A tolling agreement is a type of agreement that outlines the terms and conditions for the production of goods or services on behalf of a third party. It is a common practice in the German business world and has been widely used in recent years.
In simple terms, a tolling agreement is an agreement between two parties. The first party is a producer or manufacturer who agrees to produce goods or services for a third party, while the second party is the buyer or third party who pays for the production of those goods or services.
The tolling agreement is common in the manufacturing industry, where the manufacturer agrees to produce goods for a third party. The tolling agreement is also widely used in the energy sector, where it is used to process crude oil and other petroleum products.
The tolling agreement is beneficial for both parties, as it helps the manufacturer to keep their production facilities busy and generate revenue, while the third party buyer can have access to the manufacturer`s production facilities without investing in their own production facility.
In Germany, the tolling agreement is also known as « Veredelungsvereinbarung » or « Be- und Verarbeitungsvereinbarung ». The agreement is regulated by the German Civil Code and the German Commercial Code.
The tolling agreement in Germany may include various clauses, such as the duration of the agreement, the quality standards of the products to be produced, the payment schedule, and the liability of the parties involved.
The tolling agreement is a popular and effective method of production and has been widely used in the German business world. It allows businesses to access production facilities without investing in their own production facility and helps manufacturers to keep their production facilities busy and generate revenue.
In conclusion, a tolling agreement is a common practice in the German business world and is widely used in various industries. It is a beneficial agreement for both parties and helps businesses to access production facilities and keep their production facilities busy.