CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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

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

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic Revision of Direct Trade Costs (DTC)  New calculation (updated coefficients)  Improved methodology, keep ESA 95 requirements

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic DTC for export Quasi DTC for export DTC+QDTC DTC for import QDTC for import DTC+QDTC for import E) Scheme 1 (FOB/FOB) E1 Export of transport services C2Cargo transport –directly invoiced (excluded in goods) B21DTC resident units for export, between borders B22QDTC resident unit for export, importing country territ A22QDTC resident unit for import, exporting country territ E2 Import of transport services C1Cargo transport –directly invoiced (excluded in goods) A11DTC non-resident units for import, between borders A10QDTC non-resident units for import, importing country terr B10QDTC non-resident units for export, exporting country terr F) Schem 2 (FOB/CIF) F1 Export of transport services) E1See scheme A21DTC resident units for import, between borders F2 Import of transport services C1Cargo transport –directly invoiced (excluded in goods) B10QDTC non-resident units for export, exporting country terr A10QDTC non-resident units for import, importing country terr Coefficient approach from FTS model

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic  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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic 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)

CZECH STATISTICAL OFFICE Na padesátém 81, CZ Praha 10, Czech Republic Thank you for your attention