uk edicom rotterdam effect 2005

EDICOM REPORT

200453202017 Analysis of Asymmetries in intra-community trade statistics with particular regard to the impact of the Rotterdam and Antwerp effects December 2005

Mark Herrigan, Andrew Kochen and Tricia Williams

Statistics and Analysis of Trade Unit HM Revenue & Customs

5th Floor Central Alexander House

21 Victoria Avenue Southend-on-Sea SS99 1AA

United Kingdom

Analysis of Asymmetries in EU trade statistics and the impact of the Rotterdam and Antwerp effects

Table of Contents

1. Introduction ......................................................................................................... 3

2. The equipment and software applications........................................................... 3

3. The Rotterdam Effect ........................................................................................ 4

4. Research into the Rotterdam Effect .................................................................... 8

5. Exports via another Country.............................................................................. 11

6. Imports via another Country.............................................................................. 12

7. Asymmetries ..................................................................................................... 13

8. EU Regulation Changes.................................................................................... 24

9. Recommendations ............................................................................................ 25

10. Conclusion ........................................................................................................ 26

Annex A.................................................................................................................... 27

Annex B.................................................................................................................... 30

Annex C ................................................................................................................... 34

References............................................................................................................... 67

Statistics & Analysis of Trade Unit (SATU) HM Revenue & Customs, December 2005

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1. Introduction

The aim of this study was to analyse the asymmetries in intra-Community trade statistics with particular regard to the impact of the Rotterdam/Antwerp effect, and to provide recommendations on improving EU trade statistics and better align them with international definitions. Asymmetries between the UK, and Belgium and the Netherlands were identified at the chapter level for 2002 and 2003, and at the aggregate monthly level for 2000 to 2003. Research was also undertaken on the Rotterdam Effect; the different kinds of transit flow and what impact these have on trade statistics. This study was undertaken by the Statistics and Analysis of Trade Unit (SATU). SATU is part of the UKs HM Revenue & Customs (HMRC), and is responsible for the collection, compilation and publication of the UKs Overseas Trade Statistics (OTS).

2. The equipment and software applications

Data were taken from the Comext Database via Internet link and are on a Special trade basis. The data were manipulated in SAS and Excel.


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3. The Rotterdam Effect

The UN International Merchandise Trade Statistics Concepts and Definitions (IMTS) (United Nations, 1998 paragraph 45) defines goods in transit to be goods entering and leaving a country with the exclusive purpose of reaching a third country. The Rotterdam Effect, alternatively known as the Antwerp Effect, is a term used to describe asymmetries and other anomalies arising from transit trade through major ports, such as Rotterdam, whether these arise from traders correct or incorrect declarations. Principally, the Rotterdam Effect causes imports and exports to be attributed to the country of transit as opposed to the real partner country. The Rotterdam Effect is not confined to trade between EU Member States but can affect trade between any pair of countries where the goods are transported through one or more additional countries.

Transit Flows

There are several different kinds of transit flow, and it is how these flows are collected and recorded in trade statistics that may lead to the Rotterdam Effect. Non-EU Transit Trade

For exports from the EU that transit through a non-EU country, figure 1 shows the possible forms this transit might take.

EU Country of Dispatch

Non-EU Country Of Destination

Non EU Transit Country

Customs Border

Property of ResidentFree

Circulation

Simple Transit

Indirect Trade

Re-Exports

Figure 1: Exports via non-EU

EU Country of Dispatch



Customs Border


Circulation

Simple Transit

Indirect Trade

Re-Exports

Figure 1: Exports via non-EU


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Figure 2 shows the cases for imports from outside the EU that pass through another non-EU country.

EU Country of Destination

Non-EU Country Of Despatch


Customs Border


Circulation

Simple Transit

Indirect Trade

Re-Exports

Figure 2: Imports via non-EU




Customs Border


Circulation

Simple Transit

Indirect Trade

Re-Exports




Customs Border


Circulation

Simple Transit

Indirect Trade

Re-Exports

Figure 2: Imports via non-EU

In these diagrams three main kinds of transit trade are identified:

simple transit, where the goods pass through a country and not declared as imports or exports in the country of transit;

indirect trade, where goods are cleared as imports and then subsequently exported again, but always in foreign ownership;

re-exports, similar to indirect trade, but the goods become the property of a resident in the state of transit on import, and then resold on export.


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Transit Trade within the EU

Figures 3 and 4 show the differences involved where the country of transit is within the EU. Note it now makes a difference whether the partner country at the end of the chain is also within the EU or not.

EU Country of Despatch



EU Transit Country

Customs Border


Circulation

Cus

tom

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rderFree

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Simple Transit

Simple Transit

Indirect Trade

Re-Exports

Figure 3: Exports via the EUEU Country of

Despatch



EU Transit Country

Customs Border


Circulation

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tom

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rderFree

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Simple Transit

Simple Transit

Indirect Trade

Re-Exports




EU Transit Country

Customs Border


Circulation

Cus

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rderFree

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Simple Transit

Simple Transit

Indirect Trade

Re-Exports

Figure 3: Exports via the EU




EU Transit Country

Customs Border


Circulation

Cus

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orde

rFree Circulation

Simple Transit

Simple Transit

Indirect Trade

Re-Exports

Figure 4: Imports via the EU




EU Transit Country

Customs Border


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rFree Circulation

Simple Transit

Simple Transit

Indirect Trade

Re-Exports




EU Transit Country

Customs Border


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rFree Circulation

Simple Transit

Simple Transit

Indirect Trade

Re-Exports

Figure 4: Imports via the EU


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Again, the same three kinds of transit can occur with an EU country of transit: simple; indirect; and re-exports. However, since goods can move freely between EU countries without customs formalities, i.e. directly into free circulation, there are differences with movements across the customs border. Most notably, simple transit between EU Countries takes place entirely on the free circulation side of the customs border.


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4. Research into the Rotterdam Effect

At the 6th OECD International Trade Statistics Expert Meeting in Paris Mr. Jasper Roos of Statistics Netherlands gave a presentation on International Transport and Trade Statistics. As covered in the accompanying paper (Roos, 2005), he identified five kinds of transit flow through the Netherlands:

re-Exports the export of previously imported goods, which became the property of a Dutch resident on import;

quasi-transit the export of previously imported goods, which were never the property of a Dutch resident;

transit through a customs warehouse; transit through the Netherlands goods that pass through the Netherlands but

are never stored, traded or cleared in the Netherlands; and

transito goods bought and then sold by a Dutch resident, but the goods themselves never enter the Netherlands.

Quasi-transit is clearly the same as indirect trade. Roos identifies quasi-transit as the Rotterdam effect. Transito is commonly known as triangular trade. According to Roos, only the re-export category really belongs in international trade statistics, but quasi-transit is also included by the EU. However, he does admit that the conceptual differences between re-export and quasi-transit is in practice quite narrow, especially when this involves multinational corporations. Based solely on the compulsory fields required by Eurostat for both Intrastat and Extrastat, these flows cannot be distinguished. The Netherlands is able to distinguish between re-export, quasi-transit and normal exports for their exports since they require an additional Statistical Procedure field to be filled in (Statistics Netherlands, 2005), which does effectively encode re-exports and quasi-transit. For the Netherlands, on a yearly basis, quasi-transit trade amounts to about 30 billion (Roos, 2005). Impact on Trade Statistics Since the Rotterdam effect is based around the misattribution of partner country data, it is a cause of asymmetries between countries trade data. Therefore, several bilateral asymmetry studies between the EU and non-EU countries have identified the Rotterdam Effect as a component of the asymmetries. In 2002, the Australian Bureau of Statistics and Eurostat carried out a bilateral asymmetry study (International Merchandise Trade, Australia, 1998). This notes that EU imports from outside the EU are attributed to the Member State where the goods are entered into free circulation. This is often the port of first entry into the EU, whereas the Australian export declaration declares the final EU country of destination. The asymmetries of Australian exports to the imports of the individual Member States were significantly greater than with the EU as a whole. This is described as the Rotterdam Effect. However, the report also describes other difficulties with Country Classification. There are Australian re-exports, where Australia declares these as exports to the EU, but in the EU records these as imports


