New alternatives to letters of credit (L/Cs) have emerged in abundance in the wake of new communications technologies. Now it looks like one of the older alternatives to the documentary credit as a method of payment for international transactions is about to make a comeback.

Countertrade, which has been in decline over recent years as currency, banking and payment systems have become more reliable, is about to make a fresh appearance on the Internet.

Online auction

Countertradex.org, claims to be the world's first and only international online auction network specifically designed to enable companies to engage quickly and easily in all forms of countertrade.

Its trading platform aims to provide buyers and sellers with the information and systems with which they can make trade-matches online in over 20,000 categories of industrial commodities, services and raw materials from aircraft and real estate to cellular phones and industrial equipment.

Product exposure

Once the service is officially launched on 4 July 2003 sellers will be able to list their commodities, goods and services on the Countertradex.org auction network. This according to the company will then expose these products to member companies in more than 144 countries.

An online auction is then created with the aim of soliciting bids from member companies. Once bids are received, the seller reviews and decides which bidder to sell to. The accepted bidder makes payment for the goods or services into an escrow account.

Support services

Tools and information to help traders develop and execute deals are also on offer online. These include real-time video conferencing and facilities for making digital signatures.

Membership in the Countertradex.org network is US$1,995 per year or US$1,195 for six months.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.