1. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Revision of Foreign Trade in Czech National Accounts in 2011 Task Force on Goods in Processing, 8 November 2011, Luxemburg CZECH STATISTICAL OFFICE Petr Musil Jaroslav Sixta Tereza Kostakova

2. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Content of the Revision  CIF/FOB adjustment and deflation (FOBxFOB)  Foreign trade in national concept  Processing  Deflation of foreign trade (FOBxFOB??)  Results

3. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Revision of Direct Trade Costs (DTC)  New calculation (updated coefficients)  Improved methodology, keep ESA 95 requirements

4. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz CIF/FOB (1)  Fulfill ESA 1995 requirements: ExportImport Goods Goods (FOB)Goods (CIF) Services DTC provided by resident unit for export of goodsX DTC provided by resident unit for import of goods X ExportImport Goods Goods (FOB) Services DTC provided by resident unit for export of goods DTC provided by non-resident unit for import of goods DTC provided by resident unit for import of goods SUTSUT SECSEC

5. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Scheme of Direct Trade Costs (eg. CZ and F) DTC Export FR (FOB) = Import CZ (FOB) Import CZ (CIF) Export CZ (FOB) Import FR (CIF) QDTC Target place

6. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz 200720082009 DTC for export54 48954 16045 430 Quasi DTC for export5 3755 4484 705 DTC+QDTC59 86459 60850 135 DTC for import74 59477 23064 282 QDTC for import13 79413 55111 422 DTC+QDTC for import88 38890 78175 704 E) Scheme 1 (FOB/FOB) E1 Export of transport services58 25958 15755 431 C2Cargo transport –directly invoiced (excluded in goods)17 20117 41021 229 B21DTC resident units for export, between borders33 31833 09727 679 B22QDTC resident unit for export, importing country territ.2 7612 7972 399 A22QDTC resident unit for import, exporting country territ.4 9794 8534 124 E2 Import of transport services50 36053 45044 577 C1Cargo transport –directly invoiced (excluded in goods)2 4442 6823 102 A11DTC non-resident units for import, between borders46 44949 32640 258 A10QDTC non-resident units for import, importing country terr.1 1611 132952 B10QDTC non-resident units for export, exporting country terr306310265 F) Schem 2 (FOB/CIF) F1 Export of transport services)86 40486 06179 455 E1See scheme 158 25958 15755 431 A21DTC resident units for import, between borders28 14527 90424 024 F2 Import of transport services3 9114 1244 319 C1Cargo transport –directly invoiced (excluded in goods)2 4442 6823 102 B10QDTC non-resident units for export, exporting country terr.306310265 A10QDTC non-resident units for import, importing country terr.1 1611 132952 Coefficient approach from FTS model

7. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Questions?  How do other EU 27 countries estimate CIF/FOB?  Why EUROSTAT prefers FOBxFOB at previous years‘ prices? (deflation done within SUT = CIF, price indices CIF, value of toll, prices of fuel on foreign territory not known)

8. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Non-residents in FTS data  Foreign Trade Statistics (FTS)  Trans-border concept (not change in ownership)  Intrastat respondent = any VAT-registered unit above the national threshold  VAT legislation in EU  Obligatory VAT-registration for any entity that carries on trade in the country (even non-residents with no physical presence in the country)

9. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz  Export = Domestic purchases of non-residents (in VAT declarations „received taxable supplies with a place of supply in the domestic country)  Import = Domestic sales from non-residents (in VAT declarations „realized taxable supplies with a place of supply in the domestic country)

10. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Consequences (1)  In the Czech Republic (year 2010)  22 % of Export reported to FTS by non-residents (40 % in CPA26-28)  14 % of Import reported to FTS by non-residents (30 % in CPA26-28)  Positive Net Export (according to FTS) done mainly by non-residents  Output of some commodities < Export (FTS) of the commodities

11. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Consequences (2)  Using FTS data => Value Added realized by non- residents included in the domestic economy  Inconsistency between net export (FTS) and financial flows (BoP)  Relevance of VAT-registered in national economies may differ but all are affected (<= EU legislation on VAT)  Euro-area data and EU data might be affected as well (non-resident VAT-registered are either from other Member state or non-EU states) (Switzerland, Taiwan)

12. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz

13. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Suggestions  Adjustment of FTS data to comply better the “change in ownership concept“  Non-residents (VAT-registered) should report not only the value on borders but also the value at time of change in ownership within borders  Exclusion of non-residents‘ re-export from FTS data (warehouses)  Inclusion of non-residents‘ „negative merchanting“ in the domestic economy (non-residents buy and sell goods bewteen related companies on domestic territory)

14. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Processing after entry to the EU (2004)  New system of data collection  Intrastat, Extrastat  Reporting of import/export for/after processing less important  Decline of reported goods on processing  Export exceeded Output in some commodities (computers, electronic devices, machines and equipment, toys…)  In the balancing process of SUT  increase in Import/Export of goods for processing (=>increase in output and IC, total of FTS import/export of goods unchanged)

15. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Thank you for your attention petr.musil@czso.cz jaroslav.sixta@czso.cz tereza.kostakova@czso.cz