EUROPEAN COMMISSION
EUROSTAT
Directorate G: Business Statistics
Unit G-2:
International trade statistics
methodology and classifications
DOC. MET 956
INTERNAL DOCUMENT
REVISED GUIDELINES
FOR THE IMPLEMENTATION
OF THE INTRASTAT LEGISLATION
October 2007
GUIDELINES FOR THE IMPLEMENTATION OF THE INTRASTAT LEGISLATION
TABLE OF CONTENT
1
2
3
4
INTRODUCTION ....................................................................................................... 1
1.1 History of Intrastat ............................................................................................ 1
THE FRAMEWORK .................................................................................................. 3
2.1 Legal Basis ........................................................................................................ 3
2.2 To whom the legislation is addressed ............................................................... 5
2.3 Scope ................................................................................................................. 8
2.4 Data sources ...................................................................................................... 9
2.4.1 Direct data collection from trade operators (PSIs) .............................. 9
2.4.2 Data provided by customs authorities ............................................... 13
2.4.3 Additional data sources for specific movements............................... 14
2.5 Statistical territory ........................................................................................... 15
2.6 Register............................................................................................................ 16
2.7 Use of VAT and VIES data ............................................................................. 19
2.7.1 Relationship between value data on Intrastat declarations and
VAT data ........................................................................................... 20
2.7.2 Summary of links between VAT returns, VIES and Intrastat
declarations........................................................................................ 22
THE DATA ............................................................................................................... 24
3.1 Identification number of the PSI ..................................................................... 24
3.2 Reference period ............................................................................................. 25
3.3 Commodity Code ............................................................................................ 26
3.4 Partner Member State / country of origin........................................................ 27
3.5 Value ............................................................................................................... 28
3.6 Quantity ........................................................................................................... 31
3.7 Nature of the transaction ................................................................................. 32
3.8 Region ............................................................................................................. 35
3.9 Delivery terms ................................................................................................. 36
3.10 Mode of transport ............................................................................................ 36
3.11 Statistical procedure ........................................................................................ 37
SPECIFIC GOODS AND MOVEMENTS ............................................................... 37
4.1 Industrial plant................................................................................................. 37
4.2 Staggered consignments .................................................................................. 39
4.3 Vessels and aircraft ......................................................................................... 39
4.4 Motor vehicle and aircraft parts ...................................................................... 41
4.5 Goods delivered to vessels and aircraft ........................................................... 41
4.6 Offshore installations ...................................................................................... 43
4.7 Sea products .................................................................................................... 45
4.8 Spacecraft ........................................................................................................ 48
4.9 Electricity and gas ........................................................................................... 49
4.10 Military goods ................................................................................................. 50
i
5
6
7
8
9
10
4.11 Waste products ................................................................................................ 50
EXCLUSIONS .......................................................................................................... 52
5.1 Means of payment which are legal tender and securities ................................ 52
5.2 Emergency aid for disaster areas ..................................................................... 52
5.3 Goods benefiting from diplomatic, consular or similar immunity .................. 52
5.4 Goods for and following temporary use .......................................................... 53
5.5 Processing and repair ...................................................................................... 54
5.6 Software & Licences ....................................................................................... 55
5.7 Leasing & Hire ................................................................................................ 56
5.8 Samples & advertising material ...................................................................... 57
5.9 Goods dispatched to national armed forces..................................................... 57
5.10 Sales to and purchases from private individuals ............................................ 58
PARTICULAR TRADE FLOWS ............................................................................. 59
6.1 Goods in transit ............................................................................................... 59
6.2 Triangular trade ............................................................................................... 62
6.3 Rotterdam Effect ............................................................................................. 64
6.3.1 Explanation of the ‘Rotterdam Effect’ .............................................. 64
6.3.2 Reporting obligations ........................................................................ 65
6.3.3 Analysis of the Rotterdam Effect ...................................................... 66
6.4 Credit Notes..................................................................................................... 67
THRESHOLDS ......................................................................................................... 67
7.1 Statistical Value threshold (optional) .............................................................. 67
7.2 Exemption thresholds (mandatory) ................................................................. 68
7.3 Simplification thresholds (optional) ................................................................ 69
7.4 Small transaction threshold (optional) ............................................................ 69
7.5 Fiscal exclusion ............................................................................................... 69
QUALITY ................................................................................................................. 69
CONFIDENTIALITY ............................................................................................... 70
9.1 The principle of passive confidentiality .......................................................... 71
9.2 Confidentiality in practice ............................................................................... 71
9.3 Transmission of confidential data to Eurostat ................................................. 73
DATA TRANSMISSION ......................................................................................... 73
10.1 Aggregated data............................................................................................... 73
10.2 Detailed data .................................................................................................... 74
ii
1
INTRODUCTION
The guidelines to implement the Intrastat legislation provide clarification and recommendations
on how to apply the provisions laid down on statistics relating to the trading of goods between
Member States. The entire Intrastat legislation based on the European Parliament and Council
Regulation (EC) 638/2004, the Commission Regulation (EC) 1982/2004, and the amending
Commission Regulation (EC) 1915/2005 is covered in a systematic and comprehensive approach
which should make it easier for national competent authorities to apply the Community concept
on intra-Community trade statistics and harmonise compilation practices.
The legal provisions on intra-Community trade statistics should be clear, simple and precise.
However, due to the complex nature of the legislation, guidelines should facilitate the application
of the Community legislation and ensure that it is properly understood. Therefore, the aim of the
guidelines is threefold: first, to make Community legislation more understandable giving
background information on the intention of particular provisions; second, to avoid disputes on the
rights and obligations of Member States arising from the published provisions; and third, to make
recommendations on how to implement the legislation.
1.1
History of Intrastat
The system of collecting statistics on the trading of goods between Member States of the
European Union, known as the Intrastat system, was introduced by Council Regulation (EEC) No
3330/91 and has been applicable since 1993, when the Single Market was completed and the
physical frontiers between Member States were removed.
Up to this date, statistical information on the trading of goods, both with non-EU countries and
between Member States, was collected using customs declarations. The removal of this
comprehensive and very closely controlled source of information made it necessary to devise a
new system which would maintain a satisfactory level of information, since the advent of the
Single Market did not detract from the usefulness of statistics which help keep track of the
progress made in integrating Europe's economies, and which help European businesses conduct
market analyses and define their commercial strategies. The data also remain an essential source
of information for Balance of Payments statistics, national accounts and short-term economic
studies.
From the outset, the main characteristics of the Intrastat system have been:
– the management of detailed statistical information on trade;
– direct collection of information from companies, which have to send the relevant statistical
authority a summary statement of transactions for each month;
– a close link with the VAT system relating to intra-Community trade, so that the completeness
and quality of the statistical data can be checked;
– a maximum reduction of the workload on businesses by means of a system of exemption or
simplification thresholds.
Since its introduction, the Member States have, albeit to varying degrees, experienced difficulties
in complying with the Community Intrastat rules. In view of the difficulties faced by certain
businesses, particularly very small companies, Intrastat was chosen in 1996 as a pilot project for
the SLIM (Simpler Legislation for the Internal Market) initiative launched by internal market
ministers. The work has shown that the interests of data providers, who naturally want formalities
to be simplified, are not easily reconciled with those of data users who generally want readily
available detailed information .
Despite this awkward paradox, the Commission and the Member States nonetheless managed to
reach a consensus on amending the collection system on two occasions, firstly by reducing the
number of statistical variables and then by simplifying the arrangements for supplying the
product nomenclature.
In 1999, Eurostat adopted a long-term strategic plan that was the subject of extensive
consultation among national administrations and professionals; it dealt with all statistics relating
1
to the trading of goods (and not just Intrastat) and its specific aims were to improve the reliability
of results, speed up the availability of statistics and add to the range of statistics on offer in order
to respond better to changing demand.
The new Intrastat legislation, introduced on 1 January 2005, forms part of these efforts to
improve and adapt the statistical system in order to take better account of both users' needs and
the burden on information providers.
At present about half a million companies in Europe are responsible for providing information for
the Intrastat system. Each month they have to declare their goods deliveries, to and from other
Member States, for statistical purposes. The merchandise has to be identified according to a
commodity classification system which contains around 10.000 codes (Combined Nomenclature).
For each item of goods the value and quantity information has to be provided.
For all trade operators involved, Intrastat meant a lighter workload compared with the previous
system, in use prior to 1993, where any intra-Community trade transaction had to be declared and
presented to Customs for clearance. Before 1993, businesses were often unaware that their
reporting obligations for foreign trade statistics were fulfilled when lodging a Customs
declaration and it was only with the introduction of the Intrastat system that the statistical
reporting burden became apparent.
Since its introduction, Intrastat reporting has always been considered burdensome by business
communities in several Member States and in some cases also by National Statistical Institutes.
Therefore, the Intrastat system has already been subject to significant efforts to decrease the
reporting burden for businesses. Compared with Customs data requirements, intra-Community
trade required a reduced data set (eight data elements) The threshold system was expanded to
exempt a larger number of businesses, the number of nomenclature headings was reduced and
several simplified reporting measures were introduced. In addition, the Community and its
Member States strongly supported the development of modern electronic data collection and
validation tools which made Intrastat reporting considerably easier. At present, around 60 % of
declarants use offline and online tools when transmitting Intrastat data.
Despite all the simplifications already achieved, further, substantial simplification initiatives must
continue. The strategy of the EU on growth and jobs (Lisbon strategy) aims, among other things,
to reduce the administrative burden on businesses caused by the requirements of public
administration. While the statistical burden accounts for a relatively small part of the total
administrative burden in the Member States, the reporting burden, based on Intrastat, forms a
significant proportion of all statistical reporting obligations.
In the near future, the Intrastat system will have to focus on further easing of the reporting burden
which, at same time, does not affect the timeliness and quality of the data. With this is mind the
following options are being examined:
– A better use of administrative data by introducing a shared Intrastat and fiscal data collection
system
– An increase of the exemption threshold removing the reporting obligation of a substantial
number of companies, in particular small and medium-sized enterprises.
– The implementation of a single-flow system where trade operators report only on dispatches
and the corresponding arrivals are provided by the partner Member State
2
2
2.1
THE FRAMEWORK
Legal Basis
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 1: Subject; Article 14:
Comitology;
(EC) 1982/2004 Commission Regulation Intrastat: Article 1: Subject
(2006/112/EC) Council Directive on VAT
(EEC) No 2913/92 Council Regulation: Community Customs Code)
(EEC) No 2454/93 Commission Regulation laying down provisions for the implementation of the
Community Customs Code
To ensure coordination in terms of content, time and method Community statistics relating to the
trading of goods between Member States are based on EU Legislation.
European Union legislation known as the ‘Acquis Communautaire’ comprises Primary legislation
and Secondary legislation. The Primary legislation consists of the Treaties (e.g. Amsterdam,
Nice) and other agreements possessing similar status. Secondary legislation consists of
regulations, directives, decisions, recommendations and opinions based upon the Treaties.
Article 285 of the Amsterdam Treaty forms the basis for the rules concerning Community
Statistics in general and authorises the EU institutions to regulate this area. It states that
legislation concerning statistics belongs to the co-decision procedure which means that the
Council and the European Parliament together adopt the legal acts in this area. The Article also
specifies the principles of Community statistics, which are: impartiality, reliability, objectivity,
scientific independence, cost-effectiveness and statistical confidentiality; there should be no
excessive burdens on economic operators. All Secondary legislation relating to statistics must
always conform to the procedure and these principles.
Secondary legislation relating to intra-Community trade statistics is laid down in the regulations.
This means that the provisions have direct effect in all their elements in the Member States.
Individual Member States do not need to pass local laws to bring them into effect and any local
laws contrary to the regulations are overruled, as European Union Law takes precedence over the
laws of the Member States. Member States therefore have to legislate in the light of, and
consistently with the requirements of, the provisions laid down in the EU regulation.
Community provisions do not interfere in the compilation methods of national statistics relating
to the trading of goods, as long as the data provided to Eurostat are compiled according to the
Community concept. However, attention should be paid to the fact that deviation from
Community legislation for national purposes normally requires additional national legal
provision.
Provisions on intra-Community trade statistics are determined in two regulations: the 'Basic
Regulation' (EC) 638/2004 and the ‘Commission Regulation’ (EC) 1982/2004.
– The 'Basic Regulation’ establishes the essential rules governing statistics relating to the
trading of goods and is adopted by the Council and the European Parliament.
– The ‘Commission Regulation’ establishes rules for specific and well-defined aspects which
are granted to the Commission through the ‘Basic Regulation’ in order to determine the
procedures for the implementation of the collection and reporting of trade statistics.
Hence, the two legal texts are interrelated and a hierarchical dependency exists. It is
recommended, that, when consulting the legal texts, national authorities examine the ‘Basic
Regulation’ first and thereafter, only in cases where authorisation of the Commission on a
specific aspect is given in the ‘Basic Regulation’, check with the ‘Commission Regulation’
regarding further details.
Other additional Community legal acts influence the compilation of trade statistics. In particular
fiscal provisions and Customs legislation are linked to intra-Community trade statistics. The
regulations on intra-Community trade statistics refer to the respective laws when a direct
3
impact/obligation exists. However, in order to get a better idea of the impact of these adjoining
areas of trade statistics it is recommended that national authorities should have an overview of
the provisions laid down in the Council Directive on VAT (2006/112/EC) and the Community
Customs Code (EEC) No 2913/92.
In addition to the Community legislation on statistics relating to the trading of goods between
Member States, some specifications are agreed in so called “Gentlemen’s agreements” between
Eurostat and the Member States.
– This is particularly relevant for the technical data transmission arrangements which are
defined in the ‘Doc Meth 400’. This document aims to describe the method of transmitting
data to Eurostat and easing the 'transcription' of legal rules into practical rules. Each revised
version is agreed by the Intra- and Extrastat Committee. The document has no legal force even
if its content is in accordance with the obligations of the Member State to transmit data to
Eurostat in application of the EU legislation.
– These guidelines for the implementation of the Intrastat legislation shall also present an
agreement between the Member States and Eurostat on a common understanding regarding
the provisions of the regulations. Although this document has no legal force, its
recommendations and interpretations are strictly in line with, and correspond with, the rules
defined in the legislation.
The regulations on statistics relating to the trading of goods between Member States sometimes
refer to aspects of data transmission to Eurostat. In this case it is up to the Member States how
they arrange to provide the defined result and it allows Member States more freedom to collect
data based on their national needs and to adjust them subsequently according to the EU
requirements. Other provisions are determined at the collection level. In this respect Member
States are obliged to collect the data according to particular rules (e.g. Nomenclatures,
definitions). To install effective compilation procedures which take into account national
requirements and follow Community obligations it is recommended that national authorities
always verify whether or not a particular provision of the legislation is applicable at the level of
data collection or at the level of data transmission to Eurostat.
Member States collaborate and agree during the process of explanation and adoption of the
legislation on statistics relating to the trading of goods at different levels. The Commission
(Eurostat) has the right of initiative, i.e. to draw up proposals for Community legislation. Eurostat
prepared the legislation on statistics relating to the trading of goods together with experts from
competent national authorities in technical working groups. The outcome was regularly presented
and discussed by the Committee for the statistics on the trading of goods between Member States.
The members of the Committee represent the national administrations responsible for trade
statistics. The Committee agreed in the end on a draft version of the legislation. As regards the
‘Basic Regulation’ the Council, composed of the Ministerial representatives of the Member
States, and the European Parliament, directly elected by European citizens, adopted the
regulation after the first reading. Concerning the ‘Commission Regulation’ all national
representatives of the Committee voted unanimously, according to the ‘Comitology’ procedure,
in favour of the regulation before the adoption by the Commission.
To reach a common agreement on the adopted provisions the following aspects had to be taken
into consideration:
– the information requirement on trade figures for Community policies,
– the reporting burden for the information providers and collecting burden for national
administrations,
– Methodological constraints on particular movements.
This implies that the legislation is a compromise between an ideal conception and a feasible
practical approach, but it also represents a balance and agreement between different interest
groups. In this sense some provisions on statistics relating to the trading of goods between
Member States might be open to question or contain potential for improvement. Nevertheless,
4
they are currently in force and must be applied by the Member States properly. However, the
compilation of trade statistics is a dynamic process and with increasing harmonisation, changing
requirements and methodological approaches the current legislation has to be revised
periodically.
2.2
To whom the legislation is addressed
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 2: definition Article 7: PSI,
Article 12
The main players referred to in the legislation are the Commission (Eurostat), the Member States
and their national authorities and the parties responsible for providing the information (trade
operators).
Eurostat: At Community level, Eurostat is the Commission Department responsible for
overseeing and developing work on intra-Community trade statistics. Eurostat’s particular role is:
– to draw up legislation and to monitor its correct application in the Member States
– to provide assistance to the Member States for further harmonised approaches
(methodological assistance, investigation, software programs for the collection of data and
their transmission to Eurostat, for instance within grants for Member States in the framework
of the former EDICOM project or the future Meets programme, etc.)
– to publish Community statistics on the trading of goods between Member States
It is recommended that any query concerning the compilation of intra-Community trade
statistics is addressed directly to Eurostat’s international trade unit.
Member States: According to the principle of subsidiarity, the Intrastat legislation allows
Member States to choose to a large extent how they implement the Intrastat system. Most
provisions in the legislation are addressed to the Member States and, in consequence, it is up to
them how they organise themselves internally to fulfil the obligations of Community Legislation.
In particular, the legislation gives Member States sovereignty to use their own methods to collect
data from Providers of Statistical Information (PSIs).
The national authorities: In some cases the legislation addresses ‘national authorities’, which
are the bodies responsible in each Member State for producing Community statistics relating to
the trading of goods between Member States. However, the legislation does not determine any
criteria, requirements, or obligations as to who these bodies should be and how they should
function. In consequence, a range of implementation systems, with different national
administrations involved, exists within the Member States.
Collecting, processing and disseminating statistical intra-Community trade information may be
carried out by one or more national institutions. The table below shows the organisational and
administrative structure in the Member States:
No
Member
State
Leading
administration
National
Bank
Statistical
Office
Statistical
Office
1.
Belgium
2.
Bulgaria
3.
Czech
Republic
4.
Denmark
Statistical
Office
5.
Germany
Statistical
Data
collection/
Capture
National
Bank
Vat Offices
Customs
Control and Data
correction
processing
Dissemination
National Bank
National
Bank
Statistical
Office
/ Statistical
Office
National
Bank
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Statistical
Vat Offices
Customs
Statistical
Office
Customs / Statistical
Tax
Office
Administra
tion
Statistical
Statistical
5
No
Member
State
6.
Estonia
7.
Greece
8.
9.
10.
Spain
France
Ireland
11.
Italy
12.
Cyprus
13.
Latvia
14.
Lithuania
15.
Luxembourg
16.
Hungary
17.
Malta
18.
Netherlands
19.
Austria
20.
Poland
21.
Portugal
22.
Romania
23.
Slovenia
24.
Slovakia
25.
26.
Finland
Sweden
27.
United
Kingdom
Leading
administration
Office
Statistical
Office
Statistical
Office
Customs
Customs
Statistical
Office
Data
collection/
Capture
Office
Statistical
Office
Vat Offices
Control and Data
correction
processing
Office
Statistical
Office
Statistical
Office
Customs
Customs
Customs
Customs
Revenue
Revenue
Commissio Commissioner /
ner
/ VIMA
VIMA
Statistical
Ministry of Statistical
Office
Finance
Office
Statistical
Vat Offices Statistical
Office
Office
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Customs
Statistical
Office
Office,
Customs
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Ministry of Statistical
Office
Finance
Office,
Ministry
of
Finance
Statistical
Statistical
Statistical
Office
Office
/ Office
/
Autonomic Autonomic
Regions
Regions
Statistical
Statistical
Statistical
Office
Office
Office
Statistical
Customs
Customs
/
Office
Statistical
Office
Statistical
Customs
Statistical
Office
Office
/
Customs
Customs
Customs
Customs
Statistical
Statistical
Statistical
Office
Office
Office
HM
HM
HM Revenue
Revenue & Revenue & & Customs
Customs
Customs
6
Dissemination
Office
Statistical
Office
Statistical
Office
Customs
Customs
Statistical
Office
Office
Statistical
Office
Statistical
Office
Customs
Customs
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Office
Statistical
Statistical
Office
Office
Statistical
Statistical
Office
Office
Statistical
Statistical
Office
Office
Statistical
Statistical
Office
Office
Statistical
Statistical
Office
Office
Ministry of Ministry of
Finance
Finance
/
Statistical
Office
Statistical
Statistical
Office
Office
Statistical
Office
Customs
Statistical
Office
Statistical
Office
Statistical
Office
/ Statistical
Office
Customs
Statistical
Office
HM Revenue
& Customs
Statistical
Office
Customs
Statistical
Office
HM Revenue
& Customs
It is recommended that Member States inform Eurostat of any major organisational changes as
regards the administration involved in the implementation of the Intrastat system in order to
identify the ‘national authority ’ responsible for producing intra-Community trade statistics in the
Member States.
As already stated, most provisions of the Intrastat legislation are addressed to Member States in
general. However, the following tasks are targeted, in particular, at the ‘national authorities’:
– The setting up of a register of intra-Community operators
– The data collection
– The confidentiality of statistical results.
Customs and tax administration: Customs and the tax administration are affected by the
Intrastat legislation:
– Customs are obliged to provide data on particular inward processing procedures and trade
flows to and from territories belonging to the Customs territory but not to the fiscal territory
of a Member State to the national statistical authorities.
– The tax administration is obliged to provide data on VAT registered trade operators and the
value of their intra-Community acquisitions and supplies to enable the national authorities to
compile and maintain an Intrastat register and to compare fiscal with statistical declarations.
The trade operators: The legislation determines in detail who is liable to provide the
information on intra-Community trade. The obligations of the parties responsible for providing
the information (PSIs: see chapter on data sources) under the Intrastat system are the following:
– They must provide the required information on their trade to the national authorities. How
they have to provide this information (e.g. delay, data medium) is not determined in
Community legislation and Member States should adopt national instructions on the
procedures and requirements.
– They must respect the provisions of the scope within which to provide the information. PSIs
must provide data on all their dispatches and arrivals of Community goods (except goods in
simple circulation, i.e. transit, or goods excluded under Annex 1 to EC Regulation
1982/2004).
– They must provide the data in accordance with concepts laid down in the legislation: codes
and definitions must be respected.
– They have the right to request that national authorities examine whether the information they
provide should be considered as confidential, with the result that the trade flows concerned
may be hidden. However, this does not affect their obligation to report for the Intrastat system
in any way.
7
2.3
Scope
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 2: Definition Goods and
Community goods; Article 3: Definition scope of dispatches and arrivals
Intra-Community trade statistics should record all goods which add to or subtract from the stock
of material resources of a Member State by entering (arrival) or leaving (dispatch) its statistical
territory from or to another Member State. Goods simply being transported through a country
(goods in transit) or temporarily admitted or withdrawn do not add to or subtract from the stock
of material resources of a Member State (provided all the following conditions are met: no
processing is planned or made, the expected duration of the temporary use is less than 24 months
and the dispatch/arrival does not have to be declared as a delivery/acquisition for VAT purposes)
and are not included in intra- Community trade statistics.
Therefore intra-Community trade statistics concern the movement of goods between the
statistical territories of Member States. Basically all moveable goods entering or leaving a
Member State, including gas and electricity, must be recorded and reported. For almost all
transactions the goods must physically move between Member States.
The following aspects should be mentioned:
– The transfer of ownership is not the determining factor. Only in certain specific cases (ships,
aircraft, and spacecraft) is the ownership principle crucial in defining a trade transaction. The
concept of intra-Community trade statistics is independent from the ownership of the goods
and only concerns the movement of the goods. However, it should be considered that trade
figures for Balance of Payments and National Accounts do rely on the transfer of ownership
and different data might be required for the production of these statistics. This can be obtained
from information about the Nature of Transaction, which allows the identification of intraCommunity trade involving an actual or intended transfer of ownership.
