U.S. Census Bureau

U.S. Census BureauForeign Trade Division

Understanding Foreign Trade Data

June 23, 2010

U.S. Census Bureau

Overview & Export Specific Information

Carlos OcasioCommodity Analysis Branch

[email protected]

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What do the statistics measure?

The physical movement of goods between:• United States, Puerto Rico, U.S. Virgin Islands• Foreign countries.

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

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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)

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The HS System17,000+ 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

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The HS System

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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!!)

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Changes to the HTSUSA & Schedule BChanges 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

Export Specific Information

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Related vs. Non-relatedStatistics 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

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ValuationF.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

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Leases

If merchandise exported for <12 months • Non-statistical

Consignment - Temp. lease with option to buy• Statistical• Examples: artwork or aircraft

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Repairs – Exports Exporting items for repair

• Report Ch. 1-97 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

Import Specific Information

Carol AristoneCommodity Analysis Branch

[email protected]

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Topics• Valuation• CSC• Special Provisions• Rate Provision Codes (RP)• Repairs

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ValuationCustoms Value

• Generally, price actually paid excluding:• Duties• Freight • Insurance and other charges

• Relationship b/w parties should not influence value

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Valuation (cont.)

CIF (cost, insurance, freight)

• CIF = Customs Value + Import Charges

• Excludes U.S. import duties

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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

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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

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Valuation (cont.)

Duty• Collected by CBP• FTD generally uses duty as reported to

CBP

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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

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Special Provisions

Chapter 98 & 99 for National use• Ch 98 - duty free/reduction • Ch 99 - legislation, executive and

administrative actions

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Special Provisions (cont.)

9801 - U.S. goods exported and returned not advanced or improved• U.S. origin• Previously exported from U.S.

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9802 – Goods with components of U.S. origin• U.S. goods assembled abroad• Importers deduct value of U.S. goods from

total Customs value

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Special Provisions (cont.)Dual Reporting of Codes

Report 10-digit statistical reporting number• Chapter 1-97• Unit of quantity and valueFollowed by special provision • Chapter 98

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9817.85.01 • Prototypes for development, testing, evaluation• Free

8422.11.0000• Dishwasher, household• 2.4%

8422.19.0000• Dishwasher, other• Free

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Chapter 99 • Quotas• Additional duties• Temporary reductions

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• Footnote 189 - See headings 9902.01.19, 9902.02.12, 9902.12.54, etc.

• Reduced or duty free rates • 9902.01.19 Vinclozolin• Report 9902.01.19 - 2934.99.1200

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Rate Provision (RP) codes

• RP codes indicate free or dutiable status

• Every line item is assigned a RP code

• RP code can relate back to Ch. 98 or 99

• Assigned by FTD

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Rate Provisions (cont.)Examples of RP codes:

• RP 17 = Free as articles imported for the handicapped. Imported under HTS subheadings 9817.00.92, 9817.00.94 & 9817.00.96

• RP 69 = Dutiable at rate prescribed in Rate of Duty columns of HTS Ch. 99. Duty reported

• Full list available on our website

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Repairs – ImportsImporting repaired item

• Report Ch. 98 number and value of repair• If under warranty – non-statistical• If Non-warranty – statistical

Also report Ch. 1-97 HS in order to determine duty

Importing item for repair• Temporary imports

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Internet References

FTD• http://www.census.gov/trade

Guide to Foreign Trade Statistics• http://www.census.gov/foreign-trade/

guide/index.html

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Internet References (cont.)

Schedule B• http://www.census.gov/scheduleb

HTSUSA• http://www.usitc.gov/tata/hts/bychapter/index.htm

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Internet References (cont.)

CSC• http://www.census.gov/foreign-trade/

reference/codes/csc.html

RP• http://www.census.gov/foreign-trade/

reference/codes/rp.html

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Any Questions?

U.S. Census Bureau

Sources of Data

Katrina R. KingData Collection Coordination Branch

[email protected]

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Topics• Coverage• Bonded Warehouses• Foreign Trade Zones (FTZs)• Sources of Import Data• Import Data Categories• Sources of Export Data• Export Data Categories• Kimberley Process (KP)

Coverage

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Coverage

Movement of goods into & out of:

• U.S. Customs Territory• U.S. Virgin Islands• Bonded Warehouses• Foreign Trade Zones (FTZs)

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Coverage (cont.)

• 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.

Bonded Warehouses

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Bonded Warehouses

• Authorized by U.S. Customs

• Payment of duties on goods are deferred until goods are moved into Customs territories

• No duties if reshipped to foreign points

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Foreign Trade Zones (FTZs)

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Foreign Trade Zones (FTZs)• Operated as public utilities under the control of

U.S. Customs

• Goods are subject to duties if sent into Customs territory

• No duties if reshipped to foreign points

Foreign Trade Zones (FTZs) (cont.)

