3.Subperiods withinfulfilment period 27. Wherefulfilment ofthecountertrade commitment involves many shipments overalongperiodoftime,theparties maywishtodividethe fulfilment periodintosubperiods. Forexample, afiveyearfulfilment periodcouldbedivided intofiveannualsubperiods, withaspecified portionA/CN.9/332/Add.8 English Page8 ofthetotalcommitment tobefulfilled duringeachsUbperiod. Suchan approach assists theparties inplanning delivery andmarketing ofthe countertrade goods,andhelpstoensurethatfulfilment doesnotfallsofar behindthattheparties wouldbeunableatthelatterstagesofthe fulfilment periodtofulfiltheoutstanding countertrade commitment. 28. Thecountertrade agreement mayallowflexibility indealing with shortfalls inthefulfilment ofthecommitment assigned toindividual subperiods bypermitting thecarry-over ofalloraportion ofashortfall to thenextsubperiod. Insuchacase,thepurchaser wouldhave,inthe following subperiod, tofulfiltheportion ofthecommitment allocated to thatsubperiod, aswellastofulfiltheportion ofthecommitment carried overfromthe the preceding period. Theportion neecarried overwouldbe subject tosanctions forfailure tofulfilthecountertrade commitment (see chapters XI,"Liquidated damages andpenalties", andXII,"Security for performance"). Suchflexibility wouldallowthepurchaser toadjustthe quantity tobepurchased inagivensubperiod inresponse tocircumstances suchasshorttermmarketfluctuations. However, ahighdegreeof flexibility mightadversely affecttheinterests ofthesupplier ifthe proceeds ofsalesineachsubperiod aretobeusedforpayments underthe supplycontract intheotherdirection. 29. Toaddress thepossibility thatthefulfilment achieved inagiven subperiod exceeds therequired level,theparties mayagreethatsomeorall oftheextrapurchases wouldbecredited tothecommitment dueinthe following subperiod. Alternatively, theparties mayagreethattheexcess fulfilment inonesubperiod wouldnotaffectthelevelofthecommitment due inthefollowing subperiod. 30. Theparties maywishtosetdeadlines withinthefulfilment period forcompletion ofdifferent actions related tofulfilment ofthecountertrade commitment. Forexample, theparties couldstipulate deadlines forproviding samples ofcountertrade goods,placing orders, shipping goodsoropening letters ofcredit. F.Monitoring andrecording fulfilment ofcountertrade commitment 31. Theparties maywishtoconsider establishing procedures for monitoring andrecording theprogress madeinfulfilment ofthecountertrade commitment. Sucharrangements maybeparticularly-useful inlongterm countertrade transactionswithmtiltiple shipments inoneorbothdirections. 1.Exchange ofinformation 32. Theparties maywishtoestablish procedures forexchange of information onprogress inthefulfilment ofthecountertrade commitment. Suchprocedures may beuseful, inparticular, in"indirect offset" transactions (chapter 11,."Introduction", paragraph 13),sincethe countertrade commitment isowedtoapersonwhodoesnotactasthesupplier ofthecountettta.deg60dsand thepotential suppliers are,therefote, not parties tothec6untertrade agreement. Asystemofexchange ofinformation mayalsobeuseful whentheparties areengagedinalarge volumeofmutual trade,especially whenonlyapartofthattradestemsfromthecountertrade agreement.rr! ••.. tA/CN.9/332/Add.8 English Page9 33. Theparties mayincludeinthecountertrade agreement guidelines concerning thecontents, frequency andtimingoftheinformation tobe exchanged. Therequired information couldcover,forexample, contracts that havebeenconcluded thatareeligible tobecounted towards fulfilment (especially whenconcluded withathirdperson), shipments thathavebeen made,payments effected inaccordance withagreeduponprocedures and purchases planned foranupcoming subperiod ofthefulfilment period. Furthermore, theparties tothecountertrade agreement sometimes findit usefultomeetperiodically toassesstheprogress thatisbeingmadetowards fulfilment. Suchmeetings couldbeusedtoreviewthestatusofconcluded contracts andthoseundernegotiation andtoconsider possible modifications ofthecountertrade agreement. Thecountertrade agreement couldaddress questions suchasthefrequency andlocation ofmeetings andthe
**Analysis**
The text appears to be discussing the intricacies of international trade agreements, specifically countertrade commitments, and the need for flexibility, monitoring, and communication between parties involved. It touches on topics such as payment procedures, fulfillment periods, and potential issues that may arise. The language used is formal and technical, suggesting that the text is intended for a professional or academic audience.

**Category**
International trade