– Data reported for intra-Community trade statistics may not necessarily be reported for VAT to
the fiscal authorities (in the so called ‘two boxes’ of the VAT return). In most cases fiscal
declarations (intra-Community acquisitions and supplies of goods) and statistical declarations
(arrivals and dispatches of goods) will be similar. However, from a legal point of view the two
concepts are independent and a decision on whether a trade transaction should be taken into
account for trade statistics should never depend on its fiscal reporting obligations. Indeed,
there are several transactions which are treated differently for fiscal and statistical purposes
(e.g. goods involved in processing, electricity etc.)
– The coverage of intra-Community trade statistics in the reporting Member State will not
necessarily be the same as in the partner Member State. Different threshold systems, supplies
made to non-VAT registered entities, partial or non response, or methodological reasons may
result in a transaction being reported in one Member State, but not in the other. This practice
causes asymmetries between the different trade figures of Member States at the data collection
level. However, Member States should adjust their trade figures accordingly to reach total
coverage when transmitting results to Eurostat.
– Intra-Community trade statistics are limited to the trading of goods. In practice, problems
might occur in distinguishing between trading in goods and trading in services (e.g. repair).
As far as possible, these problems are taken into account in the Chapter on ‘Exclusions’ and
‘Specific Movements’.
– Some transactions are included in intra-Community trade statistics although this is implicit
rather than explicit in the legislation:
• Barter trade is included (although there may inevitably be some valuation problems).
• Goods on consignment are included. (Goods on consignment are goods intended for sale
but not actually sold at the time they cross the frontier).
• Goods on financial lease are generally included.
8
• Goods traded between companies under common ownership (i.e. the same legal entity)
are included (although this may raise valuation problems).
• Goods traded on government account are generally included.
• Trade in electrical energy, gas and water is included
The scope of intra-Community trade statistics covers “Community goods” which are defined as
goods entirely obtained in the Community, goods which have been released for free circulation in
a Member State or goods which are a combination of the two. It can generally be assumed that
any goods which circulate between Member States and which are not under Customs control are
Community goods.
The scope of intra-Community trade statistics also covers some transactions with “nonCommunity goods” which enter the EU in a given Member State without release into free
circulation, and move on to other Member States under customs inward processing relief
procedures. The transactions concerned are described in (EC) 638/2004 Article 3 (2) (b) and (3)
(b). Within the scope of intra-Community trade statistics, information on non-Community goods
must be provided by customs authorities.
2.4
Data sources
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article: Data Sources; Article 5
The scope of intra-Community trade statistics and their data sources are closely connected. On
the one hand, the data sources should enable data on trade transactions defined in the scope ((EC)
638/2004 Article 3) to be collected as comprehensively and accurately as possible. On the other
hand, the data sources could also be used to exclude some parts of trade statistics which are not
required. Where no data sources are available, no information will be collected and trade
statistics cannot be produced. For example, the legislation does not permit the collection of
information from persons who are not registered for VAT, in consequence, the scope of intraCommunity trade statistics is indirectly affected. Although Article 3 of (EC) 638/2004 does not
exempt trade from private individuals explicitly, this trade is automatically excluded because
persons not registered for VAT are not included within the data sources used.
Three data sources are mentioned in the first three paragraphs of Article 5 of (EC) 638/2004.
They are closely linked to paragraphs 2 to 4 of Article 3 on the scope of intra-Community trade
statistics.
2.4.1
Direct data collection from trade operators (PSIs)
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 5 paragraph (1) ‘Intrastat
system’; Article 3 paragraph (2) (a) and paragraph (3) (a) scope; Article 7 PSI
(EC) 1982/2004 Commission Regulation Intrastat: Article 4: PSI obligation to prove the
correctness of the information.
Member States collect monthly data from parties responsible for providing the information
(PSIs). This is the principle data source for intra-Community trade statistics. The data collection
system is called Intrastat. Often the term ‘Intrastat’ is used for the entire system of Community
statistics relating to the trading of goods between Member States. However, this is not correct as
the ‘Intrastat system’ is only applicable to data collected from PSIs. Article 5 paragraph (1)
defines the ‘Intrastat system’ and should be read in conjunction with the trade defined in Article 3
paragraph (2) (a) and paragraph (3) (a) on Community goods. In general, trade information
collected from PSIs corresponds to the trade defined in those paragraphs.
9
Three conditions have to be met for a legal entity to be considered as a party responsible for
providing information to the Intrastat system:
First condition: VAT registration
Intrastat data can be collected from natural or legal persons who are registered for VAT in the
reporting Member State.
Natural and legal persons making intra-Community supplies (i.e. sales / dispatches) or
acquisitions (i.e. purchases /arrivals) or providing services in the reporting Member State must be
VAT-registered and must declare their turnover for tax purposes. In other words, any person
carrying out an economic business (producer, trader, provider of services etc.) autonomously and
independently in a Member State has to submit tax declarations on a regular basis. ‘Persons
registered for VAT’ in terms of the Intrastat legislation are traders liable for VAT in the reporting
Member State. The relevant tax office in the Member State issues a VAT number under which
these traders have to report their taxable turnover to the fiscal authorities. In consequence the
parties responsible for providing the information (PSIs) are limited to those persons who are
listed in a national VAT register (all national VAT traders).
It should be underlined that Community legislation ((EC) 638/2004 Article (8) (a) and (EC)
1982/2004 Article 5) only obliges the tax administration to provide information to the authorities
responsible for trade statistics on national VAT registered traders who have made supplies to, or
acquisitions of goods from other Member States. Therefore, at least once a month, the tax
administration must furnish the identification number of all VAT registered traders who have
declared that, during the period in question, they have supplied goods to or acquired goods from
other Member States; in other words only those who have filled in the so called ‘two boxes’ of
the VAT declaration on intra-Community acquisitions or supplies. For Intrastat, however, all
traders who are listed in the national VAT register (whether or not they have made declarations in
the so called ‘two boxes’) are within the scope of the system. Therefore, it is recommended, that
national authorities assess whether it is feasible that tax administrations transmit a monthly file
including all national VAT-registered traders to the statistical authorities.
Fiscal legislation determines in detail those persons (legal and natural) who have to register for
VAT and national fiscal authorities monitor whether all liable persons are registered. The role of
the authorities responsible for trade statistics is, therefore, only to verify whether a person is
registered or not in order to decide whether data collection is appropriate. The reason for the
registration/non registration of a trader is not relevant to the statistical authority. Nevertheless, to
help a general understanding, examples of some groups and their liability to register for VAT are
set out below:
1. Private individuals and employees who are not carrying out an economic business. They are
not VAT registered and therefore not liable to report on their intra-Community trade for
Intrastat.
2. Small companies which are not obliged to be registered for VAT because their turnover is
below the VAT registration threshold set by individual Member States. In addition, they
would also be excluded because of the Intrastat exemption threshold which is far higher
than the VAT-registration threshold.
3. Non-taxable entities: According to Article 7 of Intrastat Regulation (EC) 638/2004
information should be collected from all parties registered for VAT, provided their trade is
above the exemption threshold. This includes the registered taxable person and also the
registered non-taxable person. Information from parties which are registered as non-taxable
entities for VAT should also be collected. Non-taxable entities include government
departments, local authorities, health boards, public hospitals, educational establishments
and other similar bodies that have the option under certain conditions to register as nontaxable entities for VAT. Therefore, it is recommended that the list of registered nontaxable entities is required from fiscal authorities and that those parties are included in the
scope of entities liable to report for Intrastat. Appropriate instructions should be provided
for them.
10
4. Non-established traders (foreign companies which are not in business registers) carrying
out taxable trade transactions (e.g. triangular trade, import clearance with a further dispatch
to the Member State of final destination) in the reporting Member State must be either
registered for VAT in the reporting Member State or must have appointed a tax
representative who is the person liable to pay tax on their behalf.
– If non-established traders are registered for VAT in the reporting Member State they are
liable to report under the Intrastat system in the same manner as established, national
traders. However, it might be difficult to obtain Intrastat declarations from these traders,
because they are not permanently, physically present in the reporting Member State.
Nevertheless, it is recommended that non-established traders are made very clearly
aware of their reporting obligations. Cooperation, if possible, with the VAT
Administration in informing traders (by correspondence) of their Intrastat obligations
should be strengthened. If non-established traders belong to another Member State,
cooperation with the national authorities of this Member State should be encouraged
(e.g. reminders could be sent from the competent authorities where the trader is
established). As regards arrivals from and dispatches to the premises of non-established
traders, the traders in most cases already declare the opposite trade flow to the national
authorities in the Member State where they are established, so reporting on the
corresponding flow should not be overly time-consuming. However, when foreign
established PSIs do not declare for Intrastat in spite of all the efforts of the national
authorities, it is recommended that their trade is estimated on the basis of their fiscal
VAT declarations.
– If non-established traders have appointed tax representatives in the reporting Member
State, the traders themselves are not registered for VAT and therefore not liable to report
to the Intrastat system. In this case, it is recommended, that tax representatives - who of
course possess a national VAT number - are liable to report on all the intra-Community
trade they are carrying out for their non-established clients.
5. Tax groups: According to VAT provisions, individuals who work as employees or carry out
dependent work (consolidated company/subordinated contractor, companies with a number
of geographically separate local units) may be treated and assessed jointly as one taxable
entity together with the trader who exercises economic, financial or organisational control
(holding company), although they are legally independent. Only the holding company is
registered for VAT with one single VAT number representing all parties of the tax group. It
is recommended that the holding company should be responsible for providing the complete
Intrastat information for all subordinated entities. The holding company may transfer the task
of reporting for Intrastat to the subordinated units according to Article 7 (2) of (EC)
638/2004. However, such transfer in no way reduces the holding company’s responsibility
for the correct overall trade declaration of all members of the tax group.
6
Third parties: According to Article 7 (2) of (EC) 638/2004 the PSI may transfer the burden
of declaration to a third party (such as external accounting offices, forwarding agents and
other specialised fiscal service companies), although this transfer does not reduce the
responsibility of the PSI for providing accurate and timely data. The PSI responsible for
providing information must provide the third party with all the information necessary to
fulfil the PSI’s reporting obligations.
It is recommended that declaring third parties provide the competent national authority with the
information necessary to identify them and to identify each of the parties responsible for
providing the information (the PSIs) who have transferred this task to them, and, for each of the
parties responsible for providing information, with the statistical data required by the Intrastat
legislation.
Second condition: Carrying out intra-Community trade operations.
11
VAT registered parties in the reporting Member State must report for Intrastat when they
exchange goods with other Member States and the value of their trade has exceeded the Intrastat
threshold. In most cases it is quite easy to identify the natural or legal person who is responsible
for providing the information for the Intrastat system.
The PSI is usually the person who has concluded the contract giving rise to the dispatch or the
arrival of the goods. This is usually the person who sells or purchases the goods. In other words,
it is the person who transfers the right to dispose of tangible property to another person in another
Member State (dispatch / sale) or who acquires the right to dispose of moveable tangible property
delivered from another person in another Member State (arrival / purchase).The transaction must
involve the physical movement of the goods. In most cases the PSI is also responsible for
providing the information on intra-Community acquisitions and supplies of goods to the fiscal
authorities (completing the so called ‘two boxes’ of the VAT declaration).
Nevertheless, for some particular reportable trade transactions it may not be so easy to identify
the person responsible for the dispatch/arrival. For other cases the person might not be required
or be available to report for Intrastat. In these circumstances, the application of the 2nd and 3rd
indent of 1(a) and 1(b) of Article 7 of (EC) 638/2004 makes it possible to identify a PSI. When
traders cannot be contacted or when they are not able to provide the information, the VAT liable
person in the reporting Member State who dispatches, provides for the dispatch, takes delivery,
provides for delivery of the goods or is at least in possession of the goods will be obliged to
provide the Intrastat data.
The following are examples of cases where it may not be easy to identify the PSI:
– Processing under contract: The company responsible for work under contract must report for
Intrastat, but because the transaction is not reported in the ‘so-called’ two boxes on the VAT
return, it may be difficult to trace.
– Leasing arrangements: see chapter on leasing
– Movements between branches of the same company in different Member States (Intercompany transfer): Each branch must report
– Halts in a ‘transit’ Member State when the halts are not inherent in the transport: The
company carrying out the activities in the ‘transit’ Member State should report (e.g.
warehouse-keeper, sales office, carrier, operator who is responsible for processing activities),
however it may be difficult to establish that a non-inherent halt has taken place.
– Warehouses carrying out stocking and distribution services for a number of clients: The
warehouse-keeper is responsible for reporting arrivals and dispatches. This situation also
carries the danger of double-counting, i.e. the warehouse-keeper and the client both reporting.
– Financial institutes (e.g. a bank) buying goods for clients (e.g. cars): The client will normally
have concluded the contract which gave rise to the supply, but if the bank has concluded the
contract giving rise to the supply it may be difficult to establish. This situation also carries the
danger of double-counting, i.e. reports are made by both bank and client.
Third condition: Exceeding the exemption threshold (see also Chapter 6 ‘Thresholds’)
Thresholds are set independently by Member States in order to gather statistics that meet the
coverage criteria required by the Intrastat regulations. Each Member State sets these thresholds
for both arrivals and dispatches. The thresholds serve to reduce the burdens on businesses.
According to national provisions companies will fall into one of the following categories:
– they are below the exemption threshold so they do not need to report at all; or
– they are above the exemption threshold but below the simplification threshold so they are
allowed to provide a simplified declaration; or
– they are above the simplification threshold so they must provide a full Intrastat declaration,
but only reporting the invoice value; or
12
– they are above the statistical value threshold so, in addition, they must provide the statistical
value and/or optional data.
PSIs exceeding the exemption threshold of the reporting Member State must report for Intrastat.
If a PSI only exceeds the threshold for one flow (e.g. arrivals or dispatches), it only has to report
on this flow.
2.4.2
Data provided by customs authorities
(EC) 638/2004 Council and Parliament Regulation Intrastat: Article 5(2): monthly provision of
statistical information by customs authorities; Article 4 Statistical territory of the EU; Article 3
paragraphs. (2)(b) and (3) (b): inclusion in Intrastat of IPR suspension goods and goods entered
to processing under customs control.
Customs authorities are obliged to provide data on intra-Community trade to national statistical
authorities at least once a month. Article 5 paragraph (2) gives statistical authorities access to
trade data as defined in Article 3 paragraphs (2) (b) and (3) (b). Trade information provided by
customs authorities covers all non-Community goods within the scope of intra-Community
trade statistics.
There are certain circumstances in which movements of goods have to be recorded for intraCommunity trade statistics, but the statistical information is taken from a Single Administrative
Document (SAD) or is provided by the customs authorities. An Intrastat declaration should not
be made in these cases.
It is therefore the responsibility of the statistical authority in each Member State to arrange with
the customs authority how this can best be achieved. It could be that the statistical authority can
obtain a copy of the transfer SAD in these cases, or that the customs authority will provide the
information in some other way.
In any event, statistical authorities should be aware that the intra-Community trade statistics
legislation requires the provision of this data by customs authorities.
Statistical authorities may consider it beneficial to set up service level agreements with customs
authorities, clearly setting out their obligations, including which data should be provided, the
format, the periodicity and deadlines for data transmission.
The following are examples of cases where data is obtained from customs authorities:
(1)
Community goods which are traded between Member States but move from, or to, parts
of the EU statistical territory which do not belong to the EU fiscal territory. These goods
move with a Single Administrative Document (SAD).
The statistical territory of the EU and the customs territory are generally the same (with
the exception of Heligoland which does not belong to the Customs territory but does
belong to the statistical territory of Germany). There are however territories which are
part of the EU customs territory but are not part of the EU fiscal territory. Customs
documentation (the SAD) is required for movements of goods between these territories
and Member States. Trade statistics for these movements are included in intraCommunity trade statistics and not Extrastat and are collected from the SAD (see chapter
on the partner Member State).
(2)
Non-Community goods entered for inward processing relief or processing under customs
control which are not in free circulation, are under customs control and are accompanied
by a SAD.
Where Inward Processing Relief (IPR) suspension goods or goods under the processing
under customs control procedure move between Member States, the goods are not in free
circulation and are accompanied by a SAD. These movements must be included in intraCommunity trade statistics and excluded from Extrastat.
This includes IPR (suspension) goods or goods under the processing under customs
control procedure:
13
– moving between Member States under full Community transit T1 procedures with
a SAD; or
– entering or leaving a free zone with a SAD (i.e. not in free circulation).
It is recommended that Member States should include the information in their advice to
PSIs that an Intrastat declaration must not be made in such cases in order to prevent the
duplication of data.
(3)
Goods which move between Member States under an Inward Processing Relief
Simplified Authorisation or a Single European Authorisation and are not accompanied
by a SAD.
Goods entered to the IPR regime may also move between Member States, generally for
processing, under a Simplified Authorisation or a Single European Authorisation. Even
though the goods are not in free circulation and remain under customs control, they are
allowed to travel between Member States without a SAD and are accompanied only by
commercial documentation.
These movements should be recorded for intra-Community trade statistics. It is
therefore recommended that national statistical authorities should require customs
authorities to supply the information even if information is not available on a SAD.
(4)
Where a customs declaration records an import in the reporting Member State and
indicates that the goods will be dispatched to another Member State, shown on the
customs declaration as the Member State of final destination, the customs declaration can
be accepted as the Intrastat declaration for the dispatch to another Member State.
Consequentely, the PSI can be exempted from providing the information again via the
Intrastat system.
The same applies for an export. Where a customs declartion records an export in the
reporting Member State and the final removal from the EU is made from another Member
State, indicated on the customs declaration as the Member State of actual export, the
customs declaration can be taken as an Intrastat declaration for the arrival from another
Member State. Consequentely, the PSI can be exempted from providing the infomation
again via the Intrastat system.
2.4.3
Additional data sources for specific movements
Additional data sources are required in order to enable Member States to collect more precise
information on arrivals and dispatches of some specific goods and movements. Information
collected through the Intrastat system or customs declarations might not be available for this kind
of transaction or additional information may be necessary to improve the quality of the data
collected through Intrastat and Customs. For intra-Community trade statistics additional data
sources might be used on trade with vessels and aircraft, sea products, electricity and natural gas
as long as there is no conflict with other Community or national legislation.
Although it is optional for Member States, it is recommended that additional data sources are
used. Because of the difficulties in measuring the trade transactions of these specific movements,
it may only be possible to collect comprehensive and accurate data using additional data sources.
The chapter on specific movements gives more information on which data could be used and how
the information should be collected.
14
2.5
Statistical territory
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 4
The statistical territory of a Member State is, in general, defined by its customs territory (with the
exception of Heligoland which belongs to the statistical but not the customs territory of
Germany). Intra-Community trade statistics are produced on goods traded between the statistical
territories of Member States. If goods are traded with territories outside the statistical territory of
the EU the trade should be recorded in general within Extrastat. However, for some specific
movements Intra- Community trade statistics are not linked to the statistical territory (e.g. special
rules on vessels and aircraft).
The customs territory of the Community includes the territorial waters, the inland maritime
waters and the airspace of the Member States, except where the territorial waters, the inland
maritime waters and the airspace of these territories are not part of the customs territory of the
Community.
Every coastal State may establish the breadth of its territorial sea up to a limit not exceeding 12
nautical miles and this part of the territory belongs to the Customs territory and the statistical
territory. However, in addition, a country may also define an exclusive economic zone (which
was given binding international recognition by the 'Third United Nations Convention on the Law
of the Sea in 1982') as a zone beyond and adjacent to the territorial sea, not exceeding 200
nautical miles, in which it has sovereign rights for the purpose of exploring and exploiting,
conserving and managing the natural resources. (This zone may coincide with the Member
State’s continental shelf). These exclusive economic zones do not belong to the statistical
territory of the Member States.
Some parts of the EU Customs territory do not belong to the EU fiscal territory with the
consequence that the VAT Directive is not entirely applicable in these territories. Trade operators
may not be required to register for VAT and trade between these territories and other Member
States is recorded via customs declarations (see chapter on data sources).
The following list describes the fiscal territory, the Customs territory and the Statistical territory:
Belgium (BE)
Bulgaria (BG)
Cyprus (incl. UK Sovereign Base Areas,
Akrotiri and Dhekelia) (CY)
Zones of Cyprus over which the
government does not exert de facto
control
Denmark (DK)
the Faroe Islands (FO)
Greenland (GL)
Germany (DE)
Heligoland (DE)
Büsingen (CH)
Estonia (EE)
Finland (FI)
Aland islands (FI)
France (incl. Corsica and Monaco) (FR)
French Overseas Departments (FR)
Greece (GR)
Mount Athos (GR)
Hungary (HU)
Ireland (IE)
Fiscal
X
X
Customs
X
X
Statistical
X
X
X
X
X
O
X
O
O
X
O
O
X
X
O
X
O
X
O
X
X
O
X
O
O
X
O
O
X
X
X
X
X
X
X
X
X
O
X
O
O
X
via customs document in IS
O
X
X
via customs document in IS
X
via customs document in IS
X
via customs document in IS
X
X
15
Italy (incl. Sicily and Sardinia) (IT)
Livigno (IT)
Campione d'Italia (CH)
San Marino (SM)
Latvia (LV)
Lithuania (LT)
Luxembourg (LU)
Malta (MT)
The Netherlands NL)
Austria (AT)
Poland (PL)
Portugal (incl. Azores and Madeira) (PT)
Romania (RO)
Slovenia (SL)
Slovakia (SK)
Spain (incl. Balearic Islands) (ES)
Canary Islands (ES)
Ceuta (XC)
Melilla (XL)
Czech Republic (CZ)
United Kingdom (incl. Island Man) (GB)
the Channel Islands (GB)
Gibraltar (GI)
Sweden (SE)
Fiscal
X
O
O
O
X
X
X
X
X
X
X
X
X
X
X
X
O
O
O
X
X
O
O
X
Customs
X
O
O
O
X
X
X
X
X
X
X
X
X
X
X
X
X
O
O
X
X
X
O
X
Statistical
X
via customs document in IS
O
O
X
X
X
X
X
X
X
X
X
X
X
X
via customs document in IS
O
O
X
X
via customs document in IS
O
X
Member States and non-EU countries are classified according to the "geonomenclature" for
external trade statistics. All applicable country codes, a description of the territories belonging to
the statistical territory of the country and particular observations are provided in the
geonomenclature. The geonomenclature is based on a Commission Regulation establishing a
nomenclature of countries and territories which is subject to annual revision, if necessary.
As a general rule, it can be said that trade between territories with the country code of one of the
27 Member States (AT; BE; BG, CY; CZ; DE; DK; EE; ES; FI; FR; GB; GR; HU; IE; IT; LT;
LU; LV; MT; NL; PL; PT; RO, SE; SI; SK) belongs to intra-Community trade statistics and trade
of a reporting Member State with a territory which has another country code belongs to extraCommunity trade statistics.
It is recommended that statistical authorities should include a table in their advice to PSIs
showing the territories which are included in and excluded from the statistical territory of each
Member State and should state clearly that for movements to or from an excluded territory, an
Intrastat declaration must not be made. This prevents the duplication of effort for businesses
trading with these territories and prevents the data being declared twice.
2.6
Register
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 8: Registers
(EC) 1982/2004 Commission Regulation Intrastat: Article 5: obligation of tax administration;
Article 6: VIES data
The essential function of the intra Community trade statistics register is the maintenance of an up
to date list of intra-Community operators with their company identification data and the value of
their intra EU trade. This information is used to identify companies who may be required to make
Intrastat declarations, to ensure the timely collection of statistical information, in quality
checking and data analysis and for estimates of below threshold trade and partial, or non
response.
16
It is recommended that trade statistics should be matched with business statistics. Therefore, a
structure should be implemented that allows the Intrastat register to be linked with the Business
register.
