Current Status of Foreign Trade in Services During Implementation of the New Methodology and Accounting System. Organisation and Conduct, Development and Dissemination of Results of the State Statistical Observation on Foreign Trade in Services Tetiana Poremska Відділ статистики зовнішньої торгівлі послугами Департаменту статистики торгівлі Держстату України October 22-24, 2014 Kyiv

State Statistics Service of Ukraine Main Departments of Statistics in the regions (24) Central office - 10 sectoral departments - 6 functional departments - 6 divisions supporting activity of the SSSU Main Department of Statistics in Kyiv Main Interregional Department of Statistics Rivne Lutsk Lviv Uzhgorod Чернівці Ivano- Frankivsk Тернопіль Khmelnytskyiкий Zhytomyr Vinnytsia Kyiv Chernihiv Sumy Kharkiv Luhansk Donetsk Dnipropetrovsk Poltava Zaporizhia Cherkasy Kirovohrad Mykolaiv Kherson Odesa Simferopol

Need for standard presentation of statistical activities resulted in development of “REFERENCE OF STATISTICAL SECTORS” based on the international Classification of Statistical Activities (CSA) with the use of the Eurostat Statistical Requirements (COMPENDIUM) The Reference presents activities directly related to producing statistical data and products. The Reference has a hierarchical structure Х.ХХ.Х where Х is a statistical domain; Х.ХХ is a statistical sector; Х.ХХ.Х is a theme of statistical production. Main statistical domains: 1. Demographic and social statistics 2. Economic statistics 3. Environmental statistics and multi-domain statistics The Economic Statistics domain encompasses statistical sector “foreign trade and balance of foreign trade”

ECONOMIC STATISTICS foreign trade and balance of foreign trade Foreign trade in goods Investment of foreign economic activity Balance of foreign trade Foreign trade in services The statistical activity “Balance of foreign trade” is based upon statistics of two activities: “foreign trade in goods” and “foreign trade in services” Pursuant to the Resolution of the Cabinet of Ministers of Ukraine “On Compilation of the Performance Balance of Foreign Trade”: ExportImportBalance Total (goods and services) Goods 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 Declaration" F. No. 5-FEA (monthly) “Report on Purchase (Sale) of Goods to Meet the Needs 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

Department for Statistics of Trade Division for Foreign Trade in Goods Statistics Division for Domestic Trade Statistics Division for Energy Statistics Division for Foreign Trade in Services Statistics Head of division Chief economist MDS MDRS Preparation of the methodological and statistical reporting toolkit Data collection Control Processing Aggregation Analysis Dissemination

National Legal Framework of Foreign Trade in Services Statistics -Law of Ukraine “On State Statistics”; -Resolution of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine No. 517 dated “On Compilation of the Balance of Payments”; - Resolution of the Cabinet of Ministers of Ukraine No dated “On Compilation of the Foreign Trade Balance of Ukraine” Compliance with International Norms and European Standards - Concept of Development of State Business Statistics (approved by Order of the SSSU No.478 dated ; - Manual on Statistics of International Trade in Services developed by UNO, IMF, OECD, Eurostat, WTO, United Nations Conference on Trade and Development (2010); - Balance of Payments Manual developed by the IMF (2008)

Section І Statistical report on F. No. 9-FEA “Report on Export (Import) of Services” investigation of exports and imports of services - by types of services - by country of receipt (rendering) of service - by contract currency investigation of exports of tourist services and number of persons who received these services - by type of tourist service - by country of receipt (rendering) of service - by contract currency - by purpose of travel Section ІІSection ІІІSection ІV KZEP – Classification of Foreign Economic Services; KKS – Country Classification; KV – Currency Classification.

Service in line with KZEP Country in line with Country Classification Currency in line with Currency Classification Value, thousands of monetary units (in contract currency, with two decimals) itemcode*namecode*namecode* АБВГДЕЖ 1. Export of services Service in line with KZEP Country in line with Country Classification Currency in line with Currency Classification Value, thousands of monetary units (in contract currency, with two decimals) itemcode*namecode*namecode* АБВГДЕЖ 2. Import of services

CountryCurrency 3.1. Number of residents who received travel-related services (broken down by the purpose of travel ) services during business travel, negotiations services rendered to seasonal and border workers services during other business travel education-related services health-related services tourist services services during other personal travel persons_________ 3.2. Value of services broken down by the purpose of travel, thousands of units (in contract currency, with two decimals) in line with Country Classificatio n* in line with Currency Classification* in line with KZEP* Amou nt in line with KZEP* Amo unt in line with KZEP* Amou nt in line with KZEP* Amou nt in line with KZEP* Amo unt in line with KZEP* Amo unt in line with KZEP* Amou nt Name CodeCode CodeCode Item CodeCode Наймену- вання CodeCode Item CodeCode CodeCode CodeCode CodeCode CodeCode АБВГ CountryCurrency 4.1. Number of non-residents who received travel-related services (broken down by the purpose of travel ) services during business travel, negotiations services rendered to seasonal and border workers services during other business travel education-related services health-related services tourist services services during other personal travel persons_________ 4.2. Value of services broken down by the purpose of travel, thousands of units (in contract currency, with two decimals) in line with Country Classificatio n* in line with Currency Classification* in line with KZEP* Amou nt in line with KZEP* Amo unt in line with KZEP* Amou nt in line with KZEP* Amou nt in line with KZEP* Amo unt in line with KZEP* Amo unt in line with KZEP* Amou nt Name CodeCode CodeCode Item CodeCode CodeCode CodeCode CodeCode CodeCode CodeCode CodeCode АБВГ Export of Services Referring to Travel Item 4. Import of Services Referring to Travel Item

