1. The compilation of Georgia’s external trade statistics

2. Institutional arrangements Customs Department of the Ministry of Finance Georgian State Electrosystem LLC Gas Transportation Company LLC Department of Statistics of the Ministry of Economic Development Georgia’s external trade statistics National Energy Regulatory Commission

3. Data processing Since 2003, the data have been processed using the ACCESS program. External trade statistics, including those for 2005, are compiled on the basis of the Goods Classification of External Economic Activity, 1996 version, as amended in 2000. Starting in 2006, we plan to make the transition to the Goods Classification of External Economic Activity, 2002 version.

4. Data quality  The quality of the data received from the Customs Department has been gradually improving since 2000.  Since 2005, the Customs Department has: installed the ASYCUDA client-server system at every customs post, which has made it possible to maintain the customs declarations data base on-line; compiled and introduced instructions on how to fill in the customs declaration.

5. Typical errors in data made available by the Customs Department additional unit of measurement incorrect or missing errors in the coding of the goods errors in the identification of the customs regime the price or weight of the good is missing or obviously incorrect errors in identifying diplomatic status

6. Timeliness We obtain data from the Customs Department once a month, generally no later than the 5 th day of the following month. We obtain information on imports and exports of electrical energy from Georgian State Electrosystem LLC by the 5 th day of the following month. We obtain information on imports of natural gas from the Gas Transportation Company LLC within 15 days of the end of the reference month. Correction of the data takes 10 working days. We are able to publish the information on Georgia’s external trade within 20 days of the end of the reference month. Every month, the Balance of Payments Unit compiles a report on external trade, which is published in the quarterly bulletins of the Department of Statistics and the National Bank, while data on foreign trade are regularly posted on the Department of Statistics’ web site.

7. Data correction In the light of our practice and experience of compiling foreign trade statistics, we created a specific system of correcting data obtained from the Customs Department. In the first place, duplicate declarations are eliminated, and non-existent codes are corrected. Declarations with diplomatic status are verified and corrected. A survey is carried out of goods which, according to the goods nomenclature, have an additional unit of measurement. Verification and correction generally concern this additional unit. The goods in question are: 1. Automobiles and tractors (codes 8701 to 8705), 2. Alcoholic and non-alcoholic beverages: here, it is particularly important to use code 2208: spirits, 3. Eggs (code 0407) 4. Wood and wooden products: group 44 5. Petrol for engines: in the group “Petroleum and petroleum products” 6. Tobacco products: code 2402 Wherever possible, we get in touch with the trading company, otherwise, we look at the price and weight of the product. We also obtain valuable information from the verbal description of the goods, on the basis of which we correct the additional unit of measurement.

8. Data correction Goods transformation. We verify all declarations containing a goods transformation code. Maintenance and repair of goods. When verifying a declaration relating to transformation of goods, we identify declarations relating to maintenance and repair and exclude them from the statistics of international trade. We take them into account separately for the balance of payments. Banknotes. All declarations relating to the import and export of banknotes, excise stamps and similar printed items are verified. Banknotes in circulation are often fixed at their nominal value, which considerably distorts the data on international trade. Excise stamps. Excise stamps which are temporarily imported or exported for affixation to the corresponding goods, are recorded as conventional imports/exports. All goods of this type are excluded from international trade statistics. In addition to the above, we verify export and import declarations with an excessively low or excessively high price, and the first twenty products are examined systematically.

9. Creation of the data base Once the information obtained from the Customs Department has been corrected, we add the data on electrical energy and natural gas. All this information is then added to the primary data base, where all the declarations received from the Customs Department are stored. The working data base is automatically created from the primary data base. Only the necessary declarations and essential elements are entered in the working base. Any errors or inaccuracies discovered subsequently are first corrected in the primary data base, and the working data base is then automatically updated.

10. That concludes my brief description of how Georgia manages its statistics on international trade in goods. Thank you for your attention.