example, theyinvolve thepurchase inthesupplier's country ofservices related totheperformance ofthesupplycontract. 14. Thecountertrade agreement mayprovide thatpurchases aretobe credited towardfulfilment ofthecountertrade commitment atdifferent rates depending uponthetypeofgoodspurchased. Forexample, fulfilment credit couldbegranted attherateof50percentofthepurchase valueforone typeofgoodsand150percentforanother. Suchavariable rateof fulfilment creditcouldbedesirable forasupplier whowishestopromote the purchase ofcertain typesofgoods. Inanoffsettransaction, the countertrade agreement mayprovide thatinvestments ortechnology transfer willbecredited atmorethanthecapital contribution oftheinvestment or themonetary valueofthetechnology transfer (e.g.,150percent). Indirect offset, aswellasinbuy-back, thecountertrade agreement mayprovide thata certain amountoffulfilment creditwillbegranted forexportsales,other thanthosetothecounter-importer, generated bytheproduction facility supplied bytheexporter. Creditmayalsobegranted forapercentage ofthe valueofsalestobuyersinthecounter-exporter's country. 15. Thecountertrade agreement mayalsoprovide fordifferent ratesof fulfilment creditdepending upontheidentity ofthesupplier, the geographical originofthegoodsortheidentity ofthepurchaser. The rationale behindsuchaprovision istosteertheactivities ofthepurchaser towards particular suppliers orregions, ortointroduce thegoodsincertain markets. 16. Therateoffulfilment creditmayalsobemadetovaryaccording to thepointoftimewhen apurchase ismade.Underaschemeofthistype,the purchaser couldfulfilthecountertrade commitment bythepurchase ofa smaller quantity ofgoodsifasupplycontract wasconcluded atanearly stageoftheperiodforthefulfilment ofthecountertrade commitment. This approach isdesigned togivethepurchaser anincentive forfulfilling the commitment earlier ratherthanlaterinthefulfilment period. Insucha caseitisparticularly important thatthecountertrade agreement specify the pointwhenfulfilment creditistobegiven(e.g.,whenanorderisplacedor whenpayment ismade). E. Time periodforfulfilment ofcountertrade commitment 1.Lengthoffulfilment period 17. Theparties shouldspecify inthecountertrade agreement thelength oftimetobeallowed forfulfilment ofthecountertrade commitment (hereinafter referred toasthe"fulfilment period"). Thecountertrade agreement maydetermine thelengthofthefulfilment periodbystipulating thatthefulfilment periodistocommence uponafixeddateandtoexpireon afixeddate.A/CN.9/332/Add.8 English Page6 18. Another methodistomakethecommencement ofthefulfilment period contingent uponaneventspecified inthecountertrade agreement andtoset thelengthofthefulfilment period. Suchanapproach maybedesirable ina variety ofcircumstances. Forexample, whentheconclusion ofthe countertrade agreement precedes theentryintoforceoftheexportcontract, theparties mayagreethatthefulfilment periodwillnotbeginuntilthe exportcontract hasentered intoforce. Whenthereisuncertainty atthe timeoftheconclusion ofthecountertrade agreement abouttheavailability ofcountertrade goodsorabouttheability ofthepurchaser toutilize or market them,theparties mayagreethatthefulfilment periodwillcommence uponthecompletion ofcertain preparatory activities (e.g.,identification ofgoods,inspection bypurchaser, certification ofthetechnical capability ofthefactory producing thegoods,agreement withathird-party purchaser or completion ofjointmarketing research). Wheretheexporter wishestoensure thatperformance oftheexportcontract isatanadvanced stageorcompleted beforeperformance ofthecountertrade commitment commences, theparties may stipulate inthecountertrade agreement thatcommencement ofthefulfilment periodistobetriggered byaneventintheperformance oftheexport contract suchastheopening oftheletterofcredit, delivery ofaspecified portion ofthegoodsorpayment. Inabuy-back transaction, anappropriate momentmightbethebeginning ofproduction ofbuy-back products bythe facility supplied undertheexportcontract. Inordertoavoiduncertainty astowhether theconditions forcommencement ofthefulfilment periodhave beenmet,itisadvisable thatthecountertrade agreement statethose conditions andtherelated obligations oftheparties asprecisely as possible. 19. Indetermining thelengthofthefulfilment periodtheparties should
**Analysis**
The text appears to be discussing the terms and conditions of a countertrade agreement, which involves the exchange of goods or services between two parties. The agreement specifies the obligations of the parties, including the purchase of goods, the payment terms, and the fulfillment of the countertrade commitment. The text also mentions the concept of offset transactions, where the value of the goods or services is credited towards the fulfillment of the countertrade commitment.

**Category**
International trade, Industry