u.s. census bureau foreign trade division understanding foreign trade data april 23, 2009
TRANSCRIPT
U.S. Census BureauForeign 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 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
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. 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
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
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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.
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
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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
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Special Provisions (cont.)Dual Reporting of Codes
9817.85.01 • Prototypes for development, testing, evaluation• Free
8422.11.0000• Dishwasher, household• 2.4%
8422.19.0000• Dishwasher, other• Free
33
Special Provisions (cont.)
Chapter 99 • Quotas• Additional duties• Temporary reductions
34
35
36
37
Special Provisions (cont.)Dual Reporting of Codes
• 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
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 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
40
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
41
Internet References
FTD• http://www.census.gov/trade
Guide to Foreign Trade Statistics• http://www.census.gov/foreign-trade/
guide/index.html
42
Internet References (cont.)
Schedule B• http://www.census.gov/scheduleb
HTSUSA• http://www.usitc.gov/tata/hts/bychapter/index.htm
43
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
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
E214 7 38K
AFTZRP 1 3K
Canada 2 .05K
Paper Documents 1 6KCF-7501 and CF-214
Estimates 1 .2K
Totals 3.1 millionFebruary 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 18 669K
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
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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 ValidationsWe 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
o Quantity to valueo Quantity to shipping weight/value to shipping
weighto First 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 0.663966/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• Range Edits
o Shipping weight exceeds what the mode of transportation can carry
• Commodity-Specific Range Editso Focus 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 example1,000 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
The United States – Canada Data
Exchange
Wandra V. McKeeProcess Coordination Staff U.S. Census BureauApril 23, 2009
84
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?
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
U.S. Census BureauForeign 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 CountryWhat is considered an export ?
• Domestically produced merchandisesold 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
Export
No records of Chinaexport to U.S Re-export to U.S.
China made tile cutterMachine.Country of Origin, China
India add rollers and handle to the tile Machine India Stat; Import from ChinaIndia Stat: Re-exportCountry of Origin, China
U.S. Stat: Import from China, Country of Origin."Not Substantially transformed"India Country of export
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
Export
Export
Exp
ort
No exp
ort re
cord
No export record
U.K. export U.S made aircraft & automobile to Germany.U.K stat: Re-export to Germany.Country of Origin: U.S.Country of Export: U.S.
Germany Stat: Imports from U.S., Country of Origin.Country of Export: U.K.
Argentina: Imports from U.S. Country of Origin.Country of Export: Germany.
U.S. Business entity export domestic aircraft and automobile to U.K.U.S. Stat: export to U.K.Country of Origin is U.S.Country of Export is U.S.
109
Trade with Partner Countries
Special Cases
Re-imports:• Reported under HS 9801- imports from
country of shipment• Country of origin undetermined• International Standard Organization (ISO)
coding errors
110
Trade with Partner Countries
Special CasesIn-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 CountriesReasons 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 DiscrepanciesU.S. Published Imports (Total Imports)Re-imports (-)Imports from 3rd 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; 3rd Country issue-Processing Regimes; Valuation issue-Ship Cranes-Harmonize System code (HS 842619);
commodity issue• Morocco:
-Special trade; trade agreement issue-Export through Europe; 3rd country issue
.
119
Methods Research & Quality Assurance
Branch
Andrew ChangApril 23, 2009
U.S. Census Bureau
Port and Port and Mode of Transportation DataMode 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.
1301
District Port
122
Port Data Definitions
Port of ExportationVessel 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 TransportationCont.
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 DataFiling
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. MailFor 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
PipelineFor 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
U.S. Census BureauForeign 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 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
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
• Reporting ErrorsReporting Errors
• Documentation
• Low ValueLow Value
• CarryoverCarryover
• RevisionsRevisions
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
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
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 befilled out
Import documentation must be filled out, duties paid
FTZ
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
• Reporting ErrorsReporting Errors
• DocumentationDocumentation
• Low Value
• CarryoverCarryover
• RevisionsRevisions
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
• Reporting ErrorsReporting Errors
• DocumentationDocumentation
• Low ValueLow Value
• Carryover
• RevisionsRevisions
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
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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
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Quality Issues
• Reporting ErrorsReporting Errors
• DocumentationDocumentation
• Low ValueLow Value
• CarryoverCarryover
• Revisions
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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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Response to Quality Issues
What we’re doing to address these concerns.
