Advanced Trade Finance & Special Customs Procedures
Countertrade
Also known as: Barter Trade
Countertrade is a family of reciprocal trading arrangements in which goods or services are exchanged, wholly or partly, for other goods or services rather than settled entirely in cash — encompassing barter, counterpurchase, buyback, and offset deals. It arises where hard currency is scarce, where governments require reciprocal purchases as a condition of a sale, or where parties wish to balance trade. Countertrade adds complexity in valuation, financing, and logistics, since two flows of goods must be coordinated, and it demands careful contracting to manage the risks of quality, timing, and enforceability on both sides.
A valuation problem before it is anything else. With no straightforward price paid in money, transaction value may be unavailable altogether and you fall to the alternative methods in order.
Where it matters for compliance
- Where there is no price actually paid or payable in money, transaction value may be unavailable and the fallback methods apply in order.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.