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from the country of origin. Similarly, there are EU indirect imports, where goods of Australian Origin are imported and then re-exported via another country, which are declared in the EU as imports from Australia but are only recorded as Australian exports to the EU if the exporter fills in an EU country of final destination. Aside from asymmetries, when Trade Statistics are published and analysed, the Rotterdam Effect is sometimes referenced to explain unusual properties of the data. For example, in January 2003 an article on Chinas trade with the EU (Bautier, 2003), notes that Dutch imports from China are overestimated due to the Rotterdam Effect, which also has the effect of improving the external trade balances of those Member States which are the true destination of the goods. Similarly, the United Nations Economic Commission for Europe (UNECE) Timber Committees Australian Market Report, 2002 (UNECE, 2002) described how Austrias timber imports were boosted as much by the Rotterdam Effect, whereby the imports were destined for other EU Member States, as by actual growth in the internal market. However, it is not only where the country of transit is an EU Member State that the Rotterdam Effect can come into play and cause asymmetries. In 2000, Statistics Canada and Eurostat carried out a bilateral asymmetry study (International Trade Division Statistics, Canada, 2000). This study draws attention to the difference between indirect trade and transit trade. By their definitions, in the former, the goods are imported into an intervening country and then re-exported, as opposed to the latter whereby the goods merely move in bond through the intervening country. As such, for indirect trade the final destination may well not be known. This indirect trade is equivalent to the quasi-transit trade identified by Roos. In terms of the impact on Canadian/EU asymmetries, the main intervening country is the USA. Thus for Eastbound trade, the Canadians class the indirect trade as exports to the USA, and the transit trade as exports to the EU. The EU classes both of these as imports from Canada on a country of origin basis. Similarly for Westbound trade, the EU may record exports to the USA whereas Canada records an import from the EU due to country of origin. In 2004, HMRC studied asymmetries with the USA and Canada (Terrazzano, 2004). Here it was discovered that crude oil is imported from the UK via Portland, Maine in the USA, and then sent by pipeline to Canada. This is recorded in Canada as in import from the UK, whereas the UK records an export to the USA. The USA do not record either flow, as it is simple transit. Thus the UK records more oil exports to the USA then they record importing, and recorded less oil exports to Canada then they record importing. The Introduction of Intrastat

Since some of the issues involved with the Rotterdam effect are connected to the interface between the Intrastat and Extrastat trade data collection systems, it is useful to look at how the introduction of Intrastat in 1993 influenced the Rotterdam Effect. Fortunately, in August 1994 the report UK Visible Trade Statistics The Intrastat System was published in Economic Trends (Williamson and Porter, 1994). Here Rotterdam Effect is used to refer to an anomaly from before the introduction of Intrastat. Prior to Intrastat some imports from non-EU countries which came via other


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Member States before clearing customs in the UK were incorrectly recorded as imports from that other Member State. After 1993 and the introduction of Intrastat these movements were correctly recorded since it was known that Member States should not appear on Extrastat declarations. Williamson and Porter estimate that about 2 billion of imports in 1992 were erroneously declared as coming from within the EU, of which about 0.8 billion was from the Netherlands. A related effect in the paper is referred to as hidden transit, which are imports cleared for free circulation in another Member State before arriving within the UK. This is essentially the same as the indirect trade referred to in the previous two papers. It was feared that these movements might not be captured by Intrastat due to traders not understanding their obligations. However, this was found not to be the case. Implications of Research

So the Rotterdam Effect comes into play with transit both within and without the EU. The tendency is for an export to be declared to the goods final destination, whereas the import is declared in that final destination as coming from the transit country. But what does legislation require and international recommendations suggest about the correct declaration of these movements?


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5. Exports via another Country

The IMTS (United Nations, 1998) provides guidance and best practice on the compilation of trade statistics, while EC Legislation governs the specific compilation of trade statistics within the EU. In general, the legislation follows the concepts contained in the IMTS. For transit flows, we shall look at what the IMTS guidance for the declaration of transit flows, and then see how the implementation of EU Legislation differs from this. IMTS Recommendations

The IMTS (United Nations, 1998) recommends that, for an export, the country of last known destination be recorded as the partner country (paragraph 150). Paragraph 45, Goods in transit, says Goods entering and leaving a country with the exclusive purpose of reaching a third country are excluded. For an export or dispatch from a Member State to another country via an intermediary country, whether simple transit or indirect trade, the recommendations say that the final destination should be recorded, irregardless of whether the two other countries involved are themselves Member States or not. EC Legislation

Where the final destination is outside the EU, article 161 (5) of Regulation (EC) 2913/92 clearly states that The export declaration must be lodged at the customs office responsible for supervising the place where the exporter is established or where the goods are packed or loaded for export shipment. HMRCs Notice 275, Exports Procedures, also reinforces this point, saying EC law requires that, normally, the export declaration must be lodged in the exporters Member State. Only in exceptional circumstances may the declaration be lodged in another Member State. This is in line with the IMTS recommendations. Also, once an export declaration has been lodged, no Intrastat declaration liability arises for movement through another Member State, also in line with IMTS. Where the final destination is another Member State, EU regulations simply require the final destination to be recorded, and again no liability for declaration in the EU state of transit. As part of the UKs contribution to Eurostats Guidelines on the Implementation of the Intrastat Legislation HMRC has written guidance on the correct procedure for declaring exports (see Annex A).


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6. Imports via another Country

IMTS Recommendations

The IMTS (United Nations, 1998) recommends in paragraph 150 that, for imports, the partner country be recorded as the country of origin. In paragraph 45, it is recommended that the movement not be recorded in the intermediary country. EC Legislation

If the intermediary country is outside the EU, then EC regulations are inline with the IMTS recommendations since the country of origin is recorded on the Customs SAD (Single Administrative Document) declaration. Unfortunately, for where the intermediary country is another MS, there is no equivalent to article 161 for imports. The EU country where the goods are cleared for free circulation will be deemed to have imported the goods from the non-EU country, and any onward movement will be declared under Intrastat. The importer in practice has two choices. They can move the goods from the other Member State to the UK under Community Transit, and then clear for free circulation in the UK, or they can clear them for free circulation in the country where the goods first enter the EU. In the first case, the declaration will be in line with the IMTS recommendations. Nothing will be recorded in the other Member State, and the UK will record an import from the non-EU country. In the second case however, the other Member State will record an import from the non-EU country, and correspondingly an Intrastat Dispatch to the UK. The UK will record an arrival from that Member State. So although both the UK and the other Member States balance of payments remain unaffected, and asymmetries between the two are avoided, this is not inline with the IMTS recommendations. Compared to those recommendations, the UK would tend to overstate its arrivals from within the EU with a corresponding understatement of the UKs non-EU imports. The other Member State would also have an artificial increase in its imports and dispatches.


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7. Asymmetries

Comparison with the EU

In principle, any asymmetries due to transit trade through another country will not cause a net change in a countries import or export figures, and the asymmetry will disappear when countries are aggregated together. For the EU member states, we will look at the asymmetries before and after aggregating trade to and from the UK. All asymmetries in this report are defined as reported imports subtracted from reported exports. Table 1: UK Import Asymmetries with the EU, 2000 2003 Billion

Total of Individual

Absolute AsymmetriesAggregate Absolute

Asymmetry Difference

2000 21.7 21.7 0.0

2001 33.2 33.1 0.1

2002 28.4 27.5 0.9

2003 23.4 23.2 0.2

Source: Comext Database

For UK Arrivals there is little difference between the two figures in table 1. Notably in 2000, for all EU Member States the UK arrival figures were lower then the other states dispatch figures, leading to no difference between the asymmetry figures above. This implies that either transit trade is having little distortive effect on the UKs arrivals from the EU, or that high levels of other asymmetry issues are masking the effect. The table does not include the UKs estimates of the impact of Missing Trade Intra Community (MTIC) fraud estimates, since these estimates cannot be allocated by country. However, the estimate was 4.1 billion in 2000, 10.4 billion in 2001, 16.5 billion in 2002 and 6.3 billion in 2003. So movement in these estimates can partly explain the increase in asymmetries between 2000 and 2001, and the fall between 2002 and 2003.


