Trade Manual Updates: Goods Processing in Iceland
Explore the new and old manuals for trade in goods and services, focusing on goods processing in Iceland. Understand the changes in treatment, coverage, and implications for trade statistics. Learn about Iceland's role as a processing country in the metal industry, highlighting imports, exports, and key customs declarations.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
New manuals of trade in goods and trade in services: Goods for processing in Iceland Global Forum on Trade Statistics, Geneva 2-4 February 2011 Au ur l na Svavarsd ttir
Outline Changes of treatment of goods for processing in new manuals with regards to the processing country Icelandic example How to publish? Au ur l na Svavarsd ttir
Goods for processing, old manuals: MSITS 2002: Goods for processing not included IMTS, rev. 2 1998: Goods for processing included Para. 28: Goods sent abroad or brought into a country for processing Au ur l na Svavarsd ttir
Goods for processing, old manuals (cont.): Coverage of goods for processing for the processing country: Included in trade in goods: Import of material to be processed Export of goods after processing Au ur l na Svavarsd ttir
Goods for processing, new manuals: MSITS 2010: Goods for processing included where there is no change of ownership Manufacturing services on physical inputs owned by others IMTS 2010: Goods for processing included Goods for processing with or without change of ownership: Included at their full (gross) value Au ur l na Svavarsd ttir
Goods for processing, new manuals (cont.): Coverage of trade of goods for processing changes for the processing country: Over-coverage (double counting): Trade in goods: import of material to be processed Trade in goods: export of goods after processing Trade in services: processing fee (no change of ownership) Au ur l na Svavarsd ttir
Iceland as a processing country Metal industry, major industry in Iceland Imports raw material to be processed and exports goods after processing Few companies and very important trade Main source customs declarations Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Collection of information: Weight Value Company id Currency and exchange rate Arrival/departure date Date of customs clearance Mode of transport Customs tariff number Etc., etc. Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) The value of the import and export is based on LME (London Metal Exchange) Goods only transported by air or sea Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Importers Obligated to identify on the customs declaration if the good imported is for processing Raw material imported for manufacture is exempted from excise tax and duties (Customs regulation) =>Incentive for the enterprises to identify goods for processing on import declaration Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Two ways of trading in industry: Some enterprises Buy the raw material from abroad Sell the finished product to abroad => Change of ownership, only included in trade in goods Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Two ways of trading in industry (cont.): Others Make agreements with foreign enterprises to process raw material into finished product The foreign enterprises provide the raw material and sell the good after processing => no change of ownership, included in trade in goods and the processing fee in trade in services Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Trade in goods: Import of raw material for processing, no change of ownership, % of total import: Year % of total import of goods 2006 2.1 2007 2.1 2008 4.2 2009 4.1 Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Trade in goods: Export of finished processed goods, no change of ownership, % of total export: Year % of total export of goods 2006 10.4 2007 14.0 2008 13.7 2009 10.7 Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) Trade in services: If the processing fee (manufacturing services on physical output owned by others) would have been included in trade in services => Year Increase in exports of services 2006 16.3 2007 20.9 2008 25.4 2009 14.3 Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) 2006 2007 2008 2009 600,000.0 Total imports of goods 500,000.0 Total imports of goods minus imports of goods for processing Total exports of goods 400,000.0 300,000.0 Total exports of goods minus exports of goods after processing Total exports of services 200,000.0 100,000.0 Total exports of services plus processing fee 0.0 Au ur l na Svavarsd ttir
Iceland as a processing country (cont.) The changes between manuals of how to treat goods for processing Have major impact on data for goods and services for Iceland as a processing country Recorded in goods and partly in services Creates publication problems for Statistics Iceland Au ur l na Svavarsd ttir
The publication problem In Iceland Statistics Iceland: trade in goods and trade in services The Central Bank of Iceland: BOP Statistics Iceland, not the Central Bank, publishes detailed data for trade in goods and trade in services Au ur l na Svavarsd ttir
The publication problem (cont.) High interest in data for goods and services Data on total trade Detailed data For example, the Ministry of Foreign Affairs trade with individual countries (goods and services) Au ur l na Svavarsd ttir
The publication problem (cont.) High influence of goods for processing in the Icelandic trade data =>How can we publish detailed data for trade in goods and services according to the new manuals? Au ur l na Svavarsd ttir
The publication problem (cont.) Publish Total trade (goods and services) according to BOP (exclude goods for processing and goods after processing from trade in goods) More detailed data according to IMTS and MSITS Users interested in comparing data by countries (goods and services) do not get the right data Au ur l na Svavarsd ttir
The publication problem (cont.) Publish double series of all data of trade in goods (with and without goods for processing and goods after processing)? => Very confusing for the users Au ur l na Svavarsd ttir
Thank you for your attention! Au ur l na Svavarsd ttir
