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International TradeID: kb-trd-059

Buy-Back Agreement

Agreement to accept products derived from sold equipment as payment.

Added: March 31, 2026
Applicable: Universal

Detailed Explanation

In a Buy-Back Agreement (or Compensation Agreement), a firm builds a plant or supplies technology/equipment to another country and agrees to accept a portion of the plant's output as full or partial payment. This ensures the buyer has a market for their new production.

Tags

#manufacturing#technology transfer#payment#trade

Applicable Countries