Harmonisation of Intrastat concepts and definitions as a precondition for Intrastat Simplification

1. Harmonisation of Intrastat concepts and definitionsas a precondition for Intrastat Simplification Jan Bílý jan.bily@czso.cz

2. Content I. Intrastat as a simplification in se II. Harmonization of data collection and processing systems III. Better use of administrative data IV. Analysis and reduction of asymmetries V. Misclassifications VI. Potential solution for the longer term VII. Pros and Cons of the Harmonisation

3. I. Intrastat as a simplification in se • Aim of the Intrastat = to reduce the burden on companies = to guarantee the data quality • Single market in 1993 • Further efforts - exemption thresholds - statistical thresholds - small scale transactions - modernisation of the Combined Nomenclature (CN)

4. I. Intrastat as a simplification in se • IT solutions, web based applications • A quantum leap is necessary • The aim of the measures - reduction of asymmetries - unification of data sets and processing practices

5. II. Harmonization of data collection and processing systems • Differencies between Member States • Suggestions: • The indicators, which are considered obligatory by Eurostat should be obligatory in all Member States. • The indicators for other administrations should be harmonised as well. • The invoiced value should be collected only. • Statistical value should be neither collected nor calculated

6. II. Harmonization of data collection and processing systems • If the statistical value was not collected, the mode of transport on the border would not be needed. • The data on electricity snould not be reported. • It would be helpful to create the delivery terms group. • Concerning the nature of transaction, we would: • exclude inward and outward processing • exclude code 3 – free of charge dispatcharrival with transfre of ownership rights • not at all collect data on goods up to 20 EUR, if they are reported e. g. As spare parts of a machine

7. II. Harmonization of data collection and processing systems • Lay down the exchange rate for the conversion of the national currencies to Euro. • Non-response should be reduced in all Member States. • The use of the simplified codes in chapter 99 should be strictly regulated by Eurostat. • To study the possibility to change the concepts from a concept of physical flow of goods to a concept of change of ownership to deal with the problem of triangulation.

8. III. Better use of administrative data • Usage of the VAT Information Exchange System (VIES) to cross-check information in Intrastat reports • Merging Intrastat and VAT data collections.

9. IV. Analysis and reduction of asymmetries • Bilateral studies • Regular Mirror Leaflet

10. V. Misclassifications • Major reason for asymmetries • Classification of goods is a significant part of the reporting burden for companies. • Tools for classifying commodities • Simplification of the Combined Nomenclature (CN) • CN 8 code as a part of the invoice

11. VI. Potential solution for the longer term Long-term solution includes: • Work on asymmetries • Better and harmonised adjustment methods for trade below threshold • Exchange of confidential data between national statistical institutes (NSI‘s) • Analysis of the integration of Intrastat and VIES declarations

12. VI. Potential solution for the longer term • MEETS program 2008 - 2013 • Studies on development of tools and methods for maintaining or improving the data quality • Studies on improvement and facilitation of data exchange

13. VII. Pros and Cons of the Harmonisation • Position of the Czech Republic on simplification vs. single flow • Simplification of Intrastat vs. data quality

14. Thank you for your attention jan.bily@czso.cz www.czso.cz