contracts. 1.Bytypeofgoods 3. Whentheparties definethecontracts eligible tobecounted towards fulfilment byindicating thetypeofgoodstobepurchased, itisadvisable thattheydo sowithasmuchprecision aspossible. Precision is particularly advisable whenthegoodstobepurchased existindifferent varieties. (Foradiscussion ofclauses inthecountertrade agreement concerning thetypeofgoods,seechapter V,"Type,quality andquantity of goods", paragraphs 2to11.) 4. Sometimes theparties provide inthecountertrade agreement that,in addition tothepurchase ofthecountertrade goods,otherrelated itemsare tobecounted towards fulfilment ofthecountertrade commitment. Such ancillary itemsmaybe,forexample, purchase ofsamples andprototypes in thecourseofselecting thecountertrade goods,localcontracting oflabor, localpurchase ofgoodsandservices essential forcarrying outasupply contract, unbilled activities bythepurchaser inthesupplier's country (e.g.,recruitment ofpersonnel, training programs, secondment ofstaffand otherformsoftechnical assistance), purchase fromthesupplier of transportation services, orperformance bythepurchaser ofafter-sales service onthecountertrade goods. Thecountertrade agreement mayprovide thatonlyalimited portion ofthecountertrade commitment may befulfilled through suchitems.I • • ••A/CN.9/332/Add.8 English Page3 5. Whenthepurchaser hasmadepriorpurchases fromthesupplier, the countertrade agreement mayprovide thatsupplycontracts mustmeetan "additiona1ity" requirement inordertobecounted towardfulfilment (see chapter V,paragraphs 26and27). 2.Bygeographical origin 6.Eligibility ofsupplycontracts may bedefined by astipulation that countertrade goodsmustbeproduced inaparticular geographical area. Stipulations ofthistypearesometimes foundinindirect offsettransactions wheretheimporter wishestochannel thecounter-purchases toaparticular region. Furthermore, thecountertrade agreement maystipulate arequired minimum leveloflocalcontent. Suchstipulations mayprovide that particular components ofthegoodsmustbelocally produced orthatthevalue oflocalcomponents mustconstitute acertain percentage ofthetotalvalue. Localcontent requirements aresometimes foundingovernmental regulations. 3.Byidentity ofsupplier 7. Theparties mayagreethattheexporter istofulfilthecountertrade commitment bypurchasing goodsfrompersons otherthantheimporter. Thisis typically thecaseinindirect offset(seechapter 11,paragraph 13).In suchcases,itisadvisable thateligible supplycontracts bedefined by identifying thesuppliers fromwhomthegoodsaretobepurchased. The countertrade agreement maylisteligible suppliers ormaystipulate criteria tobeobserved bythepurchaser inselecting asupplier. Itmaybeprovided, forexample, thataselected supplier mustbe from a particular economic sector, beofacertain size,haveaparticular production programme, be located inaparticular region, orbelocally owned. Whereseveral eligible suppliers areidentified, thepurchaser may beleftfreetodistribute purchases amongvarious suppliers oraparticular structure ofpurchases from theidentified suppliers may bestipulated. Theidentification ofeligible suppliers doesnotnecessarily meanthatthosesuppliers havemade a commitment tomakecountertrade goodsavailable. Insomecasestheimporter mayprovide anassurance thattheeligible suppliers areprepared to negotiate theconclusion ofasupplycontract orpromise toassistthe purchaser inidentifying asupplier whoiswilling toconclude asupply contract. (Foradiscussion oftheparticipation ofthirdpersons as suppliers, seechapter VIII,paragraph .)Thecountertrade agreement may indicate theeffectonthecountertrade commitment ifnoneoftheeligible suppliers areprepared toconclude asupplycontract. 4.Byidentity ofpurchaser
**Analysis**
The text appears to be discussing the specifics of countertrade agreements, which are likely related to international trade and commerce. The language used is formal and technical, suggesting a focus on economic and commercial transactions. The text also touches on the concept of "local content" and "offset transactions", which are common in the context of international trade and economic development.

**Category**
International trade