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Table 2: UK Exports Asymmetries with the EU, 2000 2003 Billion

Total of Individual

Absolute AsymmetriesAggregate Absolute


2000 8.3 3.7 4.5

2001 12.0 8.3 3.7

2002 13.7 13.2 0.6

2003 10.6 3.8 6.8


In table 2 quite a marked difference can be seen, implying that transit trade could well be distorting the true destination of UK goods bound for Europe. The notable jump from only 0.6bn to 6.8bn between 2002 and 2003 is due to a marked drop in the UKs declared dispatches to Germany. In 2002, the UKs dispatches to Germany exceeded Germanys arrivals figures by 0.9bn. In 2003, Germanys arrivals figures exceeded the UKs dispatches by 2.4bn. Table 3: UK Import Chapter Asymmetries with the EU, 2002 2003 Billion

HS2 Chapter

Total of Individual Absolute

Asymmetries

Aggregate Absolute


2002 30 Pharmaceutical products 2.67 0.11 2.5684 Machinery and mechanical appliances 4.48 2.76 1.73

85 Electrical machinery and equipment 11.04 10.08 0.9687 Vehicles; other than railway or

tramway rolling stock 3.13 0.87 2.26

2003 30 Pharmaceutical products 2.19 0.39 1.8084 Machinery and mechanical appliances 4.46 3.63 0.83

85 Electrical machinery and equipment 2.89 1.45 1.4487 Vehicles; other than railway or

tramway rolling stock 3.32 0.56 2.76


Looking at the imports of individual chapters, it can be seen that several chapters show noticeably reduced asymmetries with the EU as a whole for the individual countries. In particular for both pharmaceuticals and vehicles aggregating the countries reduces the asymmetry by other two thirds (table 3). MTIC trade involves commodities in chapter 85. The estimate of the impact of MTIC fell by about 10 billion between 2002 and 2003, and so may account for part of the fall in the chapter 85 asymmetries between 2002 and 2003.


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Table 4: UK Export Chapter Asymmetries with the EU, 2002 2003 Billion

HS2 Chapter

Total of Individual Absolute

Asymmetries

Aggregate Absolute


2002 27 Mineral fuels and oils 4.32 2.76 1.5630 Pharmaceutical products 0.89 0.02 0.8884 Machinery and mechanical appliances 4.63 3.83 0.80

88 Aircraft and spacecraft 0.89 0.04 0.842003 27 Mineral fuels and oils 5.07 0.89 4.1830 Pharmaceutical products 0.93 0.01 0.9284 Machinery and mechanical appliances 4.71 2.82 1.90

88 Aircraft and spacecraft 1.99 0.72 1.27Source: Comext Database

The effect is also quite noticeable for the UKs exports, with fuel and aircraft showing the most improvement from aggregation. Transportation via pipelines causes particular problems with reporting the correct partner country with chapter 27 (table 4).


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Belgium and the Netherlands

For the whole period, the UKs import asymmetries with both Belgium and the Netherlands have their declared exports to the UK as being higher then the UKs declared imports (Figure 5). There is no overall trend in the asymmetries over the four years, however changes in the pattern of MTIC fraud over the period may be masking other effects. If transit trade was a dominating cause of the asymmetries it would be expected that the UKs declared imports would be higher. These figures overall would indicate that transit trade is not the biggest contributing factor to the UKs asymmetries with Belgium or the Netherlands. (Full data on the UKs monthly asymmetries with Belgium and the Netherlands are in Annex B.)

Figure 5: UK Import Assymetries with Belgium and the Netherlands, 2000 - 2003

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For the UKs export asymmetries with Belgium, the UKs declared exports have generally been lower then Belgiums declared imports, with no overall trend, and a relatively low level of asymmetries. However with the Netherlands, although for most of the period the Netherlands imports have been lower then the UKs exports, there is a clear downward trend, and in December 2003 the Netherlands imports exceeded the UKs exports (Figure 6). It is possible that transit trade issues caused the high levels of asymmetry in 2001. (Full data on the UKs monthly asymmetries with Belgium and the Netherlands are in Annex B.)

Figure 6: UK Export Assymetries with Belgium and the Netherlands, 2000 - 2003

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The major asymmetry chapters for UK imports are the same for Belgium as for the EU as a whole (Table 5). For all of them, Belgiums exports are higher then the UK imports, in line with the overall asymmetry noted earlier. Full details are in Annex C.

Table 5: UK Import Chapter Asymmetries with Belgium, 2002 2003 Billion

HS2 Chapter UK ImportsBelgium Exports Asymmetry

2002 30 Pharmaceutical products 0.67 1.09 0.41

84 Machinery and mechanical appliances 1.28 1.72 0.44

85 Electrical machinery and equipment 1.07 1.29 0.22

87 Vehicles; other than railway or tramway rolling stock

6.02 6.56 0.54

2003 30 Pharmaceutical products 1.08 1.55 0.46



87 Vehicles; other than railway or tramway rolling stock

5.43 5.87 0.44


Similar chapters cause problems with imports from the Netherlands, with the notable exception of chapter 27 (Table 6). Also only for chapter 85, electrical machinery, do the UK imports exceed the Netherlands exports. (Full details are in Annex C.)

Table 6: UK Import Chapter Asymmetries with the Netherlands, 2002 2003 Billion

HS2 Chapter UK ImportsNetherlands

Exports Asymmetry

2002 27 Mineral fuels and oils 0.37 0.66 0.29

30 Pharmaceutical products 0.74 0.92 0.18


85 Electrical machinery and equipment 2.86 2.49 -0.37


30 Pharmaceutical products 0.82 1.23 0.42


85 Electrical machinery and equipment 2.96 2.59 -0.36



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Due to the low level of export asymmetries with exports to Belgium at the aggregate noted earlier, the major chapters similarly show a fairly low level of asymmetries. Chapters 71 and 85 show large asymmetries in 2002 but not 2003 (Table 7). (Full details are in Annex C.)

Table 7: UK Export Chapter Asymmetries with Belgium, 2002 2003 Billion

HS2 Chapter UK ExportsBelgium Imports Asymmetry


71 Precious Metals, stones and jewellery 2.98 3.32 -0.34

84 Machinery and mechanical appliances 1.90 2.11 -0.21



71 Precious Metals, stones and jewellery 3.16 3.14 0.03




As with the UK import asymmetries with the Netherlands, chapter 27 is a major cause of asymmetries (Table 8). Also, the larger UK exports compared to the Netherlands imports indicates a possible transit trade issue. (Full details are in Annex C.)

Table 8: UK Export Chapter Asymmetries with the Netherlands, 2002 2003 Billion

HS2 Chapter UK ExportsNetherlands

Imports Asymmetry


49 Books, Newspapers etc. 0.38 0.15 0.23




49 Books, Newspapers etc. 0.40 0.13 0.27





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Specific movements, 2003

Energy products like oil, gas and electricity can cause particular problems with transit trade, due to often being continuously imported and exported via pipelines or pylons, and not in discrete shipments, so we would expect to see mismatches with these countries. Table 9: UK Oil Asymmetries with the EU For 2003 Million

Country

UK Import

Asymmetry

UK Export

Asymmetry

Austria 0 0

Belgium 47 -39

Germany 375 -1,491

Denmark 24 12

Spain -8 -61

Finland 2 29

France 201 731

Greece -5 -6

Ireland 44 -973

Italy 116 -129

Luxembourg 0 0

Netherlands 124 1,297

Portugal 78 -60

Sweden 74 -166


For UK imports compared to other MSs exports, all large asymmetries show the UK imports to be lower then the MS export, so cannot be used to discern transit trade (Table 9). By comparison, for UK exports the exports to the Netherlands exceed their declared imports by over 1 billion. Whereas the UKs exports to Germany are under Germanys imports by a similar amount. This would indicate transit trade, and that some UK oil bound for Germany is declared instead as an export to Netherlands. The UK has gas pipelines with the Netherlands, Belgium and Ireland. The UK declared exports of 366 million to Ireland in 2003, but Ireland only declared imports of under half this, 172 million.


