Calculation of Amounts of Transportation and Insurance Services That Are Recorded in Foreign Trade in Services in compliance with the New Accounting System Viktor Kostyrko Division for Foreign Trade in Services Statistics, Department for Trade Statistics, SSSU October 22-24, 2014 Kyiv

– services in foreign trade were recorded in compliance with the Classification of Services in Foreign Economic Activities (KPZED) adapted to the Classification of Economic Activities (KVED, 1996), NACE Publications on foreign trade in services were presented pursuant to the General Classification of Economic Activities (UKPZED) adapted to the Balance of Payments Services Classification (1993) Information for the Balance of Payments compilation was provided by the NBU in compliance with the General Classification of Economic Activities (UKPZED) 2013 – the Classification of Foreign Economic Services was implemented (KZEP) adapted to the Extended Balance of Payments Services Classification EBOPS, BMP-6, with consideration of the national accounts specifics Data collection, publication of statistical products on foreign trade in services, provision of information for generation of macroindicators in the national accounts, information to the NBU for the Balance of Payments compilation is done based on KZEP Information for generation of macroindicators in the national accounts was provided in compliance with the Classification of Services in Foreign Economic Activities (KPZED)

UKPZED KPZED – services of agenting and freightage of the merchant marine fleet Transport services Sea transport Air transport Railway transport Pipeline transport Other transport Passenger Cargo Other transport Insurance services … … KPZED – services of other types of insurance (contain transport insurance); – services related to auxiliary insurance activity (contain services of cargo insurance)

KZEP Cargo and baggage insurance services Transport services Services of sea transport Services of internal waterway transport Services of air transport Services of pipeline transport Services of space transport Fleet agenting and freightage services Cargo Logistics and infrastructure Insurance services … … Services of railway transport Services of road transport Other auxiliary transport services Electricity transmission Postal and courier services Passenger Transport and forwarding Transport insurance services

Backcasting Transport services Sea transport services Cargo Logistics and infrastructure Passenger Transport and forwarding Fleet agenting and freightage services Services of agenting and freightage of the merchant marine fleet Transport services Sea transport Cargo Passenger Other KZEPUKPZED Logistics and infrastructure Transport and forwarding

Backcasting Transport services Air transport services Cargo Logistics and infrastructure Passenger Transport and forwarding Fleet agenting and freightage services Transport services Air transport Cargo Passenger Other KZEPUKPZED Logistics and infrastructure Transport and forwarding Fleet agenting and freightage services

Backcasting Transport services Internal waterway transport services Cargo Logistics and infrastructure Passenger Transport and forwarding Fleet agenting and freightage services Transport services Other transport Cargo Passenger Other KZEPUKPZED Fleet agenting and freightage services River Auxiliary Internal waterway Road

Insurance services Life insurance services Pension services Social insurance services Reinsurance services Other direct insurance services Freight and baggage insurance services Transport insurance services Auxiliary insurance services Backcasting KZEP KPZED Services of insurance Life insurance services Services of pension funds Social insurance services Other insurance services (including transport insurance) Auxiliary insurance services (including freight insurance) Freight and baggage insurance services Transport insurance services

Statistics on foreign trade in goods is mainly based upon data of customs declarations, data of State Statistical Observations “Report on Export (Import) of Goods Not Subject to Customs Declarations” F. No.5-FEA (monthly) “Report on Purchase (Sale) of Goods to Meet the Need of Transportation Vehicles, Passengers and the Crew” F. No. 14-FEA (quarterly) and administrative data of the Ministry of Energy and Coal Industry Statistics on foreign trade in services is mainly based upon Data of State Statistical Observation “Report on Export (Import) of Services” No. 9-FEA (quarterly) and administrative data of public agencies, main spending units of the State and local budgets, ministries and public establishments

In statistics of foreign trade in goods statistics value can be determined: – for exported goods – in “free on board” prices (FOB); – for imported goods – in “cost, insurance, freight” prices (CIF). FOB value includes value of goods and value of services on goods delivery to the border of the exporter country. CIF value includes value of goods, value of services on goods delivery to the border of the exporter country and value of services on goods delivery from the border of the exporter country to the border of the importer country. Pursuant to the Cabinet of Ministers Resolution “On Compilation of the Performance Balance on Foreign Trade”, statistics was made responsible for its compilation: ExportImportBalance Total (goods and services) Goods FOB CIF Services

Balance of foreign trade Foreign trade in goods Foreign trade in services In the balance of foreign trade, goods are recorded in USD million, export in FOB prices, import in CIF prices Statistics on foreign trade in goods (monthly) and foreign trade in services (quarterly) are provided to the NBU for compilation of the Balance of Payments of Ukraine

CURRENT TRANSACTIONS BALANCE OF GOODS AND SERVICES EXPORT OF GOODS AND SERVICES IMPORT OF GOODS AND SERVICES BALANCE OF GOODS EXPORT OF GOODS IMPORT OF GOODS including: General goods Goods for processing Repair of goods Goods acquired in ports by transport organisations Memorandum: Export of goods according to the SSSU data Adjustment According to classification Repair of goods Coverage Import of goods according to the SSSU data Adjustment According to classification Repair of goods Adjustment to FOB prices Coverage BALANCE OF SERVICES EXPORT OF SERVICES IMPORT OF SERVICES Тtransport services List of services pursuant to the EBOPS Besides, in pursuance of the Resolution of the Cabinet of Ministers and the National Bank of Ukraine “On Balance of Payments Compilation”, responsibility thereof was placed upon the National Bank: The Balance of Payments records goods in FOB prices

Adjustment of Import to FOB Prices Transport services Services of sea transport Services of internal waterway transport Services of air transport Services of pipeline transport Services of space transport Services of railway transport Services of road transport Other auxiliary transport services Electricity transmission Postal and courier services Passenger Cargo Other 80% of CIF and FOB price difference is broken down into “Transport services” – cargo – sea, internal waterway, air and road in shares that have the specified types of cargo transport in the total Transport services. 20% of CIF and FOB price difference is considered by the resident insurer Services of insurance

Thank you!