must contain specific arrangements for determining the price of export goods or services, based on international rates. In a buy-back contract, an independent and mutually acceptable inspection agency must be identified which will survey the quality of export goods in order to settle sums due to the supplier. The agency's view on the quality of the said export goods is conclusive and binding for both parties.
What are the other main points to be included in a buy-back contract ?
A typical buy-back contract should define all rights and obligations of the transacting parties, particularly with respect to transfer of the goods and/or services; financial relations; settlement of disputes; performance standards; methods for upgrading technological capacity over the period of the contract and related maintenance services; specifying the quantity and amount of exportable finished products; outlining a schedule to accommodate fluctuations in pricing and production costs and rates of foreign exchange over the long term; transport and delivery of the goods to be imported or exported; training of the required expert staff and increasing the skills of the existing staff and fixing a definite expiration date for the contract...
According to the contract, what will be the method for paying sums due to the supplier?
The contract may by arranged so that the payment of the sums due to the supplier by the producer, is made through delivery of goods and services from the producer to the supplier or the buyer. In cases approved by the relevant ministry, payment can be in the form of delivery of industrial an mineral goods or services of the exporter to the supplier or the buyer. The contract may include the payment in cash or any other form to the supplier as a down payment or payment in return for shipping documents up to a maximum of 20 percent of the value of the goods and services rendered by the supplier. The amount of the down payment must by agreed to by the relevant ministry .
How stable are permits related to buy-back transactions ?
What effect do new decisions have on already signed buy-back contracts? Permits issued by the relevant ministries for the import and export of goods subject to buy-back contracts, are binding on all related organizations and institutions. As long as buy-back arrangements and the obligations arising out of them are in force, decisions by executive bodies, which may in any way result in a