TRIEC TRADE IMPORT AND EXPORT CLASSIFICATION

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1 TRIEC TRADE IMPORT AND EXPORT CLASSIFICATION Version 3 (now includes HS2012 codes) Produced by Economic Diplomacy, Trade Advocacy & Statistics Section Department of Foreign Affairs and Trade Updated: 2014

2 ISBN (Book) ISBN (PDF format) With the exception of the Commonwealth Coat of Arms and where otherwise noted, this report is licensed under a Creative Commons Attribution 3.0 Australia licence You are free to reuse, modify, remix and distribute this material. The entire publication may be included as an appendix in your work for reference if you wish. Under the terms of the license, you are required to attribute DFAT material in the manner specified (but not in any way that suggests that DFAT endorses you or your use of the work). DFAT material used as supplied Provided you have not modified or remixed the material in this publication in any way it may be reused as long as the following attribution is used: Source: DFAT booklet TRIEC Trade Import and Export Classification. Derivative material If you have modified or remixed the material in this publication, or derived new material from it in any way, the following attribution must be used: Based on the DFAT booklet TRIEC Trade Import and Export Classification. Use of the Coat of Arms The terms under which the Coat of Arms can be used are detailed on the It s an Honour website Unless otherwise specified, all amounts are in Australian dollars.

3 - 1 - Trade Import and Export Classification (TRIEC) Introduction The Trade Import and Export Classification (TRIEC), has been developed by the Department of Foreign Affairs and Trade (DFAT) as a means of classifying Australia s merchandise imports and exports by level of processing. TRIEC is based on the previous DFAT Trade Export Classification (TREC). Trade Import and Export Classification (TRIEC) TRIEC is a hierarchical classification, with the broadest classes of goods defined at the 1-digit level, with progressively finer disaggregation down to a 4-digit level. The new classification is shown at Appendix A. TRIEC is a secondary classification that is based on the international Harmonized Commodity Description and Coding System (HS). The concordance between TRIEC and HS is shown at Appendix B. Components of TRIEC TRIEC is made up of three broad categories: Primary products - classified as either Unprocessed or Processed; Manufactured products classified as either Simply transformed (STM) or Elaborately transformed (ETM); and Other goods mainly Non-monetary gold and Confidential trade (see Appendix C). The two main categories Primary products (Unprocessed and Processed) and Manufactured products (STM and ETM) effectively classify goods by stage of processing. Broadly defined: Unprocessed primary products are those that have undergone minimal, or no, transformation. Live animals for food, wheat, crude petroleum, ores & concentrates are examples. Processed primary products represent a higher stage of processing. Examples are chilled or frozen meat and seafood, butter and cheese, flour, canned fruit and vegetables, wine and automotive spirit. STM consist mainly of basic metal manufactures, chemicals and other intermediate manufactured goods which will be used as inputs into other goods. Examples include flat-rolled steel products, chemicals, leather and cotton yarn. ETM are generally what would be termed finished goods. ETM covers a vast range of goods, including machinery, whitegoods and other household wares, motor vehicles, clothing and footwear. In a classification such as this there will inevitably be some items for which the distinction between the stages of processing will be a matter of judgment. This is particularly so in the case of STM and ETM, where the line between the two can be difficult to distinguish unambiguously. TRIEC data is published in the DFAT publication Composition of Trade Australia. The publication is issued twice each year, on a calendar year basis and a financial year basis with accompanying pivot tables. DFAT s trade statistical publications can be found on the DFAT website.

4 - 2 - Example of Aluminium products level of processing The manufacture of aluminium goods provides examples of all stages of processing. Australia exports aluminium products in all of the forms shown below: Aluminium products level of processing Description Broad category TRIEC code Aluminium ores & concentrates Bauxite is the ore from which aluminium is obtained. The bauxite, when it is mined, is classified as an Unprocessed primary product 112 Alumina (aluminium oxide) Further processing produces aluminium oxide (also known as alumina), and is classified as a Processed primary product 122 Aluminium, unworked With further processing, the aluminium oxide is transformed into unwrought aluminium a basic cast form that includes sheets and billets. This is classified as a STM 231 Aluminium products In the final stage of processing, aluminium articles such as aluminium foil, wire, pipes & tubes, door & window frames are produced. These are classified as an ETM Variety of 24 such as:

