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Offset Contracts

Christian Sylvain (ECCO Chairman)

ICC Commission on Commercial Law and Practice (CLP) PARIS 13 November 2015

www.ecco-offset.eu

Definition of OFFSET

Offset means any condition or undertaking that encourages local development or improves a

Party’s balance-of-payments accounts, such as the use of domestic content, the licensing of

technology, investment, counter‑trade and similar action or requirement.

GPA 1994-Revised April 2014

Applicable only to non-members

2The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

AREVA UNIVERSITY – Christian SYLVAIN – April 17th, 2013

Offsets : Overview

Country A Country BSupplier

CUSTOMER

S.O.E.

» Price

»Technical

» Timescale

» Financing

» General Conditions

MA

IN

CO

NT

RA

CT

Customer’s government

OFFSET CONTRACT OFFSET LEGISLATION

- Expressed as a % of the amount imported under the principal contract- Comes into force on the same date as the principal contract- Penalties and bank guarantees

OF

FS

ET

CO

NT

RA

CT

Creates an economic benefit by

adding value locally

Two processes in parallel

Equipment in exchange for payment

Specificities of the Market

4The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

Main Characteristics of an Offset Contract

5The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

Known and unknown risks

6The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

Business & Legal Risks

7The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

Offset requires a Specific Contract

8The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

ICC Guide Published in October 1989

9The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

The information in this document is ECCO property and is intended solely for the addressees.Reproduction and distribution are prohibited. Thank you.

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Thank you

European Club for Countertrade & OffsetAssociation under the French law of 1901 - no. W922002916

69 rue Louise Michel92300 Levallois-Perret

Francewww.ecco-offset.eu info@ecco-offset.eu