Concepts, definitions, classifications, and accounts and tables of the SNA relating to external transaction

UNITED NATIONS

ECONOMIC AND SOCIAL COUNCIL

/

2? December 1974 Originals ESOLISH

ECONOMIC COMMISSION FOR AFRICA Seminar on External Transactions

Kampala, 28 April - 7 Kay 1975

CONCEPTS, DEFINITIONS, CLASSIFICATIONS, AND ACCOUNTS AND T2BLES OF THE

SNA RELATING TO EXTERNAL TRANSACTIONS

Contents

Paragraphs

Introduction 1-5

I. Scope and Definitions of External Trans

actions ... 6-63

A* Exports and imports of goods and services 7 - 38 B. Other items included in exports and imports 39 - 63

lit Classification. 64-84

III* Aocounts and tables ... 85-94

Annex Acoounts and tables relating to external transactions.

M79-166

E/CN. 14/HAC/56

INTRODUCTION

1« In the disaggregated accounts of :the revised United Nations System of National Accounts (SNA)j/j "tran*sactiohs'"fe'l"ating to resident and non-resident

economic agents are not systematically, distinguished from each other, although theoretically such a distinction .would have been possible. Most of the items on the disaggregated accounts instead cover transactions witjx resident as well as non-resident economic-agents in one figure- Only in a few instances are items of tranaac:ti<ms relating to the rest of the world specified, in the accounts (for instance, imports &Ad .oxports of commodities.on the commodity accounts, and miscellaneous transfers to and from the rest of ,the world on

the income' and outlay accounts). . .

2. In order to arrive at a system of national accounts which is closed and contains no loose ends, the transactions of resident economic agents with the rest of the world are summarized on an external transactions accounts which ^is

included among the. consolidated .accounts for the nation (accounts I of the system).

3. The SNA also includes a supporting table to all accounts of the system, which records the transactions of the nation with the rest of the world in considerably greater detail than the consolidated external transactions

account. In particular this table includes a classification of exports and imports of goods and services in broad groups according to type, and a detailed

break-down of the net acquisition of foreign financial assets and the net inourrence of foreign liabilities.

4. Additional information on external transactions is also needed for some

of the supplementary tables to the disaggregated acoounts of the SNA. For

instance, a supplementary table to the production, consumption expenditure and

capital formation aocounts (account II) requires data on exports and imports

of commodities classified in considerable detail according to commodily groups. Also a supplementary table to the income and outlay .and capital

finance accounts (accounts III) requires data on the changes in financial

claims of re'sident institutional sectors visa-vis the rest of. the world.

5. The present paper is arranged in the following way.^ first, the scope and definitions of external transactions in the SNA are discussed in some detail- Next, the various classification schemes used for external tran sactions are dealt with. Finally,: the accounts_and tables of the system, which relate to external transactions, are discussed.

A system of National Accounts, Studies in Methods, Series P, No. 2, Rev. 3,

United Nations, Nev York, 1968.

I. SCOPE AND DEFINITIONS OF EXTERNAL TRANSACTIONS

6« The SNA requires information on external transitions in goods and servicsa|,

on compensation of employees, property and entrepreneurial income and other K current transfers paid to and received from the rest of the world* and on

oapital finance transactions between residents and non-residents.

' . ■ ■ , \

A. Exports and imports of goods and services :

7. Exports and imports of goods and services for the major part consist in

transactions in commodities between the residents of a given country and the rest of the world. Commodities are in the SNA defined as goods and servioes normally intended for sale in the market at a price that covers their cost of production. In addition, transactions in a few items which in the SNA are classified as other goods and services, i.e., goods and services which are. not normally sold in the market at a price intended to cover their cost of pro duction, are also included in exports and imports of goods and servioes,

1. Commodities

8« External transactions in commodities include exports and imports of merchandise* exports and imports of transport, communication and insurance services; and exports and imports of a heterogeneous group of goods and ser vioes which are defined as commodities in the SNA.

(a) Merchandise

9. The scope of exports and imports of merchandise in the SNA corresponds broadly to that of general exports and imports in international trade statis

tics except for certain additions and exclusions. 2/ General trade oovers all exports and imports which cross the geographical boundaries of a oountry, i.e., goods entering or leaving customs bonded warehouses or free trade .areas, as well as those crossing the customs boundaries should be. included. A number of countries do, however, base their external trade statistics on speoial trade which excludes exports from and imports into customs bonded warehouses and free areas, and in principle includes only exports and imports cleared through

customs. Both general and special trade includes exports from and imports

into customs- bonded manufacturing plants.

