U.S. Census Bureau Foreign Trade Division Understanding Foreign Trade Data April 23, 2009

U.S. Census Bureau Overview of Imports and Exports Carol Aristone Commodity Analysis Branch

3 What do the statistics measure? The physical movement of goods between: United States, Puerto Rico, U.S. Virgin Islands Foreign countries.

4 Coverage Movement of goods into & out of: U.S. Customs Territory U.S. Virgin Islands Bonded Warehouses Foreign Trade Zones (FTZs)

5 Coverage Goods not included: U.S. trade with U.S. territories Trade between U.S. territories Trade between foreign countries and U.S. territories (other than PR and VI) In transit merchandise through the U.S.

6 What’s not Covered in Statistics? Monetary gold & silver U.S. government to U. S. government Imports of articles repaired under warranty Intangibles Personal and household effects Low valued transactions

7 The Harmonized System (HS) Harmonized Tariff Schedule of the U.S. Annotated for Statistical Reporting Purposes (HTSUSA) Statistical Classification of Domestic and Foreign Commodities Exported from the U.S. (Schedule B)

8 The HS System 17,000+ HTSUSA & 8,000+ Schedule B codes Periodically revised Structure: 2 digit Chapter 4 digit Heading 6 digit sub heading 8 digit legal 10 digit statistical

9 The HS System

10 What is the difference? Export codes (Schedule B) are maintained by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC). Import Codes CAN be used to classify Exports, but Exports codes CAN NOT be used to classify goods for import (Imports has a lot more detail!!)

11 Changes to the HTSUSA & Schedule B Changes occur three different ways: WCO changes affect the HS (4 or 6 digit) level Legislation – affects the legal (8-digit) level Imports only 484(f) committee – affects the statistical (10-digit) level

Exports

13 Related vs. Non-related Statistics cover the physical movement of goods, regardless of if item is sold When a U.S. manufacturer exports merchandise to their company in France or to a non-related purchaser in Russia, both are counted as trade

14 Valuation F.A.S. Export Value (free alongside ship) Value of export at port based on transaction price, including inland freight, insurance other charges incurred (before loaded) Excludes international freight, cost of loading merchandise and any other charges/costs beyond port of export

15 Leases If merchandise exported for <12 months Non-statistical Consignment - Temp. lease with option to buy Statistical Examples: artwork or aircraft

16 Repairs – Exports Exporting items for repair Report Ch HS number of item Non-statistical AES export information code TR (temporary export for repair) Exporting items repaired in U.S. Report HS 9801 and value of repair Statistical

Imports

18 Foreign Trade Zones – Imports Duties not required until goods withdrawn for consumption Importer has choice to pay at the rate of the original foreign materials or the finished product Can result in $3,000 new car No duty if re-exported to foreign country

19 Bonded Warehouses – Imports Duty payment deferred No duty if re-exported to foreign countries

20 General vs. Consumption General Imports – measures flow of goods across U.S. border Imports for direct consumption Bonded warehouse entries and FTZ admissions Most widely used measure of imports

21 General vs. Consumption (cont.) Imports for Consumption – goods cleared through Customs Imports for direct consumption Bonded warehouse and FTZ withdrawals

22 Valuation Customs Value Generally, price actually paid excluding: Duties Freight Insurance and other charges Relationship b/w parties should not influence value

23 Valuation (cont.) CIF (cost, insurance, freight) CIF = Customs Value + Import Charges Excludes U.S. import duties

24 Valuation (cont.) Dutiable Value Customs value of foreign goods subject to duty Where merchandise is a combination of U.S. and foreign goods, duty is applied only to the foreign value added

25 Valuation (cont.) To determine the dutiable value of a combination of U.S. and foreign goods: Example: 9802 provision U.S. value is included in statistics  Value is total of domestic + foreign values U.S. Goods indicators show that a portion of the import is domestic materials Publication IM146A

26 Valuation (cont.) Duty Collected by CBP FTD generally uses duty as reported to CBP

27 Country Sub-Codes (CSC) Indicates a special program allowing for free or reduced duty Examples: GSP, US-Chile Free Trade Agreement, NAFTA CSC used: 00 = no special programs claimed CA = Goods marked for Canada (NAFTA) MX = Goods marked for Mexico (NAFTA) Full list available on our website

28 Special Provisions Chapter 98 & 99 for National use Ch 98 - duty free/reduction Ch 99 - legislation, executive and administrative actions

29 Special Provisions (cont.) U.S. goods exported and returned not advanced or improved U.S. origin Previously exported from U.S.

