text: authorization wouldbegivenonlyforcountertrade transactions exceeding a minimum turnover andtoparties withanestablished presence inagiven country. Insomecases,anevidence accountisauthorized withthe restriction thatpurchases bythirdparties willnotbecounted towards fulfilment ofthecountertrade commitment; sucharestriction may be imposed whenthemotiveforpermitting anevidence accountistoestablish along termtrading relationship withaparticular party. Thecountertrade goods may belimited tothoseagreeduponbytheparties orthosethatthe controlling authority hasaninterest inpromoting. 40. Whentheparties arefreetoestablish anevidence account, theymay decidetoadminister theaccount themselves ortoengageabankorbanksto doso.Avariety ofstructures arepossible depending onwhether theaccount isadmini.stered byoneorbothoftheparties orbyoneortwobanksengaged bytheparties. Forexample, parallel accounts couldbeestablished bya partyorabankoneachsideofthetransactic)n in.which supplies are credited andpurchases are ..debited. Eachparallel··· account ..couldinturn consist oftwoledgers, onelisting contracts concluded in>eachdirection and theotherrecording payments. Ifbanksaretoadminister theevidence account,the parties maywlshtousetheba:nltsthathandle paym~nt fqrthe supplycontracts. 41. Thecountertrade agreement shouldspecify thedocumentatiQn required fortriggering entries intheevidence account (e.g.,.copiesq'c1mtracts, evidence ofletters ofcredit, orshipping documents). Suchdo!':umentary requirements shouldbein.linewiththeprovisions inthecountertrader ••A/CN.9/332/Add.8 English Page11 agreement concerning thestagewhenthecountertrade commitment isdeemed fulfilled (seeparagraphs 10to12above). Inordertominimize administrative burden, theparties maywishtoaligntothedegreepossible thedocumentary requirements fortheevidence account withthoseofany governmental authority monitoring thecountertrade transaction. 42.Itisadvisable thattheparties address inthecountertrade agreement deviations fromtheagreeduponratiobetween thevaluesofthe shipments tobe made inthetwodirections. Itisadvisable toagreethat duringthefulfilment periodthevaluesoftheshipments maydeviate fromthe agreedratio,withtheagreeduponratiotobeachieved upontheconclusion ofthefulfilment periodoratspecified pointsinthefulfilment period. Theparties mayfurther agreethatdeviations duringthefulfilment period mustremainwithin aspecified range. Forexample, duringthefulfilment periodthevalueoftheshipments inonedirection shouldbenotlessthan60 andnotmorethan120percentofthevalueoftheshipments intheother direction. Itmaybeagreedthatfailure by apartytoconclude thesupply contracts necessary toachieve theagreeduponratiomay besubject to sanctions (seechapters XI,"Liquidated damages andpenalties", andXII, "Security forperformance"). Itisadvisable todefineinthecountertrade agreement smalldeviations fromtheratiothatwouldbetolerated. 43. Inordertominimize errorsordiscrepancies intheevidence account, theparties mayagreetoverifyatfixedpointsoftimetheinformation entered intheaccount. 44. Where two banksareinvolved inadministering theevidence account, thetechnical details oftheaccount may bethesubject ofaninterbank agreement. Thecountertrade parties haveaninterest inthecontents ofthe interbank agreement, thoughtheyarenotnormally parties toit.Itis therefore advisable thattheparties consult withthebankstoensurethat theevidence account established bythebanksisacceptable totheparties.
analysis: This text appears to be discussing the mechanics of countertrade transactions, which involves the exchange of goods or services between two parties. The text provides guidelines and recommendations for establishing an evidence account to track these transactions, as well as specifying the documentation required and how to handle deviations from agreed-upon ratios. Given the focus on trade and commerce, it seems likely that this text is related to international trade.