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The UKs pipeline to the Netherlands goes directly form installations in the North Sea, and so cannot be used for Imports, so the exports of 33 million that the Netherlands declared to the UK most likely was transit trade that used the Belgium pipeline (table 10).

Table 10: UK Gas Asymmetries with the EU For 2003 Million

Country

UK Import

Asymmetry

UK Export

Asymmetry

Belgium 48 65

Ireland 0 194

Netherlands 30 86


All electricity imports and exports between the UK and mainland Europe use a single connection via France. The UKs electricity declarations for 2003 only have France as a partner country. Nonetheless, several other MSs declare imports and exports of electricity from the UK, so it would be expected that some of the UKs declarations involving France are transit trade. However, the UKs declarations are lower then Frances for both imports and exports (Table 11), indicating other problems in the data.

Table 11: UK Electricity Asymmetries with the EU For 2003 Million

Country

UK Import

Asymmetry

UK Export

Asymmetry

Austria 55 -81

Belgium 4 -4

Germany 1 -2

France 41 -15

Greece 0 0

Ireland 3 -29

Netherlands 0 -11


Combining countries, 2002 2003

Where the transit flows are known, data from the countries involved can be combined to study the impact on asymmetries. We did this earlier at a macro level by grouping together all the EU countries, and we saw that for the UKs oil exports the near mirroring of the asymmetries with the Netherlands and Germany. If the oil trade


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with the Netherlands and Germany are combined, the asymmetry is reduced to only 193m, compared to a total UK declared export of 6.4 billion.

Other data sources

In the UK, VAT returns from traders include two additional boxes on the value of trade with other member states. As part of the VAT return, which firms complete each quarter, there is a declaration of the total value of exports of goods (Box 9) to customers in other EU Member States and the total value of imports of goods (Box 8) from suppliers in other EU Member States. These returns provide a direct estimate of the size of UK exports to and imports from the EU. They are also used to identify the requirement to fill in a more detailed, monthly Intrastat return (if the value of the declarations on the VAT return exceed the Intrastat threshold). In addition to the data available from the VAT returns, traders who have arrivals or dispatches with other member states must also submit a European Sales List (ESL). This is a mandatory document that all VAT registered traders are required to complete. The trader is required to supply the details of each dispatch transaction that they have made with a trader in another Member State stating the partner trader's VAT Registration number and the value of the goods (but with no product description). EU legislation sets out the VAT control arrangements for administrative co-operation between Member States. This requires each Member State to maintain an electronic database of data from ESLs and to share and exchange this data with Member States in order to confirm the validity of VAT registration numbers. This exchange scheme is known as VIES (VAT Information Exchange System). It is a condition of zero-rating the exporter's supply that the VAT registration number of his EU customer is correct, so information provided on the ESL is a means for businesses to ensure that they are accounting for VAT correctly and confirms their entitlement to a VAT repayment. Since the completion of an ESL is mandatory, it should be a comprehensive list as it will record dispatches by every VAT registered trader. But the extent to which this requirement is regulated and is enforced is likely to vary considerably across Member States. There is evidence to suggest that in some cases the penalty for non-compliance is lower than the cost of employing someone to complete an ESL, so traders may not be concerned about complying. Information from ESLs is also used to prevent the wrongful diversion of home-use goods that traders have zero-rated as exports. Using information from ESL submitted in other Member States could also help identify potential MTIC fraud (a further cause of asymmetries. Exchanging information and detailed level data with other member states in bilateral projects can identify discrepancies in data, but is very time consuming and cannot be included as part of the checking procedures before the data are first published. However, the Netherlands has begun to collect additional data on warehousing and transit trade directly from businesses. This enables them to adjust their trade figures to take account of transit trade.


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Tobacco products

One area of interest is excise goods, that is goods subject to extra taxes. These goods are subject to additional controls, but also likely to be smuggled or be used in diversion fraud1. Excise goods are moved via special customs warehouses. While smuggled goods are not included in the trade-in-goods statistics, goods that are diverted may cause problems with asymmetries that add to transit trade patterns. Looking at tobacco goods (HS chapter 24), there is a sudden change in the UKs asymmetry with Germany, Belgium and the Netherlands (Table 12). This is largely due to a change in the UK dispatch figures, and not from a decrease in the rest of the EUs arrival figures. The increase in dispatches to Belgium and the Netherlands in 2003 largely corresponds to the fall in despatches to Germany; this may be evidence of diversion fraud. If this was really a change to effectively reporting the country of transit, we would expect the original asymmetry with Germany to be much more neutral.

Table 12: UK Tobacco Asymmetries with the EU, 2002 2003 EU Arrivals UK Dispatches UK Arrivals EU Dispatches

2002 2003 2002 2003

Austria 1.83 1.89 -0.14 -0.96

Belgium -35.67 -142.77 -8.29 -4.95

Germany -167.73 9.06 137.70 132.48

Denmark 1.05 0.87 -1.74 -0.96

Spain -0.85 20.27 0.87 1.70

Finland 0.07 0.07 0.00 0.00

France -3.33 9.05 23.40 17.23

Greece -6.41 -5.44 0.11 1.20

Ireland 5.15 29.92 -42.52 -41.05

Italy 11.95 6.67 -5.17 -11.15

Netherlands -2.50 -20.39 1.84 -4.08

Portugal -0.77 -2.49 36.57 40.98

Sweden -0.65 0.68 -1.17 0.41


1 Goods may either be diverted within the country recording the dispatch or on arrival in the partner country.


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8. EU Regulation Changes

In 2005, the EU introduced new regulations regarding trade statistics between Member States, with Regulations (EC) 638/2004 and 1982/2004. Although these largely are designed just to clarify and standardise existing legislation, there are some pragmatic changes that increase asymmetries and especially some forms of transit trade. Regulation (EC) 1949/2005 brings Extrastat treatment of these areas in line with Intrastat treatment from 2006. Ships & Aircraft Stores

Previously, national goods delivered (for either use on the journey by the crew or passengers, or for the operation of the craft) to foreign ships and aircraft were recorded as dispatches and similarly, foreign goods delivered to national craft were recorded as arrivals, as appropriate. However, now only the dispatch side need be recorded, leading to an asymmetry between Member States. This was a pragmatic decision due to the difficulty of correctly accounting for the import/arrivals side. Ships & Aircraft

Previously, these were recorded as an import when there was a change in ownership from foreign ownership to a person established in that. Similarly an export was recorded when there was a change in ownership from an established person to foreign ownership. The new regulations now consider that an arrival or dispatch has occurred when a ship is transferred between the registers of two different countries. Gas and Electricity

The imports and exports of energy goods like electricity and gas have caused specific problems due to their fungible nature. Thus a sale between entities in two different countries may not be directly traceable to a specific movement of physical goods. This is due to the pipeline or grid operator netting off the fiscal sale of goods across the border, and only physically pumping the net sale across the border. Worse, for sales that involve transit through an intermediate country, there is no guarantee of the true origin of the goods the buyer actually receives, since the entire product is mixed within the pipeline. Since Eurostat is primarily concerned with the physical movement of goods across borders, Regulation (EC) 1982/2004 allows the physical net flow across the border to be recorded as the arrival and dispatch between the two Member States, disregarding the fiscal sales behind this movement (including when such fiscal sales imply the transit of goods to another Member State). In effect, much of the trade seen in earlier years appears to be recorded as trade between the dispatch country and the country where these goods first cross a border, so there should not be a large change in the recorded trade figures.