•Non-Privileged Foreign (NPF) Status—duties are based on the condition of the goods when it exits the zone

•Privileged Foreign (PF) Status—duties are based on the condition of the goods when it first enters the zone

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Sources of Import Data

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Sources of Import Data

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Paper (PRTDS) Electronic

Entry Summaries(CBP Form-7501)

Vessel Repairs(CBP Form-226)

Foreign Trade Zones Admissions(CBP Form-214A)

(ACS) ABI Entries(CBP Form-7501)

Automated Commercial Environment (ACE)

CBP E-214

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Sources of Import Data (cont.) Percent of Number of Source Value Records

ABI 86.7 3,948,079

E214 10.2 58,188Canadian 1.3

53 Gas and Electricity

Paper Documents 1.0 9,172

CBPF-7501, CBPF-226 and CBPF-214

Estimates 0.7 209

ACE 0.1 11,307Totals 4,026,955

February 2010 data

Import Data Categories

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Import Data Categories

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1. General Imports Imports for ConsumptionWarehouse or FTZ Entries

2. Imports for Consumption Imports for Consumption

Warehouse or FTZ Withdrawals

Import Data Categories (cont.)

General Imports – measure the total physical arrivals of merchandise from foreign countries• Entering consumption channels

immediately or• Bonded warehouses or FTZs admissions• Most widely used measure of imports

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Imports for Consumption – measure the total merchandise that has physically cleared through Customs• Entering consumption channels

immediately or• Entering after withdrawal for consumption

from bonded warehouses or FTZ

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UsuallyImports for consumption <= General imports

RememberGeneral Imports = Consumption+admissions

Imports for Consumption = Consumption+withdrawals

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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)

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Example continued:

Petroleum processed in a FTZ could result in:

Chapter 27General import stats > Consumption stats

Chapter 25General Import stats < Consumption stats

Sources of Export Data

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Sources of Export Data

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Electronic

Automated Export System (AES)

Canadian Data Exchange

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Sources of Export Data (cont.)

Source Percent of Number of

Value Records

AES 78.9 1,596,539Canada 18.8 773,027Estimates 2.3 222Totals 2,440,295

February 2010 data

Export Data Categories

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Export Data Categories

• Domestic Exports• Foreign Exports (Re-exports)• Noncontiguous Exports

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Export Data Categories (cont.)

Domestic Exports• Merchandise grown, produced, or

manufactured in the U.S.• Foreign origin merchandise that has been

changed from the form in which it was originally imported

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Foreign Exports (Re-exports)• Foreign origin merchandise that has

entered the U.S. for consumption• At the time of exportation, the condition of

the merchandise is substantially the same as it was when imported

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Noncontiguous Exports• PR and VI trade with the U.S• Separate data product

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Kimberley Process (KP)

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Kimberley Process (KP)

• A joint initiative to stem the flow of conflict diamonds.

• Minimum requirements for its members• Domestic legislation• Forgery-resistant certificate• Tamper-proof packaging• Trade with other KP Participants• Submit to peer review• Statistical reporting

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Kimberley Process (KP) (cont.)

• Imports must be entered by formal entry regardless of value

• Exports must be filed in AES regardless of value

• Export validation• US KP statistics

• KP certificate• Date of certificate issue

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Kimberley Process (KP) (cont.)

• Resources– www.KimberleyProcessStatistics.org

(KP Rough Diamond Statistics)– www.state.gov/e/eeb/diamonds

(State Department Conflict Diamonds)– www.KimberleyProcess.com

(Main Kimberley Process)– www.uskpa.org

(U.S. Kimberley Process Authority)

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http://www.kimberleyprocessstatistics.org/

http://www.state.gov/e/eeb/diamonds

http://www.kimberleyprocess.com/

http://www.uskpa.org/

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Data Collection Coordination Branch

Questions!

[email protected](301)763-2476

mailto:[email protected]

Processing and Editing

June 23, 2010

Sherri R. EwingMethods Research and Quality Assurance

[email protected]

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Topics

• Processing• ACE Portal

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Processing

Overview• Prepare for editing• Edit• Resolve errors

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Editing at Point of Collection

• We edit data at point of collection• Alerts the filer of any discrepancies

– Immediate feedback and response to errors

– More difficult to correct records once we receive the data

• Ensures best quality data

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Prepare Records for Editing • Combine sources

• Reformat data to uniform structure

• Identify Non-statistical transactions− Shipments to the U.S. Armed Forces– Personal household goods

• Low value records

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Prepare Records for Editing

Statistical time periods• Statistical month

– Imports - Release date– Exports - Clearance date

• Current Month• Carryover• Future month

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Preliminary Alterations• Recode or convert commodities as

necessary• Convert quantities

Example: Conversion of lbs. to kg.

