Simplification of Intrastat: Current State of Play 8th International Trade Statistics Expert Meeting, OECD, Paris, 17th September 2007 Ales Capek Eurostat

Content Past simplifications Single flow – pros and cons Increase of exemption threshold – pros and cons Conclusions

Past simplifications Intrastat itself was a simplification - thresholds - monthly summaries instead of individual transactions - less data elements

Past simplifications (ctd.) Exemption threshold – from 99% to 97% coverage Simplification threshold - from 5% to 6% of trade Optional data Simplified reporting (industrial plants, small transactions, staggered consignments) Modernization of CN

Current pressure on simplification Lisbon process Political drive (Presidencies, ECOFIN Council) Commission Communication on reduction of response burden, simplification and priority setting in the field of community statistics

2 main simplification options Single flow Increase of the exemption threshold Assesment criteria: - reduction of reporting burden - impact on timeliness - impact on accuracy of data

Single flow – dispatches or arrivals Arguments for dispatches: Fewer PSI of bigger size having better information and administration systems Speed of reporting Link to VIES Lower non-response

Single flow – dispatches or arrivals (ctd.) Arguments for arrivals: Missing country of origin on dispatch side Overestimation of dispatches due to VAT fraud Less confidentiality on arrival side Users interested in arrival data

Single flow - pros Reduction of reporting burden Decrease of workload on statistical offices (depends on design of the system) Quality of commodity classification Response speed Decrease of non-response (depends on thresholds)

Single flow - cons Break in time series due to asymmetries (trade, BoP, national accounts) Lack of confidence in partner MS data resulting in continued collection of arrival data Timeliness – need to wait for the last Member State

Single flow – cons (ctd.) Loss of data for national purposes CIF – FOB valuation Differences in reporting thresholds between Member States Differences in methodologies between Member States (special simplifications, adjustments)

Threshold option - pros SMEs exempted from reporting obligation Negligible impact on time series Data for national purposes preserved Neutral for timeliness of data (or even better) Response speed Decrease of non-response

Threshold option - cons More estimates of trade below threshold necessary - leading to decrease in accuracy Increase of asymmetries

Conclusions Short/medium term: increase in exemption threshold (arrivals only or both flows?) Arguments: - timeliness - little impact on time series - availability of national data elements - easy to implement - comparable impact on reporting burden as single flow

Conclusions (ctd.) Prerequisites for possible single flow in the long term - reduction of asymmetries - estimation of missing or delayed data to solve timeliness problem - quality checks to satisfy national needs - data exchange system - harmonization of data collection and processing systems