Transcript m3Goods
Goods sent abroad for processing Previous question • Records goods sent for processing gross or net? • Opinions divided both in BOPCOM and AEG “Gross” and “net” • Gross : impute a change of ownership • Net: do not impute change of ownership BPM position • • • • • • Goods A to B to A - yes Goods A to B1 to B2 - no Goods A to B to C - no EXCEPT If B is unincorporated subsidiary of A If B is direct investment ent of A SNA position (domestic) • Goods A to B to A - no • Except if B is establishment of A • Goods from abroad - yes Summary • We have a hybrid system • Not transparent for either compilers or analysts Accounting implications • Goods out less goods in SHOULD be equal to processing fee • Different data sources • Different products • Different times • Holding gains Analytical implications • What is processor doing? Who takes on risk of production? • Major interaction with out-sourcing • Ratio of imports to domestic production • Is processing a good or a service? Alternative • Always impute change of ownership or • Never impute change of ownership SNA (domestic) • Either alternative significant change especially for input output tables • Changing rules for domestic processing might be more significant that for international Always impute change own Imports Change own Exports *** Change own *** Goods rec’d for 100 processing Goods sent after 120 processing Goods rec’d 110 after process’g Goods sent for processing 50 Never impute change own Imports Change own *** Processing fee 60 to non-res Exports Change own Processing fee from non-res *** 20 Supply and use • • • • • • Intermediate cons 100 Value added 20 Output 120 OR Value added / Output 20 Intermediate cons/output 120 Problem • Goods sent for processing in period t • Goods returned after processing in period t+1 Questions for the AEG • Always impute change for goods going abroad? • Never impute change for goods going abroad? • Keep present situation? • If a or b, make same changes for domestic processing? Questions for BOPCOM • If AEG says always impute change, would BOPCOM follow or go for never? • If the latter would this apply to unincorporated establishments and to direct investment enterprises Both groups • However processing recording, robust valuation needs values of goods on and out (from Customs) reconciled with processing fee (from business) • Does BOPCOM support provision of this data?