ISSN 1977-0375

Methodologies and Working papers

Quality Report on International Trade Statistics

2008 edition

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More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Office for Official Publications of the European Communities, 2008 ISBN 978-92-79-07846-0 ISSN 1977-0375 DOI 10.2785/15464 Cat. No. KS-RA-08-008-EN-N Theme: External trade Collection: Methodologies and working papers © European Communities, 2008

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Quality Report on International Trade Statistics – Edition 2008 Eurostat – International Trade Reference year 2006 1

Introduction

1.1 International trade statistics International trade forms an important part of the world economy, therefore statistics on trading of goods are an instrument of primary importance for numerous public and private sector decision makers. For example, international trade statistics: • enable Community authorities to prepare multilateral and bilateral negotiations within the framework of the common commercial policy; • enable Community authorities to evaluate the progress of the Single Market and the integration of EU economies; • constitute an essential source of information for balance of payments statistics, national accounts and economic studies; • help EU companies to do market research and define their commercial strategy. This list, which is not exhaustive, demonstrates the diversity of the users and of their needs. International trade statistics, as produced by Eurostat, measure value and quantity of goods traded between Member States of the European Union (Intrastat) and value and quantity of goods traded by Member States of the EU with third countries (Extrastat). They are the official harmonised source of information about imports, exports and trade balance of the EU and of its Member States as well as of the euro area. Community legislation in the field of international trade statistics ensures that the statistics provided to Eurostat by the Member States are based on precise legal texts, directly applicable in the Member States, and on definitions and procedures which, to a large extent, have been harmonised. The Intrastat system came into operation on 1 January 1993 when the Single Market was set up, causing the disappearance of the borders and of the Customs formalities for imports and exports within the EU. This system provides for direct collection of information from companies and it is based on a close link with the VAT system relating to intra-EU trade. Within Intrastat, the burden on trade operators is reduced as far as possible: a majority of all intra-EU trade operators are either exempted from submitting any declarations, or the information, which they have to provide, is significantly reduced. The new Intrastat legislation was introduced on 1 January 2005 (the European Parliament and Council Regulation (EC) 638/2004, the Commission Regulation (EC) 1982/2004 and the amending Commission Regulation (EC) 1915/2005). The new Regulation did not introduce major changes to the methodology; it provided clarifications and simplifications to rules rather than modified the main pillars of the previous legislation. Statistical information on extra-EU trade is provided by declaring parties while completing the customs formalities. The statistics are currently based on the Council Regulation (EC) 1172/95, the Commission Regulation (EC) 1917/2000 and amending Commission Regulations EC 1669/2001, 179/2005 and 1949/2005.

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1.2

Quality reports and indicators

A general framework for quality reporting has been defined by Eurostat in co-operation with National Statistical Authorities. The objective is to have a limited set of indicators that can be used to measure and follow over time the quality of the data produced in the European Statistical System. With the adoption of new Intrastat legislation, annual reporting on determined quality indicators for international trade statistics became mandatory. According to the Commission Regulation (EC) 1982/2004, Member States have to supply Eurostat with a Quality Report no later than 10 months after the calendar year. The Quality Report covers the following dimensions: relevance, accuracy, timeliness, accessibility, clarity, comparability, coherence and completeness. The precise quality indicators for each dimension are defined in the Annex VI of that regulation. Each quality dimension is presented in details in chapters 2 to 8 of this report. In practice, Member States fulfill their obligation of quality reporting by completing the annual quality questionnaire prepared by Eurostat. This Quality Report summarises the results of the 2007 questionnaire. The figures and description of methods refer to year 2006. The corresponding data for 2005 have been shown in annex. Most indicators have been calculated internally by Eurostat by using the monthly detailed data delivered by Member States. Although the requirement of quality reporting concerns currently only intra-EU trade statistics, some indicators are presented also for extra-EU trade statistics, where applicable.