30 Special Provisions (cont.) 9802 – Goods with components of U.S. origin U.S. goods assembled abroad Importers deduct value of U.S. goods from total Customs value

31 Special Provisions (cont.) Dual Reporting of Codes Report 10-digit statistical reporting number Chapter 1-97 Unit of Quantity Followed by special provision Chapter 98

32 Special Provisions (cont.) Dual Reporting of Codes Prototypes for development, testing, evaluation Free Dishwasher, household 2.4% Dishwasher, other Free

33 Special Provisions (cont.) Chapter 99 Quotas Additional duties Temporary reductions

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37 Special Provisions (cont.) Dual Reporting of Codes Footnote See headings , , , etc. Reduced or duty free rates Vinclozolin Report

38 Rate Provision (RP) codes RP codes indicate free or dutiable status Used in conjunction with goods imported using Ch. 98 or 99 code RP code can relate back to Ch. 98 or 99 Assigned by FTD

39 Rate Provisions (cont.) Examples of RP codes: RP 17 = Free as articles imported for the handicapped. Imported under HTS subheadings , & RP 69 = Dutiable at rate prescribed in Rate of Duty columns of HTS Ch. 99. Duty reported Full list available on our website

40 Repairs – Imports Importing repaired item Report Ch. 98 number and value of repair If under warranty – non-statistical If Non-warranty – statistical  Also report Ch HS in order to determine duty Importing item for repair Temporary imports

41 Internet References FTD Guide to Foreign Trade Statistics trade/guide/index.html

42 Internet References (cont.) Schedule B HTSUSA

43 Internet References (cont.) CSC trade/reference/codes/csc.html RP trade/reference/codes/rp.html

44 Any Questions?

Processing and Editing April 23, 2009 Rachelle J. Reeder Methods Research and Quality Assurance

46 Introduction The Foreign Trade Division processes over 5 million import and export transactions a month. Publish the official merchandise trade statistics on a monthly basis. Ensure that published statistics are accurate. Published data may appear different than what can be seen on the electronic systems.

47 Topics Sources of Data Processing Data Categories Differences –Differences between the ACE Portal and Published Statistics.

48 Sources of Import Data Imports The Automated Commercial System (ACS) E214 Program Automated Foreign Trade Zone Reporting Program (AFTZRP) Paper Documents Canadian Gas and Electricity Estimates

49 Sources of Import Data Percent of Number of Source Value Records ACS 88 3,091K E K AFTZRP 1 3K Canada 2.05K Paper Documents 1 6K CF-7501 and CF-214 Estimates 1.2K Totals 3.1 million February 2009 data

50 Sources of Export Data Exports Automated Export System (AES) Canadian Data Exchange Estimates

51 Sources of Export Data Source Percent of Number of Value Records AES 80 1,403K Canada K Estimates 2 22K Paper 0.04K Totals 2.1 million February 2009 data

52 Sources of Data Editing at point of collection Data are edited at point of collection Alerts the filer of any discrepancies Ensures best quality data

53 Topics Sources of Data Processing Data Categories Difference

54 Processing Overview Prepare for editing Edit Resolve errors Categorize and aggregate the data

55 Prepare Records for Editing Combine Sources Reformat data to uniform structure Identify Non-statistical transactions Low value records

56 Prepare Records for Editing Statistical time periods Imports - Release date Exports - Clearance date Statistical month Carryover

57 Prepare Records for Editing Preliminary Alterations Recode commodities as necessary Convert Schedule B from HTSUSA (exports only) Convert quantities

58 Prepare Records for Editing Apply Corrections to Data Customs corrections Filer corrections

59 Editing Overview Code Validations Relationship Edits Ratio Edits Range Edits

60 Editing Code Validations We validate codes with lookup tables that are updated monthly. –Harmonized System commodity –Country of origin –Foreign port –U.S. port –Special Program Indicators (imports)

