1. Simplification of Intrastat: Current State of Play
8th International Trade Statistics Expert Meeting,
OECD, Paris, 17th September 2007
Ales Capek
Eurostat

2. Content Past simplifications Single flow – pros and cons
Increase of exemption threshold – pros and cons
Conclusions

3. Past simplifications Intrastat itself was a simplification
- thresholds
- monthly summaries instead of individual transactions
- less data elements

4. Past simplifications (ctd.)
Exemption threshold – from 99% to 97% coverage
Simplification threshold - from 5% to 6% of trade
Optional data
Simplified reporting (industrial plants, small transactions, staggered consignments)
Modernization of CN

5. Current pressure on simplification
Lisbon process
Political drive (Presidencies, ECOFIN Council)
Commission Communication on reduction of response burden, simplification and priority setting in the field of community statistics

6. 2 main simplification options
Single flow
Increase of the exemption threshold
Assesment criteria:
- reduction of reporting burden
- impact on timeliness
- impact on accuracy of data

7. Single flow – dispatches or arrivals
Arguments for dispatches:
Fewer PSI of bigger size having better information and administration systems
Speed of reporting
Link to VIES
Lower non-response

8. Single flow – dispatches or arrivals (ctd.)
Arguments for arrivals:
Missing country of origin on dispatch side
Overestimation of dispatches due to VAT fraud
Less confidentiality on arrival side
Users interested in arrival data

9. Single flow - pros Reduction of reporting burden
Decrease of workload on statistical offices (depends on design of the system)
Quality of commodity classification
Response speed
Decrease of non-response (depends on thresholds)

10. Single flow - cons
Break in time series due to asymmetries (trade, BoP, national accounts)
Lack of confidence in partner MS data resulting in continued collection of arrival data
Timeliness – need to wait for the last Member State

11. Single flow – cons (ctd.)
Loss of data for national purposes
CIF – FOB valuation
Differences in reporting thresholds between Member States
Differences in methodologies between Member States (special simplifications, adjustments)

12. Threshold option - pros
SMEs exempted from reporting obligation
Negligible impact on time series
Data for national purposes preserved
Neutral for timeliness of data (or even better)
Response speed
Decrease of non-response

13. Threshold option - cons
More estimates of trade below threshold necessary - leading to decrease in accuracy
Increase of asymmetries

14. Conclusions
Short/medium term: increase in exemption threshold (arrivals only or both flows?)
Arguments:
- timeliness
- little impact on time series
- availability of national data elements
- easy to implement
- comparable impact on reporting burden as single flow

15. Conclusions (ctd.)
Prerequisites for possible single flow in the long term
- reduction of asymmetries
- estimation of missing or delayed data to solve timeliness problem
- quality checks to satisfy national needs
- data exchange system
- harmonization of data collection and processing systems