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Relevance

Relevance of statistical concepts means that the data meets users' needs. It refers to whether all statistics that are needed are produced and the extent to which concepts used reflect users' needs. International trade statistics are used by various users with different needs and objectives. The EU trade statistics follow largely the international recommendations by United Nations Statistics Division (International Merchandise Trade Statistics: Concepts and Definitions). This general recommendations manual is updated regularly so that it reflects the changes in the environment of international trade. Furthermore, the Intrastat and Extrastat Regulations as well as classifications for international trade are revised regularly in order to take into account the economic and administrative environment as well as users' needs.

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3

Accuracy

Accuracy in the general statistical sense denotes the closeness of computations and estimates to the exact or true values. The main indicators to assess it are thresholds, non-response, statistical value, revisions, confidentiality and other links to accuracy. 3.1 Thresholds In order to reduce the burden on enterprises, particularly small and medium sized ones, the Intrastat system is designed in a way that the workload for providers of statistical information varies according to the amount of trade in which they are engaged. To achieve this, each Member State applies a system of thresholds. Member States have to define each year thresholds for both arrivals and dispatches that exempt enterprises to provide statistical information or to limit the information collected. The thresholds are expressed in annual values of intra-EU trade. There are three types of thresholds: • Exemption threshold. Enterprises below the exemption threshold do not have to declare at all. For defining the exemption threshold Member States have to ensure that at least 97 % of the Member State's trade value is covered. • Simplification threshold. It allows enterprises, whose annual trade value is above the exemption threshold but below the simplification threshold, to provide only a limited set of data or use a simplified commodity code. The trade reported by these enterprises may cover for at most 6 % of the total trade. Currently three Member States apply the simplification threshold. • Statistical value threshold. Member States may collect the statistical value of goods from part of the enterprises. The value of this trade amounts to a maximum of 70 % of the total trade of that Member State. (see chapter 3.3 for more details of statistical value) Table 1: Intrastat thresholds in EUR Exemption threshold Simplification threshold Arrivals Dispatches Arrivals Dispatches 400 000 1 000 000 Belgium 65 000 130 000 Czech Republic 216 216 554 054 Denmark 300 000 300 000 Germany 127 823 127 823 Estonia 45 000 45 000 Greece 200 000 200 000 Spain 150 000 150 000 230 000 460 000 France 191 000 635 000 Ireland 150 000 200 000 Italy (*) 42 715 42 715 Cyprus 69 721 115 253 Latvia 31 858 57 924 Lithuania 150 000 150 000 375 000 375 000 Luxembourg 240 000 400 000 Hungary 700 700 Malta 400 000 400 000 Netherlands 250 000 250 000 Austria 118 835 190 137 Poland 50 000 80 000 Portugal 94 308 94 308 Slovenia 77 674 155 348 310 696 776 739 Slovakia 100 000 200 000 Finland 243 293 497 644 Sweden 329 217 329 217 United Kingdom Source: Eurostat 2007 Quality Questionnaire. *: companies below the threshold have to make a yearly simplified Intrastat declaration MEMBER STATES

Statistical value threshold Arrivals Dispatches All PSI exempted All PSI exempted All PSI exempted 22 000 000 35 000 000 2 556 466 3 642 964 1 300 000 1 700 000 6 000 000 6 000 000 All PSI exempted 5 000 000 34 000 000 10 000 000 10 000 000 854 301 854 301 1 750 142 2 852 874 1 737 720 5 792 400 2 500 000 4 500 000 10 000 000 40 000 000 No exemption All PSI exempted 5 000 000 5 000 000 5 941 770 10 219 850 5 830 000 8 100 000 2 831 748 6 607 828 All PSI exempted 9 300 000 42 000 000 All PSI exempted All PSI exempted

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Extra-EU trade statistics cover in principle all imports and exports declared by Member States. However, it is allowed to exclude transactions whose value and net mass are lower than statistical thresholds. These thresholds are at maximum 1000 Euro or 1000 kg. Table 2: Extrastat statistical thresholds MEMBER STATES