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Apply Corrections to Data

• Submitted by filer• Replace existing shipments

Example: Filer mistakenly placed $10 million in the value field and then reported a correction for that field of $10 thousand Note: can also apply corrections received after data edited

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Editing

Overview• Code Validations• Relationship Edits• Ratio Edits• Range Edits

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Editing

Code ValidationsWe validate codes with lookup tables

– Harmonized System commodity – Country of origin– Foreign port– U.S. port– Special Program Indicators (imports)

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EditingRelationship Edits

• Commodity-specific relationship edits

• Mode of Transportation and Port of Unlading relationship

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EditingRatio Edits• Verify numeric data by computing ratios• Check ratios against commodity-specific

ranges• Several types of ratio edits

o Value to quantity o Quantity to shipping weight or value to shipping weighto First quantity to second quantity for shipments

requiring two quantities

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Editing

Ratio Edits• Unit price example - Fireworks

– We edit the quantity using unit price parameters of $0.66/kg to $30.17/kg

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EditingRange Edits• Range Edits

o Shipping weight exceeds what the mode of transportation can carry

– Example: 205,000 kg shipped via air is impossible

• Commodity-Specific Range Editso Focus on each individual commodity

– Example: 20 kg of diamonds unlikely

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EditingCommodity Specific Parameters• 2.5 million parameters

– 17,000+ Import commodity codes– 8,000+ Export commodity codes

• Approximately 100 edit parameters per commodity

• Flexible – can easily make necessary changes to parameters

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Error Resolution

• Cannot review every questionable record

• Edit programs identify records that are eligible for imputation

• Edit programs will not automatically impute records that have high impact

Error Resolution

Imputation

Is the substitution of some value for amissing data point or a missing

component of a data point

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Error ResolutionImputation• Impute a new quantity or shipping weight

from a factor and value or previously edited field

• Unit price example1,000 kg of fireworks valued at $40,000

would reject our edit if unit price parameters are $0.66/kg to $30.17/kg

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Error Resolution

Analyst review• Contact the filer• Confirm correct classification• Bypass the edits

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Error Resolution

Analyst Review• Aggregate data by commodity to determine if

total values and quantities are reasonable• Utilize summary files• Compare measures to previous months –

look for missing or misreported data and identify processing problems

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Topics

• Processing• ACE Portal

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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.

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ACE Portal

Census Categorizes data by Entry Types• General Imports• Imports for Consumption

The ACE Portal will contain all entry types

• Double counting trade into and out of warehouses and Foreign Trade Zones

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ACE Portal

Differences in the data

• Editing and imputing data occur after the data are extracted from the source

• Non-statistical data are not published

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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

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Data Processing and Editing

Questions!

[email protected](301)763-3330


The United States – Canada Data

Exchange

Eboné NormanProcess Coordination Staff U.S. Census BureauJune 23, 2010

[email protected]


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Agreement between the governments of the United States and Canada

based on a Memorandum of UnderstandingMemorandum of Understanding (MOU) (MOU)

What is the United States – Canada Data Exchange?

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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)

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How Does It Work?

U.S. Exports to Canada = Canadian Imports from the U.S.

andCanadian Exports to the U.S. =

U.S. Imports from Canada

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Why Was It Created?

• Rise in Export under coverage

Benefits:• Decrease operating costs to process

Export Declarations

• Eliminate reporting burden of Exporters

• Location and language of both countries

Impact On U.S. Trade Statistics

• U.S. and Canada Major Trading Partners

• Approx.14-15% of Total Imports Value from Canada

• Approx.18-20% of Total Exports Value to Canada

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What Are Some Differences in the Data Exchange?

• HS Recodes

• Vendor vs. Exporter (USPPI)

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• STC transmits files twice per month

• Adjustments are required

How Do We Receive Canadian Import Data?

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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

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Freight Charges

• Included in U.S. Exports

• Excluded in Canadian Imports

• Added to compensate for difference in valuation

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• U.S. Federal Reserve’s

monthly exchange rate

• STC converts to U.S. dollars/BOC

converts to Canadian dollars

• Files are transmitted

Currency Conversion

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Exports of Foreign Goods to Canada

• Transmitted from STC

• BOC includes these goods in U.S. export statistics to Canada

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Exports of U.S. Goods to Canada from Third Party Countries

• Transmitted from STC

• BOC excludes these goods from U.S. export statistics to Canada

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Revisions

• Estimates for Late Arrivals

• Corrections from STC

• Corrections Made by BOC

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Estimates for Late Arrivals

• STC sends with second transmittal

• Estimates replaced with actual values the following month in the

FT-900 press release only

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Corrections from STC

• STC sends with second transmittal

• Corrections to data sent in first transmittal

• Prior Month Corrections

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Corrections Made By BOC

• Commodity analysts verify corrections with their STC counterparts

• Corrections made prior to publication, when possible

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??? Questions ???

