International Trade Package. Timo Koskimäki Finnish Customs

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1 International Trade Package (since spring 2012 renamed as SIMSTAT single market statistics ) Negative priorities, practical consequenses from producers and users point of view Timo Finnish Customs

2 Outline Backround: The ES vision for next decade and negative priorities -excercise From vision to strategy Case SIMSTAT (International Trade Package) Consequences to producers and users 2

3 The ES vision for next decade ~2009 Adopted by council and parliament Key ideas Extensive use of administrative data, re-use of already collected data micro-linkage of the data and data warehousing solutions Integration of statistical production systems for different fields e.g. idea of a single monthly enterprise survey covering most fields of enterprise statistics Standardisation of (national?) production processes through provision of software by eurostat To be achieved by division of labour between MS s and Commission and by financing projects aiming to provide standardised tools (Similar vision was in Nordic Countries spelled out in 1970 s and implemented during 1980 s and 1990 s although on national level and most successfully in social and demographic statistics) 3

4 From vision to strategy From vision to strategy and practical development work: ESS strategy, adopted by Council and the ESSC FRIBS-initiative (FRamework for Integrated Business Statistics) to integrate legal acts to a single act supplemented by agreements, guidelines manuals and other soft law elements ES Negative priorities exercise Intrastat as a negative priority, due to response burden and costs to compiling agencies (is it really so; 3,5 per cent of the total cost of FI official statistics, 50 percent of the burden, 80 per cent of the output in terms of released statistical information) -> the SIMSTAT-plan combining elements from the vision and more traditional burden reduction measures 4

5 The SIMSTAT Target: Reduce intrastat response burden (by 50 per cent) Improve the international trade in services statistics (if necessary, by increasing response burden; rebalancing goods and services statistics ) Most services-initiatives postponed to 2020, after BPM 6 implementation 5

6 The SIMSTAT Intrastat-part Means: Traditional Reduce the sample size on EU-imports (no formal coverage requirement, currently required to cover 95 per cent of the turnover) Reduce the level of detail in classification (from CN8 to HS) Visionary Exchange of micro-data between the MS so that no data collection for EU-imports will be needed The imports will be compiled using other MS s export data In EU-exports, the partner company id (VIES-number) would be collected in order to enable micro-linkage of the data with (national) business registers et.c. 6

7 Consequences - producers Traditional approach Quite straightforward, no need to complex development work Severe quality deterioration issues to be explained to the users Some cost savings for the compiling agency, mainly in data collection and checking Might satisfy the burden reduction target, depending on the guts of the compiling agency The Visionary approach does not cease to exist if traditional measure are taken 7

8 Consequences - producers Visionary approach Requires significant process re-engineering Re-design of the sampling process for EU-exports In order to ensure that also smaller MS s are covered Re-design of the data validation process Re-design of the estimation system for EU-imports Extensive use of VIES-data in order to accomplish the above There is not much experiences on the use of VIES yet Development of the technical infrastructure to exchange the micro data Settling of the mental and legal constraints considering micro-data exchange Some (significant?) cost savings for the compiling agency Definitely settles the response-burden issue In the longer run, opens up the discussion on the tasks of NSI s and EUROSTAT NSIs as sole local data collectors? 8

9 Consequences - Users Traditional approach Would satisfy mostly the needs of macroeconomic analysis (SNA, Balance of Payments, general economic policy) as the detailed data would not be usable any more The import-side national data collection would serve mainly macroeconomic analysis As the export side would be of better quality, users (and NSI s) would probably use mirror data from other MS s (so-called simplified/statistical single flow) for detailed statistics The problems inherent in current mirror data would not disappear Smaller MS s would suffer most Visionary approach (If the approach is successful) The quality would improve: Because of the increased use of administrative data (VIES) Because it is somewhat easier to collect data from exporters The timeliness may or may not be an issue; It may be possible to produce the statistics even on a more timely manner 9

10 Decision to take Be traditional do nothing Take the visionary approach despite the risks and additional work 10

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