The compilation of Georgia’s external trade statistics

1. The compilation of Georgia’s external trade statistics

2. Institutional arrangements Customs Department of the Ministry of Finance Georgian State Electrosystem LLC Georgia’s external trade statistics Department of Statistics of the Ministry of Economic Development Gas Transportation Company LLC National Energy Regulatory Commission

3. Data processing • Since 2003,the data have been processed using the ACCESS program. • External trade statistics, including those for 2005,are compiledon the basis of the Goods Classification of External Economic Activity, 1996 version, as amended in 2000. • Starting in 2006,we plan to make the transition to the Goods Classification of External Economic Activity, 2002 version.

4. Data quality • The quality of the data received from the Customs Departmenthas been gradually improving since 2000. • Since 2005, the Customs Department has: • installed the ASYCUDA client-server system at every customs post, which has made it possible to maintain the customs declarations data base on-line; • compiled and introduced instructions on how to fill in the customs declaration.

5. Typical errors in data made available by the Customs Department • additionalunit of measurementincorrect ormissing • errors in the coding of the goods • errors in the identificationof the customs regime • the price or weight of the goodis missingorobviously incorrect • errors in identifying diplomatic status

6. Timeliness • We obtain data from the Customs Departmentonce a month, generally no later than the 5th day of the following month. • We obtain information on imports and exports of electrical energy from Georgian State Electrosystem LLC by the 5th day of the following month. • We obtain information on imports of natural gas from the Gas Transportation Company LLCwithin 15 days of the end of the reference month. • Correction of the data takes 10 working days. • We are able to publish the information on Georgia’s external trade within 20 days of the end of the reference month. • Every month, the Balance of Payments Unit compiles a reporton external trade, which is published in the quarterly bulletins of the Department of Statisticsand the National Bank, while dataonforeign tradeare regularly posted on the Department of Statistics’ web site.

7. Data correction • In the light of our practice and experience of compilingforeign trade statistics, we created aspecificsystemof correcting data obtained from the Customs Department. • In the first place, duplicate declarations are eliminated, andnon-existent codes are corrected. • Declarations with diplomatic status are verified and corrected. • A survey is carried out ofgoods which, according tothe goods nomenclature,havean additional unit of measurement. Verification and correction generally concern thisadditional unit. The goods in questionare: • Automobiles and tractors (codes 8701 to 8705), • Alcoholic and non-alcoholic beverages: here, it is particularly important to use code 2208:spirits, • Eggs (code 0407) • Wood and wooden products: group 44 • Petrol for engines: in the group “Petroleum and petroleum products” • Tobacco products:code 2402 • Wherever possible, weget in touch with thetrading company, otherwise, we look at the priceandweight of the product. We also obtain valuable information from the verbaldescription of the goods, on the basis of which wecorrect the additional unit of measurement.

8. Data correction • Goods transformation. We verify all declarations containing a goods transformation code. • Maintenance and repair of goods. When verifying a declarationrelating to transformation of goods, weidentifydeclarations relating to maintenance and repair and exclude them from the statistics of international trade. We take them into account separatelyfor the balance of payments. • Banknotes. All declarations relating to the import and export of banknotes, excise stamps and similarprinted items are verified. Banknotes in circulation are often fixedat their nominal value, which considerablydistortsthe data oninternational trade. • Excise stamps. Excise stamps which are temporarilyimported or exportedforaffixation to the correspondinggoods, are recorded as conventional imports/exports. All goods of this type are excluded from international trade statistics. • In addition to the above, we verifyexport and import declarations withan excessively low or excessively high price, and the first twenty products are examined systematically.

9. Creation of the data base • Once the information obtained from the Customs Department has been corrected, we addthe data onelectrical energy and natural gas. All this information is then added to the primary data base, where all the declarations received from the Customs Department are stored. • The working data base is automatically created from the primary data base. Only the necessary declarations and essential elements are entered in the working base. • Any errors or inaccuracies discovered subsequently are first corrected in the primary data base, and the working data base is then automatically updated.

10. That concludes my brief description of how Georgia manages its statistics on international trade in goods.Thank you for your attention.