The CIF/FOB adjustment Adjusting the goods account to the BOP definition of goods and services

Short description of CIF/FOB 2 FOB value CIF value

 Freight cost is a service  According to the BPM5 (and BPM6) part or all of it should be included in the ITS figure  Needed for consistency in the ITS and BOP figures Why is it relevant for ITS? 3

 The service element is the difference between the FOB value and the invoice value Danish method 4

Example 5 FOB value CIF value Invoice value

 Norwegien method used to calculated the FOB value for import (MEETS project from May 2010)  Custom information on delivery terms used to calculate the average difference between CIF and FOB on a detailed level.  Average differences applied to all imports  Insurance part of the freight cost  Danish custom data is not as good as Norwegian  Invoice value needs to be calculated as well Danish method 6

 Roughly half of the freight cost for import of goods is added to the service import Danish CIFFOB adjustment 7