61 Editing Relationship Edits Commodity-specific relationship edits Example: import bananas from Greenland Mode of Transportation and Port of Unlading relationship

62 Editing Ratio Edits Verify numeric data by computing ratios Check ratios against commodity-specific ranges Several types of ratio edits oQuantity to value oQuantity to shipping weight/value to shipping weight oFirst quantity to second quantity for shipments requiring two quantities

63 Editing Ratio Edits Unit price example - Fireworks –We edit the quantity using unit price parameters of /kg and $30.165/kg –We expect a $40,000 shipment of fireworks from China to have a quantity between 1,326 kg and 60,244 kg

64 Editing Range Edits oShipping weight exceeds what the mode of transportation can carry Commodity-Specific Range Edits oFocus on each individual commodity –Example: 20 kilograms of diamonds unlikely

65 Editing Commodity Specific Parameters 2.7 million parameters Files containing editing parameters by commodity Flexible – can easily make necessary changes to parameters

66 Editing Error resolution Cannot review every erroneous record Analysts review records that have the most impact Edit programs impute the other records

67 Editing Estimation Estimate a new quantity or shipping weight from a factor and value or previously edited field Unit price example 1,000 kg of fireworks valued at $40,000 would reject our edit. Using an imputation factor of $4.51/kg, the edit program would change quantity to 8,853 kg.

68 Editing Analyst review Contact the filer Ensure correct classification Bypass the edits

69 Editing Analyst Review Review data by grouping individual records Aggregate by commodity to determine if total values and quantities are reasonable Utilize control files Compare measures to previous months – look for missing or misreported data and identify processing problems

70 Topics Sources of Data Processing Data Categories Difference –Differences between the ACE Portal and the Published Statistics.

71 Import Data Categories General Imports –Measures the arrival of goods into the United States. –Consumption Entry and Admission to Warehouse/FTZ Imports for Consumption –Measures the merchandise that have cleared Customs. –Consumption Entry and Warehouse/FTZ Withdrawal

72 Import Data Categories Usually Imports for Consumption <= General Imports Remember: Consumption = Consumption+withdrawals General = Consumption+admissions

73 Why could Consumption be greater than General Imports? Goods processed in a FTZ Example: Petroleum entered in FTZ  General import stats would show Ch 27 when goods admitted to FTZ  Petroleum is processed in the zone, creating byproducts classified in Ch 25  Therefore imports for consumption are based on what EXITS the zone (Ch 25)

74 Why could Consumption be greater than General Imports? Petroleum processed in a FTZ could result in: Chapter 27 General import stats > Consumption stats Chapter 25 General Import stats < Consumption stats

75 Export Data Categories Domestic –Merchandise grown, produced or manufactured in the U.S. –Foreign merchandise changed in the U.S. Foreign (re-export) –Foreign merchandise, entered for consumption or into a warehouse or FTZ, that is unchanged at the time of export.

76 Data Categories Noncontiguous trade –PR and VI trade with U.S. are Non- contiguous exports (separate data product)

77 Topics Sources of Data Processing Data Categories Differences –Differences between the ACE Portal and Published Statistics.

78 ACE Portal Several sources of data are used in Census publications. Data users will not see all the data, such as statistics on paper, and low value estimates.

79 ACE Portal Census Categorizes data by Entry Types General Imports Consumption Imports The Ace Portal will contain all entry types Double counting trade into and out of warehouses and Foreign Trade Zones

80 ACE Portal Differences in the data Editing and imputing to the data occur after the data are extracted from the source Non-statistical data are not published Multi-commodity line reporting

81 ACE Portal Time periods Late filings are published in a later statistical month, and then corrected in the yearly revisions. Early filings are held until the next processing month

82 Data Processing and Editing Questions! (301)

The United States – Canada Data Exchange Wandra V. M c Kee Process Coordination Staff U.S. Census Bureau April 23, 2009

84 Agreement between the governments of the United States and Canada based on a Memorandum of Understanding (MOU) What is the United States – Canada Data Exchange?

