text: 8. Arestrictive element sometimes foundinthedefinition ofeligible supplycontracts concerns theidentity ofthepurchaser. Forexample, the countertrade agreement mayprovide thatonlypurchases made by theparty committed topurchase goodsorbyspecified thirdpersons (e.g.,third persons fromaparticular country orgeographical region) aretobecounted towardfulfilment. Foradiscussion ofrestrictions ontheparticipation of thirdpersons aspurchasers, seechapter VIII,paragraph 5.Non-conforming purchases 9. Theparties mayagreethatundercertain circumstances purchases that donotconform totheeligibility requirements inthecountertrade agreementA/CN.9/332/Add.8 English Page4 wouldbecounted towardfulfilment ofthecountertrade commitment. For example, ncn-ccnformfng purchasescquld becountedifthegood.faithefforts ofthe.purchaser tolocatesuitable goodsfromtheeligible suppliers orin thegeographical regions oreconomic sectors identified inthecountertrade agreement wereunsuccessful. Aprovision ofthattypecouldcalluponthe purchaser toprovide evidence ofefforts tomakepurchases ofthetype required bythecountertrade agreement (foradiscussion oftheanalogous caseofapartyrequesting anextension ofthefulfilment period, see paragraphs 23to26below). Itcouldbeagreedthatthespecific prior consent ofthepartytowhomthecommitment isowedwouldbeneoeaaary for thepurchases notmeeting theeligibility requirements tobecounted toward fulfilment. Inordertofosterefforts tocomplywithoriginrequirements, thecountertrade agreement couldlimittheavailability ofanexception to thelaterstagesofthefulfilment period. Furthermore, theparties may agreethatpurchases counted towardfulfilment thatfalloutside the eligibility provisions aretobecountedatlessthanthefullvalueofthe purchases (seeparagraphs 14and15below). C.Stagewhencommitment fulfilled 10.Itisadvisable thatthecountertrade agreement indicate thespecific eventsthatmustoccurinorderforthecountertrade commitment tobe fulfilled. Theparties maychosebetween twobasicapproaches. Underone approach, thecountertrade commitment isdeemedtobefulfilled onceasupply contract isconclUded. Insuchcases,abreachofanobligation underthe supplycontract wouldbesubject toremedies available underthesupply contract. Theparties mayagreethat,ifthesupplycontract isnot performed duetoareasonimputable tooneparty,theamountofthe unperformed contract could,attheoptionoftheotherparty,bereinstated inthecountertrade commitment. 11. Undertheotherapproach, thecommitment isdeemedtobefulfilled at anagreedstageintheperformance ofthesupplycontract. Forexample, it may beagreedthatthecommitment ofthepurchaser isfulfilled whenthe letterofcreditisopenedorwhenthefundshavebeentransferred tothe supplier andthecorresponding commitment ofthesupplier isfulfilled when thegoodsaredelivered orplacedatthedisposal ofthepurchaser inthe agreedmanner. Insuchcases,intheeventofabreachofthesupply contract, thenon-breaching partymightbeabletoinvokeremedies notonly forbreachofthesupplycontract, butalsoforbreachofthecountertrade agreement ifthecountertrade commitment remained unfulfilled.•r 12. Theparties maywishtoaddress theeffectonthecountertrade commitment ofafailure toconclude orperform asupplycontract. Itmay be agreed, forexample, thatwhenthereasonforsuchafailureisimputable to oneoftheparties, theoutstanding countertrade commitment oftheother partymay,attheoptionofthatotherparty,be deemed fulfilled inthe amountoftheunaccepted contract offerorunperformed contract (seechapter XIII,"Interdependence ofobligations", paragraph ). D. Amount offulfilment credit 13. Inmanycountertrade transactions, thefullpurchase priceofa supplycontract isdeducted fromtheoutstanding countertrade commitment (the•A/CN.9/332/Add.8 English Page5 amountdeducted fromtheoutstanding countertrade commitment ishereinafter referred toas"fulfilment credit"). Sometimes theparties agreethatthe fulfilment creditgranted forasupplycontract istobeanamountdifferent thanthepurchase price. Onereasonforsuchanapproach maybethatthe parties wishtogivefulfilment creditforcertain costs(e.g., transportation andinsurance) notincluded inthepurchase priceorto exclude fromthefulfilment creditcertain costsincluded inthepurchase price. Thesupplier mayagreetothecrediting ofsuchcostelements if,for
analysis: The text appears to be discussing the specifics of a countertrade agreement, which is a type of international trade arrangement. It covers topics such as eligibility requirements, non-conforming purchases, and fulfillment of commitments. The language used is technical and legal, suggesting that the text is aimed at professionals or policymakers in the field of international trade.