5 - 3 - History of TREC/TRIEC TRIEC is based on the previous DFAT Trade Export Classification (TREC). TREC was a secondary classification that was originally based on the Australian Bureau of Statistics (ABS) Australian Export Commodity Classification (AECC). With the introduction of the international Harmonized Commodity Description and Coding System (HS) in 1988, TREC was re-concorded to the ABS Australian Harmonized Export Commodity Classification (AHECC) at the 8-digit level. TREC was developed by DFAT primarily for the purpose of internal trade policy analysis and research. However, since its introduction in 1978 it has come to be regarded more widely as a useful method of analysing Australia s export trade. TREC was used to present information on exports (and some data relating to imports) in the former DFAT publication Exports of Primary and Manufactured Products. While closely related to the former TREC, the new TRIEC classification addresses a number of limitations that affected TREC and expands the analytical scope of the classification. Limitations of the previous TREC TREC was designed for a detailed identification of Australian export goods by level of processing. TREC had 5 levels within its hierarchy: 1-, 2-, 3- and 4-digit, and at the finest level of detail, 6-digits refer to Appendix E. To achieve this fine level of detail TREC was concorded to the ABS AHECC at the most detailed level (8-digit level). However, TREC had a number of limitations: TREC could only be used to interrogate Australia s merchandise exports; TREC could not be used to interrogate merchandise imports. This occurred because at the AHECC 8-digit level it is not possible to match these codes with the import codes in the ABS Harmonized Tariff Item Statistical code (HTISC). The two classifications are only compatible down to the 6-digit level. To partly overcome this deficiency, a complementary TREC for imports was developed, based on the United Nations Standard International Trade Classification (SITC). The SITC-based classification enabled the presentation of broad categories of imports that matched the broad TREC categories, but even at that level it was not fully compatible with the AHECC-based TREC. TREC also could not be used to interrogate other countries merchandise trade statistics, which are only compatible with ABS AHECC and HTISC at the HS 6-digit level. There was a growing interest by users of trade statistics in comparing not only Australian export and import data based on TREC but also for comparing Australia s TREC-based export profile with our major trading partner TREC-based import profiles. Users also commented that TREC was mainly being used at the higher levels (mainly the 1-, 2- and 3-digit level). As a result, the analytical possibilities of TREC were not meeting the needs of the department or other users. In addition TREC had become a very resource intensive classification to maintain. AHECC codes are reviewed every 5 years, with the vast majority of changes occurring at the 8-digit level. For example, the most recent TREC updated in 2007 involved reviewing over 1,600 AHECC 8-digit code changes. As a result it took significant resources to maintain the currency of the classification. To address these limitations and issues DFAT undertook a review of TREC in TREC Review 2010 Aims of the review TREC was reviewed to address the above limitations so that the classification could be used to analyse both export and import merchandise trade data as well as other countries international trade data. In addition, options to reduce the burden involved in keeping the classification up-to-date were examined.

6 - 4 - Results of the review The main recommendation of the review was to scale back the level to which TREC was concorded from 8-digit AHECC to the HS 4-digit level. At this level, the descriptions and codes of both exports (AHECC) and imports (HTISC) in the HS match, with the result that TREC would be fully compatible with ABS merchandise export and import data and could be used to analyse both. In addition, a classification based on the HS 4-digit level would enable interrogation of other countries merchandise trade data. In scaling back to the HS 4-digit level, the 6-digit level of TREC could no longer be supported. This was not considered a major issue as the detailed 6-digit TREC level could be substituted by the detail provided from the HS 4-, 6-, or for Australia, 8- and 10-digit level of the AHECC or HTISC trade data. A further advantage of basing TREC on the 4-digit AHECC level was that maintenance of the classification required fewer resources than did the 8-digit based classification. While the 4-digit level of the TREC should be satisfactory for most analyses, it was also noted during the process of the review that it was too broad a classification for some commodities and unnecessarily detailed for some others. As a result some new TREC 4-digit codes have been added, especially within the simply and elaborately transformed manufactures categories, while other codes have been merged. The scaling back process also revealed that some commodities would not be correctly classified in TREC if concorded at the 4-digit HS level only. For example, at the 4-digit HS level both unprocessed and processed petroleum gas products are captured in the same item, whereas they need to be split for the purposes of TREC. Therefore, a small number of 4-digit HS codes were disaggregated to the 6-digit HS level to ensure that they are correctly concorded within TREC (a total of 44 codes at the 4-digit HS level have been concorded with TREC at the 6-digit HS level). As both exports and imports codes are identical at the 6-digit HS level this does not impact on the ability of TREC to analyse ABS exports and imports data, as well as other countries merchandise trade data. The new TREC concordance comprises 1,560 HS codes, compared to around 10,000 AHECC codes in the previous version. As the new trade classification can now be used to analyse both export and import merchandise trade data, TREC was renamed to Trade Import and Export Classification (TRIEC). Comparing TREC and TRIEC A comparison of TREC and TRIEC was included in tables contained in an Information paper published in the DFAT publication Exports of Primary and Manufactured Products, Australia (released in December 2010 see Appendix D for a summary table showing the differences between TREC and TRIEC). It demonstrated that there were only minor differences between the totals at most levels of the classification and no changes in percentage share ratios or measured growth rates at the higher levels. The relatively small differences between the two classifications, in most cases, were due to the correction of some classification errors in TREC that were discovered during the compilation of TRIEC. The main classification corrections were the following: Animals not for food from Unprocessed primary products (UPP)-Food to Other goods; Frozen seafood from UPP-Food to Processed primary products (PPP)-Food; Decaffeinated coffee from UPP-Food to PPP-Food; Cane sugar molasses from UPP-Food to PPP-Food; Animal & vegetable fertilisers from UPP-Minerals to Simply transformed manufactured (STM) chemicals; and Certain types of Flat-rolled steel from Elaborately transformed (ETM) to either STM i.e. coils or to ETM i.e. non-coils depending upon the type of processing. The new treatment ensures consistent classification of all types of flat-rolled steel.