85 Who is Involved? UNITED STATES U.S. Census Bureau (BOC) U.S. Customs & Border Protection (CBP) CANADA Statistics Canada (STC) Canada Border Services Agency (CBSA)

86 How Does It Work? U.S. Exports to Canada - Canadian Imports from the U.S. and Canadian Exports to the U.S. - U.S. Imports from Canada

87 Why Was It Created? ‣ Rise in Export under coverage Other Benefits: ‣ Decrease operating costs to process Export Declarations ‣ Eliminate reporting burden of Exporters ‣ Location and language of both countries

88 What Are Some Differences in the Data Exchange? ° Port Codes ° State of Export ° Vendor vs. Exporter (USPPI)

89 > STC transmits files twice per month > Adjustments are required How Do We Receive Canadian Import Data?

90 What Kind of Adjustments? Freight Charges Currency Conversion Exports of Foreign Goods to Canada Exports of U.S. Goods to Canada from Third Party Countries * Revisions

91 Freight Charges ▪ Included in U.S. Exports ▪ Excluded in Canadian Imports ▪ Added to compensate for difference in valuation

92 ~ U.S. Federal Reserve’s monthly exchange rate ~ STC converts to U.S. dollars; transmits data to BOC Currency Conversion

93 Exports of Foreign Goods to Canada Transmitted from STC BOC includes these goods in U.S. export statistics

94 Exports of U.S. Goods to Canada from Third Party Countries Transmitted from STC BOC excludes these goods from U.S. export statistics

95 Revisions Estimates for Late Arrivals Corrections from STC Corrections Made by BOC

96 Estimates for Late Arrivals STC sends with second transmittal Estimates replaced with actual values the following month in the FT-900 press release only

97 Corrections from STC STC sends with second transmittal Corrections from first transmittal

98 Corrections Made By BOC Commodity analysts verify corrections with their STC counterparts Corrections made prior to publication, when possible

99 ??? Questions ??? Wandra V. M c Kee

U.S. Census Bureau Foreign Trade Division Trade with Partner Countries Emmanuel Omoruyi April 23, 2009 U.S. Census Bureau

101 Trade with Partner Countries Definition of Partner Country Special Cases Reasons for Trade Discrepancies Resolving Trade Discrepancies Work in Progress with Partner countries

102 Trade with Partner Countries Definition of Partner Country Exports - Country of Ultimate Destination as known at the time of exportation

103 Trade with Partner Countries Definition of Partner Country What is considered an export ? Domestically produced merchandise sold to a foreign country Foreign goods resold to a foreign country Parts exported for further processing or incorporation into a more advanced product Capital equipment shipped to a foreign assembly or manufacturing location Charitable goods

104 Trade with Partner Countries Definition of Partner Country Imports – Country of Origin Grown, mined, produced or manufactured “Substantially transformed” U.S. Customs define country of origin based on legal, trade agreement and policy

105 Trade with Partner Countries Definition of Partner Country Imports- Country of Origin China exports domestic product to India India incorporates product but not “substantially transformed” under U.S. rules and export the product to the U.S. China is still country of origin

106 Trade with Partner countries

107 Trade with Partner Countries Definition of Partner Country Imports – Country of Origin United Kingdom exports U.S. manufactured aircraft and cars to Germany, which sell to Argentina United Kingdom: exports to Germany Germany: Imports from U.S. Argentina: Imports from U.S

108 Trade with Partner Countries

109 Trade with Partner Countries Special Cases Re-imports: Reported under HS imports from country of shipment Country of origin undetermined International Standard Organization (ISO) coding errors

110 Trade with Partner Countries Special Cases In-Transit Goods U.N. Guidelines– exclude goods moving under Customs bond from statistics Shipper may choose to enter and re-export - EX: Goods transiting U.S. Between Canada and Mexico Imports from Canada Re-export to Mexico

111 Trade with Partner Countries Reasons for Trade Discrepancies Valuation of goods Definition of goods Traded Trade through a third Country Geographic Coverage Low Value Classification issues Undercounting or under reporting

112 Trade with Partner Countries Reasons for Trade Discrepancies The valuation of goods –U.S. value imports on C.I.F basis and exports on F.A.S basis. Other countries often value trade differently. Definition of goods –The U.S. does not count containers as goods traded with partner’s countries

113 Trade with Partner Countries Reasons for Trade Discrepancies Third country –Foreign countries often don’t know final destination of their exports. Geographic coverage –Trading partners’ often treat Puerto Rico and Virgin Islands trade as trade with separate countries.

