D-6-2- The commercial barter for import or export transactions


6-2-1- The commercial barter for trade: definition

Commercial bartering is a payment technique that permits merging two transactions between two companies. Chacune vend à l'autre un produit. Each of them sells a product to the other. There are two sales, and therefore two risks. Subtract the smaller sale from the bigger sale in order to barter for import or export transactions.

The commercial barter can also be referred to as compensation trade

There are companies that specialize in commercial bartering techniques. Furthermore, there are different types of bartering techniques:
  • commercial bartering, 100/ 100,
  • commercial bartering, 100/ X,
  • commercial bartering, 100/ X with an intermediary,
  • anticipated commercial bartering.

6-2-2- Commercial bartering, 100/ 100

Commercial bartering, 100/100 is an exchange of goods. The primary objective of this type of operation is to avoid financial flows. A secondary objective is to provide a company or state a solution for goods payment in the absence of the necessary and available cash. The sales and purchase contracts are 100%/100%, therefore a 100% goods exchange ( purchase against sales). It is also possible to involve banks, like, for example, within the scope of a documentary credit.

6-2-3- Commercial bartering 100 %/X

Commercial bartering 100%/X, as its name indicates permits an exchange of goods with a purchase contract where the amount is a percentage of the total amount of the purchase.

6-2-4- Commercial bartering 100%/X with an intermediary

It also permits the same type of transactions seen above. The difference lies in the presence of an intermediary, a specialized company that manages the transaction and takes on the risks. This latter will be paid on commission. This type of bartering is the most often used.

6-2-5- Anticipated Commercial bartering

This type of commercial bartering is used within the scope of recurring purchases or recurring sales within a country. The central Bank of that country will centralize all purchases made by the company in a special account. This account will used when the goods are sold abroad.