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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)
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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
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Benefits of Automated Reporting
– Online, instant validation checks
– Reduction in carryover
Exports
– AES Compliance Review Program
– Less export paper documents are lost
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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.
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Questions ?
[email protected](301) 763-4690
Methods Research and Quality Assurance Branch
(301) 763-3080
U.S. Census BureauForeign Trade Division
Profile of U.S. Exporting Companies 2006-2007
Ben Shelak
April 23, 2009
U.S. Census Bureau
168
Released April 9, 2009
Available on FTD Website back to 1996
http://www.census.gov/foreign-trade/aip/index.html#profile
Profile of U.S. Exporters2006 – 2007
169
Profile of U.S. Exporters 2006 – 2007
U.S. Census Bureau NewsU.S. Department of Commerce • Washington, D.C. 20230
FOR IMMEDIATE RELEASE
8:30 A.M. EST FRIDAY, APRIL 9, 2009
For information contact: (301) 763-3629 CB-xx-xxJeff McHugh or Benjamin Shelak
A Profile of U.S. Exporting Companies, 2006 - 2007
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: 2007Composition of Total Export Value: 2007
Unidentified = Unidentified = Exports that could not Exports that could not be matched to Business be matched to Business RegisterRegister
Identified = Exports Identified = Exports that could be matched to that could be matched to the Business Register the Business Register (Known export value)(Known export value)
Other = Low value Other = Low value est., revisions, Gov’t est., revisions, Gov’t shipmentsshipments
Profile of U.S. Exporters 2006 – 2007
89%
8%3%
Unidentified Identified Other
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 employeesSmall (0-99 employees)
Medium (100-499 employees)
Large (500 or more employees)
Profile of U.S. Exporters 2006 – 2007
Profile Characteristics - II
176
Unclassified0.5%
Others14.3%
Wholesalers19.8%
Manufacturers 65.4%
2007 Known Export ValueBy Company Type
Profile of U.S. Exporters 2006 – 2007
177
$136.5
$65.2 $62.7$50.3 $49.7
$34.7 $33.0 $27.4 $26.4
$249.0
$0
$30
$60
$90
$120
$150
$180
$210
$240
Profile of U.S. Exporters 2006 – 2007
2007 Top 10 Export CountriesKnown Export ValueKnown Export Value (in billions)
178
Profile of U.S. Exporters 2006 – 2007
2007
Export Concentration
8.6%12.6%
20.1%
29.9%
38.3%
50.8%
60.3%
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 K
now
n E
xpor
t V
alu
e
179
2007 Export Value and Number of Exportersby Employee Sizes
21%
91%
6%
9%
70%
3%
0%
20%
40%
60%
80%
100%
Large (500 or More)
Medium (100-499)
Small (0-99)
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 – 2007Special 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 McHughBen Shelak
(301)763-3629
184
Profile of U.S. Exporters 2006 – 2007
U.S. Census BureauForeign 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 http://www.census.gov/foreign-trade/statistics/state/index.html
Data Dissemination Branch 301-763-2311
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: http://www.census.gov/foreign-trade/Press-
Release/current_press_release/exh2s.pdf
More detailed information
191
Based on ZIP Code: Available January 2006 - 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:
http://www.census.gov/foreign-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 = -14.96 Median = -3.47 Q3 = 6.97#States within (-10%, 10%) = 25
State State OM ZIP OM Pct Diff Wyoming 1,081.0 360.1 -66.69 Alaska 3,569.1 1,874.0 -47.49 New Mexico 2,779.5 1,459.8 -47.48 Louisiana 41,926.8 22,409.0 -46.55 Hawaii 964.0 613.5 -36.36
. . . Illinois 53,444.5 72,668.1 35.97 Connecticut 15,313.1 21,170.0 38.25 Michigan 44,871.4 64,429.7 43.59 Minnesota 19,158.6 31,052.8 62.08 Dist of Columbia 1,195.9 3,045.6 154.67
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 301-763-2214. 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 http://www.census.gov/mcd/exports/.
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 2005 - 2007 Export data to ITA http://ita.doc.gov/td/industry/otea/metro/
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.
• 2008 CBSA data will be available mid to late 2009.
202
For more information:
[email protected] Projects Branch Foreign Trade Division
(301) 763-3251www.census.gov/foreign-trade/www/
203