10. Vhere the concept of speoial trade is applied in external trade statistics, this concept also has to be used for the purposes of the national accounts,, because there is generally no way of adjusting the figures to cover general

trade. " ■ '....• .■•■.■ . j. -• ....■„..

11. Sales and purchases of all new-as .well as used ships and aircraft should be included in exports and imports of merchandise both in the SNA and in ex

ternal trade statistics, though they may not cross the customs frontiers of the ccuntry. Exports and imports of electricity, gas and water are also

2/ Tte United Nations recommendations in respect of international trade statis

tics are described in International Trade Statistics. Concepts and Definitions,

Statistical Papers, Series M, No. 52, United Nations, New York, 1970.

e/cn.u/nac/55

Pago 3

included in the both todies of statistics. On the other hand, exports and imports of goods in direct transit through a country, goods not owned by residents which are imported for purposes of storage and trans-shipment only, as1-well as such items as tourists' and travellers1 effeots, goods for exhibi

tion or study, returnable samples or samples of no comceroial value, returnable

containers and animals for racing and breeding, are excluded in both cases.

12. The national aocounts include in exports and imports a number of items of merchandise transactions which are not covered by international trade statis tics* The main additions are bun&ers and stores sold to ships and aircraft operated by non-residents and purchased by ships and aircraft operated by residents; fish and salvage sold abroad off national vessels and purchased off foreign vessels; and sales and purchases of gold ore and unrefined gold and of refined gold for industrial use. The SNA also includes in merchandise exports all sales of newly refined gold ingots and bars, including sales to resident monetary authorities and to resident individuals- This treatment is adopted in order to transform the production of gold as a commodity into an

addition to financial assets. As distinct from the Balance of Payments Manual

of the IMF, the SKA treats not only gold held by the monetary authorities but

also gold held by private individuals, as a financial asset,

13* Whole international trade statistics include goods which cross the ouatoms boundaries solely for purposes of repair, in international trade statistics,

the SKA,includes only the value of the repair work done and classified it as exports and imports of miscellaneous commodities. The transfer oi" leased

machinery, equipment and other goods across customs boundaries is also excluded from exports and imports, in the SNA while these items are included in inter

national trade statistics, .

14» Exports and inq>orts of merchandise should be net of the value of returned

exports and imports as well as the value of the loss in, or damage to, goods

being transported between the exporting and importing countries*

15« Actual transactions values should be used in valuing exports and imports of merchandise for national accounts purposes- This principle of valuation is also used in the balance of payments aocounts of the International Monetary Fund and in international trade statistics.

16* The transaction values for merchandise exports are measured f.o.b. the customs frontier of the exporting country- This means that, in addtion to the producers1 value of commodities at the time of delivery from the establishment of the exporting industry, all costs of transporting the goods -bo the customs frontiers of the exporting country, as well as export duties and the cost of loading the goods on the carrier, should be included. 'The loading costs

should be included regardless whether they are actually borne by the-exporter or by the importer. In the oase of transport by ship, it sometimos happens that the goods are loaded by means of the carriers' own equipment. The costs of loading then usually cannot be separated from the freight paid to the carrier and will therefore be excluded from the f.o.b. value of exports* If

the goods are transported by land and the same carrier is used from the esta

blishment of the exporter to the establishment of the importer, only that

portion of the total freight charges which refers to tho distance transported within the country of the exporter, should be included in tne f.o.b. value of

exports. .

17. Merchandise imports should be valued c.i.f. The c.i.f. value is obtained by adding freight and insurance charges incurred after the merchandise has left the country of the exporter and until it has reached the country of the importer to the f.o.b. value of the merchandise, concerned. Import duties and, in

principle, also the cost of unloading, should not be included. Where the equipment of the carrier is used for unloading the merchandise, however, the

cost of unloading cannot be separated from the freight charges and is therefore

included in the o.i.f. value of imports.

18. The value of freight and insuranoe services rendered by resident as well

as non-resident units is included in the c.i.f. value of merchandise imports..

In order to arrive at a correct figure for net imports of goods and services,

the freight and insuranoe charges paid to resident units in respect of mer

chandise imports must be included in the exports of such services by the

country in question. For this reason, the SETA recommends that the, c.i.f. value

of imports should be decomposed into the .f .o.b. value, charges for transport

and insurance services paid to non-resident producers, arid charges for similar

services paid to resident producers. The inclusion in the SUA of a recommenda

tion for a valuation of merchandise imports f.o.b.' as an alternative to the

c.i.f. valuation is also useful because a number of countries value their merchandise imports f.o.b.

