1. Luxembourg, December 12th 2014
Global production Country experience: Netherlands
Luxembourg, December 12th 2014

2. Scheme: Link between ITGS and national accounts 2011 (mln euro)
Import (cif/fob)
Export (fob)
Balance
ITGS (national concept)
44.436
1. Conceptual changes
7.119
a. Merchanting
6.254
b. Production abroad
5.662
13.239
7.577
c. Goods sent for processing
-6.891
d. Affiliated establishments
-4.109
-3.930
179
2. Corrections for exhaustiveness
2.521
8.049
5.528
a. Goods returned to sender
-2.059
b. Goods procured in ports by carriers
3.307
7.734
4.427
c. Online trade
419
195
-224
d. Sales of international org.
216
e. Illegal activities
854
1.963
1.109
3. Other corrections
-1.526
-2.189
-663
National accounts before balancing
56.420
4. Balancing corrections
264
-2.783
-3.047
National accounts after balancing (imports cif)
53.373
5. Cif/Fob-adjustment and reclassification
11.548
National accounts after balancing (imports fob)
64.921

3. Processing (1) Sources used for final estimates of reporting year:
ITGS: Nature of Transaction codes are incomplete
SBS: Estimate of trade in processing services with a breakdown to industry
Inward processing (large enterprises): Bottom-up approach, i.e. adjustments are made for each statistical unit
Inward processing (small and medium-sized enterprises) & outward processing: Top-down approach, i.e. imputations for trade in services are made for each industry with adjustments to trade in goods for corresponding cpa codes
ITG transactions related to processing removed under the condition that the balance of trade in goods and services does not change

4. Processing (2)
Numerical example bottom-up approach (large inward processers):
Enterprise X: Resident that supplies processing services
Imports
Exports
SBS
Export of processing serv. 20
ITG
Import of tabacco
-60
Export of cigarettes
-70
Imputation
Import of cigarettes 10
= 80-70
Trade balance
-50
Prodcom
Production of cigarettes 80

5. Processing (3)
Numerical example top-down approach for SME (inward processing) and outward processing:
INDUSTRY A: Exports of processing services 
Imports
Exports
SBS
Export of processing serv. 20
ITG
Commodity A, NoT 4
-60
Commodity B, NoT 5
Assumption
Export of commodity B
-80 =
Trade balance

6. Merchanting Sources used for final estimates of reporting year:
SBS of NACE 46 (whosesale trade) contains estimates of merchanting
Other industries don’t provide a breakdown of exports of wholesale trade activities
Assumption: Share of merchanting in wholesale trade in industries other than NACE 46, is identical to the share of merchanting in wholesale trade in NACE 46 (5 digit- level).
An example: The share of merchanting in wholesale trade of an oil refinery (NACE 19) is assumed to be identical to the share of merchanting in wholesale trade of a trader in oil products (NACE 46.71)

7. Other global manufacturing activities (1)
Processing activities
Physical movement of goods
A: Principle (reporting economy)
B: Processor
C: Third country
Scenario 1: No leakages
Scenario 2: Leakages
Scenario 3: Goods do not cross border of country A (Production abroad) A B A B C A B C

8. Other global manufacturing activities (2)
Production abroad: Flow of goods not recorded in ITGS; Goods have to be imputed
Sources for final estimates reporting year:
In SBS entities report how much they produce on own account in other countries and the amount of inputs used in the production process abroad
Confrontation with Prodcom and financial statistics to check the plausibility of the results
CPA breakdown of output and intermediate use in SBS and Prodcom used to make breakdown to commodities in Supply and Use Table

9. Measurement issues (1) Processing, flow of goods:
NoT codes far from complete and only available on 1-digit level, thus no leakages measured
No alternative sources for processing related movement of goods
Quarterly and provisional annual estimates: Follow the development of similar commodities in ITGS.
Processing, services:
SBS data only available two years after end of reporting year
From 2012 onwards, processing services measured by Survey of Trade in Services on quarterly basis
Consistency between processing service measured and balance of trade of goods removed from ITGS

10. Measurement issues (2) Merchanting:
SBS only contains merchanting data for wholesale trade (NACE 46)
Since 2014 the Survey of Trade in Services (quarterly survey) includes the gross flows of goods related to merchanting
First results are encouraging, the total gross flow of goods (purchases and sales) are in line with the estimates made with SBS
Further analysis needed to compare the results for individual respondents

11. Measurement issues (3) Production abroad:
SBS data only available two years after end of reporting year
Alternative sources:
Consistency Unit compares the trade of enterprise groups as reported in the Statistics of Finances of Large Enterprises (SFGO) with the trade reported in the ITGS
Provisional figures SFGO available 12 months after end of reporting year
Quarterly and provisional annual estimates: Follow the development of similar commodities in ITGS