7 - 5 - TRIEC implementation Exports and imports data based on TRIEC were introduced in the DFAT publication Trade in Primary and Manufactured Products, 2010 (TPMP) released in June This publication replaced the former Exports of Primary and Manufactured Products. The new name reflects the re-design to take advantage of the new classification and includes for the first time information on Australia s imports in a comparable classification to exports. It also includes a new international section showing exports and imports of selected other countries on a TRIEC basis, enabling comparison with Australia s data. NOTE: In December 2013, the final edition of TPMP ( ) was published by DFAT. Some TRIEC tables from TPMP have been incorporated into the Composition of Trade Australia publication from the 2013 calendar year version onwards and additional data can be accessed using the accompanying pivot tables. Extra information based on the TRIEC classification is available upon request from DFAT s statistical consultancy area (

8 - 6 - Appendix A Trade Import and Export Classification (TRIEC) Primary products 11 Primary products Unprocessed 111 Food & live animals 112 Minerals 113 Fuels 114 Other 12 Primary products Processed 121 Food 122 Minerals 123 Fuels 124 Other 2 Manufactures 23 Manufactures Simply transformed 231 Mineral manufactures & metals 232 Chemicals & other semi-manufactures 233 Other 24 Manufactures Elaborately transformed 241 Mineral manufactures & metals 242 Chemicals & other semi-manufactures 243 Engineering products (excl Household equipment) 244 Other 3 Other goods 30 Other goods 301 Miscellaneous trade 302 Non-monetary gold 303 Unclassified trade & invalid items 304 Confidential items

9 - 7-1 Primary products 11 Primary products Unprocessed 111 Primary products Unprocessed - Food & live animals 1111 Live animals, chiefly for food 1112 Seafood, fresh, chilled, dried, smoked, salted 1113 Vegetables, fruit & nuts, fresh, chilled, or provisionally preserved 1114 Cereal grains 1119 Unprocessed food nes 112 Primary products Unprocessed Minerals 1121 Iron ore & concentrates (Australian split only) Other metalliferous ores & concentrates 1129 Unprocessed minerals nes 113 Primary products - Unprocessed - Fuels 1131 Coal, anthracite & bituminous 1132 Crude petroleum 1133 Petroleum gases & gaseous hydrocarbons nes 114 Primary products Unprocessed Other 1141 Hides, skins & furskins, raw 1142 Cork & wood 1143 Textile fibres, unprocessed & waste 1149 Crude materials nes 12 Primary products Processed 121 Primary products Processed Food 1211 Meat & meat preparations 1212 Seafood, frozen or processed 1213 Dairy products, processed 1214 Vegetables, fruit & nuts preparations 1215 Cereal preparations 1216 Animal & vegetable oils, fats & waxes 1217 Sugars, honey, coffee, cocoa & confectionery 1219 Preparations of food, beverages & tobacco nes 122 Primary products Processed Minerals 1221 Non-metallic minerals, processed 1222 Metallic minerals, processed 123 Primary products Processed Fuels 1231 Refined petroleum products 1232 Petroleum gases & other gaseous hydrocarbons, processed 1233 Electric current (Not an Australian code) 1239 Other processed fuels nes 1 For international merchandise trade data TRIEC codes 1121 & 1122 will be combined to code 1123 Metalliferous ores & concentrates.

