement. (frame agreement) which only fixes the obligation of the exporter to carry out a counter-purchase from the importer within a certain period (x = 2-5 years), but does not contain a list of goods and does not determine their quantity, setting only the total cost of counter-purchases.

Rice. 7.8.

The main actors of parallel transactions (with the exception of actors of other logistical functions), which are often included in offset programs in order to contractually secure "gentlemen's agreements", enter into mutual relations and perform actions to implement such transactions approximately as follows:

BUT and Country B enter into a formal framework contractual agreement, or else establish an informal (“gentlemen’s”) agreement to buy back from Country B AT (B=>A);

Government intermediaries Countries BUT and countries AT (accordingly, the Exporter and the Importer under the main export contract) simultaneously conclude the main export contract and the counter purchase contract (B=>A). Note that the question of the cost equivalent of the main contract and the counterpurchase contract depends on many specific factors and is not categorical;

BUT delivers under the main export contract (A=>B) at time t = T;

Government Intermediary or private company Countries BUT accepts and pays for the import delivery under the counterpurchase contract (B=>A) at the time t = T+t;

Option A arising from a discrepancy between the total costs of the main export contract and the counterpurchase contract.

An order/instruction to your bank (Exporter or Importer under the main export contract) on the need to perform cash balancing operations if the total cost of the main export contract (A => B) does not match the total cost of the counterpurchase contract (B => A);

Option B, arising in cases where the goods received under the counterpurchase contract cannot be used by the Importer under this contract and / or this Importer does not have experience in the sale of goods received under this contract.

Transfer (by decision of the exporter under the main contract) of the execution of the counterpurchase contract to a third party - usually a trade-intermediary or production company C, which produces this product or can supply it on terms acceptable to the Exporter under the main contract;

Fulfillment of the delivery of the buy-back contract (B=>A) by Company C;

Performing mutual settlements according to the possible (Option BUT) balancing this parallel transaction.

Option international operation"counterpurchase" are transactions with advance purchase, or just advance purchases ( advanced

purchase, forward purchase). This form of countertrade looks like parallel transactions, but differs in that in this case, the development of the process of relations between the parties in time occurs in the reverse order compared to parallel transactions (Fig. 7.9).

Rice. 7.9.

Let's consider the main actors of the countertrade transaction with advance purchase, their relationship (with the exception of the details of organizing international logistics traffic flows, customs formalities and obtaining permits and certification documents) and the course of events assuming a specific situation with the exchange of a complete supply of woodworking equipment for compensatory goods "timber - round timber pine":

Exporter of expensive equipment under the main export contract from the Country BUT (for example, Finland - a set of equipment for the production of lumber according to European Union standards) concludes a contract (A=>B) for the supply of this equipment to a Russian Importer (for example, a timber processing plant in Karelia (Russia) with the condition of advance purchase.

Condition : The Exporter ships the specified equipment under the contract immediately after the Equipment Importer delivers the goods under the advance purchase contract in the amount of at least 75% of full cost main export contract.

The Exporter concludes a contract for the advance purchase of raw materials (“timber - round timber pine”) with the Importer of equipment from the Country AT.

Problems, leading to the need to use countertrade transactions of the "advance purchase" type:

• ? complete equipment as a subject of the main export contract can be delivered at a time due to its total dimensions and the need to have a complete set for installation, and the equivalent volume of compensatory goods "timber - pine round timber" is physically so large that its one-time delivery seems unreasonable and difficult to implement (as from a logistical and commercial point of view);
• ? the manufacturer and/or Exporter of the equipment does not resell round timber by its main activity;
• ? a timber processing enterprise from Karelia takes the risk of an advance delivery of its product without the necessary guarantees.