Extrastat statistical threshold

800 € and 1000 kg Belgium 1000 € and 1000 kg Czech Republic 1008 € and 1000 kg, except 403 € and 1000 kg for exports to Greenland and the Faroe Islands Denmark 1000 € and 1000 kg Germany No threshold Estonia No threshold Greece No threshold Spain 1000 € and 1000 kg France 650 € Ireland 516 € (chapters 1-24), 620 € (chapters 25-97) Italy No threshold Cyprus No threshold Latvia 1000 €, applied only for exports of small urgent air deliveries Lithuania No threshold Luxembourg No threshold Hungary No threshold Malta 800 € and 1000 kg Netherlands 1000 € Austria No threshold Poland No threshold Portugal 1000 € for business entities, 130 € for private individuals Slovenia 1000 € and 1000 kg Slovakia 1000 € Finland No threshold Sweden 1000 € or 1000 kg United Kingdom Source: Eurostat 2007 Quality Questionnaire.

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3.2

Adjustments for non-collected trade

As it was described in the previous chapter, Intrastat data collection does not cover 100 % of Member States' trade with other EU Member States. However, in order to have complete trade coverage in trade statistics, the loss caused by the exemption threshold must be compensated with adjustments. Similarly, the loss of coverage due to late-response or non-response must be offset by means of adjustments. The problem of non-response for extra-EU trade should theoretically not exist since extra-EU trade statistics are based on customs declarations. Nevertheless, adjustments for "late" response may be necessary as well as adjustments for trade below the thresholds when an exemption threshold is applied. Table 3 shows the share of adjustments for trade below the thresholds and for non-response, calculated in terms of trade value, in intra- and extra-EU trade. Table 3: Adjustments for trade below the exemption threshold and non-response in intra- and extra- EU trade (share of total value)

MEMBER STATES

Intra-EU trade Extra-EU trade Below the exemption Non response Below the threshold and threshold late-response Arrivals Dispatches Arrivals Dispatches Imports Exports 2.1% 1.2%

1.4% 1.1%

1.6% 0.9%

1.4% 1.1%

Germany

2.9%

1.8%

(*) 13.5%

(*) 8.0%

0.5%

0.7%

2.3%

1.2%

0.3%

0.3%

Estonia

3.1%

3.2%

5.0%

4.1%

Ireland

3.2%

1.6%

3.3%

0.2%

Italy

3.2%

2.6%

Cyprus

1.4%

2.3%

0.1%

0.2%

Latvia

2.3%

3.1%

1.8%

1.9%

Lithuania

0.7%

0.9%

Belgium Czech Republic Denmark

Greece Spain 0.6%

France

Luxembourg

0.1%

0.1%

(*) 4.7%

(*) 4.2%

0.6% 0.1%

0.2%

0.5%

3.6%

2.3%

3.7%

2.5%

3.1%

1.3%

9.3%

7.2%

1.0%

1.4%

(*) 3.7%

(*) 1.7%

0.3%

0.4%

Poland

1.0%

1.0%

0.8%

0.5%

Portugal

1.7%

1.2%

2.7%

2.0%

Slovenia

3.3%

1.9%

0.1%

0.1%

Hungary Malta Netherlands Austria

Slovakia

0.0%

0.0%

(*) 5.4%

(*) 4.3%

Finland

2.6%

1.4%

0.9%

0.5%

Sweden

3.1%

2.2%

0.9%

0.3%

2.0% 2.3% (**) 13.9% 0.9% (***) 1.2% 0.3% United Kingdom Source: Eurostat or the 2007 Quality Questionnaire *: Only total level of adjustments (no distinction into below the exemption threshold and non-response) is available in Eurostat. **: Includes a non-response adjustment of 12.4 % for the impact of Missing Trader Intra-Community (MTIC) fraud. ***: Represents an adjustment for trade below the threshold recorded at a less detailed level.