24


9. Recommendations

Exports

The current regulations regarding export declarations do satisfy the requirements of IMTS for exports via another country, whether that is another MS or not, as long as they are properly implemented. Some trader education however may be necessary to insure the proper completion of SADs and that no dispatch Supplementary Declaration (SD) is completed for the movement. The UK will issue guidance to such effect. Imports

Imports directly from another country outside the EU causes no particular concern, there is however no easy solution for imports via another MS. The current freedom enjoyed by importers about how to declare their imports cannot realistically be changed purely for statistical purposes. It can be seen that the current system is pragmatic in that it avoids systematic asymmetries with in the EU, and each countries trade balance remains intact. Since no customs declaration (SAD) accompanies the arrival in the UK, all information has to be via the Intrastat SD. Some countries collect the optional country of origin field on SDs, which does allow them to reallocate transit trade from outside the EU for their national figures if they wish. However, as this field is not compulsory, it cannot be used for the trade statistics sent to Eurostat. There are several possible solutions to this problem: Include the Country of Origin as a compulsory field on SDs. However, current moves are to simplify Intrastat, not add more fields. There would also have to be an accompanying field on import SADs to identify the EU country of destination, so that Member States can uniformly identify imports cleared there but are destined for elsewhere in the EU. If this is not done, then when EU data are aggregated there would be double counting of EU imports. However, the SAD is also currently undergoing simplification. Rather than collect the country of origin data from all Intrastat traders, only collect this information from some of them. This could be achieved either by having the fields only being compulsory for those traders above a higher threshold (with minimum coverage defined by Eurostat), or by an additional survey of only the key traders involved in transit trade. While this would increase the burden on the provider, it would be substantially less then option one. Transit trade can be estimated by grouped analysis. However, this relies on trade data from other EU countries, so cannot be performed until several months after the period in question, and relies on knowledge of transit trade patterns so that the correct country groupings are used. Greater organisation in the sharing of such information, facilitated by Eurostat, would be useful.


25


10. Conclusion

The correct attribution of partner country to transit trade is a longstanding problem. However, the problem has become worse over recent years, due in part to the separation of the Intrastat and Extrastat collection systems. There is the potential to improve the situation, but to eliminate the problems inherent in the collection systems (as opposed to those from trader error and ignorance) would unfortunately increase the burden on at least some businesses.


26


Annex A

Procedure to be followed when a company in one European Union (EU) Member State exports goods to a non-EU country, via a second Member State

for transport reasons only (Draft).

The Rotterdam Effect 1. Introduction:

a. The Rotterdam Effect is the term used to describe the potential statistical inaccuracy resulting from the misreporting of exports from the EU as Intrastat movements. This can happen where the goods pass through a port or airport in another EU Member State for transport reasons. Such goods are intended for export out of the EU and, typically, are merely transhipped in the second Member State from one vessel to another, prior to exiting the EU.

For example:

A company in Member State 1(MS1) loads goods onto a feeder vessel in the local port, which takes them to a port in Member State 2 (MS2). The goods are transhipped in the port of MS2 to a deep-sea vessel that transports the goods to a non-EU country, e.g. India.

MS 1 company Feeder vessel

MS 2

port

MS1 export

India

Deep-sea vessel

The goods are exported from MS1 to India, via a port in MS2. The MS1 company must therefore declare an export from MS1 to India, the country of final destination outside the EU.


27


2. Responsibility for export formalities: a. the export declaration should normally be lodged with customs in the actual

Member State of export (MS1) who supervise the place where the exporter is established (see below), or where the goods are loaded for export shipment. Transhipment from a feeder vessel to a deep-sea vessel in an intermediate EU port does not constitute loading for export shipment. (See example 7a)

b. an export declaration may only be lodged in another Member State (MS2) in

exceptional circumstances, e.g. a change of contract or diversion from the original destination. (See example 7 c.)

c. the Intrastat system must not be used to declare the removal of goods from

one Member State (MS1) to an intermediate port or airport in another Member State (MS2) where the sale contract has been concluded with a company established in a non-EU country.

3. Export declaration: a. where goods are declared for export in MS1, but exit the EU via MS2, an

endorsed copy of the Single Administrative Document (SAD) must normally accompany the goods to the office of exit (the port in MS2) to indicate that export formalities have been carried out in the country of export.

b. where the copy SAD is not required to travel with the goods, the standard

shipping note will normally be endorsed EXPORT by Customs.

4. Evidence of final destination: Evidence of final destination can normally be found in most of the following commercial documents:

a. sales contract b. sales invoice c. the load list (where required) d. ships manifest (these may only feature the identity of the deep-sea vessel

with the goods destination). e. Bill of Lading

5. Exceptions:

a. exceptions to this rule may include occasions where the transaction occurs between a company in MS1 and a middleman in MS2, even though the goods may simply be transhipped and exported from the EU.

b. in this case the first trader may not know the final destination of the goods and will normally declare the transaction as a dispatch to the EU partner country. (See example 7 b.) Statistics & Analysis of Trade Unit (SATU) HM Revenue & Customs, December 2005

28


6. What is an established company?

A company is regarded as established in a Member State if it has premises from which it engages in and intends to continue engaging in significant economic activities indefinitely or for finite, but long, period of time. A detailed definition can be found in paragraphs 62 64 of the IMF Balance of Payments Manual. A company is not regarded as established solely because it is registered for VAT in a Member State. 7. Examples:

UKExport

NL(Transit)

INImport

Goods leave UK on a feeder vessel destined for India bill of lading covers carriage of goods from UK to India

Goods are transhipped in Rotterdam to a deep-sea vessel bound for India

Goods arrive in India to fulfil an order placed with a UK supplier

UK Dispatch NL Arrival IN Import

Goods leave UK destined for a company in the Netherlands. UK company has no knowledge of final destination therefore UK dispatch, partner country NL

Netherlands company declares arrival, partner country UK, subsequently arranges export to India

Goods arrive in India to fulfil an order placed with Netherlands company

Export


NL(Transit)

NL Export

In

Goods originally destined as an export to India. Change of contract involves delivery of goods to Sri Lanka

LK Import

Goods arrive in Sri Lanka as an import from the UK (via NL) as a result of a change of contract

b. UK Intrastat/NL export:

c. UK export, destination changed in port of exit (NL)

a. UK export:

UKExport

NL(Transit)

INImport


Goods are transhipped in Rotterdam to a deep-sea vessel bound for India

Goods arrive in India to fulfil an order placed with a UK supplier

UK Dispatch NL Arrival IN Import

Goods leave UK destined for a company in the Netherlands. UK company has no knowledge of final destination therefore UK dispatch, partner country NL

Netherlands company declares arrival, partner country UK, subsequently arranges export to India

Goods arrive in India to fulfil an order placed with Netherlands company

Export


NL(Transit)

NL Export

In

Goods originally destined as an export to India. Change of contract involves delivery of goods to Sri Lanka

LK Import

Goods arrive in Sri Lanka as an import from the UK (via NL) as a result of a change of contract

b. UK Intrastat/NL export:

c. UK export, destination changed in port of exit (NL)

a. UK export:


