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?