EXPORTS ORIGIN BY PROVINCES Argentine Republic

1. EXPORTS ORIGIN BY PROVINCES Argentine Republic 2nd MEETING OF THE WORKING PARTY ON INTERNATIONAL TRADE IN GOODS AND TRADE IN SERVICE STATISTICS (WPTGS) OECD November 16 -18, 2009

2. Export Origin by Provinces • INTRODUCTION • INFORMATION SOURCES • METHODOLOGY • Primary Products • Manufactured Goods • DEFINITIONS • TREATMENTS OF SPECIAL CASES • Manufacture of foreign origin • Crude oil • INFORMATION DISSEMINATION

3. INTRODUCTION Publications and reports on Argentine exports to describe their behaviour and trends, broken down by product categories and destination countries were available only at national level. The importance of this information by territorial origin has determined the need for adequate estimation methods by using additional sources of information. Initially the INDEC began providing data on export origin by provinces based solely on exporters’ customs declared. This source made it possible to determine the provincial origin of only two thirds of the total exports. This was largely due to difficulty in discrimination export origin of cereals, oilseeds and other agricultural products, whose commercialization modes did not allow identification of provincial origin. Nor could the provincial origin of crude oil be determined when coming from drillings that comprised more than one province.

4. PRIMARY INFORMATION SOURCES SHIPPING PERMITS: the shipping document (field: Origin/Country/Province) records information about provincial origin. Data often appears as a caption reading “Argentina” or “Undetermined”, thus indicating that the product in question has more than one provincial origin or that it is of an unknown origin. The rate of indeterminate information from customs clearance is approximately 38%.

5. METHODOLOGY The methodology that The INDEC adopts, using additional information sources, has achieved accuracy in the classification of EXPORTS BY PROVINCIAL ORIGINS, with an indeterminate rate not exceeding approximately 1,8%. PRIMARY PRODUCTS The origin of primary products is determined by the share of each producing province in the total domestic production, regardless of their contribution to total exports. MANUFACTURED GOODS The origin for these products is determined according to the location of the manufacturing plants. For this purpose, export firms are surveyed as well as other relevant information compiled by the INDEC through the National Survey of Big Enterprises and the Industrial Survey.

6. DEFINTIONS • THE ORIGIN PRODUCTS OF A PROVINCE ARE DEFINED AS: • The vegetable and mineral products extracted, harvested and gathered in its territory including rivers and lakes. • The animal products, whether born or raised in that jurisdiction. • The products processed or produced entirely in the province. • Products using materials originated in another province or abroad, but are processed and transformed in the province, giving them a new identity and are, therefore, classified under a different tariff heading.

7. CONTRARY TO THE DEFINITION Products are not considered province originated when Resulting from operations or processes consisting only in mounting, assembly, packaging, subdivision, marking of goods or simply dissolution in water or other substances without alteration of the main features of the product. CRITERIA USED To establish the geographical origin by province are SIMILAR To those DETERMINED in MERCOSUR To establish the national origin of goods.

8. HANDLING OF SPECIAL CASES • FOREIGN GOODS In order to determine the foreign provenance of a given product, the information in the customs statements is normally used: • Year, customs office, type of destination, condition of the goods, temporary imported inputs to be processed, imported inputs for direct consumption. INPUTS SHOULD COMPLY WITH THE FOLLOWING PARAMETER: If the total amount of inputs (temporary or for direct consumption) exceeds 40% of the F.O.B. price of the import, it must be deemed as of foreign provenance.

9. HANDLING OF SPECIAL CASES CRUDE OIL The main reason for reassigning the provincial origin of crude oil exports is: • The possibility of determining the percentages of provincial productions sold to local refineries (internal market), so that remainding percentage is what will be effectively available for foreign markets. The percentage structure of production by provincial origin is the net result of the country’s crude oil internalconsumption.

10. MONTHLY WORKING CIRCUIT 1- Reception of the Customs CD with monthly data of export-import operations. 2- Data entry and validation process in the production data base. 3- Manual correction of validation errors. Data entry of non-customs sources (energy, ship and aircraft supplies, etc). 4- Monthly data transmission to the operation data base of foreign trade 5- Process of the provincial origin of exportations. Storage of the resulting information to the subsequent generation of publications and data for users.

11. Information Dissemination: www.indec.gov.ar • Origin of exports by economic regions and provinces. • Classified exports by main items. • Exports by economic zones and provinces. • Exports by provincial origin according to main items. • Origin of exports according to economic region and provinces. • Exports by provincial origin according to the main chapters of the MERCOSUR Common Nomenclature (NCM).

12. EXAMPLE: SOYBEANS Exports by provincial origin according to customs documentation Production by province in tons (Program of provincial origin, based on data from the SAGPyA)

13. Provincial exports of soybeans Percentage share in 2008 Córdoba 3.1 27.6 3.7 1.7 Santa Fe Santa Fe 3.3 24.8 24.8 7.1 0.5 Buenos Aires 0.9 26.4

14. EXAMPLE: CORN GRAINS Exports by provincial origin according to customs documentation Production by province in tons (Program of provincial origin, based on data from the SAGPyA)

15. Provincial origin exports of corn grains Percentage share in 2008 0.9 Córdoba 0.9 1.9 2.1 39.7 Santa Fe 11.5 5.1 1.1 Buenos Aires 3.5 32.1

16. Fin de la presentación Muchas Gracias