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Table 4 shows the methodology used for these adjustments and the level of adjusted data. For most Member States, adjustment methods are based on VAT data and/or historical data. According to the Intrastat legislation, the breakdown of adjustments transmitted to Eurostat must be at least by 2-digit product codes of the Harmonised System (HS2) and partner countries. A majority of Member States follow this requirement while some apply even more detailed breakdowns by products. Table 4: Method and level of adjustments in intra-EU trade

MEMBER STATES

Adjustment for trade below the exemption threshold

Adjustment for non response

Level of adjustment

Adjustment based on VAT data and constant Adjustment based on VAT data and constant sample method sample method

CN8 / partner countries

Czech Republic Denmark

Adjustment based on VAT data

Adjustment based on historical figures

CN8 / partner countries

Adjustment based on VAT data

Adjustment based on VAT data

CN8 / partner countries

Germany

Adjustment based on VAT data

Adjustment based on VAT data

HS2 / partner countries

Estonia

Adjustment based on VAT data

Adjustment based on VAT data

HS2 / partner countries

Greece

No adjustment

No adjustment

Spain

Adjustment based on VAT data

No adjustment

France

No adjustment

No adjustment

Ireland

Adjustment based on VAT data (use of the Adjustment based on historical figures (use of VAT return for the period in question or the Holt-Winter's method) or, failing that, on forecast done by applying the Holt-Winter's VAT data method)

Below the threshold: by partner only Non response: CN8/ partner countries

Italy

Adjustment based on “just-above-thethreshold” traders

No adjustment since the survey is total and the obligation of reporting is fiscal.

HS2 / partner countries

Cyprus

Adjustment based on VAT data

Adjustment based on Holt-Winter's method.

Latvia

Adjustment based on historical figures and VAT data when available

Lithuania

Adjustment based on VAT data

Luxembourg

Adjustment based on historical figures and Adjustment based on historical figures and VAT VAT data (together with adjustment for non- data (together with adjustment for trade below HS2 / partner countries the threshold) response)

Hungary

Adjustment based on VAT data

Malta

No adjustment because a very low threshold No adjustment

Netherlands

Adjustment based on VAT data

Adjustment is based on historical figures

Adjustment based on VAT data

Adjustment based on VAT data for non response CN8 / partner countries and historical data for late response

Poland

Adjustment based on historical figures

Adjustment based on historical figures

Portugal

Adjustment based on VAT data

Adjustment based on common respondents

Slovenia

Adjustment based on VAT data

Adjustment based on VAT data

CN8 / partner countries By HS2 / No partner breakdown CN8 / partner countries

Slovakia

Adjustment based on VAT data

Adjustment based on VAT data

CN8 / partner countries

Finland

Adjustment based on VAT data

Adjustment based on historical figures

HS2 / partner countries

Adjustment based on VAT data

Adjustment based on imputation or growth models or VAT data

Adjustment based on VAT data

Adjustment based on growth factors

By HS2 codes - No partner breakdown Below the threshold: By CN8 codes and partners Non response: No product or partner breakdown

Belgium

Austria

Sweden United Kingdom

CN8 / partner countries Adjustment based on historical figures and VAT HS2 / partner countries data when available HS2 / partner countries Adjustment based on VAT data

Adjustment based on historical figures

HS4 / partner countries HS2 / partner countries

Source: Eurostat 2007 Quality Questionnaire.