19. All transactions in goods, including transactions between residents and nonr-residents should, in principle, be recorded in the national accounts at

the moment at which the ownership of, or the legal title to, the goods in, question pass between buyer and seller. This principle is also applied in the balance of payments accounts of the International Monetary Fund. However, for the purposes of national accounts estimation, the data on exports and imports of merchandise are in most cases based on international trade statistics which

record the physical movement of goods across the customs boundaries of a country.

20. Adjustment items are therefore needed in order to align the data for

imports and exports obtained from international trade statistics with those shown; in the other accounts of the system. The SNA recommends that the adjust ment items should refer to total imports and total exports, respectively. !Ehe

adjustment item for imports should equal the value of goods which have been paid for before they cross the customs boundary of the country of the importer, less the. value of goods which have already orossed the customs boundary of the

importer, but have not yet been paid for. For exports, the adjustment item equals the difference between the value of goods which remain in the country of

the exporter after change in ownership has occurred and the value of goods which have crossed the customs boundary of the importing country prior to a

change of ownership.

21. Adjustments of total imports and exports only are required because data are not expected to be available which permit adjustments of each item or each, group of goods imported or exported. As a consequence, unadjusted figures taken from external trade statistics have to be used in classifying imports

and exports by oommodity group for national accounts purposes.

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(b) Other commodities

(1) Transport and communication services .

22. Exports and imports of transport services cover amounts received and paid . in respeot of the transportation of goods and passengers by ships, aircraft, A railways, motor vehicles and other road carriers, and in respect of the uso of

» oil, gas and other pipelines.

23. In the case of the freight of goods, the exports of a country ooyer services rendered by her resident carriers in respect of (i)- the exports of merchandise from, and the imports of merchandise,to, the country; [Ij.) the transport of merchandise between foreign countries on the account of non

residents; (xii) the transport to and from the oountry of goods not induded in merchandise trade on the account of non-residents (for example, the household

©fleets of foreign diplomats and gifts in kind received from abroad by residents) and (iv) the transit of foreign-owned goods through the country, All the above items except freights received by resident cairiers in respect of the imports of merchandise into a country refer to services rendered by residents to non residents. As was mentioned in paragraph.18 above, freights received by resident carriers in respect o± imports into their home country must be in cluded in the exports of this country because the c.i.f. value of merchandise

imports includes these freight payments.

24. When the imports of merchandise are valued c.i.f. the imports of freight services by a country include only the services furnished by non-resident carriers to her residents in respect of the transport of goods between foreign countries and in respect of the imports of goods, not included-in merchandise trade. When a f.o.b. valuation of imports is used, freight paid in respect of imports of merchandise to the country by non-resident carriers should be in cluded in imports of freight services in addition to the items mentionedin the previous sentence. The ^A recommends that separate data should be compiled

in respect of this item.

25- The exports and imports of passenger transport services cover internation al transport, i.e., transport between countries, only., Exports of, transport services relate to transport of non-resident persons on resident carriers, and imports of transport services relate to transport of resident persons by non resident carriers. Payments by non-residents for transport within a country or by residents for transport within foreign countries are included in direct purchases in the domestic market by non-resident households and direct purchases abroad by resident households, respectively. The latter items are discussed

below in the section relating to other goods and services.

26. Exports and imports of other transport and communication services cover

receipts and expenditures in respect of the charter of ships, harbour and air field fees, towage, and international settlements on account of post, telegraph

telephone, radio and television transmission services.

(2) Insurance service charges

27. Service charges in respect of international trade and other insurance

services rendered by resident insurance companies to non-residents and vice-

versa should be included among the transactions in goods and servioes covered

by the external accounts and tables of the SNA. Insurance service charges are in the SNA .imputed amounts which do not include the cost of insurance and therefore differ from the insurance premiums paid arid received. In the case of accident insurance, total service charges are in the SiTA estimated as the difference 'between total premiums received by the oompanies concerned and

total insurance claims paid by them. In the case of life insurance and pension *

funds, the estimation of the service charges is somewhat more complicated (see j paragraphs 6.36 through 6.40 of the SKA). The proportion of total service

charges allocated io each insured party is put equal to the proportion of insurance premiums paid.

28. In practice, it is very difficult to estimate the portion of total in surance service charges which should be allocated to external transactions.