29


Annex B

UK Import Asymmetries with Belgium and the Netherlands, 2000 2003

Millions

Belgium Netherlands

UK

Imports Belgium Exports Asymmetry

UK Imports

Netherlands Exports Asymmetry

2000

Jan 1,159 1,430 270 1,771 1,848 77

Feb 1,309 1,617 308 1,891 2,064 173

Mar 1,553 1,929 376 2,282 2,526 244

Apr 1,392 1,560 167 1,912 2,051 139

May 1,507 1,768 261 2,046 2,316 270

Jun 1,381 1,713 332 2,080 2,145 65

Jul 1,377 1,636 259 2,013 2,238 225

Aug 1,268 1,553 284 2,062 2,424 362

Sep 1,353 1,737 384 2,246 2,490 244

Oct 1,437 1,768 331 2,240 2,419 179

Nov 1,476 1,862 386 2,281 2,510 229

Dec 1,233 1,667 434 2,002 2,265 263

2001

Jan 1,583 1,880 298 1,889 2,213 324

Feb 1,514 1,743 229 1,807 2,203 396

Mar 1,612 1,971 358 2,360 2,850 490

Apr 1,407 1,609 202 1,785 2,208 423

May 1,552 1,863 311 1,966 2,455 489

Jun 1,543 1,865 323 2,261 2,792 531

Jul 1,568 1,793 226 1,903 2,211 308

Aug 1,373 1,706 333 1,802 2,187 385

Sep 1,526 1,831 304 2,034 2,304 270

Oct 1,531 1,876 345 2,092 2,509 417

Nov 1,476 1,749 272 2,076 2,268 193

Dec 1,209 1,490 282 1,731 2,099 368


30


Millions

Belgium Netherlands

UK


UK Imports


2002

Jan 1,506 1,831 325 1,956 2,232 277

Feb 1,589 1,856 267 1,920 2,171 251

Mar 1,753 2,069 316 2,272 2,513 241

Apr 1,574 1,798 224 2,014 2,147 134

May 1,558 1,793 235 2,024 2,398 374

Jun 1,379 1,721 342 2,042 2,416 373

Jul 1,614 1,874 259 1,941 2,170 229

Aug 1,437 1,726 290 1,881 2,161 280

Sep 1,715 2,013 298 2,105 2,469 364

Oct 1,715 2,028 313 2,171 2,541 371

Nov 1,517 1,828 311 2,018 2,458 440

Dec 1,231 1,438 207 1,780 2,255 475

2003

Jan 1,476 1,650 174 1,781 2,197 417

Feb 1,504 1,703 199 1,764 2,162 398

Mar 1,554 1,821 268 2,010 2,532 522

Apr 1,499 1,704 205 1,784 2,143 359

May 1,376 1,683 307 1,629 2,067 437

Jun 1,499 1,798 299 1,896 2,183 286

Jul 1,464 1,720 256 1,861 2,182 321

Aug 1,227 1,477 249 1,675 1,994 318

Sep 1,510 1,842 332 2,077 2,353 276

Oct 1,582 1,855 274 2,128 2,434 306

Nov 1,497 1,747 250 2,013 2,218 205

Dec 1,404 1,553 149 1,955 2,105 150



31


UK Export Asymmetries with Belgium and the Netherlands, 2000 2003

Belgium Netherlands

UK


UK Imports


2000

Jan 1,239 1,248 -10 1,751 1,492 259

Feb 1,347 1,464 -116 1,819 1,662 157

Mar 1,510 1,624 -114 2,256 1,926 330

Apr 1,115 1,090 25 1,753 1,614 139

May 1,465 1,570 -105 1,977 1,792 185

Jun 1,470 1,507 -38 1,996 1,792 204

Jul 1,170 1,317 -147 1,890 1,792 99

Aug 1,316 1,228 88 2,036 1,692 344

Sep 1,341 1,358 -17 2,130 1,723 408

Oct 1,302 1,298 4 1,899 1,912 -13

Nov 1,289 1,506 -216 2,415 2,211 204

Dec 1,149 1,291 -142 2,088 1,976 112

2001

Jan 1,430 1,477 -47 1,976 1,474 502

Feb 1,237 1,449 -212 1,825 1,504 321

Mar 1,328 1,468 -140 2,037 1,597 440

Apr 1,084 1,199 -115 1,701 1,361 340

May 1,309 1,368 -60 1,936 1,455 481

Jun 1,440 1,426 14 2,077 1,494 583

Jul 1,216 1,249 -32 1,902 1,403 499

Aug 1,120 1,048 72 1,898 1,298 600

Sep 1,213 1,203 11 1,938 1,276 662

Oct 1,219 1,270 -52 1,931 1,309 622

Nov 1,222 1,239 -17 1,922 1,331 591

Dec 1,070 1,100 -29 1,686 1,283 403


32


Belgium Netherlands

UK


UK Imports


2002

Jan 1,217 1,201 17 1,743 1,454 290

Feb 1,323 1,269 54 1,863 1,542 321

Mar 1,451 1,542 -91 2,083 1,725 358

Apr 1,325 1,343 -18 1,909 1,606 304

May 1,429 1,418 11 1,799 1,553 245

Jun 1,337 1,421 -84 1,840 1,611 229

Jul 1,441 1,286 155 1,746 1,397 349

Aug 1,107 1,161 -54 1,561 1,433 129

Sep 1,343 1,272 71 1,969 1,646 323

Oct 1,358 1,312 47 1,785 1,542 243

Nov 1,326 1,133 193 1,843 1,520 323

Dec 1,176 1,289 -112 1,780 1,612 168

2003

Jan 1,282 1,170 112 1,923 1,458 465

Feb 1,386 1,339 47 1,872 1,469 404

Mar 1,404 1,359 45 2,165 1,662 503

Apr 1,388 1,370 18 1,635 1,410 225

May 1,287 1,246 41 1,470 1,387 83

Jun 1,389 1,363 26 1,562 1,462 101

Jul 1,317 1,330 -13 1,542 1,440 102

Aug 1,140 1,065 75 1,210 1,244 -35

Sep 1,285 1,340 -55 1,433 1,405 28

Oct 1,277 1,422 -146 1,458 1,436 21

Nov 1,229 1,299 -70 1,446 1,425 21

Dec 1,203 1,329 -125 1,499 1,549 -50



33


Annex C

UK Import Asymmetries with Belgium and the Netherlands by HS Chapter, 2002 2003

Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports

Asymmetry UK Imports

Netherlands Exports

Asymmetry

2002 01 Live animals 2,279 3,143 865 9,834 12,527 2,693

02 Meat and edible meat offal

99,369 122,083 22,715 963,549 1,054,404 90,855

03 Fish and crustaceans, molluscs and other aquatic invertebrates

13,878 20,811 6,932 39,669 59,244 19,575

04 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included

128,293 147,700 19,408 111,096 135,520 24,424

05 Animal originated products; not elsewhere specified or included

14,484 14,686 203 7,000 11,401 4,400

06 Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage

43,104 59,929 16,825 1,007,457 1,062,003 54,546

07 Vegetables and certain roots and tubers; edible

133,150 137,487 4,337 551,200 653,803 102,603

08 Fruit and nuts, edible; peel of citrus fruit or melons

76,303 103,898 27,595 178,796 213,007 34,211

09 Coffee, tea, mate and spices

20,292 21,937 1,645 13,188 16,333 3,145

10 Cereals 11,445 34,251 22,806 44,809 41,902 -2,907

11 Products of the milling industry; malt, starches, inulin, wheat gluten

11,279 9,502 -1,777 30,987 25,953 -5,033


34


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder

13,849 11,936 -1,913 70,497 69,943 -553

13 Lac; gums, resins and other vegetable saps and extracts

1,448 2,311 863 1,619 2,402 784

14 Vegetable plaiting materials; vegetable products not elsewhere specified or included

1,192 122 -1,070 254 236 -19

15 Animal or vegetable fats and oils and their cleavage products; prepared animal fats; animal or vegetable waxes

60,947 76,117 15,169 211,374 121,456 -89,918

16 Meat, fish or crustaceans, molluscs or other aquatic invertebrates; preparations thereof

71,997 81,112 9,115 154,583 212,457 57,874

17 Sugars and sugar confectionery

53,853 72,379 18,526 76,638 65,801 -10,837

18 Cocoa and cocoa preparations

91,995 115,148 23,153 209,124 213,967 4,843

19 Preparations of cereals, flour, starch or milk; pastrycooks' products

204,997 214,011 9,014 155,207 152,708 -2,499

20 Preparations of vegetables, fruit, nuts or other parts of plants

116,541 253,593 137,052 381,900 471,966 90,066

21 Miscellaneous edible preparations

75,065 88,483 13,418 251,520 243,396 -8,124

22 Beverages, spirits and vinegar

72,805 122,505 49,700 173,625 269,858 96,234

23 Food industries, residues and wastes thereof; prepared animal fodder

68,744 48,575 -20,169 142,581 178,546 35,965


35


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

24 Tobacco and manufactured tobacco substitutes

4,310 12,599 8,289 66,259 64,418 -1,841

25 Salt; sulphur; earths, stone; plastering materials, lime and cement

10,994 18,258 7,264 14,946 25,141 10,195

26 Ores, slag and ash 18,508 5,750 -12,757 28,030 37,339 9,309

27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

314,007 521,075 207,068 855,581 1,225,396 369,815

28 Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radio-active elements and of isotopes

