BRAZILIAN EXPORTS STATISTICAL DEPURATION SYSTEM

1. BRAZILIAN EXPORTS STATISTICAL DEPURATION SYSTEM Presentation to the 1st meeting of the OECD Working Party on International Trade in Goods and Trade in Services Statistics (WPTGS), OECD, Paris, 22-24 September 2008 STD/SES/WPTGS(2008)7

2. The statistical depuration system of Brazilian exports is applied at three different moments: - PREVENTIVE DEPURATION – before the export register is actually accomplished; - CONTINUOUSLY - during the operations (export registers with significant values); - “A POSTERIORI” (Post Depuration) - after the exports operations are completed. STATISTICAL DEPURATION SYSTEM

3. To reach this goal, the system sets parameters with the following characteristics: US$ FOB / kilogram relation by NCM code; b) US$ FOB / statistical measure unit relation by NCM code. STATISTICAL DEPURATION SYSTEM PREVENTIVE DEPURATION The ultimate goal of the system is to validate specific fields of the Export Register that are of statistical concern, in order to achieve the highest possible level of accuracy in Brazilian statistics of foreign trade.

4. These relations are set in accordance with the following rules: a) It considers the number of occurrences; b) Eliminates peak and bottom distortions; c) Establishes middle values (by kilogram and statistical measure unit); d) Establishes maximum and minimum values (by kilogram and statistical measure unit); e) Creates a table of parameters by merchandise (NCM – HS code). STATISTICAL DEPURATION SYSTEM

5. In order to avoid slowing operations or creating difficulties for the exporter, there is tolerance for minimum and maximum values: Minimum value tolerance: one decimal (-90%); Maximum value tolerance: one decimal (+900%). Within these margins, the exporter is informed that there may be an error in his operation, but it does not stop it. Outside these margins, however, the Export Register is centralized for analysis by the appropriate departament of SECEX, which can communicate itself by system with the exporter, who will proceed to retify or justify the data presented in his Export Register. STATISTICAL DEPURATION SYSTEM

6. STATISTICAL DEPURATION SYSTEM • PREVENTIVE DEPURATION • When the exporter inserts data in the SISCOMEX (Integrated System of Foreign Trade), this system analysis and compare them with the parameters of middle value (by merchandise), with the following possible occurrences in the preventive depuration: • a) Between the minimum and maximum parameters for the specific merchandise: operation pass through.

7. STATISTICAL DEPURATION SYSTEM b) Outside the minimum and maximum parameters for the specific merchandise, BUT within the tolerance margin: the system informs the exporter about the possibility of error, allowing him to retify or confirm the informations. If he confirms it, the operation proceeds regularly and the Export Register is flagged for posterior analysis.

8. STATISTICAL DEPURATION SYSTEM c) Outside the minimum and maximum parameters for the specific merchandise AND out of the tolerance margin: the Export Register is centralized in SECEX (Foreign Trade Secretary) for analysis in 24 hours at the most. If it has errors, the exporter receives a message by system containing the instructions to solve them.

9. STATISTICAL DEPURATION SYSTEM SAMPLES OF RESULTS OF MEDIUM VALUE CURVES

10. Usual causes for centralization of an Export Register for statistical analysis are errors in the following informations: Value (US$ FOB); Net weight (Kg); Quantities according to the statistical measure unit; d) Merchandise code (NCM – HS); e) Currency; f) INCOTERM. 98% of centralized registers have typing errors and are approximately 2% of ten housand daily operations. STATISTICAL DEPURATION SYSTEM

11. CONTINUOUS DEPURATION a) Executed using management reports including the main daily operations. It uses as criteria a significant value principle. b) Executed by means of partial comparative statistics. MINISTÉRIO DO DESENVOLVIMENTO, INDÚSTRIA E COMÉRCIO EXTERIOR STATISTICAL DEPURATION SYSTEM

12. Executed after the conclusion of the export operation (shipment), according with depuration reports such as: a.1) Comparison between the main statistical unit (kilogram) with the second standard sales; a.2.) Checking the relation merchandise / country for past periods. a.3) Analysis of the Export Registers flagged by yellow and red occurrences. MINISTÉRIO DO DESENVOLVIMENTO, INDÚSTRIA E COMÉRCIO EXTERIOR POST DEPURATION STATISTICAL DEPURATION SYSTEM

13. STATISTICAL DEPURATION SYSTEM Thank you! Paulo Roberto PAVÃO MDIC / SECEX / DEPLA / CGES Tel.: 55 – 61 - 2109-7677 / 2109-7061 Fax: 55 - 61 – 2109-7853 E-mail: paulo.pavao@desenvolvimento.gov.br