1. Copyright 2010, The World Bank Group. All Rights Reserved. Practical issues International trade statistics, 4 Business Statistics and Registers 1

2. Copyright 2010, The World Bank Group. All Rights Reserved. Types of customs declarations There is a large variety of forms of goods declarations Usually, there are several forms of declaration, each of which is applied to a number of customs procedures The names of declarations may vary from one country or customs union to another A declaration can exist not only as a printed document but also in electronic form Many developing countries use the Automated System for Customs Data and Management (ASYCUDA), a computerized system developed by UNCTAD 2

3. Copyright 2010, The World Bank Group. All Rights Reserved. Shipping manifests Foreign shipping manifests may contain some of the information that is relevant to trade statistics The main deficiency of foreign shipping manifests is that the value of the goods is frequently missing In some countries, port administrations produce certain statistics from shipping manifests for port management purposes Those statistics may also be used to cross-check the data collected from customs declarations Cooperative agreements are recommended 3

4. Copyright 2010, The World Bank Group. All Rights Reserved. International Transactions Reporting System (ITRS) Under an ITRS, banks and other financial institutions are required to collect information on all transactions between residents and non-residents That information is then supplied to the central bank for regulatory and/or statistical purposes ITRS data differ in nature from those from a customs- based system, being derived from records of financial flows rather than physical flows of merchandise 4

5. Copyright 2010, The World Bank Group. All Rights Reserved. International Transactions Reporting System (ITRS) There may be potential biases An ITRS does not provide the possibility of inspection Timing issues also arise The advantage of ITRS is that sometimes it can provide more timely total data 5

6. Copyright 2010, The World Bank Group. All Rights Reserved. Aircraft and ship registers In some countries international trade in aircraft and ships may not be recorded by customs even if they cross borders. Customs records may be incomplete or non-existent. Many countries use national shipping and aircraft registers for evidence of a trade transaction using change of ownership. 6

7. Copyright 2010, The World Bank Group. All Rights Reserved. Enterprise surveys Enterprise surveys are used for e.g. trade in electricity Enterprise surveys are not extensively applied for the compilation of trade statistics In customs unions, where customs records may not exist for trade among the members of the union, enterprise surveys are necessary Once in place, enterprise surveys may have certain advantages Established contacts may allow compilers to obtain prompt confirmations or corrections 7

8. Copyright 2010, The World Bank Group. All Rights Reserved. Enterprise surveys Surveys should be made efficient and effective by applying normal standards and legislation used for surveys in a country. Special data-collection forms should be designed to request similar information to that contained in customs declarations Enterprises may be required to report cumulative trade from the beginning of the year, with the last month’s trade separately identified A simplified form may be used for enterprises whose foreign trade turnover does not exceed an established minimum The use of electronic submission should be encouraged 8

9. Copyright 2010, The World Bank Group. All Rights Reserved. Merging data from different sources Merging and crosschecking data collected from customs and non-customs sources is a complex and time-consuming activity Compilers should be aware of many incompatibility issues, in terms of e.g. different data elements available from different sources, conceptual differences, different levels of detail, delays, overlaps, incompatibility of computer records, additional strain on resources etc. 9

10. Copyright 2010, The World Bank Group. All Rights Reserved. Commodity classifications The complex nature of the basic customs and statistical needs makes it necessary to have a rather detailed commodity classification The Harmonized Commodity Description and Coding System (Harmonized System, or HS) provide such details Classification using these nomenclatures is based on the nature of the commodity For analytical purposes the categories provided by the Standard International Trade Classification, Revision 3 (SITC, Rev.3), are more suitable 10

11. Copyright 2010, The World Bank Group. All Rights Reserved. Commodity classifications The Classification by Broad Economic Categories Defined in Terms of SITC, Rev.3 (BEC), groups large economic classes of goods with reference to their end use Nomenclatures have also been elaborated with the primary aim of classifying productive economic activities The International Standard Industrial Classification, Revision 4 (ISIC, Rev.4) is an example of such a nomenclature: it classifies according to the principal industry of origin of products The Central Product Classification (CPC) combines the main classification principle of ISIC, Rev.3 with criteria applied in HS 11

12. Copyright 2010, The World Bank Group. All Rights Reserved. Exchange rates WTO rules: Use official rate of exchange published by the competent authorities of the country of importation Exchange rate must be in effect at the time of exportation or the time of importation Use same conversion rules for imports and exports When both buying and selling rates are available, use midpoint 12

13. Copyright 2010, The World Bank Group. All Rights Reserved. Quantity measures 13 The WCO recommends the use of standard units of quantity: -Weight: kilograms (kg) -Length: meters (m) -Area: square meters (m2) - Volume: cubic meters (m3) or liters (l) - Electrical power: 1,000 kilowatt- hours (1,000 Kwh) - Number: (units) pieces/items (u) - pairs (2u) - dozens (12u) - thousands of pieces/items (1,000u) - packs (u/set/pack)

14. Copyright 2010, The World Bank Group. All Rights Reserved. Partner countries Trade statistics by partner countries are of analytical value:  Analysis of economic trends  Trade shares  Market analysis  Trade policy and negotiations  Checking the accuracy and reliability of trade data through mirror studies Countries report their trade statistics by partner countries in a number of different ways Harmonization is needed 14

15. Copyright 2010, The World Bank Group. All Rights Reserved. Country of sale/purchase Country of purchase is the country where the seller of the goods resides Country of sale is the country where the purchaser of the goods resides The term “resides” should be interpreted in accordance with the SNA and BPM5 15

16. Copyright 2010, The World Bank Group. All Rights Reserved. Country of consignment/shipment Country of consignment (for imports) is the country from which goods were dispatched, without any commercial transactions or other operations taking place in any intermediate country If, before arriving in the importing country, goods enter a third country and are subject to such transactions or operations, that third country is the country of consignment Country of consignment or destination (for exports) is the country to which goods are dispatched by the exporting country, without being subject to any commercial transactions or other operations which change the legal status of the goods 16

17. Copyright 2010, The World Bank Group. All Rights Reserved. Country of consignment/shipment Country of last known destination is the last country to which goods are to be delivered Country of shipment (for imports) is the country from which goods are shipped, irrespective of whether or not commercial transactions or any other operations which change the legal status of the goods occur after the goods are dispatched from the exporting country If such transactions do not occur, the country of shipment is the same as the country of consignment Country of shipment (for exports) is the country to which goods are shipped 17

18. Copyright 2010, The World Bank Group. All Rights Reserved. Country of origin/consumption Country of origin of a good (for imports) is determined by country-specific rules Rules of origin consist of two basic criteria:  Wholly produced criterion  Substantive transformation criterion International guidance on these criteria is under development Substantial transformation criteria are product-specific Country of consumption (for exports) is the mirror of country of origin 18