114 Trade with Partner Countries Reasons for Trade Discrepancies Low Value – $2000 for imports, $2500 for exports Classification issues –True commodity classification Undercounting or under reporting –Import trade is generally more accurate than export. –Export trade may be understated

115 Trade with Partner Countries Resolving Trade Discrepancies Reconciliation is done to resolve significant trade discrepancies between reported U.S. trade values and a partner’s trade values. We try to resolve the trade difference by assigning reasons and dollar amounts for all previous sources.

116 Trade with Partner Countries Resolving Trade Discrepancies U.S. Published Imports (Total Imports) Re-imports (-) Imports from 3 rd countries (-) Shipping Containers (-) Geographical coverage (PR & VI) (-) Low Value (-) Re-exports (+) Residuals Partner Published Exports (Total Exports).

117 Trade with Partner Countries Current Reconciliation Work China: - Hong Kong re-exports; 3 rd Country issue -Processing Regimes; Valuation issue -Ship Cranes-Harmonize System code (HS ); commodity issue Morocco: -Special trade; trade agreement issue -Export through Europe; 3 rd country issue.

118 Trade with Partner Countries Any questions ?

119 Methods Research & Quality Assurance Branch Andrew Chang April 23, 2009 U.S. Census Bureau Port and Mode of Transportation Data

120 Objectives  District/Port Data Definitions.  Mode of Transportation (MOT).  Data Quality Issues.

121 What is a Port Code? A 4 digit number consisting of the customs District and Port DistrictPort

122 Port Data Definitions Port of Exportation  Vessel or Air – Customs port where merchandise is loaded on the conveyance that takes it out of the country.  Vessel could be containerized or non containerized.  Overland – Customs port where merchandise crosses the U.S. border into foreign territory.

123 Port Data Definitions Cont. Port of Entry  Import Port of Entry  The port in which merchandise clears Customs for entry into consumption, bonded warehouses, or Foreign Trade Zones.  Import Port of Unlading  The port where merchandise is unloaded from the importing vessel or aircraft.

124 Mode of Transportation (MOT) Transportation Statistics Categories  Vessel, Air, and Other Methods.  Based on the MOT by which the merchandise arrives in or departs from the United States.  We obtain this information from the documentation the filers provide.  Other methods are available for certain publications (i.e. rail vs. truck or container vs. non container for vessel).

125 Mode of Transportation Cont.  Entering/Departing through Canada & Mexico.  Recorded under the MOT by which they enter or depart the U.S. regardless of the transportation mode for the rest of their journey.

126 How does a truck get here from China?  MOT is identified by the method of conveyance that is used when the shipment crosses the border into the U.S.  Example: China  Canada on vessel, then Canada  U.S. on truck.  Over 5% of goods arriving over land originate in countries other than Canada and Mexico.

127 Reporting of District/Port Data  Filing  Imports – data captured at time of entry summary.  Exports – port where shipment is expected to ship from.

128 Quality Issues Related to Filing.  Knowledge of Filer.  Airports and Seaports.  Correcting the obsolete/incorrect codes.  Unknown container status is coded as non- container.

129 Quality Issues relating to Mail, Pipeline and Other Unknowns U.S. Mail  For exports via U.S. Mail, filers can report any code, but the Census Bureau changes the code to ‘8000’.  The Census Bureau corrects some export shipments that are incorrectly reported as mail (e.g. fire trucks).

130 Mail, Pipeline and Other Unknowns Pipeline  For shipments by pipeline, exporters file with the port having jurisdiction for the pipeline.