Solutions :

Exporter (whose main activity is not related to timber processing) determines in his Country BUT A timber processing enterprise, to which roundwood will be delivered under a contract for advance purchase and concludes a corresponding contract with it, one of the conditions of which is the transfer of funds received from the resale of roundwood to the Exporter's Bank to a special conditional deposit accumulative account;

The equipment exporter opens (in agreement with the equipment importer) a conditional savings deposit account (escrow account) in the Exporter's Bank, to which the Timber Processing Enterprise will transfer the proceeds upon acceptance of each shipment of round timber from the Importer (minus its margin agreed with the Equipment Exporter);

The equipment exporter's bank notifies the equipment importer of the opening of such an account and provides its details;

The importer starts shipments of round timber under a contract for advance purchase to a timber processing enterprise in the Country BUT;

The timber processing enterprise, in payment for the indicated deliveries of round timber, makes periodic payments through its bank (not shown in the diagram) to a conditional accumulative deposit account with the Exporter's Bank;

The Exporter 's bank periodically informs the Exporter and Importer about the status of the specified conditional accumulative deposit account ;

Upon reaching the agreed threshold value of funds (T) in the conditional savings deposit account, the Exporter's Bank notifies the Exporter and Importer about this;

The exporter ships the equipment under the main export contract;

The exporter, having fulfilled his obligations for the supply of goods under the main export contract, submits the appropriate set of documents to the Exporter's Bank;

The exporter's bank transfers the accumulated amount of money (75% of the total value of the main export contract or more), which has been kept on the conditional accumulative deposit account of the Equipment Exporter, to its settlement account until this moment;

The equipment importer continues deliveries until the volume specified in the advance purchase contract is reached;

The timber processing enterprise continues, in accordance with the terms of the contract, to transfer cash to the Exporter's Bank in favor of the Equipment Exporter;

The exporter's bank credits the specified funds to the equipment exporter's account.

If the threshold value T was chosen by the exporter and importer less than 100%, all the above named parties are participants this agreement continue to operate until the end of deliveries under the contract for advance purchase and settlements between the Timber Processing Enterprise and the exporter.

Thus, in the schemes of offset transactions with advance purchase, the exporter (Country BUT) makes a purchase (often spread over time into several partial deliveries/contracts) of guaranteed liquidity (or having a previously established in the Country BUT) goods from the importer (Country AT). Further, when an escrow account specially opened by the parties (Fig. 7.9) accumulates an amount sufficient to fully cover the cost of the export delivery or to ensure an acceptable threshold level of perceived business risk (T), the Exporter performs the export delivery of equipment under the main contract. This removes the contradiction of the delay in the time of delivery of the compensatory goods and reduces the risk of both parties. Advance purchase is known in international trade practice and under other names: "pre-compensation" (pre-compensation ), "related pre-purchase" (linked anticipatory purchases), Junctim deal ( Junktim ). The latter name is usually given to such transactions that are carried out by large specialized international trading firms.

Any counter-purchase agreements imply a counter-delivery of goods within a specified period (before, after and even during deliveries under the main export contract, A => B), carried out on the basis of a complicated (due to the “Special Conditions” article) international contract for the purchase of sale of either the specified contract and the agreements attached to it on counter, or advance, purchases. Counterpurchases are considered one of the most popular forms of countertrade. About 100 countries have passed laws obliging national importers to make purchases only in conjunction with the counter obligations of their foreign partners.

Such transactions are especially common in relations between companies from countries with different levels economic development. So, in October 1992, the company PepsiCo signed an agreement with three Ukrainian partners on the implementation of a contractual joint venture. Under the terms of this agreement, Ukrainian-built ships were to be marketed with the help of the company PepsiCo on the world market, and the proceeds from the sale of these vessels were to cover the costs of purchasing equipment for bottling (bottling) the company's soft drinks PepsiCo in Ukraine, as well as the opening of a chain of restaurants Pizza Hut . These transactions have an agreed mechanism of financial settlements, due to real counter interrelated commodity and financial flows between the parties in a commercial offset transaction. As usual, mutual settlements can be carried out as hard currency transfers (cash) and through the clearing mechanism.

Finally, buy-back transactions are often politically motivated. When the company PepsiCo began the process of entering the Indian markets, the Indian government stipulated that a certain part of its proceeds from the sale of soft drinks (and other food products) the company PepsiCo will be used to buy tomatoes in India, which was used by the Indian government to mitigate the negative reaction of local producers, since the products PepsiCo turned out to be much more competitive due to the higher technological level of this transnational giant.