Eboné [email protected]


Trade with Partner Countries

Emmanuel Omoruyi June 23, 2010

U.S. Census Bureau

119


Definition of Partner CountryReasons for Trade DiscrepanciesResolving Trade DiscrepanciesPartner Country Reconciliation

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Trade with Partner CountriesDefinition of Partner Country

• Countries that have official export and import trade relationships with the United States.

• Country of ultimate destination for export and country of origin for import.


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Partner Countries

China

U.S Malaysia

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What is considered a U.S. export ?

• Domestically produced merchandise

• Foreign merchandise re-exported or sold to partner countries

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What is considered a U.S. import ?

• Partner’s merchandise based on country of origin

• Partner’s re-exports of foreign merchandise

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Reasons for Trade Discrepancies

• The valuation of goodsImports : Customs basis.

Exports: Free AlongSide Ship (FAS) basis.



• Classification issues Commodity contents True commodity

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• Definition of goodsThe U.S. does not count containers as goods traded with partner’s countries

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• Undercounting or under reportingImport is more completeExport may be understated

Trade with Partner CountriesReasons for Trade Discrepancies

• Third country U.S.

China Malaysia 128

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Trade with Partner CountriesReasons for Trade Discrepancies

• Low value $2000 for imports Special case: $250 for certain quota items

$2500 for exports



• Geographic coverageTrading partners’ often treat Puerto Rico and Virgin

Islands trade as trade with separate countries.

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• Special Cases In-Transit Goods Re-imports Country of origin undetermined International Standard Organization (ISO) coding errors

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Trade with Partner CountriesResolving Trade Discrepancies

• Resolve significant trade discrepancies by reconciliation.

• Assign reasons and dollar amounts for all known previous reasons.

• The unexplained balance we assign as Residual.

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Resolving Trade Discrepancies

From total U.S. published imports, we subtract : Re-importsContainersImports from 3rd countries Geographical coverage Low value Re-exports

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From total U.S. published exports, we subtract : Re-exportsGeographic coverageShipping (Freight Charges)Repairs

Trade with Partner countries


• Residual U.S. published imports – calculated discrepancies -

Partner’s published exports.

U.S. published exports – calculated discrepancies - Partner’s published imports.

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Trade with Partner Countries Partner Country Reconciliation

• China:Published 2000, 2004 and 2006 reconciliationhttp://www.census.gov/foreign-trade /aip/ recon

• Morocco:Reconciliation in process.

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http://www.census.gov/foreign-trade%20/aip/


QUESTIONS?

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Bill ReginaJune 23, 2010

U.S. Census Bureau

District/Port and District/Port and Mode of Transportation Mode of Transportation DataData

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Objectives

District/Port data definitions Mode of Transportation (MOT) types District/Port and MOT edits/relationship Data quality and other issues

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What is a District/Port Code?A 4-digit number denoting the specific

location of the port:

3022“30” = Seattle, WA (general district)“3022” = Spokane, WA (exact port)

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District/Port Data Definitions

Exports Vessel or Air –

The airport or seaport where the goods are loaded on the exporting carrier that is taking them out of the United States

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District/Port Data Definitions, ContinuedExports

Overland (to a border country) –

The port where the export crosses the U.S. border into a foreign country

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District/Port Data Definitions,ContinuedExports

Overland (through a border country) –

The port where the goods are loaded on the exporting carrier that is taking them out of the United States

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District/Port Data Definitions,ContinuedImports Port of Entry – The port where the goods clear U.S. Customs

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District/Port Data Definitions,ContinuedImports Port of Unlading – The port where the goods are unloaded from the

conveying vessel or aircraft

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Mode of Transportation (MOT) types

MOT is based on how the merchandise arrives in or

departs from the United States.

Vessel Air “Other”

- Truck- Rail- Others

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How does a truck get here from Finland?

Method of Transportation (MOT) is identified by the method of conveyance that is used when the shipment crosses the border and enters the U.S.

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Port and Method of Transportation (MOT) edits

Are the data: Valid? Obsolete?

Relationship editing: MOT vs. port MOT vs. commodity MOT vs. other data

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Data Quality and Other Issues

Container information Reported information:

missing, invalid, obsolete, or erroneous

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Data Quality and Other Issues, Continued User-Fee and Courier Ports “Special” Districts Published Method of Transportation

(MOT) totals at Ports

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Questions?

