Seminar on External Trade Statistics (ETS) 2.2. EUROSTAT - Main methodological issues in the framework of Extrastat Clemens Schroter Luxembourg 06-07 March 2006

Records on the physical movement of goods Scope Records on the physical movement of goods Non Community goods Lodged by Customs Special trade system (no Transit, Warehouses, Free zones) Some goods are excluded for methodological reasons For some goods particular provisions are applied Exports: goods being due to leave the statistical territory of the Community which are definitively exported, or are exported in view or after a processing under contract. Import: goods having entered the statistical territory of the Community which are released for free circulation or are subject of a processing under contract.

Commodity 8-digit code of the Combined Nomenclature – CN8 for Imports a 10-digit code of the Taric Subheading (CN8+2 digits) is collected, but access is limited to Commission Services

Partner Country Country of Origin Country of Consignment Country of Destination

Statistical Value The value of the good at the national border of the reporting Member State Exports/dispatches: FOB Value Imports/arrivals: CIF Value Reporting MS Partner Country Adjustment by incidental expenses (freight, insurance) Customs value on imports only Based on the invoice value (excluding VAT, duties and taxes)

Quantity The net mass The supplementary unit: Applicable for 8-digit CN codes + Taric in 100 kg The supplementary unit: Applicable for 8-digit CN codes + Taric Mandatory when mentioned in the last column of the CN (e.g. l = Litre; GT = Gross tonnage; p/st = Number of items)

Nature of Transaction (optional) A two-digit code giving the different characteristics (purchase/sale, work under contract, etc.) which are deemed to be useful in distinguishing one transaction from another. Main codes: Transfer of ownership against compensation Operations with a view to processing Operations following processing under contract Codes for national purposes Other transactions Not published on Community level Useful for BOP

Customs procedures (regimes) Not in use at the Community level Member States group customs procedures in to the major economic categories, which are called Statistical procedures Statistical procedures (Import/Export categories) ‘1’ Normal ‘3’ For/after outward processing *) ‘5’ For/after inward processing, suspension system *) ‘6’ For/after inward processing, drawback system *) ‘(7’ For/after outward economic processing for textiles) = obsolete *) customs processing procedures

Preferences What are “preferences” : 3-digt code on the customs import declaration standing for a specific trade policy measure e.g.: normal or reduced duty rate, tariff quota, etc… What is their signification Importer’s request for the application of the measure Obtain comprehensive statistics on the volume of trade in goods benefiting from the measures (->political relevance)

Data allow a ventilation of trade by specific transport parameters. Transport data Data allow a ventilation of trade by specific transport parameters. Container YES/NO Nationality of means of transport Mode of transport1) at EU-border Inland mode of transport1) 1) Indication of way of transport (by rail, seaway etc.) Transport data form a separate dataset in the COMEXT database

Specific Movements Goods or movements which, by their very nature, call for specific methodological provisions Particular provisions may concern: Additional data sources The scope (whether, how and what shall be included) Simplification for the data provider (burden to collect the information may not justify the output) Transmission of reduced data sets Deviation from general provisions regarding reference period, valuation, partner country due to methodological problems

Industrial Plants Simplification for traders because single commodities may be consolidated to component parts (CN codes: XX III XX 00) Provisions are optional Applicable on arrivals dispatches and exports Traders have to ask for authorisation Applicable only to large transactions (particular thresholds)

Better harmonisation of national concepts is necessary Vessels and Aircraft Coverage: principle of ownership Sales / purchase & processing transaction – only Particularity: The cross-border movement is not linked to export or import. Problems: Transactions which are taken into account in your national ships/aircraft register Identification of the gross value financial leasing, hire, multiple ownership and partial-sales Better harmonisation of national concepts is necessary

Goods delivered to Vessels and Aircraft Applicable on goods consumed on board (by persons & engine) Principle: reporting only within the statistical territory (at national harbours or airports). Export: when delivered to a foreign ship or aircraft Import : when goods are released for free circulation in the airport/harbour and afterwards delivered to a national ship/aircraft. Simplification: Particular CN codes (with alphanumeric code ‘B’) Aggregated partner country code (QR) (optional) This trade generates asymmetries

Offshore Installations Applicable for: Offshore installations which are not part of any countries territory Particularity: Amending the statistical territory to these installations The commercial use of the installation determines the reporting/partner country Simplification for stores and supplies: Particular CN codes (with alphanumeric code ‘B’) Aggregated partner country code (QV & QR) (optional) Quantity (optional)

Sea Products Objective: Particularities: Problems: Harmonised approach on trade with fishery products caught in the sea Particularities: The flag of the fishing vessel determines the nationality of the sea product Imports in national harbours by foreign vessels Exports in foreign harbours by national vessels (deviation from the statistical territory) Problems: No particular CN codes on fish catch (CN chapter 3) Difficulties to collect information (dispatches and Customs data) Better harmonisation of national concepts is necessary

Electricity and Gas Problem: Additional information: ‘physical’ trade flows shall be recorded - not commercial VAT rules changed fro Intra Community traders and traders lose information on the physical flow Additional information: Grid operators: for the Quantity Estimations for the value Danger : to report also on transit trade and lose the information on the partner country

Military Goods Are included in foreign trade statistics When ever possible they are collected and transmitted under the real 8-digit CN code and partner country. Confidential codes may be used 9999xxxx, 9999xx99, 99999999 (xx is the CN code).

Repair Repair = Maintain the good in working order Excluded from trade statistics Incorporated repair parts are excluded Collection for national purpose possible (use code 6 of the Nature of Transaction) Problems Distinction between processing and repair in particular for aircraft and vessels Identification of repair when NoT is not collected

Data comparability Methodological differences: trade coverage, definition of partner country, definition of statistical territory, different valuations in theory or practice particularly the difference between FOB and CIF valuations; Time lag: the same operation can be recorded under a different reference period because of transport times or also because of processing delays; Statistical confidentiality: the same operation cannot be recorded in the trade of one of the two partners because of statistical confidentiality (or the procedures used to avoid disclosure may differ); Different practices in the treatment of revisions; Problems of currency conversion.