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The same information for extra-EU trade is shown in table 5. The Extrastat legislation requires Member States to adjust data if statistical thresholds are applied. The adjustment should be available at least for the total products. Most Member States do not make adjustments because of low thresholds or no threshold at all. Table 5: Method and level of adjustments in extra-EU trade MEMBER STATES

Method of adjustment

Level of adjustment

Belgium

No adjustment

Czech Republic

No adjustment

Denmark

Adjustment based on the distribution of collected data

CN8 / partner countries

Germany

Adjustment based on fixed factor

No product or partner breakdown

Estonia

No adjustment

Greece

No adjustment

Spain

No adjustment

France

Adjustment based on data collected by Customs

No product or partner breakdown

Ireland

:

No product or partner breakdown For a few cases, by partner country

Italy

Adjustment based on data collected by Customs

No product or partner breakdown

Cyprus

No adjustment

Latvia

No adjustment

Lithuania

No adjustment

Luxembourg

No adjustment

Hungary

No adjustment

Malta

No adjustment

Netherlands

Adjustment based on historical data and VAT data

HS2 / partner countries

Austria

Adjustment based on constants fixed by extrapolation of transaction value shares close above the threshold

No product or partner breakdown

Poland

No adjustment

Portugal

No adjustment

Slovenia

Adjustment based on data collected by Customs for statistical purposes

Slovakia

No adjustment

Finland

No adjustment

Sweden

No adjustment

United Kingdom

Adjustment based on data collected by Customs

No product or partner breakdown

No product or partner breakdown

Source: Eurostat 2007 Quality Questionnaire. : Missing information

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3.3 Statistical value Trade figures are published as “statistical value”. This is the value of goods at the border of the declaring country: FOB (free on board) value for export/dispatch or CIF (cost, insurance and freight) value for import/arrival. In intra-EU trade, the statistical value is not provided systematically by the information providers (see chapter 3.1). It usually differs from the amount agreed on the sales agreement (the invoice value) as a result of the delivery terms used in the transaction; therefore the statistical value must be collected in connection with the invoice value or must be estimated by using other variables such as delivery terms and mode of transport. The quantitative impact of calculating the statistical value is shown in table 6. For most Member States it is relatively small. Table 6: The quantitative impact of calculating the statistical value MEMBER STATES

Arrivals

Dispatches

No adjustment Belgium -0.69% Czech Republic 0.52% Denmark 0.39% Germany 1.44% Estonia 0.03% Greece : Spain No adjustment France 0.02% Ireland 1.40% Italy 2.93% Cyprus 2.16% Latvia 0.02% Lithuania 1.80% Luxembourg 0.56% Hungary : Malta : Netherlands 0.21% Austria -0.19% Poland : Portugal 0.29% Slovenia 0.60% Slovakia 1.13% Finland 1.17% Sweden 0.27% United Kingdom Source: Eurostat 2007 Quality Questionnaire.

1.63% -0.61% 0.55% -0.16% -0.01% : 0.01% 0.30% -3.39% -2.02% 0.00% -2.20% -0.31% : : -0.48% -0.21% : -0.53% -0.50% -2.96% -1.38% -0.52%

: Data not available

As Table 7 shows, most Member States collect statistical value from the trade operators above the statistical value threshold only and then estimate it for trade operators which remain below this threshold. On the other hand, some Member States do not collect statistical value at all but carry out adjustments on the invoice value in order to estimate it. In extra-EU trade, the statistical value is based on customs value; therefore there is generally no need to adjust it.

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Table 7: Methods adopted for calculating the statistical value in intra-EU trade MEMBER STATES

Method of adjustment

Statistical value not collected at all. No adjustment, use of the invoice value. Statistical value not collected at all. Czech Correcting coefficient computed from historical data Republic Statistical value not collected at all. Adjustment from invoice value to statistical value Denmark done by applying factors derived from a survey performed in 1997. Statistical value collected from trade operators above the threshold only. Correcting Germany coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Estonia coefficient computed from above the threshold data for trade data below the threshold Statistical value collected from trade operators above the threshold but as well below the Greece threshold. Therefore, no adjustment is needed. Statistical value collected from trade operators above the threshold only. Spain Use of invoice value for trade data below the threshold. Statistical value not collected at all. France No adjustment, use of the invoice value. Statistical value collected from trade operators above the threshold only. Correcting Ireland coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Italy coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Cyprus coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Latvia coefficient computed from historical data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Lithuania Use of invoice value for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Luxembourg coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Hungary Correcting coefficient computed from historical data. Belgium

Malta

No adjustment since both invoice and statistical values are collected.