The content of the register is therefore much wider than simply a list of PSIs with their
identification data and data on their intra-Community trade. The register should contain
information on all natural or legal persons who trade with other Member States and information
retrieved from the business register and other data needed for the operation of Intrastat. It is
recommended that also information on companies who are not liable to report for Intrastat and
companies who trade only with non-EU countries are included.
Each Member State must decide how to organise the PSI register, based on the scope of the
register, the variables it holds and its functions, but it should be organised in such a way as to
gain the maximum benefit from other information sources and to ensure maximum effectiveness
of all its functions. The following information should be available in the register:
– identification data about the company: ID number (VAT number, ID number used for
statistical purposes, other ID number), name, address, phone, fax, e-mail, etc.;
– status and demography of the company: operating or not operating, liquidated, bankrupted,
information on reorganisations, groups, mergers, take-overs and other information important
for monitoring a business;
– date of entry into the register (once an entry for a PSI has been made, it should not be
deleted), other relevant dates;
– main and secondary activities of the company (according to the statistical classification of
economic activities - NACE), organisational set up, size of the company, number of
employees, etc.;
– other indicators describing the profile of the company: only intra, only extra, intra and extra
operator, main activity based on value of trade, involved or not in processing, problematic or
not problematic as PSI, etc.;
– monthly values of intra-Community trade and monthly VAT data;
– information on contact person(s): name, address, phone, fax, e-mail, etc.;
– liability of the company to report for Intrastat (for each flow separately);
– reporting media (paper, EDI, web, other);
– full or simplified reporting, reporting of statistical value;
– status of declarant, i.e. whether third party;
– complete information on third party declarant, i.e. company, contact persons;
– technical information needed for EDI and/or web reporting;
– other information for contact and monitoring purposes, e.g. the most frequently traded
commodities of a company;
– time series of dispatches and arrivals at individual trader level.
The quality of the register should be constantly checked and maintained because the coverage
and quality of intra-Community trade data depend mainly on the quality of the register.
The most important factor for updating the register is to be clear as to which sources will be
absolutely essential for updating purposes and to have agreements with the authorities who will
provide the information. The agreements could cover e.g. data format, timeliness and periodicity.
Various sources can be used for updating and maintaining the register, but the most important
are:
17
– VAT registers – acquisitions and supplies: the so called ‘two boxes’ on the VAT return and
data from VIES, for the identification of companies who may be liable to report for Intrastat,
data estimations and global data checks at company level;
– The Value Added Tax Infromation Exhange System (VIES). Any VAT registered trader is
obliged to submit periodic recapitulative statements to their fiscal authority about the value of
the supply and the VAT identification number of the trader in the partner Member State where
VAT exempt intra-Community supplies are made.
– Intrastat monthly data: historical series used for global checks at company level and data
estimations;
– customs databases: information on companies who trade with non-EU countries and in cases
where a SAD covers an Intrastat movement;
– other registers, databases or directories, statistical or administrative, e.g. the tax register;
– direct contact with businesses.
In addition, the general business register (GBR), with information such as company activity, size,
set up, date of commencement of business and other information could be an important
supplementary source, provided there is a common variable for data matching with the PSI
register. In order to fully exploit the potential of the GBR, the link between the two registers must
be considered before designing the structure and planning the implementation procedures of a
new PSI register.
The periodicity of updating depends on the data source and on the importance of information for
the operation of the Intrastat system. VAT and VIES data should be transmitted to the statistical
authority at least monthly, as required by the Intrastat regulations. Tax data are indispensable for
the operation of the Intrastat system and their periodicity should therefore be as close to the legal
requirements as possible.
Intrastat value data is entered regularly into the register in line with the monthly reporting by
companies. Information provided on a personal basis is acquired in the course of day to day
contact with PSIs and third party declarants by staff managing the register and staff working on
data control.
It is recommended that Extrastat data is used to update the register with information on
companies who trade with non-EU countries.
Some of the practical problems are given below. From these, it can be seen that the data held on
one database impact on other databases and cannot be considered in isolation.
– During the implementation phase of the PSI register, the initial identification of PSIs is
usually done from customs declarations data, where the VAT number is used as the ID
number. This data is then matched with the GBR where the key may be another ID number,
e.g. a specific statistical ID number, while the VAT number is only a variable and not always
available. Some PSIs cannot be identified and other sources must be used e.g. VAT registers,
but even so it is sometimes impossible to identify a company. This problem then remains in
the operational phase and complicates the updating of the register;
– The GBR is not always of consistently good quality or it is updated with considerable time
delays. The information provided by PSIs may then differ from the information in the GBR.
This can be an advantage if it is used to improve the quality of the GBR, but it may
complicate automatic updating procedures. Whenever possible, the data should be corrected in
the GBR and then transmitted to the PSI register.
– The obligation to make Intrastat declarations should normally be confirmed with the company
after automatic identification has been carried out. It may be that an error has been made,
either by the company or by a keying operator. Additionally, some companies are not regular
traders and they may be just slightly over the threshold because they have acquired some
goods for their own needs. If it is clear that they will send only nil declarations, it is
questionable whether they should be included in the register as PSIs;
18
– Some PSIs are very reluctant to report and have to be convinced of their legal obligations. It
should be made clear to them that they do not have a choice. This reluctance is generally due
to the additional work and responsibility which comes with Intrastat reporting.
– VAT data may not be of good quality, which has a negative influence on data coverage, data
controls and data estimations. Therefore, it is recommended that the quality of not only
Intrastat declarations, but also the acquisitions and supplies declared for fiscal purposes are
controlled.
– Discrepancies between fiscal declarations and Intrastat declarations should be examined
carefully regardless of whether the amount reported for fiscal purposes is considered to be
more important than the amount reported for Intrastat, or vice versa.
2.7
Use of VAT and VIES data
VAT data are essential for the operation of the existing Intrastat system, primarily for Intrastat
data coverage management, but also for value data estimations and data quality controls. The
statistical authorities have the possibility to request from the the tax authorities VIES data as
well. VIES information is especially useful for monitoring geographical distribution of intraCommunity dispatches on the trade operator level and for adjusting potential discrepancies in
comparison with Intrastat data.
Cooperation of statistical authorities with the tax authorities is therefore essential and should be
established and be performed in such a way to fully support the operation of Intrastat.
The information to be provided by the tax authority to the statistical authority is set out in (EC)
1982/2004 Article 5 together with a requirement that it is provided monthly.
Where it is considered beneficial, a service level agreement could be set up between the statistical
and VAT authorities. This would clearly detail the obligations of both parties:
– selection of tax data that should be transmitted to the statistical authority,
– periodicity and deadlines for data transmission,
– the record format and other technical specifications and protokols for exchange of data
–
the obligation on the statistical authority to respect the confidentiality of the VAT data
– the possibility for the statistical authority to give feed-back information on the quality of VAT
(VIES) data to the tax administration, but at the same time fully respecting the confidentiality
rules for statistical (Intrastat) data.
The main use of VAT data are the following:
– Estimation of intra-Community trade under the exemption threshold and estimation of nonresponse
– Identification of new businesses obliged to provide Intrastat data and their inclusion in the
Intrastat data coverage
– Intrastat value data quality checks
– Management of reminder procedures for newly included providers of statistical information
The main use of VIES data are the following:
– quality checks as regards the partner country
– Reconciling asymetries
– Triangular trade
– Identifying and analysing asymmetries between the reciprocal trade of two partner countries.
19
2.7.1
Relationship between value data on Intrastat declarations and VAT data
In the majority of cases the totals of the values declared on Intrastat declarations for dispatches
and arrivals on individual trader level should agree with the figures declared on the VAT return
for EU supplies and acquisitions for the same trader, provided that some conditions are met :
-
data from both sources refer to the same reference period,
-
data are methodologically comparable (transactions of certain nature should thus be
excluded from comparison or differently treated and other methodological aspects should
be considered as e.g. triangular trade, exchange rates, etc.),
-
the supposition is that VAT data are correct (in practice this is not always the case and
exchange of data between the tax administration and the statistical authority may result
also in better quality of VAT data).
Different criteria can then be used to identify potentially wrong Intrastat declarations as e.g.
acceptable/non-acceptable relative difference between tax and Intrastat data with priority
check of more important traders (in terms of value of trade), etc.
However, there are a number of legitimate reasons for the figures to be different. The
following table illustrates cases where the figures declared on Intrastat declarations may be
different from respective data on VAT returns because of methodological reasons.
Origin of difference
Value
in
VAT Intrastat Value
return (Box 8 or
Box 9)
Processing
Financial leasing
Hire-purchase
Stage payments (no goods movement)
Goods movement after stage payments
Credit
notes
For supplies Goods
returned
(acquisitions
)
Invoice
corrections
Relationship
between
Intrastat
and VAT
Nil
Total value of Intrastat
>
goods sent for or VAT
received
after
process
Remaining Balance Total value of Intrastat
>
due at end of contract goods
VAT
if option taken up
and
transfer
of
ownership occurs.
Invoice
Total value of Intrastat
=
goods
VAT
Amount of stage Nil
Intrastat
<
payment
VAT
Final
stage Total value of Intrastat
>
payment/possibly nil goods
VAT
Nothing in box 9
Total value of Intrastat
>
goods
VAT
Value
of
goods Total value of
excluding correction goods
including
correction
Nothing in box 8
Total value of
goods
Intrastat
VAT
<
Intrastat
VAT
>
Value
of
goods Total value of Intrastat
including correction goods
including VAT
correction
Triangular
trade
reported
by Value of goods
nil
Intrastat
intermediary (i.e. goods do not enter or
VAT
leave the country of intermediary)
=
Credit
notes
For
acquisitions
Goods
returned
(supplies)
Invoice
corrections
20
<
Origin of difference
Value
in
VAT Intrastat Value
return (Box 8 or
Box 9)
Relationship
between
Intrastat
and VAT
VAT
exclusive Intrastat
>
value of goods
VAT
Company
dispatching
goods
in Nil
triangular trade were intermediary is
non-EU (invoice from non-EU country),
but goods move between two Member
States.
Supplies or acquisitions of goods Nil
include charge for installation or
assembly (i.e. goods supplied as an
integral part of a supply of services)
Indirect exports
Nil
Value
only
Distance selling (i.e. a supplier in one Nil
Member State supplies goods, and is
responsible for their delivery, to any
person in another Member State who is
not registered for VAT - including
supplies to public bodies, charities and
businesses too small to register for VAT
or with activities that are entirely
exempt from VAT where the Distance
Selling threshold in the partner
Member State has not been exceeded)
Distance selling (i.e. a supplier in one Value of goods
Member State supplies goods, and is
responsible for their delivery, to any
person in another Member State who is
not registered for VAT - including
supplies to public bodies, charities and
businesses too small to register for VAT
or with activities that are entirely
exempt from VAT, where the Distance
Selling threshold in the partner
Member State has been exceeded.)
Purchases from to any person in another Nil
Member State who is not registered for
VAT where the purchaser takes delivery
(i.e. excluding ‘over-the-counter’ sales
and those where the purchaser arranges
the transport).
of
goods Intrastat
VAT
Total value of
goods
VAT
exclusive
value of goods
Intrastat
VAT
Intrastat
VAT
>
>
>
Total value of the VAT
goods
Intrastat
=
Value of
received
>
goods Intrastat
VAT
With reference to the compatibility of the reference period of Intrastat and VAT data the basic
issue is that the reference period of Intrastat trade should be defined according to the period of
the movement of goods while the reference period of the VAT data is defined according to the
period of the issue of the invoice. Comparing monthly Intrastat data with VAT data should thus
always result in an acceptable difference between the two figures, but on the total annual
(reference year) value level the reference period should in principle match.
Hereby are listed some examples of transactions where Intrastat reference date is not the same as
the VAT tax point, for example:
– goods arriving in an excise warehouse, where the Intrastat reference period is the period the
goods are received into the warehouse but the VAT acquisition point is when the goods leave
21
the warehouse for home use (sales made within the warehouse prior to removal do not create
an acquisition)
– goods invoiced in advance of or after the month in which the goods are physically dispatched
or received.
In such cases the tax point for VAT will be the invoice date, but the reference period for Intrastat
will be the month of the physical movement of the goods or the calendar month of the VAT tax
point.
2.7.2
Summary of links between VAT returns, VIES and Intrastat declarations
The following table looks at the various VAT procedures that correspond to different categories
of sales and how these impact on Intrastat declarations and on the information appearing on the
European Sales Lists.
Member State
departure
of
Member
State
of
destination
Goods other than means of transport, goods subject to
excise duty and goods supplied with supplier carrying out
assembly and installation
Sales to VAT registered businesses
Seller arranges transport
Purchaser arranges transport
Sales to private individuals
Seller arranges transport (distance
selling)
Below distance selling
threshold
Above distance selling
threshold
Purchaser arranges transport (regarded
as internal supply in Member State of
departure)
Sales to zero-rated VAT businesses and non-taxable
bodies such as public authorities
Seller arranges transport (distance
selling)
Purchaser below VAT
threshold
Seller
below
distance
selling
threshold
Seller
above
distance
selling
threshold
Purchaser above VAT
threshold
Purchaser arranges transport
Purchaser below VAT
threshold
22
VAT
VIES
Intrastat
VAT
Intrastat
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
N
N
Y
N
Y
Y*
Y*
N
N
N
N
N
N
N
N
N
N
Y
N
Y
Y*
Y*
Y
Y
Y
Y
Y
N
N
N
N
N
Member State
departure
Purchaser above VAT
Y
threshold
New means of transport
Sales to VAT registered businesses
Sales to private individuals
of
Member
State
of
destination
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
N
Anne
x1
N
N
Sales to zero-rated VAT businesses and
non-taxable bodies such as public
authorities
Below VAT threshold Y
Y
Y
N
N
Above VAT threshold Y
Y
Y
Y
Y
Goods subject to excise duty
Sales to VAT registered businesses
Y
Y
Y
Y
Y
Sales to private individuals
Seller
arranges
transport
(distance Y
N
Y
Y*
Y*
selling)
Purchaser
arranges
N
N
N
N
N
transport
Sales to zero-rated VAT businesses and
non-taxable bodies such as public
authorities
Seller
arranges
transport
(distance Y
Y
Y
Y
Y
selling)
Purchaser
arranges
Y
Y
Y
Y
Y
transport
Goods delivered with supplier arranging assembly or
Y
Y
Y
Y*
Y*
installation
*The seller registers for VAT in the Member State of destination, or appoints a tax representative
in the Member State of destination.
23
3
THE DATA
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 9
Article 9 of (EC) 638/2004 defines the data which are collected within the Intrastat system. IntraCommunity trade statistics, however, contain:
– the Intrastat System (the predominant data source),
– customs data, and
– additional data for specific movements.
It should be stated that the legislation only determines the dataset which has to be collected from
PSIs (Intrastat system). For the other two parts no dataset for collection is defined. Nevertheless,
it is recommended that the data defined in Article 9 should be collected in general for a) to c)
above, because Article 12 (1) (b) of (EC) 638/2004 requires the transmission of detailed results
on all parts of intra-Community trade statistics. The only derogation might concern the collection
of the PSI identification number and the codes of the Nature of Transaction when data are
provided from customs authorities. These data elements might not be available on the customs
declaration.
The Intrastat system defines a mandatory and an optional dataset. Concerning optional data, some
data elements are mentioned in the legislation. However, this is a non-exhaustive list and
Member States may collect additional data for national purposes, if they wish based on national
requirements. Nevertheless, it is recommended that the list of data collected from PSIs is kept as
short as possible to limit the reporting burden on companies. The following Intrastat data are
mentioned in the legislation:
Mandatory data
Identification number of the PSI
Reference period
Flow (arrival, dispatch);
Commodity code (8 digits)
Partner Member State
Value
Quantity (expressed in net mass in kilos and/or
a supplementary unit)
Nature of Transaction Code (first digit)
3.1
Optional data
Detailed commodity code
Country of origin (arrival)
Region
Delivery terms
Mode of transport
Statistical procedure
Net mass for commodities for which the
supplementary unit is collected
Nature of Transaction Code (second digit)
Identification number of the PSI
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 9 (1) (a): collection
mandatory; Article 12 (1) (b): No Transmission to Eurostat
Providers of statistical information carrying out intra-Community acquisitions and supplies are
identified through the value added tax identification number. Unfortunately a harmonised
European VAT identification number does not exist and the number is issued by national tax
administrations according to national legislation. The number contains a prefix (according to ISO
International Standard No 3166 - alpha 2) which allows the related Member State to be identified.
Whether the prefix is also requested for Intrastat declarations depends on national requirements.
In addition to the VAT identification number, national authorities may require supplementary
information to identify the declarant on Intrastat declarations such as the full name and address of
PSIs and of any agents (third parties) employed by PSIs to submit Intrastat declarations on their
behalf. The addresses might correspond either with the address indicated in the tax registers or
with the address of the person who carries out the trade activity and may differ from the official
address.
24
PSIs may submit Intrastat declarations separately for their individual branches. It is
recommended that these submissions should be subject to prior approval by the national
authorities. For these cases special Intrastat ID numbers should be issued which, together with the
VAT identification number of the parent company, allow an unambiguous identification of the
branches of the company. Identification numbers of branches could be based for instance on
numbers of local units already applied in the business register.
Traders who are predominantly engaged in intra-Community processing operations do not fill in
the so called ‘two boxes’ of the VAT return (or the value of their trade may be below the
exemption threshold) and it might be difficult to identify these traders. Although the control and
monitoring of these traders is more complicated via data provided from tax administrations, it is
recommended that the VAT identification number for these traders is also made available to
statistical authorities.
Identification numbers should also be issued when using additional data sources for specific
movements (e.g. grid operators). It is recommended that these ID-Numbers are linked to the
VAT identification number system, if possible.
National authorities receive intra-Community trade data via customs declarations. It is
recommended that identification numbers are issued to customs declarants (boxes 2 and 8 of the
SAD) which allow data reported via Intrastat and customs to be matched with business statistics.
3.2
Reference period
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 6: Reference period
(EC) 1982/2004 Commission Regulation Intrastat: Article 3: Exceptions regarding VAT and
Customs purposes; Article 25 (5) adjustments on the reference period
The legislation defines different reference periods to which the monthly trade flows should be
allocated:
(1)
The calendar month within which dispatches or arrivals of goods take place. This is the
month in which the goods physically enter or leave the statistical territory of the
reporting Member State.
(2)
The calendar month when the chargeable event for VAT purposes occurs.
(3)
The calendar month during which the declaration is accepted by customs. This is
significant for certain customs inward processing transactions and goods belonging to the
statistical but not to the fiscal territory of the Community. The information is provided by
Customs
(4)
The calendar month during which the transfer of ownership takes place for vessels,
aircraft, and spacecraft
(5)
The calendar month during which the last consignment arrives or is dispatched for
staggered consignments
The trade under points 3 – 5 and the corresponding reference period is well defined. However,
more clarification might be necessary to determine the reference period in line with VAT
obligations and the physical movement of the goods.
The tax becomes chargeable during the calendar month when the goods are delivered or on the
15th day of the following month, depending on the date when the invoice is issued. In
consequence for some trade transactions the reference period according to VAT obligations may
differ for about one calendar month from the reference period determined according to the
physical movement of the goods.
For goods reported on a VAT return in the so called ‘two VAT boxes’ it is recommended that
the reference period for arrivals and dispatches should be the same calendar month for which the
trade is also reported as an acquisition/supply to the fiscal authorities. This practice limits the
reporting burden of the PSI and allows better comparability and quality checks.
25
– In this context, the reference period is – according to the sixth VAT Directive 2006/112/EC
Article 68 - for acquisitions (arrivals), the calendar month within which tax becomes
chargeable in the Member State of acquisition.
– For supplies (dispatches), the sixth VAT Directive 2006/112/EC does not define a chargeable
event. Member States must ensure that intra-Community supplies are exempted from VAT.
However, the precise time when the exemption takes place is not defined and national
instructions are generally applicable. Therefore, to assure comparability with fiscal data, it is
recommended that the reference period for dispatches is also determined as the calendar
month for which the same trade transaction is recorded for fiscal purposes in the so called two
VAT boxes (according to national instructions). in all cases where the calendar month within
which the dispatch of the goods take place is close to the month recorded for fiscal purposes.
However, where the goods are dispatched, other than during the period they are recorded for
fiscal purposes (e.g. more than a month), the date of dispatch should be used as the reference
period.
For other goods not reported on a VAT return in the so called ‘two VAT boxes’ it is
recommended that the reference period should be the calendar month during which the
dispatches and arrivals of goods take place.
Examples are:
– Work under contract (processing);
– Returned goods;
– Trade with gas and electricity;
– Sea products;
– Goods on consignment; (the supplier remains the owner of the goods until the customer sells
them to another customer);
– Inter-company deliveries for storage without transfer of ownership;
– Industrial plant: Each arrival or dispatch of a component should be reported;
– Financial leasing arrangements: The reference period should be the calendar month of the
delivery of the goods. This is generally at the beginning of the leasing arrangement
– Subscription of periodicals: The reference period would normally be the month of dispatch or
arrival (delivery of the goods). This would mean that the subscriber would report on the
arrivals of the magazines each month. However, to limit the reporting burden of the PSI it is
recommended that the arrival/dispatch is only reported on an annual basis starting at the
beginning of the subscription period.
3.3
Commodity Code
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 9 (1) (d): definition and
collection of CN codes
(EC) 1549/2006 Commission Regulation Combined Nomenclature: applicable CN codes
One of the key requirements for all intra-EC arrivals and dispatches is that they are classified by
Commodity Code as set out in the Combined Nomenclature (CN) of the European Community.
The CN is revised on an annual basis and changes are made either at the request of trade
federations or national and Community authorities or for legal reasons. A new version is
published in October as a Commission Regulation in the Legislation series of the Official Journal
of the European Communities (OJ) and any changes take effect from 1st January of the following
year.
The full commodity code for a particular product can be broken down as follows:
– The first six digits are identical to the Harmonised Commodity Description and Coding
System (HS - used worldwide);
26
– The eight digits form the Combined Nomenclature (CN) which is a further subdivision for the
requirements of trade statistics, customs tariff and other Community policies; and
– The option to introduce a further breakdown to 9-digit level is available to Member States
wishing to collect statistical data of national interest (ref. Article 9.2(a) of Regulation
638/2004).
CN Explanatory Notes are produced on an ad-hoc basis to help in classifying commodities. These
complement the HS Explanatory Notes published by the World Customs Organization. None of
the explanatory notes are legally binding. Also the application CN Search Tools is available from
Eurostat.
The eight digit code of the CN is mandatory when transmitting data on intra-Community trade to
Eurostat.
CN codes are transposed, deleted or newly created each year. The CN in force for a given year is
always applied to the reference periods of this year. This means, for example, that data referring
to the period of ‘Year N’ must contain the codes which are valid in ‘Year N’, even when they are
transmitted to Eurostat the following ‘Year N+1’ when the Year N codes are no longer valid.
Hence, transmission of revised data must contain the CN codes applicable at the time when the
original transaction occurred.
In October-November each year Eurostat distributes the publication Update of CN codes. It is
recommended that the PSIs are informed of the modifications in time to make any changes to
their systems.
There are a number of areas where simplification exists to allow operators to group various goods
together within one or more commodity codes. The Chapter 99 CN codes below are permitted for
collection and transmission to Eurostat:
(6)
Goods delivered to vessels and aircraft:
99302400; 99302700; 99309900
(7)
Goods destined for the operators of offshore installations located in international waters
(i.e. outside the statistical territory of any country)
99312400; 99312700; 99319900
(8)
Low value transactions and trade under the simplification threshold (for residual products
only)
99500000
(9)
Parts for motor vehicles and for aircraft *
999087zz; 999088zz
(10)
(zz according to national purposes)
Trade under military secrecy*
9999xx99 (xx is the CN Chapter); 9999xxxx (xxxx is the HS4 code)
3.4
Partner Member State / country of origin
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definitions; Article 4: The
statistical territory; Article 9 (1) (e): collection
(EC) 1982/2004 Commission Regulation Intrastat: Article 7: coding of the partner Member
States
(EC) 1833/2006 Commission Regulation ‘Geonomenclature’: country codes
(EEC) 2913/92Council Regulation ‘Customs Code’: Article 3 Customs territory
It is recommended that this code should be provided only in exceptional cases. The real CN code is
preferred
*
27
Within intra-Community trade statistics the partner Member State for dispatches is the Member
State of destination, and for arrivals the Member State of consignment. In addition, for national
purposes Member States may collect the country of origin for arrivals. Community trade statistics
are not recorded in Member States where goods are passing through in simple circulation (see
chapter on transit trade).