Bill [email protected](301) 763-7751




Quality Issues

Chris GrievesJune 23, 2010

U.S. Census Bureau

153

Topics Covered

• Uses of Foreign Trade Statistics• Quality Issues• Responses to Quality Issues

154

Uses of Foreign Trade Statistics

Accurate trade data are necessary for economic, commercial, and policy purposes.

Used by• Government• Non-Government

155

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

156

Government Uses (cont.)

Meet legal and regulatory requirementsImports

• Correctly assess import duties• Administer embargoes and quotas• Restrict counterfeit items entering the country• Implement control policies

ExportsEffectively administer control and regulatory policies for • national security or foreign policy reasons• implement export quotas or embargo programs • administer short supply programs

157

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

158

Importance of Data Quality

• Leading economic indicator• Wide and varied group of users• To use information wisely and

appropriately need to understand limitations.

159

Topics Covered

• Foreign Trade StatisticsForeign Trade Statistics• Quality IssuesQuality Issues• Responses to Quality IssuesResponses to Quality Issues

160

Quality Issues

• Reporting Errors• Documentation• Low Value• Carryover

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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

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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

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Reporting ErrorsReasons for Misclassification

• Typos• Duty avoidance• Not understanding the classification

system

Census Bureau utilizes edits to detect misreporting and send error messages to the filers

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Reporting ErrorsCharges

• 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 over or understated

165

Quality Issues

• Reporting ErrorsReporting Errors• Documentation• Low ValueLow Value• CarryoverCarryover

166

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

167

DocumentationIntermediary CountryCanada

• 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

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DocumentationForeign Trade Zones

Goods enter a FTZ• A customs form 214 is filled out

Goods withdrawn from a FTZ can be• Imports• Exports• In-bond

169

Foreign Country

U.S. Customs Territory

Export documentation should befilled out

Import documentation must be filled out, duties paid

FTZ

FTZ

Shipment in-bond, no duties paid

DocumentationForeign Trade Zone Withdrawals

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DocumentationImports 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

171

Quality Issues

• Reporting ErrorsReporting Errors• DocumentationDocumentation• Low Value• CarryoverCarryover

172

What do we mean by “Low Value”?

• To reduce filer burden, value-based exemption levels have been in place for many years

• Current exemption levels• Exports - $2500 for all goods• Imports - $2000 for most goods

- $250 for certain quota items

• Filers not required to file full detail for data valued below exemption level

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Quality Issues

• Reporting ErrorsReporting Errors• DocumentationDocumentation• Low ValueLow Value• Carryover

174

Carryover

• Trade records received and/or processed too late for inclusion with records in the correct transaction month

• Current carryover rate (2009 avg. of total value)

• 0.10% exports• 0.60% imports

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CarryoverEach 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

176

Topics Covered

• Foreign Trade StatisticsForeign Trade Statistics• Quality IssuesQuality Issues• Responses to Quality IssuesResponses to Quality Issues

177

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

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Low Value EstimationStarting with January 2010 statistics, we have implemented new LV estimation methodologies.

For Exports• We have added a courier component

For Imports•We have implemented a roll-up procedure as well as a courier component

For Both• We are utilizing current month records

179

Automated Reporting

• Effective July 2, 2008 all exports were to be filed through the Automated Export System (AES)

• Imports can be electronically filed through the Automated Broker Interface (ABI) and the Automated Commercial Environment (ACE)

180

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

181

Benefits of Automated Reporting

• Online, instant validation checks• Reduction in carryover

Exports• AES Compliance Review Program• No more export paper documents are

lost

182

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.

183

Questions ?

[email protected](301) 763-6610

www.bea.gov

U.S. International Trade in Goods

Balance of Payments Basis

John RutterBureau of the Census Conference on

“Understanding and Using Foreign Trade Data”Washington D.C.

June 23, 2010

www.bea.gov 185

Goods on a Balance of Payments (BOP) Basis

▪ BOP basis = Census basis + Net BOP Adjustments

▪ BOP Adjustments are made to: Eliminate duplication of transactions recorded

elsewhere in the international accounts

Supplement coverage of Census basis data

Align U.S. trade data with national and international BOP accounting standards

www.bea.gov 186

BOP Adjustments to Exports and Imports

BOP Adjustments to Exports and Imports, 2009[billions of dollars]

Exports of goods, Census basis

1,056.0

Imports of goods, Census basis

1,559.6

Plus: BOP adjustments, net 12.5 Plus: BOP adjustments, net

15.8

Goods procured in U.S. ports by foreign carriers

10.9 Goods procured in foreign ports by U.S. carriers

8.5

Exports under U.S. military agency sales contracts, net

1.0 Imports by U.S. military agencies, net

2.7

Low-value transactions 4.0 Low-value transactions

0.5

Repair of equipment -4.4 Repair of equipment -2.6Other adjustments 1.0 Other adjustments 6.6