131 User-Fee Ports and Nearby Ports  Many small package couriers have their own port codes  Recoding of courier port codes

132 Canadian Data Exchange  Quality Issue  We take Canada’s imports for our exports which can lead to inaccurate port code information  Canada does not collect containerized vessel shipment information for their imports  Thus for Canadian shipments, all vessel shipments have unspecified as the container status

133 Questions? Andrew Chang v (301)

U.S. Census Bureau Foreign Trade Division Quality Issues Robin Gibson April 23, 2009 U.S. Census Bureau

135 Topics Covered Uses of Foreign Trade Statistics Quality Issues Responses to Quality Issues

136 Uses of Foreign Trade Statistics Accurate trade data are necessary for economic, commercial, and policy purposes. Used by –Government –Non-Government

137 Government Uses Develop the merchandise trade figures To appraise and analyze major movements and trends in international trade To evaluate and plan various programs To measure impact of tariff and trade concessions Statistical base to implement and analyze operations under various international agreements E.g. NAFTA

138 Government Uses (cont.) Meet legal and regulatory requirements Imports Correctly assess import duties Administer embargoes and quotas Restrict counterfeit items entering the country Implement control policies Exports Effectively administer control and regulatory policies for national security or foreign policy reasons implement export quotas or embargo programs administer short supply programs

139 Non-Government Uses Users in industry, finance, research, and transportation Appraise the general trade situation and outlook Perform share-of-the-market analyses and market penetration studies Aid in product and market development Measure the impact of competition Determine marketing policies

140 Importance of Data Quality Leading economic indicator Wide and varied group of uses Committed to producing quality data To use information wisely and appropriately need to understand limitations.

141 Quality Issues Reporting Errors Documentation Low Value Carryover Revisions

142 Reporting Errors Mistakes or omissions made by importers, exporters, or their agents when reporting import or export shipments Common Data Elements quantity or shipping weight state of origin designation commodity code charges

143 Reporting Errors Misclassification of Commodity Codes Import information subject to greater scrutiny so more common with exports and duty free imports Results in inaccuracies for commodity level detailed data

144 Reporting Errors Reasons for Misclassification –Typos –Duty avoidance –Not understanding the classification system *Census Bureau utilizes edits to detect misreporting and send error messages to the filers*

145 Reporting Errors Charges –Invoiced freight, insurance, or other charges If included in the invoice price must be included in the Customs Value If an importer does not know the exact value of all charges, must be estimated The filer must have documentation to exclude an item from Custom Value –Result is actual value may be overstated

146 Quality Issues

147 Documentation Documentation issues can arise when shipments –move through an intermediary country –move through Foreign Trade Zones (FTZs) –consist of rail cars and/or locomotives

148 Documentation Intermediary Country Canada –Exports to Canada; no documentation required –Exports where Canada is not the ultimate destination country; documentation is required Transiting Goods –When under bond, excluded from trade statistics –Sometimes entered into the US using import entry summary and an export declaration is filed

149 Documentation Foreign Trade Zones Goods enter a FTZ –A customs form 214 is filled out Goods withdrawn from a FTZ can be –Imports –Exports –In-bond

150 Foreign Country U.S. Customs Territory Export documentation should be filled out Import documentation must be filled out, duties paid FTZ Shipment in-bond, no duties paid Documentation Foreign Trade Zone Withdrawals

151 Documentation Imports of Rail Cars By law importers of rail cars and locomotives are not required to report their shipments, when duty free Statistics Canada (STC) –established a voluntary survey –included as a revision to Canada’s export trade data since late 2004

152 Quality Issues

153 What is Low Value? Value-based exemptions –If value is under the exemption level Import shipments – do not have to report full details Export transactions – do not have to report –Initially enacted in the early 1960s –Introduced to relieve increasing filer burden –Updated several times since

154 Low Value Estimation –Amount of detailed records collected from low valued shipments declined –Value of these shipments is estimated –Factors based on ratios of low valued shipments to individual country total for past periods –Monthly trade total for each country multiplied by the factor, to produce a estimate of low value as a percentage of total value –Factors received last major update in 1989

155 Update to Low Value Estimation Currently working on an update to the low value estimation methodology Anticipate implementing for imports and exports in 2010.