Country of consignment:
(in the case of arrivals)
The country of consignment is the country from which goods
were dispatched to the importing country, without any
commercial transactions or other operations which change the
legal status of the goods taking place in any intermediate
country. If, before arriving in the reporting Member State, goods
enter a third Member State and are subject to transactions or
operations not inherent in their transport, that third Member
State should be taken as the country of consignment.
It is recommended that if the Member State of consignment is
unknown the Member State of dispatch should be given, and if
the Member State of dispatch is also unknown, the Member
State of purchase should be given.
Member State of destination:
(in the case of dispatches)
The country of destination is the country to which goods are
dispatched by the reporting Member State, without - as far as it
is known at the time of dispatch - being subject to any
commercial transactions or other operations which change the
legal status of the goods.
If it is known at the time of dispatch that goods are to be
delivered to a Member State ‘A’ but will first enter a third
Member State ‘B’ where they are subject to commercial
transactions or other operations which change their legal status,
the Member State ‘B’ is the Member State of destination and
Member State ‘A’ should not be reported as part of this
transaction.
Country of origin:
(optional for arrivals)
The country of origin of goods is determined by rules of origin
established by each country. Generally, rules of origin consist of
two basic criteria:
– The criterion of goods "wholly produced" (obtained) in a
given country, where only one country is involved in
attributing origin;
– The criterion of "substantial transformation", where two or
more countries have taken part in the production of the
goods.
– Problem of European origin – Member States shall instruct
PSIs how to determine the MS of origin (based on customs
principles) and check the reliabbility of the collected
information
3.5
Value
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition of taxable amount
and statistical value; Article 9 (1) (f): collection; Article 12 1: Transmission of statistical value
only
(EC) 1982/2004 Commission Regulation Intrastat: Article 8: compilation and partly collection of
the statistical value; Annex IV: Incoterms; Article 25 (4): estimation of the statistical value when
not collected
28
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
in particular Title VII — Taxable Amount
A statistical value has to be established for each goods transaction that is included in intraCommunity trade statistics, irrespective of whether or not the goods were sold, exchanged or
provided without payment. The value has to specify the amount which would have been paid in
the event of sale or purchase of the total commodity at the time and place when it crossed the
border of the reporting Member State. This value shall neither include the VAT nor other duties
(e.g. excise).
For dispatches, the value used is the FOB value (free on board) which means the value of the
goods as they leave the territory of the Member State reporting the dispatch. Ancillary costs (e.g.
freight, insurance) incurred from the place of dispatch in the reporting Member State up to the
port, airport or other frontier-crossing point at its national border shall be taken into account. For
example, if a manufacturer dispatches goods from their Member State to another, all costs
relating to the part of the journey from the manufacturer to the ship’s rail in the port of dispatch
in the territory of the reporting Member State are included.
For arrivals, the CIF value (cost, insurance, freight) is used. This means the value of the goods
when they enter the territory of the Member State reporting the arrival. Ancillary costs (e.g.
freight, insurance) incurred from the place of dispatch in the partner Member State up to the
national border of the Member State reporting the arrival are included in the value. For example,
the value of an arrival from a manufacturer in another Member State would include all costs
incurred in the part of the journey located outside the territory of the Member State reporting the
arrival).
Member States must transmit the statistical value of the results of their collection of intraCommunity trade statistics. In principle, EU legislation allows two options for this propose at the
level of data collection:
(1)
When statistical value is collected from part of the trade operators: Member States set a
'statistical value threshold' at such a level as to exempt the smallest traders (who account
for 30 % of the Member State's trade) from providing statistical value. Traders whose
trade is above the threshold have to provide the statistical value in addition to the data
elements they already supply (this includes the taxable value of the goods). For the
remaining traders, statistical value is estimated on the basis of their taxable or invoiced
value and a correction factor to be determined by the national administration. It is
recommended that the correction factor determined by the national authorities for CIF
and FOB adjustments is based on a comparison of trade flows from traders just above the
'statistical value threshold' with those below the threshold. In addition, it is
recommended that national statistical authorities provide guidelines to traders above the
'statistical value threshold' in order to ensure that they are able to adjust the available
'value-information' – (based usually on the invoice or taxable amounts) in such a way that
they transmit the value of their trade as CIF for arrivals and FOB for dispatches
(2)
When statistical value is not collected: A correction factor has to be used to adjust the
invoiced or taxable value of the total trade. It is recommended that the correction factor
determined by national authorities for the CIF type and FOB adjustments is based on
information about delivery terms and mode of transport when collected for intraCommunity trade. Another feasible method of determining a correction factor would be
to carry out small surveys at regular intervals to collect information on the commercial
terms used for intra-Community trade transactions and the share of their ancillary costs
that this represents.
Irrespective of the fact whether the statistical value is required from part of the operators,
Member States must collect the following value from all PSIs:
– The taxable amount which is the value to be determined for taxation purposes in accordance
with Directive 2006/112/ECArticle 83 for trade which is also declared for VAT in the socalled two boxes.
29
– Trade which is not declared for VAT in the so-called two boxes:
•
The invoiced amount in the case of a sale or purchase of goods where the invoice does
not reflect the true value, for example, in an inter-company transfer. The value declared
should be the estimated amount which would have been realised in the event of a
purchase or sales under normal market conditions.
•
The amount which would have been invoiced in the event of any sale or purchase (e.g.
processing costs, positive values of waste products, returned goods credit notes or the
assembly cost of goods invoiced with the cost of the goods themselves). It might be
necessary to make a qualified estimation on the sale or purchase amount and it is
recommended that the estimations follow the same principles applied for determining
the customs value according to Article 29 (et seq) of the Council Regulation (EEC) No
2913/92 establishing the Community Customs Code.
Valuation of specific trade transactions:
– Goods delivered free of charge: A value must be declared (this may be estimated). Although
the delivery is free of charge and no invoice may be issued, the goods have a value which
must be declared.
– Supply and assembly of goods (delivery of goods and services): The value to be declared for
intra-Community trade statistics should cover only the value of the goods. It might be
necessary to estimate the value of the goods proportion of a contract which does not
differentiate between the value of the goods and their assembly in the total value of the
contract.
– Electricity and gas: Estimations of the value are allowed (e.g. based on historical data,
information from traders, stock markets, spot prices or small surveys from price statistics).
– Waste: Whenever possible the value of waste should reflect only the value of the goods.
Services relating to the disposal of the waste should be excluded. Therefore, it might be
necessary to estimate a residual value for the goods element. If the goods element has no
residual value (or even a negative value) the value should be adjusted near to zero , because
only positive values are permitted.
– Processing: The total value of the goods in their unprocessed state must be reported for
transactions involving goods sent for processing. This may be based on a qualified estimation
in cases where the invoice does not show this amount. Regarding transactions following
processing, the total value of the processed goods must be reported. This should be the value
initially reported for the unprocessed goods plus the processing costs. The initial value may be
based on a qualified estimation.
– Software: When ‘off the shelf’ software is supplied together with hardware, the total value of
the goods (hardware + support/software /software licences) should be reported. Where
software is developed specifically for a client, this should be excluded..
– Low value transactions: Transactions in the same reference period with a value below €200
may be added together and declared under CN code 99500000. The total declared value might
therefore exceed €200-.
– Returned goods: the value of the returned goods or the replacement value shall be given.
When the returned goods are broken or defective, the value reported should be value of the
original sale or purchase of the goods.
– Customs declarations: The value of intra-Community trade statistics reported via Customs
(see chapter 2.4.2.) must be the value declared on the Customs declaration in box 46
(statistical value).
The statistical value should be expressed in the following currency units without decimals:
– in Euro (€) for the Member States of the Euro area
– in national currency units for the others
30
Values collected in another currency (e.g. invoiced currency of the goods) must be converted by
using the official exchange rate applicable for determining the taxable amount for taxation
purposes or the official rate of exchange at the time of completing the declaration, or the one
applicable for calculating the value.
In line with fiscal rules the conversion of a foreign currency into national currency must take
place according to the exchange rate in force on the day the chargeable event occurred for the
acquisition. Accordingly, the conversion must be made as per the date of invoice or the 15th of
the month following the month of delivery, depending on the movement of the goods.
3.6
Quantity
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition of the net mass
and supplementary units; Article 9 (1) (g): collection
(EC) 1982/2004 Commission Regulation Intrastat: Article 9: net mass in kilograms;
supplementary units according to CN; Annex II: exemptions of net mass
(EC) 1915/2005 amending Regulation with regard to the simplification of the recording of the
quantity
(EC) 1810/2004 Commission Regulation Combined Nomenclature: application of supplementary
units
Quantity units refer to physical characteristics of goods, and in some cases they provide a more
reliable indicator than the value. Use of quantity units may result in more comparable data,
because asymmetries between Member States may be less significant than in value
measurements. Quantities are often used in checking the credibility of the value data. In addition,
quantity units are indispensable in the construction of index numbers and for transportation
statistics.
Data on quantities are collected for intra-Community statistics in two ways:
– net mass, which means the actual weight of the goods excluding all packaging. Net mass is
collected in kilograms and should be collected in whole kilograms without decimals.
However, the net mass transmitted to Eurostat must be aggregated to quintals (100 kg) also
without decimals.
– supplementary units, which means the units measuring quantity other than net mass (e.g.
metres, Terajoules etc.) expressed in the unit laid down in the Combined Nomenclature. The
declarant must provide the supplementary unit as precisely as possible, again in whole units
without decimals, if this is required according to the Combinend Nomenclature. (About 2700
CN sub-headings require a supplementary unit). No aggregation is required for the
transmission to Eurostat.
It is recommended that the following rounding rules are applied (to avoid decimals and to
aggregate kilograms to quintals) :
– If the remainder beyond the last digit to be reported is less than 5, drop the last digit (i.e.
round down).
– If the remainder is 5 or greater, increase the final digit by 1 (i.e. round up).
Data collection on quantity is not always required. The following exceptions exist:
– In Member States which apply a simplification threshold, PSIs may be exempted from
providing information on the quantity (net mass or supplementary unit) if they belong to the
group which benefit from the simplified reporting obligation
– PSIs which record individual low value transactions (less than €200) do not have to report the
quantity (net mass or supplementary unit).
– The new amending provisions (EC No 1915/2005) allow national statistical authorities to
exempt the PSI from reporting the net mass for about 2,800 commodity codes from 2006
onwards. However, they may also opt for a solution which requires net mass to be reported for
all or some of these commodity codes. The aim of the provision is to lighten the reporting
31
burden of the PSI. Therefore, it is recommended that estimations of net mass are made for
any commodities where the information is no longer collected but is needed for national
purposes. As regards data transmission, it is recommended that Member States transmit all
data collected and estimated at national level on net mass and not only the mandatory data
according to the modified provisions.
3.7
Nature of the transaction
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition; Article 9 (1) (h):
collection
EC) 1982/2004 Commission Regulation Intrastat: Article 10: collection of codes; Annex III:
Codes and definitions
A two-digit coding system is used to differentiate between types of trade transactions. The codes
serve to determine the different characteristics (purchase/sale, work under contract, etc.) which
are deemed to be useful in distinguishing one transaction from another either for Balance of
Payments and National Accounts purposes or for the identification of information which is
excluded from Community trade statistics, but recorded separately for national use (e.g. repair).
The nature of transaction shall be reported according to the codes specified in the list of Annex
III to Regulation (EC) No 1982/2004. The collection of the single-digit codes in column A is
mandatory. However, Member States may also request a two-digit code from PSI which is
composed of a combination of the code numbers in column A and their subdivisions in column
B.
Transaction Code 1:
All transactions involving an actual, anticipated or intended future transfer of ownership against
compensation (financial or other). “Transfer of ownership” means a transfer of ownership
between a PSI in the reporting Member State and a trade operator in another Member State.
This transaction code includes most arrivals and dispatches of goods (generally more than 90% of
trade in value is reported under code 1). The following transactions are covered:
– definite purchase/sale,
– dispatch/arrival with a view to sale (e.g. dispatch to warehouses and distribution centres in
another Member State)
– financial leasing and hire purchase,
– sale on consignment, on approval, or on trial
– barter (payment in kind),
– goods movements between subsidiaries in different Member States (‘inter-company transfer’)
– hire and operational leasing which is intended to last longer than two years. This transaction
may be also recorded under code 9, depending on national practice for Balance of Payments
Intended future transfer of ownership means that the trade operators intend at the time of the
arrival/dispatch a transfer of ownership regardless of whether the transaction actually takes place.
If a subsequent transfer of ownership does not take place, a correction (using code 9) of the initial
declaration should be only requested if the transaction is of statistical relevance (if the goods
return, the transaction code 2 should be used)
When goods move between two Member States, but the transfer of ownership does not concern
any party in the reporting Member State, i.e. the change of ownership takes place between parties
in two other countries (this might happen for example when a tax representative declares for
Intrastat in the case of the Rotterdam effect) it is recommended that the transaction is recorded
using code 9 instead of code 1.
Transaction Code 2:
32
Returned goods and replacement deliveries must be reported for Intrastat. The reporting month is
the month when the return or replacement delivery took place. Nature of Transaction code 2 is
used (when the original goods movement was recorded with code 1), and the value of the
returned goods or replacement value must be given. Return of goods and replacement deliveries
are to be reported in the direction the goods are sent, i.e. goods received as arrivals and goods
sent as dispatches:
– A PSI, which returns goods, must report the return as a dispatch. If the PSI receives a
replacement delivery, this must be reported as an arrival.
– A PSI that receives returned goods must report the return as an arrival. If the PSI sends a
replacement delivery, this must be reported as a dispatch.
Returns of goods of which the original transaction was reported with transaction codes 3, 7, 8 and
9 must be declared again with the same transaction codes (i.e. 3, 4, 5, 7, 8 and 9). However, if the
goods were in the MS of processing less than 24 months and were not declared for VAT, the
original transaction could be excluded from statistics (if it is possible to identify these
transactions).
On average less than 0.5% of trade by value is reported under code 2.
Transaction Code 3:
Free of charge transactions (i.e. without financial or other compensation) involving a transfer of
ownership should be reported under code 3. These transactions often involve aid shipments by
governmental, non-governmental and individual parties. Even though the goods are free of
charge and no invoice will be issued, a value must be declared (estimated).
On average less than 0.5% of trade by value is reported under this code.
Transaction Codes 4 & 5:
Community goods dispatched or arriving for process under contract should be reported using
code 4. Goods dispatched or arriving following processing under contract should be reported
with code 5.
“non-Community goods” which enter the EU in a given Member State without release into free
circulation, and move on to other Member States under customs inward processing relief
procedures should be also recorded for intra_Community Statistics (based on customs
documents). These transactions should also be reported using nature of transaction codes 4 or 5.
The following two conditions must be met in order to use transaction codes 4 and 5:
– There is no transfer of ownership (now or in the future). If a transfer of ownership does take
place code 1 must be used.
– There must always be an inward goods movement which is followed by a later outward goods
movement in the Member State of declaration or vice versa. In other words, goods sent for
processing to another Member State must return to the dispatching Member State after
process. However, the goods do not necessarily have to return to the original Intrastat
declarant and may return to another trader in the same Member State.
Example Goods are dispatched from Member State A to Member State B for processing under
contract:
– If the trader dispatching the goods in Member State A declares the goods for VAT as a intraCommunity supply and the processor in Member State B reports an intra-Community
acquisition, a transfer of ownership is assumed and both in Member State A and Member
State B the code 1 must be used
– If the trader dispatching the goods from Member State A retains ownership of the goods and
they are re-imported after being processed into the original country of dispatch (whether or
not to the original dispatcher) transaction codes 4 or 5 should be reported.
33
– If the processor in Member State B buys the goods in order to process them on their own
account a normal purchase/sale transaction should be reported using transaction code 1.
– If the processed goods are sold and forwarded from Member State B to a third Member State
C (i.e. not Member State A), the processor in Member State B declares the goods movements
with transaction codes 4 and 5 (i.e. inward and outward goods processing movements). The
original dispatch of the goods for processing from Member State A and the arrival of the
processed goods in Member State C should be declared using transaction code 1. As an
alternative, this transaction might be also recorded under code 9 depending on national
practice for Balance of Payments.
– If the processed goods remain in Member State B where they are processed and are sold, the
dispatcher in Member State A and the processor in Member State B must declare with
transaction code 1.
– Specific examples:
– Vessels and aircraft sent for a process without change of ownership which remain
registered in the same Member State’s register should be reported using NoTC 4 when
sent for process and NoTC 5 after process, regardless of where the vessel of aircraft is
when sent for process or where it is returned to after the process has been completed.
For example, a cruise ship registered in Italy sails from the Caribbean to a German
shipyard for a process and after the process sails to a French port to collect passengers
for the next cruise. The vessel owner in Italy reports the transaction under NoTC 4 and
5.
(It follows that a vessel or aircraft which returns for a process to the Member State of
registry should not be reported.)
– The manufacture of pills is started in Member State A and sent to Member State B for a
process. The pills then travel through member State C, D and E where further processes
are carried out, until the finished pills are returned to Member State A. It is
recommended that transaction code 4 be used by Member State A when the goods are
dispatched for process and transaction code 5 when they are finally returned to Member
State A after process in the four other Member States. Member States should confirm
this with Balance of Payments before adopting the procedure. The business in Member
State A should be certain that the goods will return to the original Member State of
dispatch, otherwise transaction code 1 or 9 should be used, depending on Member
States’ requirements.
The valuation principles of processing transactions are described in the chapter on 'Value' and on
'Repair and processing'.
Repair transactions should no longer be collected under code 4 and 5 (not even at two-digit
level).
Processing under contract (transaction codes 4&5) accounts, on average, for 5% of the total trade
in value.
Transaction code 6:
This transaction code is reserved for particular transactions used for national purposes, and
should not be included in the results transmitted to Eurostat for intra-Community trade statistics.
Examples of transactions recorded under this code could include transactions not involving
transfer of ownership e.g. repair, hire, loan, operational leasing and other temporary uses of less
than two years, except processing under contract.
Transaction code 7:
Operations under joint inter-governmental production programmes (e.g. Airbus, high-speed train)
might involve very complex processing arrangements between Member States. Therefore,
transaction code 7 could be used.
34
A joint production programme is a programme for which contractors from different countries join
forces to carry out a major project.
Example: A chassis of a high-speed train is manufactured in Member State A and is then sent to
Member State B where the chassis is given a superstructure. The goods are then sent to Member
State C for installation of air conditioning. These goods movements should be declared with
transaction code 7 in each case.
It is recommended that national authorities of Member States involved in intergovernmental
production programmes agree which projects transaction code 7 should be applied and all PSIs
concerned should advised accordingly.
Transaction code 8:
This transaction code can be used for transactions involving the supply of building materials and
technical equipment under a general construction or civil engineering contract for which no
separate invoicing of the goods is required and an invoice for the total contract is issued. In other
words, the contract will usually cover the movement of goods and services combined. The value
to be declared for intra-Community trade statistics should only cover the value of the goods
(estimates might be necessary to apportion the different values of goods and services in the total
amount of the contract). If goods are invoiced separately transactions must be shown under code
1.
Transaction code 9:
Other transactions not elsewhere included shall be reported using code 9. This concerns
movements of goods where there is no actual, anticipated or intended future transfer of
ownership and where the movements cannot be classified under the other transaction codes.
The following transactions should be declared with transaction code 9:
– Transfer of goods – without transfer of ownership – to another Member State for purely
logistical reasons with the intention of returning them in the course of time to the Member
State of dispatch (e.g. pure stock movements).
Goods movements which have to be declared in the reporting Member State (e.g. by a tax
representative) but where the transfer of ownership does not involve any party of the reporting
Member State (e.g. Rotterdam Effect where goods are released into free circulation in the
reporting Member State A and further dispatched to another Member State B. The transfer of
ownership takes place between the Non-member State and Member State B).
3.8
Region
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition; Article 9 (2) (c):
collection optional
Member States may collect the “Region of origin” for dispatches and the "Region of destination"
for arrivals.
It is recommended that the region of origin is the region in the country where:
– the goods were produced or were erected, assembled, processed, repaired or maintained,
or failing this,
– the goods were dispatched or failing this,
– a commercial process took place.
It is recommended that the region of destination is the region in the country where:
– the goods are to be consumed, erected, assembled or processed, or failing this,
– the goods were acquired or failing this,
– a commercial process took place.
35
It is recommended that regions are defined in accordance with the NUTS nomenclature (the
official regional breakdown for all EU countries).
3.9
Delivery terms
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition; Article 9 (2) (d):
collection optional
(EC) 1982/2004 Commission Regulation Intrastat: Article 11: reference to Anne IV; Annex IV:
Incoterms
‘Delivery terms’ are defined as those provisions of the sales contract which lay down the
obligations of the seller and the buyer respectively, in accordance with the Incoterms of the
International Chamber of Commerce. Incoterms are standard trade definitions most commonly
used in international sales contracts. The most common Incoterms for intra-Community trade are
EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), and CPT (Carriage
Paid To).
It is optional for Member States to collect ‘Delivery terms’ from PSIs, but the information may
assist in calculating CIF and FOB for statistical value adjustments. In addition, some Member
States collect data in a second box on the delivery terms indicating the place (e.g. Named port of
shipment, Named port of destination).
3.10 Mode of transport
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition; Article 9 (2) (e):
collection optional
(EC) 1982/2004 Commission Regulation Intrastat: Article 12: reference to Anne V; Annex V: list
of codes
It is optional for Member States to collect data on the mode of transport. The codes of the active
mode of transport by which the goods are expected to leave/enter the statistical territory of the
reporting Member State are the following (given in Annex V of (EC 1982/2004):
Code Number
Title
1
Sea transport
2
Rail transport
3
Road transport
4
Air transport
5
Postal consignment
7
Fixed transport installations
8
Inland water transport
9
Own propulsion
‘Postal consignment’: It is recommended that the ‘postal consignment’ code is applied in cases
where goods are transferred by a postal service even when the ‘active’ mode of transport (train,
ship, motor vehicle or aeroplane) is known. However, Member States may introduce a quantity
threshold (e.g. 1000 kg) above which the ‘active’ mode of transport should be reported instead of
‘Postal consignment’. It is also recommended that private postal services are included in this
category. The code was introduced by customs during a period where postal services were
provided solely by government bodies.
‘Own propulsion’: It is recommended that this code is applied for means of transport (mainly
aircraft and ships) which are themselves the subject of the trade transaction and cross the border
under their own propulsion. In cases where these means of transport are carried on other means of
36
transport (Lorries, vessels, trains) the code should not be applied. The ‘own propulsion’ code
should also be used for trade with living animals (e.g. cows) when they cross the border on foot.
3.11 Statistical procedure
(EC) 638/2004 Council & Parliament Regulation Intrastat: Annex: Definition; Article 9 (2) (f):
collection optional
Member States could collect information on different characteristics which may be deemed to be
useful in distinguishing different types of arrivals/dispatches for statistical purposes. However,
Community legislation does not require this information and consequently national instructions
are necessary to collect information on the statistical procedure from companies.
Through statistical procedure codes it might be possible to identify for example:
– Trade in “quasi transit”: trade which is released into free circulation in the reporting Member
State but dispatched further on to another Member State (or vice versa on arrivals). See
Chapter 5.3 on the Rotterdam Effect.