Equals: Exports of goods, BOP basis

1,068.5

Equals: Imports of goods, BOP basis

1,575.4

www.bea.gov 187

Net BOP Adjustments

BOP Net Adjustments, 1999-2009

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

billi

ons

of d

olla

rs

Import Adjustments, Net Export Adjustments, Net

www.bea.gov 188

Goods Procured in Port (Exports and Imports)

▪ Addition of air and ocean carriers’ purchases of goods in foreign ports

▪ Limited to purchases of bunker fuel and jet fuel at this time

▪ Formerly included in the services category “Other transportation”

www.bea.gov 189

Exports Under U.S. Military Agency Sales Contracts

▪ Net value of two separate adjustments beginning with statistics for 1999: Deduction of goods identified in the Census data as exports

under the U.S. Foreign Military Sales (FMS) program; and, Addition of identified FMS goods exports, which are

provided to BEA by the U.S. Department of Defense.

▪ New treatment introduced in June 2010 to align the U.S. accounts with international balance of payments accounting standards

▪ For statistics prior to 1999, reflects only the deduction of identified goods exported under the FMS program These exports were then included, along with exports of services

under the FMS program, in the services category "Transfers under U.S. military sales contracts”

www.bea.gov 190

Imports by U.S. Military Agencies

▪ Net value of two separate adjustments beginning with statistics for 1999: Deduction of goods (petroleum and non-petroleum)

identified in the Census data as imports by U.S. military agencies; and,

Addition of petroleum purchases abroad by U.S. military agencies, which are provided to BEA by the U.S. Department of Defense.

▪ New treatment introduced in June 2010 to align the U.S. accounts with international balance of payments accounting guidelines

▪ For statistics prior to 1999, reflects only the deduction of goods imported by U.S. military agencies These imports were then included, along with imports of

services by U.S. military agencies, in the services category "Direct defense expenditures"

www.bea.gov 191

Low-Value Transactions (Exports and Imports)

▪ Census revised its low-value estimation methodology beginning with statistics for January 2010

▪ BEA added adjustments for 2007-2009 to phase in the new methodology

▪ Adjustments are based on comparison of statistics resulting from the new and previous Census methodologies

▪ Unlike exports, the new low value adjustment for imports is accomplished with two procedures rather than one. The second procedure is to identify and include reported low-value imports by commodity and country with the existing higher-valued reported imports data. Thus, the low value estimate for imports is relatively small compared with the low value estimate for exports.

▪ BEA will reexamine the historical low value adjustments when additional “new vs. previous” comparisons become available

www.bea.gov 192

Repair of Equipment (Exports and Imports)

▪ Deductions are made from goods to classify all repairs in services

▪ Census data include only the value of the repairs (parts + labor), not the value of the underlying commodity

▪ International guidelines recommend that all repairs be classified as services

www.bea.gov 193

Other BOP Adjustments

▪ Exports Private gift parcel remittances are added Electric energy transmitted to Mexico is added Motion picture film is deducted to avoid duplication with

services data

▪ Imports Inland freight in Canada and Mexico are added Revaluation of imported software is added, reflecting an

increase from reported media value to estimated full market value

Locomotives/railcars shipped from Canada and Mexico are added

Electric energy transmitted from Mexico is added An adjustment for nonmonetary gold is added, if needed,

reflecting gold sold by foreign official agencies to private purchasers out of stock held at the Federal Reserve Bank of New York

www.bea.gov 194

BOP Adjustments to Exports

BOP Export Adjustments, 1999-2009

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

billi

ons

of d

olla

rs

Export Adjustments, Net Goods Procured in Ports Low Value TransactionsForeign Military Sales Equipment Repair Other Export Adjustments

www.bea.gov 195

BOP Adjustments to Imports

BOP Import Adjustments, 1999-2009

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

billi

ons

of d

olla

rs

Import Adjustments, Net Goods Procured in Ports Inland FreightDirect Defense Expenditures Equipment Repair Other Import Adjustments

www.bea.gov 196

Possible Future New BOP Adjustments

▪ As needed to implement international accounting standards or to improve coverage

Examples Goods for Processing

This adjustment would deduct from Census-basis goods data the value of goods processed abroad without change of ownership. The fee charged by the processor (including all costs, margins and profit) would be added to manufacturing services exports or imports.

Merchanting Merchanting represents the profit/loss of goods

purchased/sold abroad without entering the U.S. customs territory. Merchanting is currently included in services trade on a net export basis.