10 Primary products Processed Other 1241 Rubber, natural, synthetic & reclaimed 1242 Wood, simply worked & pulp 1243 Textile fibres, processed 2 Manufactures 23 Manufactures Simply transformed 231 Manufactures Simply transformed Mineral manufactures & metals 2311 Non-metallic mineral manufactures, simply transformed 2312 Iron & steel, simply transformed 2313 Non-ferrous metals, simply transformed 232 Manufactures Simply transformed Chemicals & other semi-manufactures 2321 Organic chemicals 2322 Inorganic chemicals 2323 Other chemical & chemical preparations, simply transformed 2324 Other semi-manufactures, simply transformed 233 Manufactures Simply transformed Other 2339 Other simply transformed manufactures nes 24 Manufactures Elaborately transformed 241 Manufactures Elaborately transformed Mineral manufactures & metals 2411 Non-metallic mineral manufactures, elaborately transformed 2412 Iron & steel, elaborately transformed 2413 Non-ferrous metals, elaborately transformed 242 Manufactures Elaborately transformed Chemicals & other semi-manufactures 2421 Pharmaceutical products 2422 Essential oils, perfume & cosmetic products 2423 Plastics & articles of plastic 2424 Other chemical & chemical preparations, elaborately transformed 2425 Other semi-manufactures, elaborately transformed 243 Manufactures Elaborately transformed Engineering products (excl Household equipment) 2431 Machinery for specialised industries 2432 Office & telecommunications equipment & parts 2433 Road motor vehicles & parts 2434 Other transport equipment & parts 2435 Professional, scientific & controlling instruments & apparatus 2439 Other engineering products nes 244 Manufactures Elaborately transformed Other 2441 Household equipment 2442 Textiles, clothing & footwear 2449 Other miscellaneous manufactured articles nes

11 - 9-3 Other goods 30 Other goods 301 Other goods - Miscellaneous trade 3011 Armoured fighting vehicles, arms of war, etc & parts, nes 3012 Gold coins & other coins that are legal tender 3019 Miscellaneous merchandise trade nes 302 Other goods - Non-monetary gold 3021 Non-monetary gold 303 Other goods - Unclassified trade & invalid items 3031 Unclassified trade & invalid items 304 Other goods - Confidential trade 3041 Confidential trade

12 Appendix B Concordance table between the 4-digit level of the Trade Import and Export Classification (TRIEC) and the basic headings of the Harmonized Commodity Description (HS)* Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 1: Primary products (cont'd) 0707 (cont'd) 1205 (cont'd) (a) (b) (a) Australian split only. (b) Australian code only. * Concordance covers all HS codes from 1988 to 2012.

13 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 1: Primary products (cont'd) (cont'd) 1209 (cont'd) (cont'd)

14 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 1: Primary products (cont'd) (cont'd) 2305 (cont'd) (cont'd) (c) Section 2: Manufactured products (cont'd) 7110 (cont'd) (cont'd) (c) Not an Australian code.

15 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 2: Manufactured products (cont'd) (cont'd) 2907 (cont'd) 2821 (cont'd) 3501 (cont'd) (d) (d) (d) Australian confidential import code only.

16 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 2: Manufactured products (cont'd) (cont'd) 6911 (cont'd) (cont'd) 7410 (cont'd)

17 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 2: Manufactured products (cont'd) (cont'd) 4822 (cont'd) 8441 (cont'd) 8541 (cont'd) (e) (e) United States confidential import code of aircraft.

18 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 2: Manufactured products (cont'd) (cont'd) (cont'd) 8533 (cont'd) (cont'd)

19 Trade Import and Export Classification (TRIEC) TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS TRIEC 4D HS Section 2: Manufactured products (cont'd) (cont'd) 6113 (cont'd) 6506 (cont'd) 7018 (cont'd) Section 3: Other goods (cont'd) (f) (f) (g) (f) Australian imports code only. (g) Australian exports and international codes only.

20 Appendix C ABS trade commodities classified to TRIEC 3041 Confidential trade EXPORTS 1. Major confidential items at the Australia total level TRIEC AHECC DESCRIPTION Primary products Processed Minerals Nickel mattes (a) Manufactures Simply transformed Mineral manufactures & metals Unwrought nickel, not alloyed (a) Unwrought nickel alloys (a) Manufactures Elaborately transformed Mineral manufactures & metals 2412 Various Selected steel products (b) 2. Major confidential items at the country level TRIEC AHECC DESCRIPTION Primary products Unprocessed Minerals Uranium ores & concentrates Alumina (aluminium oxide) 1121 Various Minerals sands (c) Primary products Processed Minerals Nickel mattes (a) Primary products Processed Fuels Liquid natural gas Manufactures Simply transformed Mineral manufactures & metals Unwrought nickel, not alloyed (a) Unwrought nickel alloys (a) Manufactures Elaborately transformed Mineral manufactures & metals 2412 Various Selected steel products (b) (a) For more information on confidential Nickel exports refer to the article on "Impact of ABS confidential restrictions on Nickel exports" at (b) Includes: Coils of iron or non-alloy steel, not further worked, Semi-finished products of iron or non-alloy steel and selected Flat-rolled products of iron or non-alloy steel. (c) Includes: Rutile ores & concentrates, Beneficiated ilmenite ores & concentrates, Ilmenite (excl Beneficiated ilmenite) ores & concentrates, Leucoxene ores & concentrates, Zirconium ores & concentrates and Tantalum ores & concentrates.

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