Structure of the Classification of Foreign Economic Services (KZEP) Section 01. Material resources processing services Section 02. Repair and technical maintenance services not included elsewhere Section 03. Transportation services Section 04. Travel-related services Section 05. Construction services Section 06. Insurance services Section 07. Financial services Section 08. Royalties and other services related to intellectual property use Section 09. Telecommunication, computer and information services Section 10. Business services Section 11. Personal, cultural and recreational services Section 12. Public and government services The Classification has hierarchical arrangement ХХ.ХХ.ХХ where ХХ – section ХХ.XX – subsection XX.XXY – memorandum specifying services of individual subsections ХХ.ХХ.ХХ – class ХХ.ХХ.ХХY – memorandum specifying services of individual classes. KZEP is adapted to the Extended Balance of Payments Services Classification of the 6 th edition of the Balance of Payments Manual developed by the IMF with regard to the specifics in the national accounts system..

Data collection State statistical observationAdministrative information Division for Foreign Trade in Services Statistics Main Departments of Statistics in the regions (districts) Main Department of Statistics in Kyiv Main Interregional Department of Statistics Legal entities involved in export-import transactions in services Permanent representations of non-residents Central and local executive bodies – spending units of the State and local budgets State Service for Regulatory Policy and Entrepreneurship Development National Bank Ministry of Foreign Affairs Ministry of Economic Development and Commerce Мinistry of Regional Development, Construction and Housing and Utility Service Ministry of Infrastructure Administration of State Border Guard Service Statistical data of other state statistical observations

Criteria to generate population General conditions Additional conditions Register of persons involved in foreign economic activity dealing with export-import transactions in services during the previous year Additional list of respondents generated based on the NBU data (in part of foreign economic services) Lists of enterprises licensed for a certain economic activity: - List of registered representatives of foreign business entities who are not legal persons - Register of business entities licensed for passenger and cargo carriages by air, internal waterway, sea and road transport - List of construction corporations and institutes - involved in trade in construction services - Register of tourist agents Approved population of reporting units on F.No. 9-FEA for the current year Updated population of reporting units based on F. No. 9-FEA for the current reporting period Additional list of respondents generated based on quarterly data of the NBU Register of persons involved in foreign economic activity, not covered by the state statistical observation but who filed their report for the current reporting period on their own самостійно надали звіт за поточний звітний період (in part of foreign economic activities)

Administrative data sourcesInformation in use Ministry of Economic Development and Commerce International technical assistance (by countries of the world) Ministry of Foreign AffairsExpenses related to maintenance of foreign diplomatic establishments of Ukraine (by countries of the world) State Border Guard ServiceNumber of natural persons crossing the state border of Ukraine Ministry of Economic Development and Commerce List of registered representatives of foreign business entities who are not legal persons State Service for Regulatory Policy and Entrepreneurship Development Register of business entities licensed for passenger and cargo carriages by air, internal waterway, sea and road transport Ministry of Regional Development, Construction and Housing and Utility Service List of construction corporations and institutes dealing with trade of construction services, whose activity is coordinated by the Ministry of Regional Development, Construction and Housing and Utility Service Ministry of Infrastructure Register of tourist agents relevantly licensed National BankList of enterprises who render (receive) foreign economic services valued over UAH 20 thousand (according to the banking system data)

After returning Form No.9-FEA (quarterly), all levels of processing provide for Form analysis by respondents, entering the results into a relevant statistics e-processing complex, performing logical and arithmetic controls (of both incoming and outgoing data arrays) and transferring verified information to the upper level of development. Results of the State Statistical Observation with F. No.9-FEA (quarterly) on export-import of services are generated broken down by: at the regional level: consolidated information by region in total, by districts and towns by types of services, partner countries; at the central level: consolidated information by country on the whole, by regions, by geographical structure and dynamic structure of types of services, according to the classification. Main statistical publications on foreign trade in services are: - press-releases; - presentations; - statistical newsletters; - statistical digests; - statistical tables for the SSSU web-site; - questionnaires of international statistical organisations. When requested by users, statistical information on F. 9-FEA (quarterly) is provided by state statistical offices on paper, on magnet, electronic carriers, by means of communication (including by placing on the web-site), by direct coping according to the procedure and on conditions as specified by the SSSU.

Procedures of Verification and Adjustment of Data - Annual activity on verification of business entities licensed for passenger and cargo carriages by different transport means, rendering construction services, performing tourist activity; - Quarterly inspections, based on an agreement with the NBU, of the list of enterprises involved into foreign transactions in services in amount over USD 20 thousand. - Quarterly activity on updating the status of enterprises’ activity according to USREOU data. Based on the results of verifications, data are adjusted quarterly by ТОС, and annual data are revised during state statistical observations with a quarterly distribution.

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 Transport services List of services pursuant to the EBOPS Besides, pursuant to the Resolution of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine “On Compilation of the Balance of Payment”, responsibility for its generation lies with the National Bank: The Balance of Payments records goods in FOB prices, in USD million, separately – credit and debit

ExportImportBalance Total (goods and services) Goods FOB CIF Services Pursuant to the Resolution of the Cabinet of Ministers of Ukraine “On Compilation of Performance Balance of Foreign Trade”, responsibility for its compilation lies with statistics: Balance of foreign trade Foreign trade in goods Foreign trade in services The balance of foreign trade records goods in USD million, export in FOB and import in CIF prices Mismatches of the two co-producers of statistics who use different methodologies and different accounting systems represents a general challenge of the offices, which leads to numerous requests of users to explain these mismatches

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