Offset requirements
A type of counter trade transaction, in an offset contract, which may be required by an importer´s government as a condition for approval of major sales agreements, the exporter makes an additional agreement to buy goods and services from the importer´s country. There are two types of offset requirements:
- Direct offset: the exporter may be required to establish manufacturing facilities in the importing country or to use a specified percentage of the components in the product sold from the importer´s country.
- Indirect offset: the exporter may be obliged to buy goods o services from the importing country without any link to the product sold.
See countertrade.