Ships and aircraft – The economic ownership principle – status on implementation Nordic meeting on Trade in Goods and Services/BoP 2014 Tórshavn, Faroe Islands, September 2014 Søren Rich, Senior Adviser, Statistics Denmark

 In general satisfied with the outcome  Very important that business accounts standards IAS17 was adopted as a tool/method  No Holy Grail found: the perfect data source was not identified  Use of commercial databases like IHS Fairplay was fortunately not adopted as main data source…  … and recommendations from Task Force ‘Trade in Ships and Aircraft’ allow for the necessary freedom of collection methods.  Good cooperation with Iceland about finding a joint position on the issue and getting influence on the outcome of Task Force ‘Trade in Ships and Aircraft’ Outcome of Eurostat discussions –Danish view 2

Gradual implementation of economic ownership in External Trade in Goods Statistics:  Ships: Bareboat leasing included since 2010  Aircraft: Activities of Danish leasing companies included since 2011  Ships: Flagging in/out currently under investigations  Point of departure: Ships under foreign flag should not be included…  … but a confirmation is needed.  Full implementation of economic ownership is expected to take place with the finalisation of statistics for 2012 next year. Danish implementation of economic ownership principlesso far 3

 Close dialogue and exchange of experience on how to implement economic ownership concept within ships and aircraft  Exchange of (micro) data on identified transactions can facilitate the implementation of economic ownership and improve the quality  Sweden, Norway and Denmark could intensify the cooperation on how to record the transactions by Scandinavian Airlines Potential for Nordic cooperation 4

According to EU Commissions proposal for new legislation for business statistics (FRIBS) the following will happen to economic ownership principle:  Ships and aircraft: the principle is kept in FRIBS  Spacecraft: the principle is kept in FRIBS  Goods delivered to ships and aircraft: replaced by the flag nation of the ship/aircraft  Sea products: replaced by the flag nation of the ship landing the products. The future of economic ownership in External Trade in Goods 5

Thanks for your attention! Questions, comments? Søren Rich, The end 6