84,653 111,935 27,282 186,859 177,553 -9,306

29 Organic chemicals 533,022 597,913 64,892 1,305,642 1,198,121 -107,521

30 Pharmaceutical products

673,378 1,086,996 413,618 817,538 1,232,940 415,402

31 Fertilizers 22,083 31,931 9,848 67,804 64,039 -3,766

32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints, varnishes; putty, other mastics; inks

123,489 144,871 21,382 212,938 223,150 10,212

33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations

96,112 85,078 -11,034 127,967 161,630 33,663


36


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

34 Soap, organic surface-active agents; washing, lubricating, polishing or scouring preparations; artificial or prepared waxes, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster

236,354 261,893 25,539 135,063 177,674 42,611

35 Albuminoidal substances; modified starches; glues; enzymes

28,041 41,434 13,393 80,486 98,225 17,739

36 Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations

953 654 -300 4,182 7,366 3,183

37 Photographic or cinematographic goods

144,061 122,232 -21,829 157,374 119,016 -38,357

38 Chemical products n.e.s.

217,106 279,264 62,158 199,309 297,977 98,668

39 Plastics and articles thereof

1,197,309 1,392,222 194,913 1,000,234 1,105,568 105,335

40 Rubber and articles thereof

159,385 172,408 13,022 195,628 230,945 35,317

41 Raw hides and skins (other than furskins) and leather

17,184 11,093 -6,092 27,211 39,091 11,881

42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)

52,135 55,298 3,163 33,613 51,306 17,693

43 Furskins and artificial fur; manufactures thereof

159 687 528 5,584 4,764 -820

44 Wood and articles of wood; wood charcoal

238,549 273,936 35,387 76,331 84,185 7,854


37


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

45 Cork and articles of cork

406 357 -49 429 134 -295

46 Manufactures of straw, esparto or other plaiting materials; basketware and wickerwork

84 304 221 3,059 3,166 107

47 Pulp of wood or other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard

6,028 4,322 -1,706 4,993 4,866 -128

48 Paper and paperboard; articles of paper pulp, of paper or paperboard

276,377 356,223 79,846 538,995 580,257 41,262

49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans

40,237 76,787 36,550 114,894 178,898 64,004

50 Silk 146 141 -4 139 609 469

51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric

12,824 17,024 4,200 3,506 2,533 -972

52 Cotton 49,968 58,137 8,169 24,821 28,232 3,410

53 Vegetable textile fibres; paper yarn and woven fabrics of paper yarn

18,460 18,703 243 2,385 1,232 -1,153

54 Man-made filaments 76,144 82,423 6,279 51,632 83,328 31,697

55 Man-made staple fibres

63,750 75,727 11,977 9,807 15,807 6,001

56 Wadding, felt and nonwovens, special yarns; twine, cordage, ropes and cables and articles thereof

26,319 26,385 66 32,126 48,227 16,101

57 Carpets and other textile floor coverings

568,927 621,171 52,244 178,011 202,468 24,457

58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery

114,280 126,360 12,080 9,087 9,608 521


38


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

59 Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use

16,763 26,171 9,408 25,251 30,248 4,997

60 Fabrics; knitted or crocheted

6,128 6,471 343 5,992 5,187 -806

61 Apparel and clothing accessories; knitted or crocheted

215,307 235,611 20,304 134,499 170,025 35,526

62 Apparel and clothing accessories; not knitted or crocheted

287,847 302,522 14,675 194,548 222,763 28,215

63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags

7,983 16,195 8,212 29,359 56,942 27,583

64 Footwear; gaiters and the like; parts of such articles

408,207 396,713 -11,494 221,283 190,790 -30,493

65 Headgear and parts thereof

13,444 19,068 5,624 6,549 6,859 309

66 Umbrellas, sun umbrellas, walking-sticks, seat sticks, whips, riding crops; and parts thereof

184 205 21 1,109 1,179 70

67 Feathers and down, prepared; and articles made of feather or of down; artificial flowers; articles of human hair

70 393 322 1,479 5,544 4,065

68 Stone, plaster, cement, asbestos, mica or similar materials; articles thereof

42,820 50,293 7,473 39,286 58,752 19,467

69 Ceramic products 32,003 46,908 14,905 30,376 34,615 4,239

70 Glass and glassware 163,730 166,370 2,640 72,527 66,459 -6,067


39


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

71 Natural, cultured pearls; precious, semi-precious stones; precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin

564,303 807,052 242,749 21,993 21,461 -533

72 Iron and steel 313,413 354,614 41,201 252,956 333,872 80,916

73 Iron or steel articles 156,045 191,109 35,063 189,555 270,741 81,186

74 Copper and articles thereof

75,629 92,204 16,575 27,868 38,200 10,332

75 Nickel and articles thereof

7,172 6,667 -505 24,179 23,702 -477

76 Aluminium and articles thereof

105,330 92,824 -12,506 173,501 277,038 103,537

78 Lead and articles thereof

1,065 3,180 2,116 1,603 1,024 -579

79 Zinc and articles thereof

5,605 6,020 415 7,131 7,507 376

80 Tin; articles thereof 953 6,022 5,070 4,353 6,119 1,766

81 Metals; n.e.s., cermets and articles thereof

13,526 14,613 1,087 26,654 43,157 16,503

82 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof, of base metal

55,930 62,859 6,929 101,934 97,071 -4,863

83 Metal; miscellaneous products of base metal

18,717 25,132 6,415 86,290 101,409 15,119

84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

1,283,412 1,718,460 435,048 4,385,513 5,709,741 1,324,228

85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, parts and accessories of such articles

1,071,812 1,289,154 217,342 2,956,029 2,592,521 -363,508


40


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

86 Railway, tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds

133,039 201,936 68,897 4,598 4,840 243

87 Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof

6,020,175 6,556,655 536,479 2,012,030 1,829,298 -182,732

88 Aircraft, spacecraft and parts thereof

195,776 143,831 -51,945 51,641 85,566 33,926

89 Ships, boats and floating structures

3,237 2,999 -238 11,756 94,606 82,850

90 Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus; parts and accessories

311,795 293,418 -18,377 1,129,122 1,148,461 19,339

91 Clocks and watches and parts thereof

1,642 2,990 1,348 5,445 6,609 1,164

92 Musical instruments; parts and accessories of such articles

4,402 5,076 674 11,622 16,793 5,171

93 Arms and ammunition; parts and accessories thereof

4,126 13,727 9,600 5,798 1,009 -4,789

94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, n.e.s.; illuminated signs, illuminated name-plates and the like; prefabricated buildings

