We are International Barter, 

Counter-trade and Offset Specialists

International Barter, Counter-trade and Offset activity accounts for anything from 8% to 30% of global trade. This variation in estimates is due to the difficulty in defining what trade is, and therefore in measuring the extent of its practices. Our company specializes and provides a solution on most particulars aspect of trade. A small, medium Firm’s, Corporations, Government's, and States, use this type of trade as a technique to promote exports and increase investment.  

Barter - Pure barter is the oldest, simplest, and rarest form of counter-trade. It usually involves a one-time deal between two parties under a single contract. It is usually a simple exchange of goods and/or services.

Counter-purchase - Counter-purchase or parallel barter is the most common and fastest growing form of counter-trade. Here the exporter agrees to purchase goods or services from the importer. This deal is usually done with the aid of two separate contracts, which are linked by a protocol (a third party agreement). Each party receives full payment in cash. The counter-purchase items are not always specified at the signing of the first contract but are specified at a later date. This involves heavy fines to avoid later non-performance.  

An offset is the form of counter-trade that is taking center stage today. Suppliers of capital equipment such as aircraft and telecommunications equipment, and more especially defense materiel, are obliged to offer offsets in the form of licensing, co-production, joint ventures, technology transfer, training, research and development and so forth, as part of the sales package. 

Buy-back occurs when an importing country pays for plant and equipment, often in the form of a turnkey factory, with products produced from the plant. The supplier of the plant usually disposes of the counter-trade goods along with those produced in his own plant. 

Offset trade - Offsets are used in larger deals often involving military equipment or development schemes. The offset is similar to the counter-purchase but it usually involves a longer time plan since it also usually involves much higher sums. The importer may require the exporter to aid the advancement of technology or marketing in the importer country. 

Compensation or Buyback - Under this deal, the exporter sells equipment and technology and at the same time agrees to buy back the resulting products manufactured with the help of the original sale. Although the original purchase may be settled in cash payments the contract is not fulfilled until the goods are purchased. 

Co-operative Venture - This is a form of buyback. Both parties own equity in production facilities. This is along term agreement usually involving capital projects or production sharing ventures in the refining of raw materials. Usually the western country supplies the equipment while the developing country has the raw materials. Payment is taken from the results of the manufacture. 

Swap - Homogeneous products from different locations are traded to save transportation costs. An example from 1978 when Soviet oil headed for Cuba and Mexican oil bound for Greece. The swap resulted in Mexican oil for Cuba and Soviet oil for Greece. Swaps can only occur in high bulk and similar product situations. 

Bilateral Clearing - Agreements between two governments with foreign exchange controls and currency shortages agree to purchase a certain amount of goods over a certain amount of time. Account balances are maintained in each countries national bank and after the time limit or when a certain level of trade imbalance is reached accounts are balanced and settled in the agreed upon currency. 

Switch Trading - This is similar to bilateral clearing except that trade imbalances are settled with switch trade. The country with the trade surplus transfers all or a portion of its clearing account to a third party. The third party (often a switch trader) uses the surplus to buy goods from the deficit nation and trades them for cash. The surplus credit nation receives the cash minus the third parties commission. 

Evidence Accounts - These are umbrella agreements between exporters and a government agency in the importing country. The exporter sells to the government agency and agrees to purchase local goods. The government agency acts as a clearinghouse for all international sales. The buyers and sellers banks monitor the flow of trade the evidence accounts are settled in cash after each transaction. The evidence account is an agreement between private exporters and foreign government agencies.