– The temporary relocation of stocks
– Trade based on e-commerce
– Fish landed for the first time by seagoing vessels
– Triangular trade
– Trade reported also as acquisitions and supplies according to VAT provisions
4
SPECIFIC GOODS AND MOVEMENTS
(EC) 1982/2004 Commission Regulation Intrastat: Article 14
Specific movements are defined as movements of goods whose characteristics are significant for
the interpretation of the information and which, by their very nature, call for specific
methodological provisions. The characteristics may relate to the movement itself, the nature of
the goods, the transaction which gives rise to the movement, or the trader of the goods. They are
necessary because the general provisions of intra-Community trade statistics may not clearly
indicate whether and how trade transactions should be reported. Particular provisions may
concern:
– Additional data sources
– The scope (whether, how and what shall be included)
– Simplification for the PSI (the burden of collecting the information may not justify the output)
– Transmission of reduced data sets
– Deviation from general provisions regarding reference period, valuation, partner country due
to methodological problems
In general, different provisions for compiling national figures are possible if data transmitted to
Eurostat follow the Community concept. In addition, some provisions are optional for Member
States and allow a nationally adapted approach.
4.1
Industrial plant
Intrastat Commission Regulation (EC) 1982/2004: Article 15
Member States may apply special simplifying provisions on arrivals and dispatches of industrial
plants. Operators trading with goods assigned directly to the construction of complete industrial
plants may ask the national authorities for a simplified statistical declaration procedure which
allows single commodities belonging to the same CN chapter to be consolidated into component
parts. This is laid down in Article 15 of the Intrastat Commission Regulation 1982/2004.
The aim of this simplification is to reduce the burden on the companies involved by not requiring
all the commodities which make up an industrial plant to be classified separately. If the use of the
37
simplified declaration as in Article 15 is granted, companies may declare their trade in each
component part using a single commodity code within chapter 98, instead of using a number of
different commodity codes from various subheadings of a CN chapter.
For the purpose of this article
– A component part is a delivery for an industrial plant which is made up of goods which all
belong to the same chapter of the CN.
– An industrial plant is a combination of machines, machinery, apparatus, appliances,
equipment, instruments and materials serving together as a large scale unit producing goods
(e.g. petroleum refinery, power station) or providing services (e.g. hospital, underground rail
network).
– A simplified declaration should only be used where the effort of classifying individual
commodities is out of proportion to the statistical benefit – i.e. for complete industrial plants
with a total statistical value exceeding 3 million EUR. This threshold is not mandatory for
complete industrial plant for reuse.
The total statistical value of an industrial plant is calculated as the sum of the statistical values of
component parts delivered across the border and of all other goods for the construction of an
operational industrial plant – i.e. the value of all the parts supplied for the construction of the
complete plant as defined by the construction contract.
If components of an industrial plant are delivered from different Member States, the national
statistical authority responsible in each case has the power to decide whether the simplification
may be allowed.
The simplification involves national statistical authorities authorising the use of simplified
commodity codes for the statistical declaration of the component parts of an industrial plant.
These special 8-digit commodity codes are made up as follows:
– the first four digits are 9880.
– the fifth and the sixth digit indicate the chapter of the CN to which the component parts
belong.
– the seventh and the eighth digits are 0.
It is recommended that a request by the PSI or, if appropriate, by the general contractor should
be made to allow a simplification. The identification and code of the commodity to be used on
the Intrastat form together with all the other details required should be set out in the letter of
authorisation. Typically the construction of an industrial plant is coordinated by a general
contractor who is also the PSI for all subcontractors. A request for simplification by general
contractors will include all deliveries from subcontractors but if there are several PSIs in a
Member State contributing to the same industrial plant in another Member State without a
general contractor, each of them has to request a simplification separately. The current legislation
only defines a threshold for the total value of the industrial plant and not for individual
transactions so small scale traders may also apply for the simplification procedure provided that
their trade is part of the construction of a qualifying industrial plant.
It is recommended that the request by the trader for simplified reporting should contain the
following information/ documents as the basis for the treatment by the responsible statistical
authority:
– Detailed description of the industrial plant (with order number or the like)
– Member State of destination or of dispatch
– Total value (if necessary including supplies from other countries but without services supplied
abroad)
– Delivery period (anticipated beginning and completion of the deliveries)
– List of all goods to be delivered (possibly on HS4 level)
38
– Indication of which countries in addition to the country where the request is being made will
contribute parts to the total value or where appropriate will be involved in the installation of
the industrial plant.
A copy of the contract should be included as a reference to simplify matters if these
specifications appear in a contract.
It is recommended that National Authorities allowing simplified reporting on industrial plant
should provide guidelines for PSIs.
The reference period for the delivery of the components (and other goods) is the month in which
the cross-border transaction takes place. If some components are delivered as staggered
consignments in terms of Article 16 of regulation (EC) No. 1982/2004, they only have to be
declared once, namely in the month in which the last partial shipment of the component takes
place. This is because components of an industrial plant may be delivered together or dispatched
in a disassembled state over a longer period than one reference month for reasons linked to the
transport, or for commercial reasons.
National statistical authorities may choose to exclude some components from the simplification
specified above and instead require them to be declared using the correct CN commodity code.
Additionally, statistical authorities do not have to collect the quantity of the goods (net mass,
supplementary unit).
Community Statistics on industrial plant can be identified in the Comext database by CN codes
containing the alphanumeric letter ‘Y’.
4.2
Staggered consignments
Intrastat Commission Regulation (EC) 1982/2004: Article 16
The objective of the provisions on staggered consignments is to make declaration simpler for the
PSI. A PSI may aggregate multiple movements to one record in the month of the last
consignment. However, the following conditions have to be met:
– All components make up a single entity (What is a complete item? – The minimum
requirement would be that the item can be classified with a single product code)
– The shipment is between a single dispatcher and a single consignee
– The delay between the first and last shipment is only for logistical reasons.
– All components shall when assembled form a single, complete and classifiable commodity
– Therefore, the following transactions cannot be reported as staggered consignments:
– Movements of stock
– Components diverted to another use
– The supply of spare parts
4.3
Vessels and aircraft
Intrastat Commission Regulation (EC) 1982/2004: Article 17
Intra-Community trade in vessels & aircraft does not involve a physical cross-border movement
of the goods. The trade transaction to be recorded is linked to a change of ownership and
processing activities. Therefore, particular reporting provisions are necessary.
As regards the procedure it is recommended simultaneously to:
(1)
Increase the quality of the Intrastat declarations on vessels & aircraft: Make
enquiries to see whether declarations received have been filled in correctly. We assume
that only a few (but high value) transactions will be reported and only a limited number
of PSIs will be involved in intra-Community trade in vessels & aircraft.
39
– Provide national guidelines on the reporting rules concerning trade with vessels
and aircraft and inform the PSIs on these provisions
– When receiving an Intrastat declaration, contact the PSI and check whether the
particular provisions have been applied.
(2)
Identify relevant trade transactions through ships’ & aircraft registers: Presumably
all traders will not automatically complete an Intrastat declaration when carrying out a
trading transaction with vessels and aircraft which has to be reported. Member States
should use register data to identify additional trade transactions which are not declared by
the traders in order to cover this type of trade exhaustively.
According to international conventions (e.g. International Civil Aviation) aircraft and
ships should be registered and should be given the nationality of the country in which
they are registered. The international conventions also state that ships and aircraft may
not be legally registered in more than one country. Consequently, every ship and aircraft
should be entered in a single national register. To enter a ship or aircraft in a national
register, the applicant must produce proof of acquisition of ownership or leasing
arrangement before being registered. To remove a vessel or aircraft from a national
register it is necessary to prove that it is registered elsewhere, it has been
decommissioned or the lease has been terminated.
– Contact the authorities responsible for the management of the ships’ and aircraft
register and ask for access to register data.
– Try to agree on a regular information exchange on entries to and deletions from
the register, the partner country and the owner.
– Check whether the transaction was recorded via a correct Intrastat declaration.
Ask VAT liable traders to submit an Intrastat declaration when one has not yet
been declared.
As regards the control of data it is recommended to:
(1)
Check the goods: Will general Intrastat reporting provisions apply or does this involve
the particular provisions according to the Intrastat Commission Regulation, Article 17
The particular provisions will only apply to:
– Sea-going vessels according to additional notes of CN chapter 89 and warships:
hulls, incomplete, unassembled and disassembled vessels are not considered as
sea-going.
– Aircraft according to CN code 8802 for civilian use, provided they are used by an
airline, or for military use.
(2)
Check the transfer of ownership: Certain conditions have to be fulfilled in order to
assure recordable trade transactions:
– VAT registration: The party providing the statistical information has to be
registered for VAT in the reporting Member State.
– Establishment in Member States: The party providing the statistical information
has to have a centre of economic interest in the reporting Member State and a
trading partner has to have a centre of economic interest in the partner Member
State.
– Registered transfer of ownership: The party providing the statistical information
has to change its ownership (or financial leasing) status in the national ships’ or
aircraft register.
– Structural change of ownership: The economic centre of operation of the
ship/aircraft should be unambiguously transferred from one Member State to
another as a result of the trade transaction. This might be substantiated for a
40
ship/aircraft when there is a transfer to another Member State of e.g. the majority
of ownership, the headquarters, the decision-making or the legal responsibility.
Where the transfer of the entire ownership of a ship or aircraft is carried out
between two parties established in different Member States, the deletion in the
national register of the selling Member State gives rise to a dispatch, and the
entry in the register of the purchasing Member State creates an arrival. Where the
transfer of ownership of only part of the ship or aircraft is involved, further
assessment will be required in order to decide whether the economic centre of
operation was transferred between Member States. Where there is no transfer of
ownership, but an owner deletes a vessel or aircraft from one country’s register
and enters it on the register of another country for other reasons (e.g. fiscal), no
statistical movement of the vessel or aircraft is deemed to have taken place and
no report should be made.
Financial leasing transactions shall be included, because it can be assumed that a
transfer of ownership is intended. However, for operational leasing such a
transfer of ownership is not planned and transactions should be totally excluded;
regardless of the duration of the leasing contract.
(3)
Check the processing transaction: Clarify whether actual processing is involved or
simply repair and maintenance which are excluded (see chapter on ‘repair &
processing’).
(4)
Check the value: Member States shall ensure that the total value of the ship/aircraft is
reported and not just the amount which was invoiced.
– For partial sales 100% of the value of the total ship/aircraft shall be reported.
– For processing transactions the total value of the ship/aircraft has to be reported.
For valuation principles see chapter on ‘repair & processing’.
(5)
Check the partner Member State: The partner country shall be the Member State
where the trading partner is established.
Where processing has taken place, the trade should be recorded between the Member
State where the owner is established and the Memer State where the process took place.
4.4
Motor vehicle and aircraft parts
Intrastat Commission Regulation (EC) 1982/2004; Article 18
The simplified declaration of motor vehicle and aircraft parts was requested by a few Member
States. The declaration of motor vehicle and aircraft parts and accessories generally necessitates
the classification of a wide variety of goods in different sub-divisions of the Combined
Nomenclature. This simplification should relieve the reporting burden on the automobile and
aircraft industry. At present, only Germany and the UK apply simplified reporting. It is
recommended that Member States do not allow simplified reporting on motor vehicle and
aircraft parts. However, if they do introduce particular provisions they should apply the following
conditions:
– Each concession should be monitored by the national statistical authority
– The CN codes 999087zz (cars); 999088zz (aircraft) should be used (zz according to national
purposes).
4.5
Goods delivered to vessels and aircraft
Intrastat Commission Regulation (EC) 1982/2004; Article 19
To limit the reporting burden of PSIs in the reporting Member State, goods intended for the
consumption (by persons & machinery) on board foreign vessels and aircraft at national harbours
or airports shall be reported with the following simplified CN codes:
– 99302400: goods from CN chapters 1 to 24;
41
– 99302700: goods from CN chapter 27;
– 99309900: goods classified elsewhere.
The use of these CN codes is mandatory for goods delivered to vessels and aircraft.
Deliveries to vessels or aircraft registered in the reporting Member State should not be recorded
(domestic transaction). This applies on the one hand for deliveries from the statistical territory of
the reporting Member State to a nationally registered vessel or aircraft and on the other hand for
deliveries in partner Member States (foreign harbours or airports) to vessels or aircraft registered
in the reporting Member State (exemption of imports). Because reporting obligations exist only
within the statistical territory, only dispatches must be recorded and the arrivals are exempted
from reporting.
Eurostat publishes the dispatches in Comext with the alphanumeric code ‘B’ (e.g. 24BB for
99302400). As only dispatches are recorded this trade generates asymmetries and it is
recommended that the particular commodity codes for ‘goods delivered to vessels and aircrafts’
are isolated for mirror analysis and not taken into account when comparing trade figures between
Member States.
Simplified reporting procedures shall be applied for deliveries of products for the crew and
passengers as well as for the operation of engines, machines and other equipment of vessels or
aircraft registered in partner Member States. These procedures apply whether the vessels or
aircraft are managed or used for commercial, military or private purposes.
The provisions apply exclusively to goods which are intended for consumption during the
journey and are therefore unlikely to be taken off the vessel or aircraft again.
It is recommended that the delivery of durable goods and equipment which remain on the
vessel or aircraft are reported according to the normal detailed Intrastat declaration using the
appropriate commodity code. This might include for instance the delivery of bed linen, or of
musical instruments for the musicians of the ship, or TV sets for the cabinsor other durable
goods.
It is recommended that the delivery of goods which will be sold to private individuals and
which are not necessarily consumed on board are not reported for intra-Community trade
statistics. This might include perfumes, watches, etc.).
Simplified procedures are obviously not applicable when a vessel or aircraft is used as the 'mode
of transport' for the delivery of goods which are not delivered for use on board (i.e. goods leaving
the Member States of dispatch for the destination in another Member State). In these cases
normal, detailed Intrastat declarations are required from the PSIs responsible for the delivery.
The partner Member State for goods delivered for consumption on board shall be the country
where the ship or aircraft is registered or ‘flagged’ (i.e. flying the flag of the country of
registration). However, reporting a simplified country code is possible (code QR). When national
authorities allow the PSIs to report the simplified partner country code only a distinction between
Intra-EU and Extra-EU (code QS) is necessary.
The transmission of data on the quantity is optional except for goods belonging to chapter 27
when the reporting net mass is mandatory.
It might sometimes be difficult to identify the PSI. However, in most of the cases catering, supply
companies and warehouses located at the national harbours and airports will be responsible for
providing the information and will be aware of the ‘flag’.
Companies dealing with deliveries to vessels and aircraft might make the supply through the
affiliates of foreign shipping and airline companies which are located within the statistical
territory of the reporting Member State before the goods are taken on board the vessels and
aircraft. In this case, if the foreign affiliates are registered for VAT in the reporting Member State
they are responsible for reporting on the deliveries in the first instance. However, it may be that
the initial company provides the information because they are aware of the final destination from
42
the order placed by the foreign company represented by the affiliate and might therefore assume
that they are responsible for the report
When goods are directly delivered to vessels and aircraft from another Member State (e.g. the
Member State where the vessel or aircraft is registered) via a port/airport in the reporting Member
State and without any involvement of a VAT registered person in the reporting Member State
(e.g. goods are delivered from another Member State by a truck which unloads the goods directly
to the ship) it might not be possible to collect the information. However, for these cases it should
be checked to see if the supply is excluded under temporary use. (Regulation (EC) 1982/2004
Annex I (e) applies).
Example #1: A vessel registered in Member State A is berthed in a port in Member State B. The
shipping company delivers goods from Member State A to the vessel in the port of Member State
B. The following transactions should be recorded:
– In Member State A the shipping company must report a normal detailed Intrastat declaration
indicating the dispatch to partner Member State B.
– In Member State B a detailed Intrastat declaration indicating the arrival from partner Member
State A should be reported and a simplified dispatch declaration of goods delivered to the
vessel (according to Article 19 of (EC) No 1982/2004) if the goods qualify for simplified
treatment, i.e. they are not durable goods which will remain on the vessel (see
recommendation above). The PSI must be a VAT registered person in Member State B (e.g. a
locally established affiliate of the shipping company, a tax representative reporting for VAT, a
warehouse manager, or a company which is responsible for the transportation arrangements or
reloading).
– The vessel berthed in the port of Member State B does not have to report any arrivals to the
competent authorities in Member State A.
Example #2: A vessel registered in Member State A is berthed in a Norwegian (i.e. non-EU) port
and is supplied from Member State C. This is an export to Norway and must not be included in
Intrastat reports.
Example #3: Supplies of goods in free circulation within the EU, made directly from a bonded
warehouse (e.g. fuel oil) in Member State A to a vessel registered in Member State B, berthed in
Member State A must be reported as a dispatch.
4.6
Offshore installations
Intrastat Commission Regulation (EC) 1982/2004; Article 20
The provisions on offshore installations only concern installations outside the statistical
territory of any given country.
When collecting statistics, the principal problem is in deciding on the reporting/partner country
when installations are located in international waters and do not belong to the statistical territory
of any Member State. The legislation states that the reporting/partner country is the Member
State where the commercial operator is established.
Operators (It is assumed that operators of installations within the statistical territory of a
Member State will have exceeded the VAT registration threshold for that Member State).
Operators managing an offshore installation must fulfil the following requirements (please note
that the partner country could be another offshore installation):
– If the installation is located within the statistical territory of a Member State (i.e.
within its territorial waters), operators should be registered for VAT in that
Member State and are obliged to report all dispatches to and arrivals from other
Member States, according to normal Intrastat rules, to the National competent
authorities of that Member State. This applies even if they are only registered for
fiscal reasons (i.e. use a tax representative) and are not actually established in this
43
Member State. National competent authorities should ensure that all operators
who have installed an offshore installation within their statistical territory submit
Intrastat arrivals from and dispatches to other Member States according to normal
Intrastat rules (i.e. the full appropriate CN commodity code). These operators
should report non-EU trade from and to their installations via the Extrastat
system.
– If the installation is located within the statistical territory of a non-EU country
(e.g. Norway) the operator should report to the authorities of the statistical
territory within which the installation is located. A customs declaration may be
required but this is outside the scope of Intrastat and Extrastat and will be based
on the requirements of the country concerned.
– If the installation is located within ‘international waters’ (i.e. on the ‘high seas’),
outside the statistical territory of any given country, and the operator responsible
for its commercial use is established in the reporting Member State, this operator
should report on arrivals from and dispatches to other Member States. Goods
coming from the installation and going to non-EU countries should be recorded
within Extrastat. When goods coming into offshore installations are used mainly
for the operation of the installation (e.g. for consumption by staff or for the
operation of the machinery, engines or other equipment of the rig) they should be
reported using the simplified commodity codes detailed in Article 20 3. to
Commission Regulation 1982/2004. Goods leaving offshore installations will
mainly be products extracted from the seabed (gas, oil) and normal CN
commodity codes must be used for these trade flows (i.e. the simplified codes
must not be used). As a general rule, operators of offshore installations should
report goods coming into the installation using the simplified codes and normal,
detailed, CN codes on goods going out. However, there are exemptions from this
general, for instance goods coming in which are not for consumption by the crew
or engines etc, goods which are being transhipped after a process, or transhipped
as a dispatch to other installations, which should be reported under normal
Intrastat/Extrastat rules.
Traders: Traders (including commercial operators of an installation) registered in the reporting
Member State who send goods to or receive goods from offshore installations have the following
reporting obligations:
– If the installation is located within the statistical territory of the reporting Member
State the trader should not report on the trade even if the operator responsible for
the commercial use is established elsewhere (i.e. another Member State, or nonEU country).
– If the installation is located within the statistical territory of another Member State
the trader should report arrivals and dispatches according to normal Intrastat rules
(no simplified codification).
– If the installation is located within the statistical territory of a non-EU country the
trader should report imports and exports according to normal Extrastat rules.
– If the installation is located within ‘international waters’ (i.e. on the ‘high seas’)
outside the statistical territory of any given country, the trader should report the
partner country as the country in which the natural or legal person responsible for
the commercial use of the offshore installation is established. If this person is
established in another Member State, then the transaction should be recorded
within Intrastat. If the person is established in a non-EU country, the transaction
should be recorded within Extrastat. Goods which are sent to offshore
installations for use mainly in the operation of the installation (consumption by
staff or engines, see above) and should be reported using the simplified
commodity codes detailed in Article 20 3. to Commission Regulation 1982/2004.
Goods sent from offshore installations will mainly be products extracted from the
44
seabed (gas, oil) and normal CN commodity codes must be used for these trade
flows (i.e. the simplified codes must not be used). Therefore, as a general rule,
traders supplying offshore installations should report goods being sent for the use
of the crew or the engines and machinery of the installation using the simplified
codes and normal, detailed commodity codes for goods coming from offshore
installations in international waters. However, exemptions from this general rule
exist (see ‘Operators’ above).
4.7
Sea products
Intrastat Commission Regulation (EC) 1982/2004; Article 21
New provisions are established in the Intrastat Commission Regulation 1982/2004; Article 21, in
order to receive better and more harmonised data on trade with fishery products caught at sea.
Extrastat provisions are amended accordingly (Regulation 1949/2005; Article 319b)). This
chapter deals with both intra- and extra- Community trade flows on sea products, because
methodological and reporting problems are connected.
The principles for reporting on sea products are the following:
– Definition of reporting and partner country: Fish catch shall be assigned to the country of
the registration of the vessel (flag flown by the fishing vessel). Note that the country is not
determined by the place of capture of the fishery product. No matter where it is caught (in the
territorial waters or economic zone of the flag country, in international waters or in the waters
of a foreign country) it is the nationality of the vessel that determines the nationality of the
catch.
– The trade flow: Both outgoing and ingoing flows shall be recorded.
• Arrivals shall be reported when a vessel from another Member State lands fishery
products in the reporting Member State’s port.
• Import shall be reported when a vessel from non-Member State lands fishery products in
the reporting Member State’s port.
• Dispatches shall be reported when a vessel from one Member State lands fishery
products in another Member State’s port.
• Export shall be reported when a vessel from one Member State lands fishery products in
a non-Member State’s port.
In general three data sources are available to compile the trade flows:
– Direct data collection from PSI via the Intrastat system
– Data from Customs declarations
– Data from fishery statistics (in particular landing statistics)
It is recommended that Member States establish an appropriate collection system to combine
those three data sources in a comprehensive manner so that double counting of trade flows and
missing trade flows are avoided. The provisions for trade statistics on sea products are part of the
rules on specific movements which allow a maximum of flexibility as regards data collection.
This includes the use of additional data sources (e.g. landing declarations of national vessels on
sea products landed abroad), as well as particular instructions for data collected via the Intrastat
system (e.g. to advise PSI to flag up or not report certain transactions).
Data sources on Sea products depend on:
– The place of landing (in the reporting Member State, in a partner Member State, in a nonMember State)
45
– The nationality of the fishing vessel (registered in the reporting Member State, a partner
Member State, a non-Member State)
– The place of the catch (in the Customs territory of the reporting Member State, of the partner
Member State, of a non-Member country and in international waters)
The table below illustrates some possible methods on how to collect trade on sea products:
Flow
Place of
landing
Flag of
Vessel
Arrival
Reporting
MS
Partner MS
Recommendations regarding data sources
Option 1: Require the information from PSIs
Option 2: Use data from T2M declarations provided by
Customs. Data might be also available from
fishery/landings statistics when the place of catch is in the
Customs territory of the EU or in international waters.
Import declarations from Customs are required for fish
caught in the Customs territory of a non-Member State
(e.g. when Exporter (box 2 / however, optional collection
for Customs) is established in a partner MS and when
nationality of means of transport is also partner MS).
Exclude this transaction when applying option one; add
this to declarations when applying option two
Import
Reporting
MS
Non MS
Customs declarations shall be used. When the place of
catch is in the Customs territory of the EU, turnover tax on
imports are requested (data source T2M document) and
when fish is caught in the Customs territory of a nonMember State or in international waters, use the import
declaration. The partner country could be determined via
the Exporter (box 2 / however, optional collection for
Customs) and the nationality via Means of transport (box
21)
Dispatch
Partner
MS
Reporting
MS
Option 1: Require the information from PSIs
Export
Non MS
Reporting
MS
Member
States
should
investigate
whether
landings/fishery statistics provide information on landings
of national vessels when the place of catch is in the
Customs territory of the EU or in international Waters.
