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Simplification of Intrastat: Current State of Play

Simplification of Intrastat: Current State of Play. 8th International Trade Statistics Expert Meeting, OECD, Paris, 17th September 2007 Ales Capek Eurostat. Content. Past simplifications Single flow – pros and cons Increase of exemption threshold – pros and cons Conclusions.

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Simplification of Intrastat: Current State of Play

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  1. Simplification of Intrastat:Current State of Play 8th International Trade Statistics Expert Meeting, OECD, Paris, 17th September 2007 Ales Capek Eurostat

  2. Content • Past simplifications • Single flow – pros and cons • Increase of exemption threshold – pros and cons • Conclusions

  3. Past simplifications • Intrastat itself was a simplification - thresholds - monthly summaries instead of individual transactions - less data elements

  4. Past simplifications (ctd.) • Exemption threshold – from 99% to 97% coverage • Simplification threshold - from 5% to 6% of trade • Optional data • Simplified reporting (industrial plants, small transactions, staggered consignments) • Modernization of CN

  5. Current pressure on simplification • Lisbon process • Political drive (Presidencies, ECOFIN Council) • Commission Communication on reduction of response burden, simplification and priority setting in the field of community statistics

  6. 2 main simplification options • Single flow • Increase of the exemption threshold • Assesment criteria: - reduction of reporting burden - impact on timeliness - impact on accuracy of data

  7. Single flow – dispatches or arrivals • Arguments for dispatches: • Fewer PSI of bigger size having better information and administration systems • Speed of reporting • Link to VIES • Lower non-response

  8. Single flow – dispatches or arrivals (ctd.) • Arguments for arrivals: • Missing country of origin on dispatch side • Overestimation of dispatches due to VAT fraud • Less confidentiality on arrival side • Users interested in arrival data

  9. Single flow - pros • Reduction of reporting burden • Decrease of workload on statistical offices (depends on design of the system) • Quality of commodity classification • Response speed • Decrease of non-response (depends on thresholds)

  10. Single flow - cons • Break in time series due to asymmetries (trade, BoP, national accounts) • Lack of confidence in partner MS data resulting in continued collection of arrival data • Timeliness – need to wait for the last Member State

  11. Single flow – cons (ctd.) • Loss of data for national purposes • CIF – FOB valuation • Differences in reporting thresholds between Member States • Differences in methodologies between Member States (special simplifications, adjustments)

  12. Threshold option - pros • SMEs exempted from reporting obligation • Negligible impact on time series • Data for national purposes preserved • Neutral for timeliness of data (or even better) • Response speed • Decrease of non-response

  13. Threshold option - cons • More estimates of trade below threshold necessary - leading to decrease in accuracy • Increase of asymmetries

  14. Conclusions • Short/medium term: increase in exemption threshold (arrivals only or both flows?) • Arguments: - timeliness - little impact on time series - availability of national data elements - easy to implement - comparable impact on reporting burden as single flow

  15. Conclusions (ctd.) • Prerequisites for possible single flow in the long term - reduction of asymmetries - estimation of missing or delayed data to solve timeliness problem - quality checks to satisfy national needs - data exchange system - harmonization of data collection and processing systems

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