Profile of U.S. Exporting Companies 2007-2008

Ryan ColemanMay 20, 2010

U.S. Census Bureau

198

Released April 13, 2010Available on FTD Website back to 1996

http://www.census.gov/foreign-trade/aip/index.html#profile

Profile of U.S. Exporters2007 – 2008

199

Snapshot of exporting companies within a given data year:

Who exports?Where do they export ?Where are they exporting from?

Profile of U.S. Exporters 2007 – 2008

What is the Profile of U.S. Exporters?

200


U.S. Census Bureau NewsU.S. Department of Commerce • Washington, D.C. 20230

FOR IMMEDIATE RELEASE

8:30 A.M. EST FRIDAY, APRIL 13, 2010

For information contact: (301) 763-3629 CB-xx-xxJeff McHugh , Ryan Coleman or Andreana Able

A Profile of U.S. Exporting Companies, 2007 - 2008

201

Partially $ponsored by theInternational Trade Administration (ITA)

Produced by the Special Projects Branch

Produced by linking export records to the Census Business Register


202

Composition of Total Export Value: 2008Composition of Total Export Value: 2008

Unidentified = Unidentified = Unmatched export Unmatched export recordsrecords Identified = Matched Identified = Matched export records(Known export records(Known export value)export value) Other = Low value Other = Low value est., revisions, Gov’t est., revisions, Gov’t shipmentsshipments


89%

8%3%

Unidentified Identified Other

203


Profile Characteristics - I

Company type – NAICS based (North American Industry Classification System)

ManufacturersWholesalersOtherUnclassified

204

Company size - # of employeesSmall (0-99 employees)Medium (100-499 employees)Large (500 or more employees)


Profile Characteristics - II

205


Profile Provides Data Users:

Employment sizes, types of companies, & major foreign markets

Countries and areas exported to most Export statistics for each state (OM State) Number of employees of identified

exporting companies

206


The Profile can answer questions such as:

Value exported by manufacturers in 2008 Canada’s known export value that can be

attributed to small companies Number of exporters from Maryland in

2008 and value of their exports

207

Unclassified0.5%

Others16.0%

Wholesalers21.6%

Manufacturers 61.9%

2008 Known Export ValueBy Company Type


208


2008 Number of Partner CountriesPercent Export Value by SizePercent Export Value by Size

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%

Large Companies

Small & MediumCompanies

209

Profile of U.S. Exporters 2007 – 2008 2008 Export Concentration

7.3%11.2%

18.6%

29.5%

38.0%

50.6%

60.1%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%

Top4

Top8

Top20

Top50

Top100

Top250

Top500

Companies

% o

f Kno

wn

Exp

ort V

alue

210

2008 Export Value and Number of Exportersby Employee Sizes

91%

22%

9%

6%3%

69%

0%

20%

40%

60%

80%

100%

Large (500 or More)Medium (100-499)Small (0-99)

Employee Sizes:

Known Export Value ($1,148 bil.)

Number of Exporters (288,747)


211


How is our data valuable to data users?

Example:

The number of small and medium sized exporters(0-499 Employees) that are single location companies.

212

Profile of U.S. Exporters 2007 – 2008Special requests for data:

Data users sometimes want specific data not in profile

Example:

Data user requested data on large exporting companies with additional size category breakouts

Table 1a of the Profile categorizes large exporting companies as 500+ employees

213

Profile of U.S. Importers

Why? - To meet a growing demand for statistics on U.S. importers

When? - Scheduled to release with next Profile of U.S. Exporters

Produced by similar methods as Profile of U.S. Exporters

214


The EDB Team

Jeffrey McHughRyan ColemanAndreana Able

(301)763-3629

215



State and Sub-State Data Series

Andreana AbleJune 23, 2010

U.S. Census Bureau

• Exports• State Data

• Origin of Movement Data• ZIP based Data

• Sub-State Data• Metropolitan Data

• Imports• State Data

• State of Destination Data

• Data Limitations

217

Background

Export State Data

Origin of Movement (OM) State – Based on Origin State•Available 1987 – Present

Origin of Movement (OM) – ZIP Code Based•Available on website starting with January 2006 statistics

218

Origin of Movement State Data

• 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

219


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

220


• Available in our monthly FT-900 Press Release, supplement, exhibit 2• State value for Manufacturing and Non-Manufacturing

(NAICS)• http://www.census.gov/foreign-trade/Press-Release/

current_press_release/exh2s.pdf

221


• Downloadable Historical Data (1995-2010)• http://www.census.gov/foreign-trade/statistics/state/

origin_movement/index.html

• Top 25 Commodities and Countries• http://www.census.gov/foreign-trade/statistics/state/

data/al.html

222

ZIP Based State

• The ZIP Code of the US Principle Party in Interest (USPPI)

• Does not necessarily represent the location of the USPPI

• Effective October 2008, the USPPI should report the address from which the goods begin the journey to the port of export

223

ZIP Based State

ZIP Code State examples:

• Goods warehoused in GA transported to a FL port to be shipped to a foreign country. ZIP state is ...GA

• For shipments with multiple origins, report the address from which the commodity with the greatest value begins its journey.