156 Quality Issues

157 Carryover –Trade records received and/or processed too late for inclusion with records in the correct transaction month –Current carryover rate (2008 avg. of total value) 0.36% exports 0.81% imports

158 Carryover Each month in the FT900, the total import, export, trade balance and “end-use” totals for the prior month are adjusted for carryover SITC (Standard International Trade Classification) and country detail reports not revised Annual revision takes place each June SITC and country detail reports are revised

159 Quality Issues

160 Revisions Every June of the current year, FTD publishes an annual revision of the previous year –Carryover correction –Corrections resulting from data investigations –Customs and Canadian revisions

161 Response to Quality Issues What we’re doing to address these concerns.

162 Automated Reporting Effective July 2, 2008 all exports must be filed through the Automated Export System (AES) Imports can be electronically filed through the Automated Broker Interface (ABI), and soon through the Automated Commercial Environment (ACE)

163 Benefits of Automated Reporting –Receive and compile data quickly –Reduce Error Exports (as of a 2001 study) –57% of paper SEDs contain errors –10% of AES records contain errors Imports (as of a 2001 study) –37% of Customs Entry Forms 7501 contain errors –8% of ABI records contain errors

164 Benefits of Automated Reporting –Online, instant validation checks –Reduction in carryover Exports –AES Compliance Review Program –Less export paper documents are lost

165 Conclusion FTD continues to monitor the quality of data during collection, processing, and publication. We are constantly exploring ways to further improve the quality of international trade data.

166 Questions ? (301) Methods Research and Quality Assurance Branch (301)

U.S. Census Bureau Foreign Trade Division Profile of U.S. Exporting Companies Ben Shelak April 23, 2009 U.S. Census Bureau

168 Released April 9, 2009 Available on FTD Website back to Profile of U.S. Exporters 2006 – 2007

169 Profile of U.S. Exporters 2006 – 2007 U.S. Census Bureau News U.S. Department of Commerce Washington, D.C FOR IMMEDIATE RELEASE 8:30 A.M. EST FRIDAY, APRIL 9, 2009 For information contact: (301) CB-xx- xx Jeff McHugh or Benjamin Shelak A Profile of U.S. Exporting Companies,

170 Partially $ ponsored by the International Trade Administration (ITA) Produced by the Special Projects Branch Produced by linking export records to the Census Business Register, which contains employment, company types, & company locations Profile of U.S. Exporters 2006 – 2007

171 Composition of Total Export Value: 2007  Unidentified = Exports that could not be matched to Business Register  Identified = Exports that could be matched to the Business Register (Known export value)  Other = Low value est., revisions, Gov’t shipments Profile of U.S. Exporters 2006 – 2007

172 Profile of U.S. Exporters 2006 – 2007 The Profile can answer questions such as:  Value that can be attributed to large manufacturers in 2007  Canada’s known export value that can be attributed to companies with 1 to 19 employees  Number of companies that exported from Maryland in 2007 and how much known value was exported

173 Profile of U.S. Exporters 2006 – 2007 Profile Provides Data Users:  Exporting community’s employment sizes, types of companies, & major foreign markets  Top 25 U.S. export countries and multiple country groupings  Export value and number of exporters for each state (OM State)  Number of employees of identified exporting companies

174 Profile of U.S. Exporters 2006 – 2007 Profile Characteristics - I  Company type – NAICS based (North American Industry Classification System) Manufacturers Wholesalers Other Unclassified

175  Company size - # of employees Small (0-99 employees) Medium ( employees) Large (500 or more employees) Profile of U.S. Exporters 2006 – 2007 Profile Characteristics - II

Known Export Value By Company Type Profile of U.S. Exporters 2006 – 2007

177 Profile of U.S. Exporters 2006 – Top 10 Export Countries Known Export Value Known Export Value (in billions)

178 Profile of U.S. Exporters 2006 – Export Concentration % of Known Export Value

179 Employee Sizes: Known Export Value ($1,031 bil.) Number of Exporters (266,457) Profile of U.S. Exporters 2006 – 2007

180 Profile of U.S. Exporters 2006 – 2007 How is our data valuable to data users? Example: A data user wants to know how many Large sized companies (500+ Employees) export to OPEC countries and how much value is exported.