Statistical value not collected at all. Correcting coefficients derived from historical data. Statistical value collected from trade operators above the threshold only. Austria Use of invoice value for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Poland coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Correcting Portugal coefficient computed from above the threshold data for trade data below the threshold. Statistical value collected from trade operators above the threshold only. Slovenia Use of invoice value for trade data below the threshold. Statistical value not collected at all. Adjustment from invoice value to statistical value Slovakia done by applying factors derived from a survey on ancillary costs carried out once. Statistical value collected from trade operators above the threshold only. Correcting Finland coefficient computed from above the threshold data for trade data below the threshold. Statistical value not collected at all. Adjustment from invoice value to statistical value Sweden done by applying factors derived from a annual survey. Statistical value not collected at all. Delivery terms are collected from the largest traders. United Adjustment from invoice value to statistical value done by a model using ancillary cost Kingdom information derived from a monthly survey. Source: Eurostat 2007 Quality Questionnaire. Netherlands

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3.4 Revisions Data are revised frequently according to national needs and practices. They become normally final from six months up to more than one year after the reference year. Revisions to older data are also possible. Table 8 presents the impact of revisions in terms of trade value. Signs are indicative of the direction of this impact. Negative signs state higher first figure whereas positive signs indicate smaller first figure than last one. From table 8 follows that, in most of the cases there is an underestimation of the first transmitted figure. The average extent of the revisions is generally higher for intra-EU trade than for extra-EU trade, and is also higher for arrivals than for dispatches.

Table 8: Impact of revisions (in %) on intra- and extra-EU trade MEMBER STATES Belgium Czech Republic Denmark Germany Estonia Greece Spain France Ireland Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Slovenia Slovakia Finland Sweden United Kingdom Source: Eurostat -: First figure>Last figure +: First figure FOB), arrivals should be slightly higher than dispatches. However, since the Intrastat system came into operation, 18

bilateral comparisons have revealed major and persistent discrepancies in the intra-EU trade statistics. Therefore, comparisons dealing with intra-EU trade statistics have to be made cautiously and should take into account the existence of these discrepancies. The main reasons for the discrepancies are known and are represented by the thresholds, the nonresponse and their related adjustments; statistical confidentiality; triangular trade; time lags in the registration of the transactions; misclassification of goods; or by other methodological differences. The following Table 14 reports the intra-EU asymmetries at global level and by Member States, calculated using trade in value. It is evident that the impact is very different among the Member States. Many Member States regularly carry out bilateral studies to find out at detailed product level where the problems are and to resolve them. However, remedies are not easily found despite all the analyses done. Table 14: Intra-EU asymmetries (in %) MEMBER STATES

Arrivals*

Dispatches**

4.2% Belgium 3.2% Czech Republic -1.5% Denmark -4.3% Germany -8.3% Estonia -6.0% Greece -10.0% Spain -8.4% France -13.2% Ireland -1.7% Italy -35.8% Cyprus -7.8% Latvia 9.9% Lithuania -12.3% Luxembourg -0.2% Hungary -28.0% Malta -6.3% Netherlands -3.4% Austria -5.3% Poland -7.1% Portugal 5.6% Slovenia 2.2% Slovakia -3.3% Finland -5.6% Sweden 12.3% United Kingdom EU -3.2% Source: Eurostat *: (Arrivals – Mirror dispatches) / Mirror dispatches **: (Dispatches – Mirror arrivals) / Mirror arrivals

8.0% 11.6% 7.2% 1.2% -10.6% -3.5% 0.9% 3.6% -12.5% 8.9% -78.5% -24.1% 15.6% 6.8% 9.0% -19.2% 6.5% 5.6% 9.5% -0.6% 18.6% 15.6% -4.9% -3.0% 20.8% 3.3%

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6.2 Comparability over time Comparability over time is another important aspect of quality. Changes due to definitions, coverage or methods and other changes will have an impact on the continuity of international trade series. The impact of the different methodological and practical changes that have occurred in recent years (enlargement of the EU, changes in the Intrastat and Extrastat legislation, changes in product nomenclatures, etc.) is difficult to assess precisely. Nevertheless, it can be concluded that a change from an administrative data source (Extrastat) to a purely statistical data collection system (Intrastat) means a major break in the trade statistics time series.