168,090 207,524 39,434 120,088 194,829 74,740


41


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

95 Toys, games and sports requisites; parts and accessories thereof

21,359 28,253 6,895 286,823 435,081 148,258

96 Miscellaneous manufactured articles

23,091 35,667 12,576 40,089 39,316 -772

97 Works of art; collectors' pieces and antiques

1,973 2,786 812 8,607 5,141 -3,466

99 Non-merchandise trade

3,512 89,967 86,455 4,142 7,314 3,172

2003 01 Live animals 2,635 3,594 960 4,495 14,055 9,559

02 Meat and edible meat offal

119,822 139,419 19,597 1,024,888 1,152,763 127,875

03 Fish and crustaceans, molluscs and other aquatic invertebrates

11,932 19,960 8,027 36,764 58,982 22,218

04 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included

135,643 158,176 22,534 146,883 214,875 67,992

05 Animal originated products; not elsewhere specified or included

17,061 16,409 -652 6,089 7,877 1,788

06 Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage

38,354 55,698 17,344 925,708 1,004,107 78,398

07 Vegetables and certain roots and tubers; edible

117,997 122,686 4,689 620,687 732,347 111,661

08 Fruit and nuts, edible; peel of citrus fruit or melons

77,804 96,200 18,396 166,480 195,655 29,175

09 Coffee, tea, mate and spices

18,452 21,747 3,295 20,492 25,463 4,971

10 Cereals 9,100 36,584 27,484 35,949 26,135 -9,814

11 Products of the milling industry; malt, starches, inulin, wheat gluten

7,558 7,384 -174 41,501 23,761 -17,740


42


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder

12,830 11,779 -1,052 74,389 86,792 12,403

13 Lac; gums, resins and other vegetable saps and extracts

2,160 2,100 -60 1,630 2,719 1,089

14 Vegetable plaiting materials; vegetable products not elsewhere specified or included

120 148 28 92 332 240

15 Animal or vegetable fats and oils and their cleavage products; prepared animal fats; animal or vegetable waxes

55,568 78,552 22,984 245,672 145,659 -100,013

16 Meat, fish or crustaceans, molluscs or other aquatic invertebrates; preparations thereof

66,757 84,684 17,927 134,346 217,409 83,063

17 Sugars and sugar confectionery

69,471 74,505 5,035 59,854 80,429 20,575

18 Cocoa and cocoa preparations

102,942 125,425 22,484 162,606 200,124 37,518

19 Preparations of cereals, flour, starch or milk; pastrycooks' products

199,483 193,023 -6,461 145,579 170,849 25,270

20 Preparations of vegetables, fruit, nuts or other parts of plants

153,276 250,338 97,062 353,420 442,877 89,457

21 Miscellaneous edible preparations

80,567 85,154 4,586 285,716 284,878 -838

22 Beverages, spirits and vinegar

76,840 106,106 29,266 167,835 257,216 89,381

23 Food industries, residues and wastes thereof; prepared animal fodder

70,928 71,747 819 162,639 151,401 -11,239


43


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

24 Tobacco and manufactured tobacco substitutes

3,631 8,578 4,947 62,426 66,509 4,084

25 Salt; sulphur; earths, stone; plastering materials, lime and cement

7,247 11,855 4,608 15,872 20,089 4,217

26 Ores, slag and ash 15,924 7,283 -8,641 15,627 30,985 15,357

27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

555,421 686,572 131,151 366,057 659,567 293,510

28 Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radio-active elements and of isotopes

78,572 93,078 14,505 202,492 175,308 -27,184

29 Organic chemicals 485,751 602,438 116,687 1,178,323 973,957 -204,367

30 Pharmaceutical products

1,083,278 1,545,516 462,239 738,264 916,399 178,136

31 Fertilizers 26,536 22,210 -4,326 86,822 84,990 -1,833

32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints, varnishes; putty, other mastics; inks

116,546 137,022 20,476 201,434 226,870 25,436

33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations

77,061 77,198 137 133,711 179,334 45,623


44


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

34 Soap, organic surface-active agents; washing, lubricating, polishing or scouring preparations; artificial or prepared waxes, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster

232,241 266,756 34,515 125,605 174,233 48,627

35 Albuminoidal substances; modified starches; glues; enzymes

30,045 39,041 8,996 91,220 94,199 2,979

36 Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations

848 1,028 180 6,046 4,382 -1,664

37 Photographic or cinematographic goods

123,678 137,754 14,076 146,559 106,319 -40,239

38 Chemical products n.e.s.

212,243 267,311 55,069 238,430 314,106 75,676

39 Plastics and articles thereof

1,162,895 1,374,261 211,366 1,076,957 1,121,974 45,017

40 Rubber and articles thereof

146,143 172,561 26,418 170,190 214,849 44,659

41 Raw hides and skins (other than furskins) and leather

6,585 10,059 3,474 20,174 24,172 3,998

42 Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)

53,882 60,023 6,141 31,590 52,786 21,196

43 Furskins and artificial fur; manufactures thereof

242 431 189 2,948 4,024 1,076

44 Wood and articles of wood; wood charcoal

235,517 272,327 36,810 75,578 70,762 -4,816


45


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

45 Cork and articles of cork

379 322 -57 183 848 664

46 Manufactures of straw, esparto or other plaiting materials; basketware and wickerwork

348 441 93 2,585 3,160 575

47 Pulp of wood or other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard

4,515 2,083 -2,432 1,090 4,366 3,276

48 Paper and paperboard; articles of paper pulp, of paper or paperboard

263,456 355,533 92,077 497,017 534,019 37,002

49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans

41,913 87,322 45,410 125,502 154,533 29,032

50 Silk 316 475 159 248 301 53

51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric

10,728 13,049 2,321 3,488 1,063 -2,425

52 Cotton 31,413 39,164 7,751 19,586 20,865 1,279

53 Vegetable textile fibres; paper yarn and woven fabrics of paper yarn

16,572 14,909 -1,662 1,709 972 -737

54 Man-made filaments 70,338 68,211 -2,127 51,826 69,625 17,799

55 Man-made staple fibres

54,915 61,913 6,998 9,566 11,806 2,239

56 Wadding, felt and nonwovens, special yarns; twine, cordage, ropes and cables and articles thereof

26,135 26,025 -109 35,508 42,262 6,754

57 Carpets and other textile floor coverings

539,676 604,741 65,066 173,912 221,505 47,593

58 Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery

106,324 122,978 16,654 5,726 8,567 2,841


46


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

59 Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use

13,430 16,566 3,136 27,518 30,713 3,195

60 Fabrics; knitted or crocheted

5,628 6,287 659 3,414 3,720 307

61 Apparel and clothing accessories; knitted or crocheted

180,061 205,760 25,699 111,834 148,885 37,050

62 Apparel and clothing accessories; not knitted or crocheted

247,848 284,989 37,142 170,337 190,970 20,633

63 Textiles, made up articles; sets; worn clothing and worn textile articles; rags

9,418 22,808 13,389 30,376 50,992 20,617

64 Footwear; gaiters and the like; parts of such articles

184,144 191,247 7,103 264,129 213,088 -51,041

65 Headgear and parts thereof

11,838 16,167 4,328 7,205 8,907 1,702

66 Umbrellas, sun umbrellas, walking-sticks, seat sticks, whips, riding crops; and parts thereof

142 239 98 1,415 965 -451

67 Feathers and down, prepared; and articles made of feather or of down; artificial flowers; articles of human hair

3,981 483 -3,497 1,794 4,832 3,038

68 Stone, plaster, cement, asbestos, mica or similar materials; articles thereof

57,176 53,367 -3,809 39,628 55,693 16,065

69 Ceramic products 36,448 45,039 8,591 30,242 28,830 -1,412

70 Glass and glassware 151,815 166,268 14,453 81,788 70,985 -10,803


47


Thousands

Belgium Netherlands

Chapter UK Imports

Belgium Exports


Netherlands Exports

Asymmetry

71 Natural, cultured pearls; precious, semi-precious stones; precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin

292,031 262,159 -29,872 34,162 33,868 -294

72 Iron and steel 319,964 367,898 47,934 217,124 261,155 44,031

7

uk edicom rotterdam effect 2005

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