181 Profile of U.S. Exporters 2006 – 2007 Special requests for data: We may be able to provide special tabulations that are not included in the Profile. Example: A data user wanted to know the number of U.S. companies that exported to Central American Free Trade Agreement (CAFTA) countries in a given year. Table 5a of the Profile did not provide export data on these CAFTA countries, so we compiled the data for the data user.

182 Profile of U.S. Importers Why? - To meet a growing demand for statistics on U.S. importers Produced by linking import records to the Census Business Register, which contains employment, company types, & company locations

183 Profile of U.S. Exporters 2006 – 2007 The EDB Team Jeffrey McHugh Ben Shelak (301)

184 Profile of U.S. Exporters 2006 – 2007

U.S. Census Bureau Foreign Trade Division Origin of Movement Export State Origin State, ZIP Code & Sub-state Data John Chantis April 23, 2009 U.S. Census Bureau

186 Background:  Origin of Movement (OM) State – Based on Origin State “State OM”  Origin of Movement (OM) State – Based on ZIP Code “ZIP Code OM”

187 Background:  For more information visit trade/statistics/state/index.html  Data Dissemination Branch

188 Based on Origin State:  Available 1987-Present  Based on the state in which the goods begin their journey to the port of export  Does not represent the production origin of U.S. export merchandise

189 Origin State examples:  Goods warehoused in GA  transported to a FL port to be shipped to a foreign country. OM state is……GA  Auto parts produced from many states are consolidated in TX to be exported to Mexico. OM state is……TX.

190 Origin of Movement (OM) State Series – Based on Origin State  Available in our monthly FT900 Press Release, supplement, exhibit 2  Web address: Release/current_press_release/exh2s.pdf  More detailed information

191 Based on ZIP Code:  Available January Present  The ZIP Code of the USPPI, the party in the US that receives the primary benefit from the shipment  Does not necessarily represent the location of the USPPI

192 ZIP Code State examples:  Goods warehoused in GA  transported to a FL port to be shipped to a foreign country. ZIP state is...GA.  Auto parts produced from many states are consolidated in TX to be exported to Mexico. ZIP state is……TX.

193 ZIP Code based report:  Similar to FT-900 supplement, exhibit 2 press release; available on our website: trade/statistics/state/zip/index.html

194 Regulations – address of the USPPI  Effective October 2008, the USPPI should report the address from which the goods begin the journey to the port of export.  Same for state code and ZIP Code.

195 OM State vs. ZIP Based State (in millions of dollars) 2008 Q1 = Median = Q3 = 6.97 #States within (-10%, 10%) = 25

196 Other available state data products:  FTD - Quarterly and Annual OM & ZIP state data is available for download.  Please call our Current Systems Programming Branch on  Available in three options…. Option 1: State by 3-Digit NAICS Commodity by Country (Total, Air and Vessel). Option 2: Region by 4-Digit SITC, District/Port of Exit, & Country (Total, Air & Vessel). Option 3: State by District/Port of Exit, & Country (Total, Air & Vessel)- No Commodity Detail

197 Other products …  Manufacturing and Construction Division (MCD) - Gives exports by state and 3 digit NAICS. Available online at

198 Sub-State Data  Data historically based on Metropolitan Area (MA).  The term “Core Based Statistical Area” (CBSA) is a collective term, defined by Office of Management & Budget (OMB), for metro and micro areas.  New definitions for CBSA’s were announced by OMB on June 2003.

199 Sub-State Data  CBSA’s based on ZIP Code of US Principal Party in Interest (USPPI).  CBSA’s now cover areas of 10 to 50 thousand population, which were not covered by MA’s.  CBSA codes increase coverage to about 93% of the population vs 80% with MA’s.

200 Sub-State Data  In preparation for reintroducing ZIP Code based tables, in 2006 completed a quality review of ZIP Codes based on 2005 data  Historically, under contract, we have produced data for ITA  To date we provided 3-digit ZIP Code & CBSA Metro totals for Export data to ITA

201 Next Steps… Have started our analysis to provide data to ITA based on 2008 trade. The current contract calls for CBSA by 3-digit NAICS, CBSA by Destination, 3- digit NAICS by CBSA, and other tables of trade totals CBSA data will be available mid to late 2009.

202 For more information: Special Projects Branch Foreign Trade Division (301)

203