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Coherence

Coherence is defined as how well sets of statistics can be used together. Apart from the international trade statistics, information on trade flows can be found in National Accounts, Business Statistics and Balance of Payments. The compilation of the data and the production of the above mentioned statistics follow the recommendations (sources and methods) of different international organisations, i.e. Eurostat, International Monetary Fund (IMF), United Nations (UN), etc. Table 15 tries to give an overall idea of the main differences between these sources. Table 15: Coherence between International Trade Statistics, National Accounts, Balance of Payments and Business Statistics at the EU level International Trade Statistics Concepts & Definitions

Community definition

Statistical unit/ object/ population

Transaction of an international trade

Classifications (nomenclature)

Combined Nomenclature (CN)

Geographical breakdown

National Accounts

BoP

Business Statistics

Aggregation of national statistics based upon IMF 5th manual. It implies some methodological discrepancies (FOB/FOB, difference of coverage). BoP statistics in Member States are most of the time derived from Member States’ FTS. BoP statistics sent to Eurostat are compiled according to the Community concept.

Statistics are based on activity sector

International Transaction with change of ownership

Enterprise, local unit

Institutional sectors

IMF classification

NACE

Detailed geographical breakdown

Intra-EU, Extra-EU, World

Detailed geographical breakdown

All partners

Reference period

Monthly

Annual

Quarterly

Annual

Correction methods

National corrections

National corrections

National corrections

National corrections

Aggregation of national statistics based on ESA 95. However, account of the rest of the world is based on national definition.

Source: internal documents.

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8

Completeness

Completeness refers to the fact that the themes for which statistics are available reflect the needs and the priorities expressed by users of the European Statistical System. It is usually described as a measure of the amount of available data from a statistical system compared to the amount that was expected to be obtained. An important feature of international trade statistics is that data are available by very detailed breakdowns of products and partner countries while at the same time they are published with a relatively short delay and high frequency. Statistics are also generally expected to cover the whole population that they describe, i.e. all goods traded between the reporting and partner country. Although the EU trade statistics are nowadays partly based on data coming from purely statistical sources (Intrastat) rather than being completely based on Customs declarations, it can be claimed that trade statistics fulfil most of the expectations on completeness. The level of details for product codes as well as for partner countries is very high and in line with the trade statistics of the main EU trade partners. In intra-EU trade there is a loss of coverage caused by the thresholds but its impact is minor compared to the total trade and it can be partly offset by applying adjustments.

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Conclusions

The previous paragraphs present the main quality indicators of the EU trade statistics for the year 2006. The purpose of this Quality Report is to provide users with information on different factors affecting statistics, thus allowing them to assess the quality. The purpose is not to sort the EU Member States from best to worst for each quality indicator; instead this report presents the differences in the practises and methods applied by Member States. The Quality Report aims at monitoring the quality of statistics – both over time and over space therefore it can be used as a tool to improve quality. Annual editions of the Quality Report can thus be a useful source of information also for the compilers of trade statistics at national level.