Fishery/landing statistics, however, do not cover landings
abroad when fish is caught in the Customs territory of a
non-Member State
None
Reporting
MS
Reporting
MS
This trade flow should not be recorded. However, when
Customs requests an import declaration for fish caught in
the Customs territory of a non-Member State (there is no
T2M document), it is recommended that these declarations
Option 2: Declarations for landings abroad by vessels
from other Member States, are collected via the
notifications in the logbooks by the captains of fishing
vessels, in the framework of the fishery/landing statistics,
when the place of catch is in the Customs territory of the
EU or in international Waters. Fishery landing statistics,
however, do not cover landings abroad when fish is caught
in the Customs territory of a non -Member State (for
EFTA countries data is available).
46
Flow
Place of
landing
Flag of
Vessel
Recommendations regarding data sources
are excluded from statistics (e.g. when Exporter (box 2 /
however, optional collection for Customs) is established in
reporting Member State and when nationality of vessel is
also the reporting Member State).
The table above shows that methodological difficulties exist when fish is caught in the Customs
territory of a non-Member State. From a Customs point of view, this fish is always a nonCommunity commodity, but from a statistical point of view the flag of the vessel is the
predominant criteria. However, this situation is only relevant for fish catches within the 12 miles
zone of non-Member States and Member States should assess whether this trade is of statistical
relevance for their trade results.
It should be noted that fish catches landed by EU vessels in EU ports and caught in the EU
customs territory or in international waters are not subject to taxation. Therefore, comparison
between statistical declarations on arrivals and dispatches from PSIs with fiscal declarations on
intra-Community acquisitions and supplies are not possible.
It is recommended that national statistical authorities:
– establish relations with the unit responsible for fishery statistics. Bilateral arrangements on
data exchange between fishery authorities exist in some Member States. Identify these
arrangements, if they exist and find out where the declaration of landings is listed, the
information that is available on the declarations (product, value, quantity), any transmission
deadlines and which PSIs (fishing companies) are involved.
– consider whether the landing declarations delivered to the fishery authorities could be used as
the primary data source on arrivals and dispatches, or whether the declarations are only
suitable to control check on the declarations received from the PSIs (VAT registered fishing
companies).
– identify the VAT registered fishing companies. Provide national guidelines on their reporting
obligations and inform the PSIs of these provisions.
– monitor declarations received by fishing companies in order to avoid possible double counting
or omission from records on landing declarations. Note that CN codes on fishery products are
used for further traded sea products as well as for fish catch. It will be necessary to find out
from the declarant whether the trade is the first landing because this cannot be identified from
the CN code alone. (Onward trade after first landing should be reported according to the
normal Intrastat provisions.)
– future assessment: The Intrastat Committee will evaluate the quality and the compilation
practice of trade statistics on sea products in due course. Member States should be prepared to
report on their experiences.
– Example of a particular case involving first landing and process:
a) A Dutch registered vessel lands (first landing) fish in the UK and sends them for processing
to a UK company. The Dutch company is not registered for VAT in the UK. The UK
company reports the arrival and any subsequent dispatch (assuming their arrivals/dispatches
trade exceeds the exemption threshold) using NoTC 4/5 (if they know that the goods are
returning to the Netherlands) otherwise NoTC 1 or 9 depending on the Member State’s BoP
requirements.
b) A Dutch registered vessel lands (first landing) fish in the UK and sends them for processing
to a UK company. The Dutch company is registered for VAT in the UK. The Dutch company
reports the arrival (assuming their UK arrivals trade exceeds the UK exemption threshold)
using NoTC 1 or 9 depending on the Member State’s BoP requirements. If the UK processing
company arranges subsequent shipment of the processed fish to another Member State, they
47
are responsible for reporting the dispatch using NoTC 1 or 9 (regardless of the EU
destination). If the Dutch company organises the dispatch of the processed fish out of the UK
(and their UK dispatches trade exceeds the UK exemption threshold), they will be responsible
for reporting the dispatch (NoTC 1 or 9).
NB In example b), the process will be an internal domestic transaction in the UK and the
Dutch company landing the fish in the first instance should complete the appropriate box on
the VAT return.
4.8
Spacecraft
Intrastat Commission Regulation (EC) 1982/2004; Article 22
Specific provisions for spacecraft and their launchers are necessary because of certain unique
circumstances, namely:
– the various transactions which may take place between the satellite’s production and its being
put into orbit. Broadly speaking, the following stages can be identified: production of the
satellite; its possible purchase/sale; its transfer from the production site to the launch base; its
launching; its commercial use;
– the significance, as far as physical flows are concerned, of the countries where the launch
bases are located such as France (French Guiana);
– the high proportion of the total cost of the satellite taken by transport and insurance costs.
Consequently, it is somewhat problematic to apply the “physical movement” criterion to
international transactions in satellites and their launchers when compiling external trade statistics:
– The "physical movement” approach “inflates” the statistics of the launching country, which
enters in its own books all the transactions involving the launcher on the one hand (imports of
parts required to assemble the launcher, export of the launcher into space) and the satellites on
the other (their import and export). Moreover, the values themselves are “inflated” since they
incorporate considerable transport and insurance costs;
– The launching of the launcher is treated as an “export” (an export declaration is generally
completed for customs purposes) whereas in fact the launcher is merely a means of transport
used only to project the satellite into space;
– The real economic and commercial nature of the transactions is disguised, the reason being
that satellites are not usually included in the external trade statistics of the countries which
buy and use them, since they are generally dispatched directly from the production site to the
launching site;
– The requirements of national accounts and Balance of Payments departments who need to
monitor transfers of ownership are not met;
Therefore the following specific provisions are applicable:
– Sending a launcher into space is excluded from trade statistics: Satellite launchers (such as
the Ariane rocket) should be treated as means of transport. Consequently, sending a launcher
into space should be treated as a service and not be recorded as an export in the external trade
statistics of the launching country. However, all transactions (imports and exports, whether
final or for processing) linked to the construction of the launcher should be recorded normally.
– The principle of transfer of ownership applies to trade with spacecraft: Commercial
transactions involving finished satellites should be recorded, at the time of launching, on the
basis of the transfer of ownership, assuming such a transfer takes place, rather than on the
basis of physical flows. The exporting country would therefore be the country where the
satellite owner is resident prior to the transfer of property; the importing country would be
where the new satellite owner is resident once the transfer of property has taken place. Where
no transfer of property occurs, dispatching a satellite from the country of production to the
48
launching country and putting it into orbit would therefore not be recorded in external trade
statistics. All transactions (imports and exports, whether final or for processing) linked to the
construction of the satellite should be recorded normally. However, transfer of ownership
transactions of satellites in orbit are excluded from trade statistics.
– The ex-works value: The statistical value recorded shall be the value 'ex-works' for both
arrivals and dispatches. Consequently, any transport cost implied for sending the spacecraft to
the launch bases and further on into the orbit are excluded.
4.9
Electricity and gas
Intrastat Commission Regulation (EC) 1982/2004; Article 23
Intrastat Commission Regulation (EC) 1915/2005 Article 1 6.
Note: The working group ‘methods’ did not approve entirely the recommendations made in this
chapter. Pilot studies will be carried out to define binding recommendations.
The scope of trade statistics on electricity and gas does not derogate from the general coverage.
Therefore, dispatches shall cover Community goods leaving the Member State of dispatch for a
destination in another Member State and arrivals shall cover Community goods entering the
Member State of arrival, which were initially dispatched from another Member State. In both
cases goods which are in simple circulation between Member States are excluded (according to
(EC) 638/2004 Article 3).
Concerning the reporting on the partner Member State, the Member State of consignment on
arrival and the Member State of destination on dispatch shall be taken being in accordance with
the definition in the Annex of (EC) 638/2004.
As regards Extrastat, the data on trade flows with non member countries could be collected and
transmitted to Eurostat in accordance with the information provided through customs
declarations.
For Intra-Community trade statistics data collection becomes more difficult and additional
provisions are necessary to ease the measurement of trade flows. Within the Intrastat system, data
is normally collected from the person registered for VAT in the reporting Member State who has
concluded a contract giving rise to the dispatch or the arrival of goods. This is, in the first
instance, the trader carrying out the Intra-Community selling and purchasing contract.
However, due to a change in VAT provisions the trade operators of gas and electricity might
become an unreliable data source. Council directive 2003/92 EC applicable as of beginning 2005
modified the place of VAT taxation for intra community transactions in electricity and gas.
Taxation takes place where the customer has established his business. This means that for VAT
purposes all intra-Community supply contracts with intermediate traders will also be taken into
account, regardless of whether the electricity or gas is physically moving across the respective
country borders. As a result, the new taxations rules for electricity and gas follow the commercial
transaction which does not correspond necessarily to the actual physical flows. The impact for
the Intrastat system is the following:
– Traders of electricity and gas more or less lose track of where these goods enter and to where
they leave the reporting Member States.
– Electricity and gas may enter or leave the reporting Member State without the involvement of
a national VAT-registered trader.
– Fiscal records on supplies and acquisitions of electricity do not correspond correctly to intra
Community trade transactions and a cross checking should be done very carefully and may
prove difficult.
National Authorities must be aware that the traditional data provider (the electricity and gas
traders) might provide data with a different degree of quality depending on whether they report
on commercial flows only or on commercial flows linked to the actual physical flows. Only in
49
the latter cases would the reported data be in line with the scope of Intra-Community trade
Statistics.
Therefore, the (EC) 1982/2004 Intrastat legislation allows the possibility to use additional data
sources for providing trade information on electricity and gas. In particular data from grid
operators who transport electricity and gas across the border should be accessible. Grid operators
manage the transportation of electricity and gas and may provide information on the quantity of
all physical outgoing and incoming flows at the national borders. However, national authorities
have to be aware that transit flows should not be taken into account.
It is recommended that pilot studies are carried out by Member States with a view to an
exchange on best practices on reporting on electricity and gas trade transactions. The following
aspects should be assessed:
– User needs: who are the public and private users at national level? Do they care about transit
trade? What information do they need as regards the partner country?
– Data sources: information based on customs declarations; data collected from VAT registered
electricity and gas traders, information collected from the national grid operators, energy
statistics, and other data sources should be examined
– Allocation of quantities: How to allocate quantities (provided by grid operators) of all
physical outgoing and incoming flows at the national borders in such a way that transit is
excluded and the correct partner country (and not only the neighbouring country) is
identified?
– Estimation of the value: The feasibility of historical data, information from stakeholders
(traders of electrical energy, stock markets, spot prices), the implementation of small surveys
from traders or price statistics should be assessed
The pilot studies should be carried out in close co-operation with energy statisticians. In
particular the matching of different data sources (e.g. contractual arrangements from traders
associated to volume records from grid operators) should be considered (GETS project).
4.10 Military goods
Intrastat Commission Regulation (EC) 1982/2004; Article 24
The confidentiality rules for military goods apply to all goods intended for military use (e.g.
arms, trucks, cars, aircraft, fuel, or any supplies for armed forces). In general military goods
should be included in intra-Community trade statistics and normal rules are applicable. However,
it may be difficult to obtain data classified using individual commodity codes from the PSI (e.g.
Ministry of Defence). Therefore, the legislation allows the transmission and collection with
limited detail.
It is recommended that the following strategy is applied:
(1)
Whenever possible the detailed data should be collected and transmitted to Eurostat
(without any confidentiality).
(2)
If the PSI requests confidentiality the detailed data should be collected and transmitted to
Eurostat, but the data should be flagged for confidentiality according to the provisions of
Doc Met 400. Eurostat will not publish confidential data.
(3)
If it is not possible to collect the detailed data for some goods as the PSI only provides
aggregated confidential data, only the confidential data may be transmitted. The codes
9999xx99 (xx is the CN Chapter); 9999xxxx (xxxx is the HS 4 code) shall be used.
4.11 Waste products
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 2 (b): specific movement
According to (EC) 638/2004 Article 2 (b) trade with waste is in the list of specific movements.
However, the legislation does not give any further specifications on how waste should be treated.
With this provision it will be possible to regulate in this area in the future, if necessary (for
50
example, if a request for specific statistics on waste is expressed by any of the Commission's
other DGs).
As regards the treatment of waste, for practical reasons it is recommended that negative values
should be adjusted near to zero values, because Article 8 of (EC) 1982/2004 allows only the
collection of a positive value (see also chapter 3.5 on the value).
CN classification of waste presents difficulties; only waste retaining some commercial value and
generated by specific industries is coded (e.g. ferrous waste and scrap, waste and scrap of
precious metal, slag, dross, scaling and other waste from the manufacture of iron or steel, waste
and scrap paper or paperboard).
If the waste has no market value, which is common, and its shipment is seen only as a service,
and the exporter pays for waste disposal, then the tax authority is likely to be interested in the
transaction but the identification of the PSI might be difficult as they are providing a service and
will not be completing the so called ‘two boxes’ on the VAT return. In addition, it should be
taken into consideration that traders dealing only in the waste business might be excluded from
reporting (exemption threshold) as the value of their trade in ‘goods’ could be virtually nil. In
consequence data collection, in particular within Intrastat, might not be complete and the
collection of statistical information about all cross-border flows of waste is therefore difficult.
Where waste has no commercial value and cannot be easily classified in the CN (e.g. bovine
spongiform encephalopathy [abbr.: BSE] waste), it should be excluded from Intrastat.
51
5
EXCLUSIONS
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 3 (5)
Intrastat Commission Regulation (EC) 1982/2004: Annex I
Intrastat Commission Regulation (EC) 1982/2004 Annex I lists a number of types of goods and
trade that are excluded from intra-Community trade statistics. This list states in a comprehensive
and exclusive manner the goods and transactions which are not covered in intra-Community trade
statistics. Therefore, trade transactions which do not appear in the list are included in trade
statistics. However, some transactions which are excluded from trade statistics, might be useful in
aiding the compilation of Balance of Payments statistics. Therefore, although the list of
exclusions refers to goods exempted from statistics transmitted to Eurostat, data collection for
national purposes is still possible (e.g. repair transactions). The following goods are excluded:
– Means of payment which are legal tender and securities
– Monetary gold
– Emergency aid for disaster areas
– Goods benefiting from diplomatic, consular or similar immunity
– Goods sent for and returned following temporary use
– Goods used as carriers of information
– Commercial samples/ advertising material (provided free of charge)
– Goods sent for and received after repair
– Goods dispatched to national armed forces
– Spacecraft launchers
– Sales of new means of transport to private individuals
5.1
Means of payment which are legal tender and securities
IntrastatCommission Regulation (EC) 1982/2004: Annex1(a)
It is recommended that unissued bank notes and securities, and coins not in circulation should be
reported for Intrastat as products of the printing or manufacturing industry. The value should be
the transaction value of the printing, or metal stamping costs involved in the production and any
delivery costs of the goods.
For used notes which are not in circulation, the value should be the cost of acquiring the notes
and any delivery costs.
It is recommended that postage stamp and similar securities (e.g. highway vignette, road tax
discs, motorway toll prepayment stickers and the like), provided that they are the subject of a
commercial transaction should be reported for Intrastat the same way as unissued bank notes not
in circulation.
5.2
Emergency aid for disaster areas
Intrastat Commission Regulation (EC) 1982/2004: Annex I (c)
As regards goods related to emergency aid for disaster areas, the idea is to ease the movement of
such goods and not to add administrative burdens to this kind of transaction. If goods are
declared as emergency aid, it is recommended that Member States verify whether this condition
is met before excluding the transactions from the trade. Otherwise the trade should be reported
according to normal Intrastat provisions.
5.3
Goods benefiting from diplomatic, consular or similar immunity
Intrastat Commission Regulation (EC) 1982/2004: Annex I (d)
52
Goods benefiting from diplomatic, consular or similar immunity; gifts to a foreign head of state
or to members of a foreign government or parliament; and items being circulated within the
framework of administrative mutual aid are excluded from inter-Community trade statistics.
5.4
Goods for and following temporary use
Intrastat Commission Regulation (EC) 1982/2004: Annex I (e)
Goods dispatched or arriving for a specific purpose and intended for re-dispatch within a
specified period and without having undergone any change except normal depreciation due to the
use made of them should be excluded from intra-Community trade statistics provided all the
following conditions are met:
(1)
No processing is planned or made,
(2)
The expected duration of the temporary use is less than 24 months,
(3)
The dispatch/arrival has not to be declared as a delivery/acquisition for VAT purposes.
Goods excluded for or following temporary use could be include the following:
– Goods for hire and operational lease
– Goods for display or use at exhibitions, fairs, meetings or similar events
– Professional equipment
– Containers, pallets, packing, samples and other goods moving in connection with a
commercial operation.
– Goods moving for educational, scientific or cultural purposes
– Travellers’ personal effects and goods moving for sports purposes
– Goods moving as frontier traffic between Member States
– Means of transport for commercial or for private use (i.e. goods moving between Member
States because they transport persons or goods)
It is recommended that borderline cases are treated according to Customs procedures and
definitions of 'temporary admission' and according to international recommendations (e.g.
Convention on Temporary Admission - Istanbul, 26 June 1990).
When one of the conditions for movements of goods previously exempted because of temporary
use is not met (e.g. they undergo a process, or stay longer than two years, or they are declared for
VAT) the goods must be declared for intra- Community statistics when the conditions for
temporary use are broken. It is recommended, that the reference period is the calendar month
when the event breaking the conditions of the provision took place. This means that the
transaction should be recorded not as a correction or revision of the trade of a previous reference
period, but accounted for in the actual reference period when it became reportable.
In this respect it should be mentioned that although hire or operational leasing is generally
excluded via this provision, a report becomes mandatory when the hire or leasing contract is
longer than two years or is prolonged once its initial period expires, exceeding two years.
53
5.5
Processing and repair
Intrastat Commission Regulation (EC) 1982/2004: Article 8 (valuation), Annex I (h) (exemption
repair), Annex III footnote e) (definition processing)
(1)
The scope
– Processing is included: Processing activities must be included in intraCommunity trade statistics and recorded with the Nature of Transaction code 4
(with a view to processing) or 5 (following processing). Processing activities on a
processor’s own account should be registered under transaction code 1 of column
A. (See also chapter on ‘Nature of Transaction’).
– Repair is excluded: Goods sent for and returned after repair and the associated
replacement parts used in the repair are excluded from intra-Community trade
statistics. Member States may record this trade for national purposes under Nature
of Transaction code 6, but shall not transmit these records to Eurostat.
(2)
Definition of processing and repair transaction
– Processing covers operations (transformation, construction, assembly
enhancement, renovation, modification, conversion) with the objective of
producing a new or a really improved item. This does not necessarily involve a
change in the product classification.
– A repair entails the restoration of goods to their original function or condition.
The objective of the operation is simply to maintain the goods in working order;
this may involve some rebuilding, replacement or enhancements but does not
change the nature of the goods in any way.
Associated replacement parts mean goods which are integrated in a repaired
commodity as part of the repair (e.g. a new engine in a car) in the Member State
where the repair is carried out.. These parts/goods are excluded from reporting. .
This is also the case if an invoice is issued seperately for the part(s). However,
goods which move in order to be used as spare parts or replacement parts should
be reported
(3)
Valuation principles of processing transactions:
– Regarding transactions involving goods sent for processing, the total value of the
goods in their unprocessed state must be reported. This may be based on a
qualified estimation in cases where the invoice does not show this amount, or the
processor is not informed of the value for reasons of commercial confidentiality
– Regarding transactions involving goods returned after processing, the total
amount of the goods in their processed state must be reported. This should be the
value initially reported for the unprocessed goods plus the processing costs. The
initial value may be based on a qualified estimation.
(4)
Comparison with VAT data:
Tax administrations collect data on sales and acquisitions of goods. Processing transactions
are not covered in the data received from the fiscal authorities and no cross checking with
Intrastat declarations is possible.
(5)
Recommendations:
– A restrictive and positive definition should be used for processing activities.
When the conditions are not fulfilled (i.e. producing a new or really improved
item) the transaction should be excluded. Member States may find it necessary to
examine doubtful cases on an individual basis.
54
– A change of the CN code is not necessarily a condition for a processing
transaction.
– Particular attention should be paid to the differentiation of repair and processing
activities for aircraft and vessels.
(6)
Examples
– Processing:
• Assembly/reconstruction of goods after transport;
• Conservation (e.g. by the addition of preservatives);
• Treatment (e.g. against parasites or rust);
• Mixing goods of different qualities to produce goods of a new quality;
• Labelling of goods, providing the labels are part of a sale transaction. If
not, labelling is a service;
• Bottling of liquid (e.g. wine from barrels);
• Canning of goods (e.g. tinned food);
• Making up of textiles into products (e.g. clothing, handbags, curtains);
• Dilution or concentration of liquids (e.g. orange juice).
– Repairs:
• The simple replacement of part of an item indicates that a repair
transaction might have been carried out. On the other hand, if it results
in an improved item, it is a process;
• Repair of damage to goods incurred during transport;
• Re-painting should be excluded as repair/maintenance. However, the
painting of unpainted goods should be treated as processing.
– Services (excluded from Intrastat):
• For aircraft, technical maintenance activities which are carried out due
to legal requirements (e.g. controls, mandatory periodic replacements);
• Testing adjusting, regulating or certification of goods (e.g. aircraft,
machines, apparatus, vehicles);
• Simple ironing, washing, cleaning, drying operations;
• Simple packaging operations;
• Simple sorting, sifting, weighing, dividing and filtering of goods;
It is recommended that Member States collect additional examples of repair, service and
processing transactions and provide a list to Eurostat in order to establish more comprehensive
recommendations.
5.6
Software & Licences
Software and licences are recorded under the CN code of the carrier of information. Exemptions
are stated in the Intrastat 1982/2004 Regulation; Annex I (f).
It is recommended:
– Hardware sold together with support, software and software licences: Example: purchase
of a PC equipped with software & licences. The total value of the goods (Hardware +
support/software /software licences) should be reported.
55
– Software developed for a client by a specialised software house: Example: a Swedish
software company provides a Belgian firm with specific software for its accounts. This
operation should not be reported.
– Mass produced software available off the shelf with material support: Example: import or
acquisition of Windows 2000 software. The total value of the goods (support + software) shall
be reported.
– Goods supplementing mass-produced software: Example: updates when a physical
movement takes place (delivery of a CD-Rom). The supply shall be reported.
– In cases where the price for the supply was already included when the software was initially
purchased/sold and a separate invoice is not produced, no declaration should be reported.
– Hidden capacity: Hardware sold with the restriction to use only part of its capacity and
further unlocking of additional capacity depends on further payments. The initial transaction
on the hardware should be recorded and no declarations should be made on subsequent
unlocking fees.
– Supply of software not involving a physical exchange of goods: Examples: additional
licences or rights invoiced for the use of previously supplied software; supply of software via
the internet. The transaction should not be reported.
– Supply of software together with a maintenance contract: Maintenance services of
software should not be reported when they are the subject of a proper contract and listed
individually on the invoice.
5.7
Leasing & Hire
Intrastat Commission Regulation 1982/2004; Annex I (e), Annex III footnote (c) and (f)
(1)
Definitions
– Operational leasing: Operational leases are those leases which do not substantially
transfer all the risks and rewards associated with legal ownership to the lessee. Under an
operational lease, the lessee acquires the right to use durable goods for a certain period
of time, which may vary in length and is not necessarily settled in advance. When the
leasing period expires, the lessor expects to receive the goods back in more or less the
same condition as when they were hired out, apart from normal wear and tear. Thus the
leasing period does not cover all, or even a predominant part of the economic lifetime of
the goods. Payments for the operational leasing of goods relate to the cost of using the
tangible goods made available to the unit through these contracts. (Source: CODED:
Eurostat Concepts and Definitions Database)
– Financial leasing: the lease instalments are calculated in such a way as to cover all or
virtually all of the value of the goods. The risks and rewards of ownership are transferred
to the lessee. At the end of the contract the lessee becomes the legal owner of the goods.