224

ZIP Based State

• Similar to Origin of Movement table in supplement, exhibit 2; is available on our website• State value for Manufacturing and Non-Manufacturing

(NAICS)

• Downloadable Historical Data (2006-2010)• http://www.census.gov/foreign-trade/statistics/state/zip/

index.html

For more information, please contact our Data Dissemination Branch at 301-763-2227.

225

Export State Data Comparisons

State State OM ZIP OM Pct Difference Dist of Columbia 3,618.2 1,096.7 229.9% Minnesota 24,110.7 15,506.3 55.5% South Dakota 1,567.3 1,011.8 54.9% Missouri 14,110.5 9,507.8 48.4% Colorado 8,112.9 5,780.0 40.4%

. . . .

Iowa 6,040.9 9,040.7 -33.2% West Virginia 3,163.7 4,822.1 -34.4% Alaska 1,737.0 3,255.0 -46.6% Louisiana 17,433.7 32,714.8 -46.7% Wyoming 276.9 926.1 -70.1%

226

OM State vs. ZIP Based State (2009)(Millions of Dollars)

227

Export State Data Comparisons

23 states are within 10% tolerance

Quartile 1 = -12.0Quartile 3 = 9.8Median = -0.4

DC

Wyoming

230%

Export State Data

Additional export state data:• Monthly OM & ZIP state data is available for download.

• State by 4-Digit NAICS Commodity by Country (Total, Air & Vessel)

• State by 6-Digit HS Commodity by Country (Total, Air & Vessel)

228


Export State Data

Other products … • Manufacturing and Construction Division (MCD) : Gives

exports by state, NAICS and major economic sector. Available online at http://www.census.gov/mcd

229

http://www.census.gov/mcd

Sub-State Data

• Available for export data.

• Data historically based on Metropolitan Area (MA).

• Core Based Statistical Areas (CBSAs) are defined by Office of Management & Budget (OMB) for metro and micro areas.

• New definitions for CBSA’s were announced by OMB on June 2003.

230

Sub-State Data

• CBSAs based on ZIP code of US Principle Party in Interest (USPPI).

• CBSAs now cover areas of 10 to 50 thousand population, which were not covered by Metropolitan Areas.

• CBSA codes increase coverage to about 93% of the population vs. 80% with MAs.

231

Sub-State Data

• Per a contract arrangement, we produce Metropolitan data for ITA which they release.

• To date, we have provided 3-digit ZIP Code & CBSA Metro totals for 2005 - 2008 and 2009H1 Export data to ITA.

232

Sub-State Data

Next Steps…

• Prepare 2009 metropolitan tables for ITA.

• The current contract calls for CBSA by 3-digit NAICS, CBSA by Destination, 3-digit NAICS by CBSA, and other tables of trade totals.

• ITA currently posts data at following address:• http://ita.doc.gov/td/industry/otea/metro/

233

Import State Data

• Based on the State of Destination• State value for Manufacturing and Non-Manufacturing

(NAICS)

• Available as of January 2010 statistics• Historical tables available starting with January 2008

data

• A new table added to our monthly FT-900 Press Release, supplement, exhibit 2as

234

State of Destination Data

• State where the merchandise is destined, as known at the time of entry summary filing.

• Import destination does not indicate where the goods are consumed or used.

• The state code should be derived from the standard postal two-letter state or territory abbreviation.

235

• FT-900 Press Release• http://www.census.gov/foreign-trade/Press-Release/

current_press_release/exh2as.pdf

• Downloadable Historical Data (2008-2010)• http://www.census.gov/foreign-trade/statistics/state/

destination_state/index.html

236


Additional import state data:• Monthly data available for download

• Import state data by 6-digit HS by Country (Total, Air & Vessel)

• Import state data by 4-digit NAICS by Country (Total, Air & Vessel)

237



State Data Limitations

• Data reported at the time goods enter or leave U.S.• State data do not track interstate flows of goods.

• Census Bureau discourages the use of these state data to calculate state trade balances.

• Import sub-state data will not be available.

Please visit our website for detailed data limitations information:http://www.census.gov/foreign-trade/aip/elom.html

238

239

For more information:

[email protected] Projects Branch Foreign Trade Division

(301) 763-0153www.census.gov/foreign-trade/www/

http://www.census.gov/foreign-trade/www/

240