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ANNEX: 2005 FIGURES

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Table 1: Intrastat thresholds in EUR Exemption threshold Simplification threshold Arrivals Dispatches Arrivals Dispatches 250 000 250 000 Belgium 62 500 125 000 Czech Republic 201 613 604 027 Denmark 300 000 300 000 Germany 63 890 63 890 Estonia 29 000 44 000 Greece 130 000 130 000 Spain 100 000 100 000 230 000 460 000 France 191 000 635 000 Ireland 150 000 200 000 Italy (*) 27 680 27 680 Cyprus 59 970 82 459 Latvia 26 066 46 339 Lithuania 150 000 150 000 375 000 375 000 Luxembourg 160 000 400 000 Hungary 700 700 Malta 400 000 400 000 Netherlands 250 000 250 000 Austria 69 565 115 942 Poland 60 000 85 000 Portugal 100 000 100 000 Slovenia 72 305 144 610 289 219 723 048 Slovakia 100 000 100 000 Finland 243 293 497 644 Sweden 323 114 323 114 United Kingdom Source: Eurostat 2006 Quality Questionnaire *: companies below the threshold have to make a yearly simplified Intrastat declaration MEMBER STATES

Statistical value threshold Arrivals Dispatches 25 000 000 25 000 000 3 125 000 3 125 000 All PSI exempted 22 000 000 35 000 000 2 331 000 2 776 000 1 266 000 1 708 000 6 000 000 6 000 000 2 300 000 2 300 000 5 000 000 34 000 000 2 500 000 4 300 000 692 000 519 000 1 439 000 2 609 000 1 738 000 4 344 000 2 500 000 4 500 000 10 000 000 40 000 000 No exemption All PSI exempted 5 000 000 5 000 000 4 870 000 7 884 000 4 240 000 6 484 000 3 000 000 7 000 000 All PSI exempted 8 600 000 26 000 000 All PSI exempted 20 469 000 20 469 000

23

Table 3: Adjustments for trade below the exemption threshold and non-response in intra- and extra- EU trade (share of total value) Intra-EU trade MEMBER STATES

Below the exemption threshold Arrivals Dispatches 1.5% 1.8%

0.6% 1.8%

Germany

2.9%

1.8%

Estonia

2.0%

Ireland

Extra-EU trade

Non response Arrivals

Below the threshold and late-response Dispatches Imports Exports

3.8 % 0.3%

2.0 % 0.7%

(*) 12.3%

(*) 6.4%

0.0%

0.9%

1.1%

0.7%

0.2%

0.3%

1.8%

5.1%

6.0%

3.2%

1.7%

3.5%

0.3%

Italy

3.1%

2.8%

Cyprus

0.8%

0.8%

0.2%

0.3%

Latvia

1.7%

2.3%

2.3%

2.3%

Lithuania

0.7%

0.7%

0.2%

0.1%

(*) 1.2%

(*) 1.3%

2.6%

1.4%

Belgium Czech Republic Denmark

Greece Spain 0.6%

France

Luxembourg Hungary

2.6%

2.4%

0.6% 0.1%

0.2%

0.5%

Malta (*) 14.3%

(*) 9.4%

1.4%

1.5%

(*) 4.5%

(*) 2.1%

0.3%

0.5%

1.2%

1.7%

1.4%

1.8%

2.9% 0.1%

0.2%

(*) 4.3%

(*) 3.7%

0.7%

0.3%

Netherlands Austria Poland

1.2%

Portugal

2.2%

1.1%

Slovenia

4.6%

2.6%

Slovakia Finland

2.6%

1.1%

Sweden

2.8%

2.2%

2.3% 2.8% (**) 7.4% 0.4% (***) 1.3% 0.3% United Kingdom Source: Eurostat or the 2007 Quality Questionnaire *: Only total level of adjustments (no distinction into below the exemption threshold and non-response) is available in Eurostat. **: Includes a non-response adjustment of 7.3 % for the impact of Missing Trader Intra-Community (MTIC) fraud. ***: Represents an adjustment for trade below the threshold recorded at a less detailed level.

24

Table 8: Impact of revisions (in %) on intra- and extra-EU trade MEMBER STATES Belgium Czech Republic Denmark Germany Estonia Greece Spain France Ireland Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Slovenia Slovakia Finland Sweden United Kingdom Source: Eurostat -: First figure>Last figure +: First figure