(Source: Intrastat Commission Regulation 1982/2004 Annex III footnote c)).
(2)
Treatment in trade statistics
– Goods on hire and operational leasing arrangements should be excluded when the
contract covers a period shorter than 2 years. Member States may record this trade for
national purposes under the code 6 of the Nature of Transaction, but must not transmit
these records to Eurostat.
– Goods on hire and operational leasing arrangements must be included when the
contract covers a period longer than 2 years. Member States should transmit these
records to Eurostat under the code 9 of the Nature of Transaction.
– Financial leasing must be reported to Eurostat. Code 1 column A or 15 columns
A&B of the Nature of Transaction shall be used. Financial leasing is a transaction which
may involve three parties:
56
• the supplier of the goods (Supplier),
• the recipient of the goods (Lessee)
• the payer of the cost of the goods (Lessor).
Direct leasing exits when the supplier and the lessor are identical. Indirect leasing exists
when a leasing company (Lessor) buys the goods from the producer or supplier and
subsequently leases the goods to the lessee. The goods are delivered from the supplier
to the lessee. Trade statistics always record the trade flow between the Member State of
the supplier and the Member State of the lessee. If the lessee and the lessor are located
in the same Member State and only the supplier is located in another Member State it is
recommended that the information is collected in the Member State of arrival from the
lessor (who has concluded the contract giving rise to the delivery) instead of the lessee.
(3)
Reference period: For financial leasing or goods on hire and operational leasing with an
intended duration of longer than two years, the reference period shall be the month when
the goods arrive or are dispatched. This is usually at the beginning of the leasing/hire
arrangement.
Goods on hire or operational leasing exempted from Intrastat reporting because their
intended stay was less than two years must be reported if they are not returned after the
two year period. The reference period should be the month in which it becomes obvious
that the goods are staying longer than two years.
The value used for previously unreported goods (i.e. goods which were originally
intended to be returned within two years) which have not been returned within the twoyear period, should be the estimated value at the time the goods are reported for Intrastat.
This will normally allow for depreciation due to use, or any other factor which has
affected the value and should be the market value of the goods (i.e. the price the goods
might realise on the open market at the time the two year period is exceeded) at the time
of the reference period.
5.8
Samples & advertising material
Intrastat Commission Regulation 1982/2004; Annex I (g)
Movements of goods with the sole intention of preparing or supporting a (potential) subsequent
trade transaction by demonstrating the characteristics of goods or services shall be excluded
when they are delivered free of charge.
– Commercial samples could be all goods which are used for illustration and/or testing
purposes.
– Advertising items could be all goods, the primary benefit and use of which is, for publicity.
Commercial samples / advertising materials are excluded if they are not themselves the
subject of a commercial transaction.
5.9
Goods dispatched to national armed forces
Intrastat Commission Regulation (EC) 1982/2004: Annex I (i)
The movement of goods between the reporting Member State and its enclaves abroad is
considered to be an internal flow for statistical purposes. Therefore, goods movements between
national military installations that are physically located outside the statistical territory of the
reporting Member State should be not reported. Accordingly trade flows between military
installations which are under the sovereignty of a partner Member State but located within the
statistical territory of the reporting Member State and this partner Member State should also not
recorded.
However, the movement of goods between national military installations located abroad and the
host Member State should be reported as well as any movements between the foreign military
installations located within the statistical territory of the reporting Member State.
57
5.10 Sales to and purchases from private individuals
A PSI has to report on its intra-Community trade when it is registered for VAT in the reporting
Member State and when its trade is above the threshold. This is irrespective of whether the same
trade is collected in the Partner Member State.
Exemption of private individuals: Private individuals are not by definition excluded from
reporting on intra-Community trade. However, in general, private individuals are not registered
for VAT and therefore ‘de facto’ are exempted from providing information.
Dispatches to private individuals: If a business, liable to report dispatches, supplies goods to a
private individual in another Member State, this trade should be reported. Nature of Transaction
Code 1 (column A) or Code 14 (columns A&B = purchases by private individuals) should be
reported in this instance. (But see also the requirements for sales to private individuals when the
Distance Sale threshold for the partner Member State has been exceeded in paragraph 2.7.1)
Arrivals from private individuals: If a business, liable to report arrivals, purchases goods from a
private individual in another Member State, this trade should be reported. Nature of Transaction
Code 1 (column A) or Code 14 (columns A&B = purchases from private individuals) should be
reported in this instance. Note that no report should be made if the buyer arranges transport from
the partner Member State of sale, or the goods are an ‘over-the-counter’ sale.)
Purchases by foreign private individuals in shops in the reporting Member State: No intraCommunity trade transaction shall be recorded by PSIs when private individuals with the
nationality of another Member State or compatriots living in another Member State acquire goods
in their shops or factories, because the supplier is not responsible for the delivery of the goods
and no exemption of VAT on intra-Community sales can be claimed.
Distance selling: This is when a supplier (liable for VAT in the reporting country) dispatches
goods to a person in another Member State who is not registered for VAT and the supplier is
responsible for the delivery of the goods.
Member States apply a threshold system under the special scheme for distance sales. Suppliers
must register and account for VAT in the Member State of destination when their sales exceed
the distance selling threshold in that Member State. In consequence the invoice to the purchaser
will show the VAT of the Member State of destination when the supplier exceeds the threshold.
If the supplier is below the threshold the invoice will show the VAT of the Member State of
consignment. It is recommended to:
– Include:
• Dispatches shall be reported by the supplier (the code 14 = sales to private individuals in
the Nature of Transaction classification may be used).
• Arrivals from distance sellers above the threshold shall be reported by the body
responsible for the payment of the supplier’s VAT obligations in the Member State of
arrival.
– Exclude the recording of arrivals when a distance seller is below the ‘VAT distance selling
threshold’ in the Member State of destination.
Exclusion when selling new means of transport to private individuals: New means of
transport (NMT) are sold by companies without VAT to private individuals when the NMT will
be registered in another Member State. The purchaser will pay the VAT in the Member State of
arrival when the NMT is registered. In consequence the supplier always knows when a NMT is
sold to an individual from another Member State. To harmonise the recording of this trade in
Member States the selling of NMT to private individuals shall always be exempted. This applies
when the company delivers the NMT to the individual as well as when the NMT is picked up
directly by the individual.
Member States may collect this information for national purposes with the Nature of transaction
code 6, but should exclude it in the transmission to Eurostat.
58
6
6.1
PARTICULAR TRADE FLOWS
Goods in transit
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 2 (g) definition of ‘goods in
simple circulation’; Article 3: exclusion of simple circulation, Article 9 (e): collection of partner
country, Annex: definition of partner country
According to the concepts and definitions of International Trade Statistics of the UN, goods in
transit are goods entering and leaving a Member State with the exclusive purpose of reaching a
third Member State. They should be excluded from statistics in the transit Member State. The UN
compilers manual recommends to identify goods being simply transported through a country as
goods which are entering the compiling country for transportation purposes only. The criteria for
identifying goods in transit is given by the goods destination at the time of the crossing of the
border of the compiling Member State. If it is clear at this time that the destination of the goods is
another Member State, the goods should be considered as goods in transit.
The definition of the beginning and end of a trade flow is a crucial factor for a coherent picture of
trade between Member States. Therefore, the reporting obligations of the Member State of
dispatch and of the Member State of arrival are defined to that effect in the legislation and
consequently trade flows are recorded between the Member State of consignment and the
Member State of destination. On the way, halts only inherent in the transport of the goods are not
reported.
This concept entails the following:
– Goods moving between Member States should be divided into several trade flows when halts,
not inherent with their transport, take place in a Member State on the way to the final
destination of the goods.
– A Member State where goods are in simple circulation has not any impact in determining the
trade flow.
A
B
Movement of goods
from Member State A
via B to C
A halt not inherent in
trade
trade flow 1
transport takes place
in Member State B
reports dispatch to B
reports arrival from A
reports dispatch to C
Goods are in simple
trade flow 1
circulation in B
reports dispatch to C
reports nothing on the
movement
A halt inherent in
trade flow 1
transport takes place
reports dispatch to C
in Member State B
reports nothing on the
(e.g. simple reloading)
movement
C
flow 2
reports arrival from B
reports arrival from A
reports arrival from A
The Intrastat legislation (EC) 638/2004 provides, instructions to Member States allowing them to
identify whether they have to report on a physical movement of goods and which is the correct
partner Member State.
Article 2 (g) defines ‘goods in simple circulation between Member States’ and Article 3 (2) and
(3) exempt the reporting on ‘goods in simple circulation between Member States’ with the
consequence that in the ‘transit Member State’ nothing has to be declared. Member States where
goods are passing through have to answer the question: Do the goods travel directly through their
statistical territory (with no halt); or do stops only occur for reasons of transport; is the
59
destination of the goods known at the time the goods enter the Member State another Member
State? If the answer is ’YES’ no reporting should be done by this Member State and if the answer
is ‘NO’ the Member State has to report an arrival and a dispatch.
A Member State which initially dispatches goods which enter one or more Member States in
transit during the transport or a Member State which receives goods which have entered one or
more Member States in transit before reaching their destination in this Member State has to report
on the trade regardless of what happens on the way. However, such Member States may have
difficulties in establishing the correct partner Member State. The partner Member State which
shall be reported in the case of goods entering one or more Member States in transit during the
transport is defined in the Annex, paragraph (1) of the Intrastat Regulation (EC) 638/2004.
The provisions of the scope of trade in transit (Article 2 (g) and Article 3 (2) & (3 (3)) and the
identification of the partner Member State (Annex paragraph (1)) are not directly linked as they
relate to different issues. However, an indirect relationship exists, because the legislation ensures
that arrivals reported in one Member State are reported in the partner Member State as dispatches
and vice versa. Therefore, reporting Member States should ensure that they do not record a
partner Member State (according to Annex paragraph (1)) which is exempted from reporting on
the movement of goods (according to Article 3 (2) & 3 (3)).
With regard to the reporting obligations in a ‘transit’ Member State
The question as to whether a Member State has to report on the trade which enters and leaves its
statistical territory depends on the halts and legal operations it has been subject to in this Member
State. A criteria to identify the character of the halts is the goods destination known when the
goods enter this Member State.
– No halts, means no reporting.
– No reporting is needed when halts take place only for logistical transport reasons (e.g.
packing operations, simple reloading from one means of transport to another.)
– Reporting is mandatory for all other halts (e.g. linked to a change of ownership or
processing activities)
Borderline cases may exist where the decision as to whether a transport related halt or a halt for
other reasons is not very clear. This may occur in particular when goods do not have any halts in
the transit Member State or have only halts which are on the first impression purely linked to
reasons for transport, although the transit Member State is involved in some legal/economic
transactions concerning these goods (e.g. has concluded contracts which give rise to the
movement of the goods). In these cases a very careful examination of the transit operation must
be made.
– In cases where there is no halt in the transit Member State at all an additional legal/economic
operation (e.g. change of ownership) will not affect the movement and the transit Member
State is excluded from reporting on this trade.
– In cases where there are halts in the transit Member State to bridge a time gap between the
possible and the desired delivery date but where it is clear that the goods are destined for
another Member State, the transit Member State is excluded from reporting on this trade
(e.g. goods destined for another Member State are temporarly storaged in the transit Member
State because the addressee wishes a later delivery date).
– In cases where there are halts in the ‘Transit Member State’ (e.g. at the company or due to the
authorisation of the company which is involved in the legal/economic transactions for
registration, new labelling, quality checks) which may have an impact on the transit, in
particular on the transit route, reporting is obligatory in this Member State.
With regards to the identification of the partner Member State
Where goods have entered one or more Member States in transit before reaching the Member
State of arrival and have been subject in those Member States to halts or legal operations not
60
inherent in their transport (e.g. change of ownership), the Member State of consignment shall be
taken as the last Member State where such halts or operations occurred.
The partner Member State is the Member State of destination, on dispatch. This means the last
Member State to which it is known, at the time of dispatch, that the goods are to be dispatched. If
it is known that a halt not inherent to the transport will take place in another Member State, it is
recommended that this Member State is reported as Partner Member State of dispatch.
Examples:
(4)
A German company buys goods in the Netherlands and sells them to France. Goods
are dispatched from the Netherlands to France.
a. The goods are transported directly through Belgium or with a halt linked to the transport
(e.g. temporary storage before a reloading). This is triangular trade.
Involved country
Flow to be
reported
Partner country
Germany
none
none
Netherlands
dispatch
France
Belgium
none
none
France
arrival
Netherlands
b. The goods are going from the Netherlands via Belgium to France and a halt takes place
in Belgium which is not inherent in their transport (e.g. storage in a subsidiary company
of the French company with a view to processing before dispatch to France).
Involved country
Flow to be
reported
Partner country
Germany
none
none
Netherlands
dispatch
Belgium
Belgium
arrival
Netherlands
Belgium
dispatch
France
France
arrival
Belgium
c. The goods are going from the Netherlands via Belgium to France and a halt takes place
in Belgium which is not inherent in their transport (e.g. storage in a subsidiary company
of the French company but before the goods pass the frontier between the Netherlands
and Belgium it is clear that they are destined for France and will not be changed in
Belgium but only stored as the French addressee wants to get them at a later date).
Involved country
Flow to be
reported
Partner country
Germany
none
none
Netherlands
dispatch
France
Belgium
none
none
France
arrival
Netherlands
d. The goods are going from the Netherlands via Belgium to another Member State and a
halt takes place in Belgium which is not inherent in their transport (e.g. storage) as it is
61
not clear when the goods enter Belgium for which other Member State(s) they are
destined. It is only known that the goods destination is not or not entirely Belgium.
6.2
Involved country
Flow to be
reported
Partner country
Germany
none
none
Netherlands
dispatch
Belgium
Belgium
arrival
Netherlands
Belgium
dispatch
Other Member State(s)
Other Member State(s)
arrival
Belgium
Triangular trade
Triangular trade exists when a company in Member State A sells goods to a company in Member
State B, which in turn sells it to a company in Member State C, although the goods are physically
moved only once - from A to C. In such cases, intra-Community trade statistics should record a
dispatch from A to C and an arrival in C of goods from A. There is, however, a risk that Member
State A or C will declare Member State B as its trading partner, because the sales and purchase
contract is concluded with Member State B, whereas Member State B might declare an arrival
and a dispatch although there is no physical movement in B.
Definitions:
A
B
Movement of the invoice
Movement of the goods
Member State of dispatch
Intermediate Member State
Member State of arrival
A
B
C
C
Reporting obligations for fiscal purposes (following the invoices) and reporting for trade
statistics may be different in the case of triangular trade. Of course, the principle of following the
movement of the goods remains applicable for statistical purposes, and the invoice does not have
to be followed:
– A PSI in the Member State of dispatch must declare the partner Member State to which the
goods are delivered, regardless of where the invoice is sent.
– A PSI in the Member State of arrival must declare the partner Member State from which the
goods are delivered, regardless of the Member State to which the payment is made.
– The seller/purchaser must not report the goods movement for Intrastat when the goods do not
enter the intermediate Member State.
Reporting errors due to triangular trade should be minimised. The following measures are
recommended:
– Identify trade operators engaged in triangular trade - both in the intermediate Member State
and the reporting Member States.
– Inform PSIs in detail of their reporting obligations when they are involved in triangular trade.
– Mirror statistics may allow Member States to discover incorrect partner country reporting and
erroneous declarations in the intermediate Member State.
62
– Vies data allows in addition quality checks concerning the correct reporting of the partner
country
– National instructions for trade operators to flag triangular trade transactions might be
considered (e.g. either as statistical procedure on Intrastat declarations or on the VIES
declaration)
Where the selling/purchasing company in the intermediate Member State has established a tax
representative responsible for VAT in the reporting Member State (either the Member State of
dispatch or the Member State of arrival) this representative should be appointed as the PSI for
reporting for Intrastat (the conditions for an appointment depend on the national fiscal provisions
in each reporting Member State). Precautions should be taken to avoid double counting. When
triangular trade is reported via tax representatives, fiscal and statistical reporting should be
equivalent and PSIs might be informed accordingly.
Triangular trade with a partner in a non-member country:
Where the selling/purchasing company in the intermediate country is
established in a non-member country (country X) the appointment of a tax
representative may be necessary (either in Member State A or C) depending
on the requirements of the Member States involved.
A
C
X
B
A
X
B
X
C
Where the country of final destination is a non-member country (country
X) and the goods do not enter the intermediate Member State (B) an
export declaration must be made in the Member State where the goods are
physically presented to Customs (A). These transactions should not be
declared for Intrastat even if invoices are issued between operators in the
intermediate Member State (B) and the exporting Member State (A). Only
the export transaction based on the Customs declaration shall be taken
into account within the Extrastat system in Member State A.
The same practice applies when the country of consignment (origin) is a
non-member country (X). An import declaration has to be made in the
Member State where the goods are released into free circulation and are
physically presented to Customs (Member State C). The customs import
declaration has to be done for Extrastat and there should be no declaration
for Intrastat.
There are other cases when the path of the invoice does not correspond to the physical flow of the
goods, even if there are only two Member States involved.
Triangulation with two Member States:
The goods are delivered from Member State A directly to a company C2 in
Member State C, but a VAT registered company C1 in Member State C has
concluded the contract giving rise to the delivery and invoices the company
C2. It is recommended that company C1 declares the arrival for Intrastat.
Of course a dispatch declaration has to be reported in Member State A.
A
C1
C2
63
A2
The goods are delivered directly from a company A1 in Member State A to
a company in Member State C, but the invoice is addressed by company A1
to another VAT registered company A2 which has concluded the contract
giving rise to the dispatch in the Member State A. The movement from A to
C has to be declared for Intrastat. It is recommended that company A2 even
if it is not in charge of the transport shall declare for Intrastat. Of course an
Intrastat declaration on arrival has to be carried out in Member State C.
A1
C
A2
A2
6.3
6.3.1
A1
A1
B
Goods are delivered from company A1 to another company A2 in the
Member State (A). However, the invoice comes from a VAT registered
person in Member State B. No Intrastat declaration is made, because the
goods have not left Member State A.
B
Goods are delivered from company A1 to another company A2 in the
Member State (A). However, the invoice is addressed to a VAT
registered person in Member State B. No Intrastat declaration is made,
because the goods have not left Member State A.
Rotterdam Effect
Explanation of the ‘Rotterdam Effect’
The ‘Rotterdam Effect’ concerns:
– Imports of goods from non-member countries which are cleared in a Member State before
being dispatched to another Member State.
– Dispatches of goods from a Member State to another in which the Customs export clearance
take place and which are immediately re-exported to non-member countries.
The ‘Rotterdam Effect’ concerns the interface between the Intrastat and Extrastat trade data
collection systems.
– According to Extrastat, an import or export has to be declared in the Member State where the
goods are cleared for Customs (i.e. released for import, export or processing).
– According to intra-Community trade statistics any movements of Community goods (goods in
free circulation) between Member States must be reported (unless they are excluded under
Annex 1 to Regulation 1982/2004).
– In addition, the definitions of the partner countries for Extra- and Intrastat have their impact.
Whereas the country of origin determines the trading partner with non Member States, the
Member State of consignment is relevant for intra-Community trade statistics.
Therefore, movement of goods between a non-Member country and a Member State will be
divided into two trade flows – one reported within Extrastat; the other reported for Intrastat –
when the Customs clearance takes place in another Member State (this is usually a Member State
located at the external frontier of the European Union with an important port for transhipment of
goods e.g. Rotterdam, Antwerp).
64
The ‘Rotterdam Effect’ concerns mainly imports into the European Union. Community customs
legislation has always afforded Community importers the possibility of having goods released
into free circulation (via a representative) at basically any customs office in the Community,
regardless of whether the goods are then transported to another Member State or not. Importers
make particular use of this facility in order to release goods for free circulation at the earliest
possible moment, i.e. at the external frontier of the European Union. The advantages of
proceeding in this way are obvious. Once customs duties have been paid, the parties concerned
are able to dispose freely of the goods without having to consider customs supervision
regulations or provide a guarantee for any duties payable. This both increases the availability of
the goods and avoids losing interest on the guarantee.
However, to a smaller extent exports are affected as well. The exporters are, only under certain
conditions, able to carry out customs clearance not in the actual Member State of consignment,
but in the Member State of exit, i.e. the Member State from which the goods are exported from
the statistical territory of the Community (Article 794 of Customs Code Implementation
Regulation (EEC) No 2454/93: Goods that are not subject to any prohibitions or restrictions and
which do not exceed ECU 3.000 in value may be declared at the customs office of exit).
6.3.2
Reporting obligations
The illustration below shows that the place where the customs declaration is lodged is crucial for
the reporting on trade flows:
Non Member State
A
1)
Member State at the external frontier
of the Community
B
Customs clearance in MS B
Extrastat trade flow
Member State of final
destination/consignment
C
Intrastat Trade flow
Customs clearance in MS C
2)
Extrastat trade flow
(1)
Where the Customs clearance is done in Member State B, import and dispatch
declarations shall be declared in Member State B and in Member State C an intraCommunity arrival with partner Member State B.
(2)
Where the Customs clearance is done in Member State C the goods are in transit in
Member State B and no reporting is done in Member State B. Member State C reports an
import or export within Extrastat
The customs clearance procedure at the EU border is a legal operation which is not inherent with
the transport of the goods and therefore they are not in simple circulation or in transit in the
intermediate Member State. The Community status of the goods changes in the intermediate
Member State. The customs clearance procedure therefore introduces a procedure which
interrupts the reporting on movements of the goods (e.g. in the same way as processing activities
do).
Member States are faced with difficulties in advising all PSIs involved to report correctly on the
intra-Community trade flows. The declaration in the intermediate Member State is often done by
a tax or customs representative, or a carrier who lodges the Customs declaration. There are,
however, doubts as to whether the representative willalso be aware of their obligations as regards
65
making the necessary Intrastat declaration. Furthermore, the PSI in the Member State of final
destination or consignment might assume that they have already fulfilled their reporting
obligations when the customs clearance is done in the partner Member State, failing to report on
the intra-Community movement of the goods. If one of these two fails to perform their
obligations, there would be discrepancies in the statistical records. It is recommended that
Member States inform PSIs about their reporting obligations.
Some intra-Community trade flows might be compiled via information collected on Customs
declarations. However, Community legislation determines that the PSI should normally report on
intra-Community trade flows. Where data from customs documents are used for compiling the trade
flows, Member States must ensure that no double counting via an Intrastat declaration takes place.
Therefore, it is recommended that Customs information is used for control and completeness
checks for data collected via Intrastat, but not for compiling the complete intra-Community trade
flow via data from Customs. The following trade flows are concerned:
– For import, the intermediate Member State at the external border of the EU shall report an
import (Extrastat) and a dispatch (Intrastat). The intra-Community dispatch flow can be
compiled by using the optional information on the "Member State of actual destination" in the
import declaration.
In addition, the customs declarations concerned can normally be identified via two customs
procedure codes (42 & 63) which were introduced for the purpose of applying VAT relief
because the goods are not intended for the Member State of import but are to be shipped
directly to another Member State
– For export, the intermediate Member State shall report an arrival (Intrastat) and an export
(Extrastat). The intra-Community flow can be compiled using the country of the exporter,
together with the origin (EU original Member State of dispatch) of the goods. In addition, the
optional information on the "Member State of actual export" in the export declaration might
be used.
It is much more difficult to identify trade flows affected by the Rotterdam Effect in the Member
State of final destination or consignment as no Customs declarations are done in these countries.
However, Member States may ask, on an optional basis, for the country of origin for arrivals.
This information might allow the identification of trade which is imported via an intermediate
partner Member State into the EU.
6.3.3
Analysis of the Rotterdam Effect
As a matter of course the Rotterdam Effect makes the interpretation of Community Statistics
complicated. The partner country allocation might be distorted and, in particular, asymmetries
between non-member countries and individual EU Member States may appear. Within intraCommunity statistics a Member State of final destination or consignment might show high trade
flows with intermediate Member States at the external border of the EU although the final
destination or the initial consignment of the goods was to a non-member country.
Several Member States exclude trade which is only cleared for customs purposes on their
territory from their national figures, because they consider these movements as transit (so-called
'Quasi Transit').
However, Community Statistics require the correct application of reporting according to the rules
described above for the following reasons:
– A clear and comprehensive data collection system for both Intra- and Extrastat should be
maintained.
– Even if an intermediate Member State is able to identify and exclude 'quasi transit' from its
national figures, it is very difficult to adjust the data of the Member State of final destination
or consignment accordingly. Therefore, asymmetries on intra-Community trade statistics will
increase.
– Export and Import figures on a Community aggregate level remain accurate.
66
To produce a consistent statistical framework at Community level, which allocates trade flows
between non-member countries and individual EU Member States, regardless of the place where
the Customs clearance is done, and which is able to identify, to exclude and reallocate that part of
the trade route which involves an intermediate importing or exporting Member State requires
collection of more data elements (particularly for additional Member States) than is currently the
case. This is difficult to implement at present because it creates a further reporting burden for
trade operators. Nevertheless, in the framework of the revision of the Extrastat system and the
provisions of the modernised Customs Code on centralised clearance, the allocation of trade
flows to the individual EU Member States are a core topic for which a comprehensive solution
must be found.
6.4
Credit Notes
If a credit note is issued for a returned commodity or a replacement delivery an Intrastat
declaration shall be provided. N.B.: If the return of the goods has already been declared for
Intrastat, the credit note relating to those goods obviously does not need to be declared again
(otherwise the movement of goods would be declared twice).
If a credit note is issued relating to a discount, a price reduction, defective goods which do not
return, or correction of invoice errors, Member States may ask the PSI to send a correction of its
trade data. However, a PSI should be only obliged to send correction if the value is of statistical
relevance. It is recommended that Member States set thresholds which determine when
corrections should be transmitted to the national authorities. The corrections might be related
either to individual deliveries or to several deliveries for a certain period (e.g. a customer receives
a credit note at the end of the year depending on his sales).
7
THRESHOLDS
In order to satisfy users' needs for statistical information without imposing excessive burdens on
economic operators, Member States shall define, each year, thresholds expressed in annual values
of intra-Community trade below which parties are exempted from providing any Intrastat
information or may provide simplified information. The thresholds are to be defined by each
Member State, separately for arrivals and dispatches. The Intrastat system applies the following
thresholds:
Statistical value threshold
All
prescribed
information
detailed statistical declaration
is
provided
Information on statistical value is not provided
Simplification threshold
Only information on type of goods, partner country and
fiscal or statistical value is provided simplified declaration
Exemption threshold
Fiscal declaration (VAT return) substitutes for statistical
declaration
Fiscal exclusion
Not included in statistics
(e.g. private individuals not VAT registered enterprises
7.1
Statistical Value threshold (optional)
Member States may collect the statistical value of the goods from some PSIs, the trade of which
amounts to a maximum of 70 % of the relevant Member State’s total trade expressed in value.
Although the collection of the statistical value from companies remains optional, it is mandatory
to transmit data on the statistical value to Eurostat.
Apart from the mandatory collection of specific data Member States may also collect additional
information, such as the identification of the goods at a more detailed level; the country of origin
(for arrival); the region of origin (for dispatch), the region of destination (for arrival); the delivery
67
terms; the mode of transport; or the statistical procedure. While the collection of this information
is optional at Community level, it may be mandatory by legal decision at national level. It is
recommended that Member States apply the same threshold for optional data and for the
statistical threshold.
7.2
Exemption thresholds (mandatory)
Companies which do not achieve this threshold for arrivals or dispatches do not have to compile
Intrastat declarations. Their periodic VAT declarations shall be considered the statistical
declarations. For defining thresholds below which parties are exempted from providing any
Intrastat information, Member States have to ensure that the information provided is such that at
least 97 % of the relevant Member State's total trade expressed in value is covered.
Although the only legal requirements for defining the exemption thresholds is the collection of at
least 97% of Member States' total trade it is recommended that the determination of the threshold
should meet certain quality requirements. In particular Member States should examine whether
the exemption of the PSIs below the threshold will lead to a considerable lack of information or
to biased information as regards the flow, the trade within certain partner Member States and
certain commodities. Therefore, it is recommended that the threshold is determined in such a
way that the largest number of traders is exempted from providing information to the Intrastat
system by simultaneously keeping the quality of the collected information. It might be useful to
examine various scenarios for setting the level of the threshold before deciding which particular
value should be set for the following year.
For the determination of total trade it is recommended that the cumulative total value is
calculated by using the latest available results over a period of 12 months on the following
information:
– Intrastat information transmitted by PSIs
– VAT information for trade operators below the exemption threshold and late/non-response
data
For the determination of the level of the exemption threshold it is recommended to:
– Calculate the value of trade, for each flow and each enterprise over the period,
– Sort the data by decreasing value of trade,
– Identify the threshold value when reaching the coverage ratio,
– Examine various scenarios close to the coverage ratio to determine the threshold value which
most limits the reporting burden by ensuring quality requirements are met.
The threshold is set annually and comes into force on 1 January each year. Information on the
level of thresholds applicable for year n+1 must be made public before end of October of year n.
Eurostat requests the information on the level of the threshold in its questionnaire on methods
which is sent out to National Statistical Authorities each autumn; at its November Committee
meeting a list of thresholds to be applied in Member States in the following year is disseminated.
A company shall provide an Intrastat declaration for the whole year if:
– the trade with other Members States exceeded the threshold during the previous year
– or if
– the trade with other Members States exceeds the threshold during the year of application.
To identify traders which become responsible for providing information in the current year a
permanent and close monitoring of VAT data provided by fiscal authorities has to be ensured.
Intra-Community trade statistics legislation demands the transmission of data on total trade to
Eurostat. Therefore, Member States shall transmit estimations of trade below the exemption
threshold at least at chapter level and by partner country.
68
Adjustments should be included into the Intrastat files which are sent monthly according to rules
defined in Doc. Met 400. Adjustments should be flagged by the threshold indicator 3 in section 2
of the Intrastat file. In section 5 the following options as regards the commodity code are
possible:
– CN 8-digit code (followed by 2 blanks)
– HS 6-digit code (followed by 4 blanks)
– HS 4-digit code (followed by 6 blanks)
– HS 2-digit code (followed by 8 blanks)
It is recommended that Member States transmit their adjustment methods to Eurostat with a
view to exchanging best practices.
7.3
Simplification thresholds (optional)
Member States may apply simplification thresholds for at most six per cent of the smallest
(expressed in value) companies which are required to provide information (critical small
enterprises = enterprises having a level of arrivals or dispatches between exemption and
simplification threshold). These companies might be exempted from providing information on
the nature of the transaction, net mass and supplementary quantity variables and are only obliged
to report the commodity code, the partner Member State code and the invoice value. The
simplified reporting principle also allows the critical small enterprises to use a simplified
commodity code for trade that does not relate to the ten largest commodity codes (99500000).
For setting the simplification threshold a similar approach (as for the compilation of the
exemption threshold) might be used. An assessment of the quality impact when implementing a
simplification threshold should be carried out. However, in general it is recommended that a
simplification threshold is introduced with a view to reducing the reporting burden of the trade
operators.
7.4
Small transaction threshold (optional)
PSIs have reporting obligation for each trade transaction, even when these are of very low value.
However, depending on National Authorities, PSI may group together transactions with
individual values less than €200, reporting only “commodity code 99500000”, “partner country”
and “value". However, the simplified reporting is only permitted when individual transactions are
carried out, with each of them having a value less than €200. The pretended division of a
transaction into shares below €200 is not allowed in this context. With a view to lightening the
reporting burden of the trade operators it is recommended that PSIs be allowed to simplify
reporting on small scale transactions. However, Member States must ensure that the
simplification is not abused and that the quality of the statistical results is not damaged as a
result.
7.5
Fiscal exclusion
Intra-Community trade statistics do not cover arrivals and dispatches carried out by private
individuals (see paragraph 5.9) and small businesses which are exempt from VAT registration by
national legislation. No information is collected on trade made by private individuals or
businesses which are exempt from VAT registration and no estimations or adjustments for this
trade should be carried out for transmission to Eurostat. The treatment of imports or exports of
goods by private individuals within National Accounts (P61/P62) has to be specified by National
Accounts experts. They include transactions on goods linked to travel (for tourism or business) in
the account of exchange of services (P62/P72).
8
QUALITY
(EC) 638/2004 Council & Parliament Regulation Intrastat: Article 13: Quality.
(EC) 1982/2004 Commission Regulation Intrastat: Article 26: Quality Report; Annex VI: list of
quality indicators.
69
A reference to data quality has been introduced for the first time in the revised Intrastat
legislation. Reference to quality covers two different aspects: Quality assurance and information
on quality.
Quality assurance: Quality assurance is covered by the first paragraph of Article 13 of the basic
regulation: “Member States shall take all measures necessary to ensure the quality of the data
transmitted according to the quality indicators and standards in force”.
In practice, all Member States must check the validity of the data at collection level, before
transmission to Eurostat.
At collection level, statistical authorities should check that all PSIs liable to submit Intrastat
declarations have done so. The register mentioned in Article 8 of Council & Parliament
Regulation (EC 638/2004) is the basic tool used to monitor which enterprises are due to submit
monthly declarations and to send reminders to them if no declaration has been received by the
due date.
All records declared should be validated according to an appropriate set of rules. There should be
clear identification of the declarant and validity of codes (trade flow, commodity codes, partner
countries,…); in addition the accuracy of values and quantities can be checked by comparison
with average unit value (Value/Net mass or Value/Supplementary unit) or according to average
weights per unit, except for commodity codes which, by definition, may cover too many different
goods (e.g. products defined as “other goods…”).
Before transmission to Eurostat, information should be checked, in particular using macro-editing
techniques. For instance reliability of aggregates can be checked by comparison with past data.
The outliers detection process is also a powerful tool for identifying possible errors. At present,
Eurostat use a common approach to validity checks. It is recommended that Member States
compare their validity rules with those presented by Eurostat and, if necessary, adapt their
systems.
Data transmitted to Eurostat should cover the total trade, according to Article 12, paragraph 2 of
Regulation EC638/2004. This means that an estimation of missing trade (trade below the
threshold and if necessary, non response above the threshold) must be included in data
transmitted to Eurostat.
Information on data Quality: It is important for producers as well as users to be aware of the
quality level of trade statistics.
A general framework for quality reports has been defined by Eurostat in co-operation with
National Statistical Institutes. The main dimensions of this framework are the following:
relevance of statistical concepts, accuracy, timeliness, accessibility and clarity of the information,
comparability of statistics and completeness.
This framework has been adapted to the specific field of trade statistics by the Working Group on
Data Quality. The precise list of quality indicators is defined in Annex VI of Regulation EC
1982/2004.
The Basic Regulation (EC 638/2004) states in Article 13 that a report on the quality of data
transmitted to Eurostat must be sent annually. In practice, in the summer of every year Eurostat
sends out a questionnaire with the main indicators already filled in with information available.
When national administrations have completed the questionnaire and sent it back to Eurostat, by
the end of October, they have fulfilled their legal obligations concerning the reporting on quality.
Using information transmitted by Member States as well as information available at Eurostat (for
instance on timeliness of data or impact of confidential trade), a quality report is published on
Eurostat’s web site at the end of the year. In addition, National Quality Reports can be published
at national level, on a voluntary basis.
9
CONFIDENTIALITY
(EC) 322/97 Council Regulation Article 13: Statistical law, active confidentiality
(EC) 638/2004 Council & Parliament Regulation Article 11: Intrastat, passive confidentiality
70
(EC) 1982/2004 Commission Regulation Intrastat Article 25, transmission of data declared
confidential
Individual company data shall never be published or distributed by statistical authorities.
However, even aggregated data can, indirectly, show individual data, for example when only one
or a few companies are apparently responsible for the totality of trade for a certain product or
with a particular country. Therefore, data used by the National Authorities and the Community
Authorities for the production of statistics shall be considered as confidential when they allow
identifying a natural or legal person, directly or indirectly.
However, confidentiality affects the quality of trade statistics as regards :
– Accuracy: the total EU trade for detailed products may be biased.
– Clarity: the lack of information for users.
– Comparability: the effect on time series and on asymmetries.
Therefore a responsible approach is essential when dealing with confidentiality.
9.1
The principle of passive confidentiality
Active confidentiality is applied when National Statistical Authorities take the initiative to
suppress data automatically, without informing the exporter or importer concerned. One
difficulty in using this method is the over-emphasis of the actual disclosure problem, i.e. some of
the data providers would have no objections if their data would be published. Another obstacle is,
at least for Extrastat, the fact that a comprehensive register of enterprises involved in foreign
trade activities is not available in some Member States. The lack of such a register makes active
confidentiality impossible and only leaves the possibility of passive confidentiality.
Passive confidentiality means that the exporter or the importer concerned has to take the initiative
and ask the National Statistical Authorities to keep the data confidential. The combinations of
around 10,000 commodity codes with 24 country codes must entail numerous examples where
only one or perhaps two enterprises are involved in the trade. This means that the information
provided to users would be significantly reduced under a system of active confidentiality.
Although the statistical law (Regulation 322/97 Article 13) requires active confidentiality as a
general principle for statistics, in Article 11 of Council & Parliament Regulation (EC) 638/2004
passive confidentiality is determined as the standard for intra-Community trade statistics. These
inconsistent obligations laid down in different Community acts raises the question of the
hierarchy of the two regulations. One regulation is usually equivalent to another. However,
applying the principle of 'lex specialis' (a specific act takes precedence over general acts) the
rules on confidentiality in the particular area of intra Community trade statistics , as the general
rule, take precedence over those in the statistical law.
The application of passive confidentiality might give rise to problems when national instructions
impose active confidentiality in all domains of statistics (including foreign trade). However, the
primacy of Community law over national law (second paragraph of Article 249 of the EC Treaty)
means that the provisions of a Community regulation are applicable in the Member States
without the need for the Member States to adopt national implementation provisions. If a national
provision does not comply with Community law the provisions of Community law and the
ensuing rights and obligations take precedence over the conflicting national provisions. The
national provisions are therefore inapplicable. In consequence passive confidentiality shall be
applied for trade statistics. It is recommended that national instructions on confidentiality for
trade statistics should correspond with Community provisions determining passive
confidentiality.
9.2
Confidentiality in practice
National authorities take the initiative when a company addresses a written request for
confidentiality. The company has to explain why the publicity would have negative consequences
on its business including the risk of the company being identified. The Competent National
Authorities are, subsequently, obliged to investigate whether the request from the company is
71
justified. If the request is reasonable it is recommended that confidentiality shall be granted only
for a limited time (e.g. the request has to be renewed periodically/annually). In addition, it is
recommended that national instructions are established which clarify the following aspects:
– Management of companies; identification by name or by VAT number
– Granting immediate confidentiality or as from the following year,
– Setting deadlines for providing the request by the company
– Standardised decision making process by the National Authorities (e.g. who decides,
deadlines for the approval or denial to the company )
– Standardised procedures to examine whether confidentiality should be granted and, if so, what
type of confidentiality is most appropriate (value or quantity, product or partner)
– Setting time limits to keep the data confidential (historical data are much less sensitive for
companies)
Two types of data can be made confidential in connection with a Member State’s statistics on
trade between Member States: the product code and the partner country code.
Product confidentiality: The information about a product may be regarded as confidential
because it is considered commercially sensitive either for its value, its quantity or the ratio of
both (≈price). Therefore the information on the product code might be suppressed. Commodity
suppression should be applied according to national rules which determine when trade of a single
or a few companies is apparent in aggregated data. Suppression might be applied when only a
few companies (e.g. ≤3) together or separately, cover more than a certain percentage (e.g. 70% or
80%) of the total trade for this commodity. Suppression can also be applied when few companies,
together or separately, cover more than a certain percentage of the total trade for a
commodity/country combination. In the latter case, only the product code should be suppressed
and not the country code.
To suppress a product it is recommended that as much information as possible on the
commodity is published whilst still guaranteeing the confidentiality of the company. Therefore a
code containing at least an indication of the HS2 chapter to which it belongs should be used (e.g.
27 + blanks for products of chapter 27). In exceptional cases, and only with a prior agreement
from Eurostat, the special code 99900000 may be used when only one or two codes in a certain
chapter are confidential, and it might otherwise be possible to deduce the suppressed commodity
trade by deducting from the chapter total the sum of the data on the published codes in that
chapter. Under no circumstances should another real CN8 code be used to disguise another
commodity.
Special attention should be given to the repercussions of this kind of suppression in other types of
nomenclature. As these other nomenclatures are less detailed than the CN8, it is unlikely that any
problems will arise. However, if there are only one or two CN8 codes within 1 code from another
nomenclature, or if one confidential CN8 code represents a large part of a code in another
nomenclature, then this latter code should also be disguised and special suppression codes should
be created within this other nomenclature.
Partner confidentiality: A company may consider the partner country as commercially
sensitive, therefore, national authorities must examine whether a “secret” country code shall be
used. This usually involves using either code QY (intra-EU trade) and code QZ (extra-EU trade).
However, partner country confidentiality should be granted only exceptionally because on rarely
does it occur that one or only a few companies cover most of the trade with a single country.
It is recommended that national authorities define the rules used in the evaluation of a request
for confidentiality considering:
– a threshold for the number of companies declaring on a certain product, partner or productpartner combination
– a threshold for the percentage of trade declared by the principal companies
72
– the period over which data shall be examined (e.g. data of the previous year might be used for
the decision whether confidentiality should be granted.)
– use of standardised algorithms and software (e.g. TAU Argus) for the evaluation of
confidentiality
9.3
Transmission of confidential data to Eurostat
National Authorities must transmit confidential data to Eurostat. In addition they must transmit
the designated confidential code according to the transmission standards specified in Doc Met
400:
– National Authorities must indicate whether a record transmitted to Eurostat is confidential or
not. (Confidentiality flag in section 16: 0: Confidentiality is not applied, 1: Access to
confidential data restricted to Eurostat, 2: Access restricted to Eurostat and other services
within the Commission). It is recommended that confidentiality flag '2' is used instead of '1'
whenever possible.
– National Authorities must indicate whether product and/or partner confidentiality should be
given.
• If the product is to receive confidential treatment, the real product code must be given in
section 5 and the confidential codes in section 17 (HS6-4-2 code) and in section 18
(SITC3-2-1 code)
• If the partner Member State is to receive confidential treatment, the real country code
must be given in section 6 and the disguised code 'QY' in section 19
– National authorities have to specify what indicator should be disguised:
• the value (the real value must be given in section 26 and confidentiality flag 1 in section
22) and/or
• the net mass (the real net mass must be given in section 28 and confidentiality flag 1 in
section 24) and/or
• the supplementary units (the real supplementary unit must be given in section 29 and
confidentiality flag 1 in section 25)
10 DATA TRANSMISSION
National authorities have to transmit detailed and aggregated results of intra-Community trade
statistics to Eurostat on a monthly basis. Once data have been collected, checked and processed
by the Member States, they must be forwarded to Eurostat in an electronic form, which meets
precise format and technical specifications according to rules specified in the current valid
working paper DOC.MET 400. These rules are not part of the Acquis Communautaire but a so
called “gentlemen’s agreement” between the Commission and the Member States and is updated
when necessary.
10.1 Aggregated data
National authorities shall transmit to Eurostat aggregated monthly results no later than 40
calendar days after the end of the reference month. The file shall be transmitted via Email to
[email protected] or by EDAMIS (Stadium) using the dataset called
'COMEXT_AGG_M'. This file shall contain the aggregated intra Community results and the
aggregated extra Community results together. The following information is required:
– Reference period
– Reporting country
– Flow: exports and imports
– Partner zone:
73
• For the Euro area's Member States: 'European Union', 'Extra-EU', 'Euro area' and 'Extraeuro area'
• For the others: 'European Union' and 'Extra-EU' only
– Product :
• For the Euro area's Member States:
o
Total trade for the 'European Union' and 'Euro area' partners
o
Total trade and a breakdown by SITC-rev3 1-digit codes for the 'Extra-EU' and
'Extra-Euro area' partners
• For the others:
o
Total trade for the 'European Union' partner
o
Total trade and a breakdown by SITC-rev3 1-digit codes for the Extra-EU'
partner
– Statistical value expressed in millions of Euros for the Euro area's Member States and in
millions of national currency units for the others.
Aggregated results shall cover 100 % of the trade of the reference period and, therefore, might
be:
– Either entirely or partly estimated from time series
– Or derived from detailed results processed already within the 40 day deadline and completed
by adjustments for trade below the threshold and late response.
It is recommended that National Authorities closely monitor that their aggregated results do not
deviate from the totals of the final detailed results transmitted to Eurostat afterwards.
Revisions on aggregated results are generally not essential, because the detailed results
transmitted afterwards will be used for the succeeding trade data analysis. However, in
exceptional cases when detailed results are transmitted with a considerable delay, revised
aggregated results might become helpful for a better estimation of the missing information.
Some National Authorities might wish that Eurostat maintain data confidential until the
publication at national level. In consequence, they might retard the transmission of aggregated
data for this reason. However, the deadline of 40 days for the transmission of aggregated data
after the end of the reference month (prescribed in the Intrastat regulation 638/2004 of the
European Parliament and of the Council) is binding in its entirety and directly applicable in all
Member States. Therefore, it is recommended that national instructions are not in conflict with
the legal Community obligation to transmit data in time. Nevertheless, Member States should be
aware of the fact that Eurostat maintains the data under embargo until their dissemination in its
press release. The Eurostat press release on external trade is published in average 48 days after
the end of the reference period and a publication calendar is accessible on the internet. It is
recommended that National Administrations wishing to publish trade figures earlier than
Eurostat adapt their publication timetable accordingly.
10.2 Detailed data
The first detailed intra Community trade statistics results shall be transmitted to Eurostat at the
latest 70 calendar days after the end of the reference month. In addition, when monthly results
already transmitted to Eurostat are subject to revisions, the revised results shall be transmitted
also to Eurostat. The format of these files is identical and is specified in the DOC.METH 400.
The files shall be transmitted by EDAMIS (Stadium) to Eurostat: the dataset for the first
transmission of results is called 'COMEXT_INTRA_M' and for the revisions
'COMEXT_INTRA_N'. The following information is requested:
Reference period
Reporting country
Threshold indicator
Flow
74
CN real product code
Partner country (real code)
Other partner country (optional)
Nature of transaction
Mode of transport at the frontier (optional)
CN product (confidential code)
Confidentiality flag
Partner country (confidential code)
SITC product code (confidential code)
Quantity flag
Value flag
Statistical value
Supplementary unit flag
Quantity expressed in supplementary units
Quantity expressed in net mass
Detailed results shall cover 100 % of the trade of the reference period. Therefore, it is essential
that adjustments have to be added relating to trade below the threshold and relating to late
response. The methods applied for the adjustments should be described in the annual 'Quality
Report'. Records on adjustments shall be transmitted to Eurostat with at least a breakdown by
partner country and commodity code at two digit level of the CN and be flagged according to the
threshold indicator (section 2 in DOC.METH 400).
– Revised data sets sent to Eurostat shall:
– Refer to individual months and
– Concern all the data on the INTRA file and
– Replace the results previously transmitted in the INTRA files.
Member States shall transmit revised results no later than the month following the availability of
revised data. It is recommended that a final revision for all the months of year N is sent no later
than October N+1. If there is a need of a later revision for one or more previous periods, Member
States are invited to contact Eurostat for the necessary arrangements. Revisions of data referring
to previous years must be sent according to the DOC.METH 400 in force at this year ad using the
codes (commodity and country) applied during the year the revision refers to.
75