For this reason, it may be necessary to record total premiums paid rather than insurance service charges, on the external accounts and tables. The Balance of Payments Manual of the IMF requires that total insurance premiums should be recorded in the balance of payments accounts.

29* The exports by a country of insurance services on international freight consist of services rendered by the country's insurance companies in respect of her exports, and imports of merchandise and in respect of the movements on the aocount of non-residents of merchandise between foreign countries and of goods which are not included in merchandise trade into, and out of, the country.

Insurance services rendered by resident insurance companies in respect of a country's imports of merchandise should be included in her exports of insurance, services. This treatment corresponds to the treatment of freight on merchandise imports paid to resident carriers, and is necessary because payments for

insurance services are included in the c.i.f. value of merchandise imports.

30. When imports of merchandise are valued c.i.f., the imports of a country of insurance services on international trade consist .of the value of the services of non-resident insurance companies in respect of the transport, on account of her residents, of goods between foreign countries and the imports of goods which are not included in merchandise trade. When imports of mer chandise are valued f.o.b., the value of the insurance services in respect Of these imports should be added to the items mentioned in the preceding sentence.

The SETA recommends that separate data should be compiled in respect of this item.

31. The exports of a country of other insurance services consist of the ser vices rendered by resident insurance companies to non-residents, and her

imports consist of the services rendered by non-resident insurance companies

to residents in respect of (i) insurance against fire, theft and damage of items other than international freight, (ii) re-insurance of international freight, (iii) insurance against accidents, and loss of income and medical costs during illness and other casualties to persons, and (iv) life insurance

and participation in pension and similar funds.

(3) Miscellaneous commodities

32. Exports and imports of miscellaneous commodities for the most part consist in commodity type services rendered by residents to non-residents and by non-

Page

residents to residents. Included are (i) the value of repaxr services rendered on goods received from abroad or on goods sent abroad for repair, (to.) gross margins realized by merchants- on goods purchased in another country which they

ship to, and sell in, a third country, (lit), management aid consultation fees and reimbursements for home office expenses due to parent companies from foreign branohes and subsidiaries, and similax transactions, (ivj fees of agents operating for foreign principals, (v) machinery, equipment, film and similar rentals, and (vi) advertising fees. Minor transactions in^goods, such as direct subscriptions to newspapers and magazines; gifts in kind sent to. and received from, abroad; and the exports and imports of migrants house hold and personal goods and effects, are also included. Transactions in goods and services not elsewhere classified are also included under this heading.

2. Other goods and services

33. Some transactions on the external accounts are in the SHA treated as exports and imports of other goods and services, as distinct from exports and imports of commodities, because the individual goods and services of which the transactions consist cannot be distinguished from each other. The transactions ooncemed include direct purchases abroad on current account by the extra

territorial bodies of the government services of a country, direct purchases in the domestic market by. non-resident households and direct purchases abroad

by resident households. •

34. Direct purchases abroad on current account by the government services j»f a country include mainly purchases of currant supplies of goods and services^

by embassies and military units of a country in the.countries of their location including rents paid for embassy buildings and other structures. Underwriters commission on government securities.sold outside the country of issue, and direct purchases less sales abroad of second-hand goods and scraps by the extra-territorial bodies of a country are also included.

35. Direct purchases of similar goods and servioes on current account by non resident government bodies in the domestic market of a country, on the other hand, are classified among the country's exports of commodities, because it is assumed that data on the commodity composition of these purchases can be

obtained. '

36» Sor the same reason, direct purchases on capital account by non-resident government bodies in the domestic market of a country, as well as direct

purchases on capital account abroad by the extra-territorial government bodies of a country are classified as imports and exports of commodities, rather than of other goods and services. These direct purchases mainly include outlays on the construction of buildings and other work for civilian or military use..

37. Direct purchases in the domestic territory of a country by non-residents

and direct purchases aborad by her residents are classified as exports and

imports, respectively, of other goods and services. These items refer to

expenditures by tourists, travelling businessmen and government Officials,

crews.5 border and seasonal workers, and diplomatic and military pexsonnel

stationed abroad. The outlays conoerned refer to goods and services included

in household consumption expenditure. Outlays on local transportation are

covered in these items, while passenger fares in international transportation are included in exports and imports of passenger transport services, which , are oommodity-type services. The direct purchases of goods may either be

consumed on the spot, or their consumption may be deferred, for instance, until they are brought back to the country of residence of the consumer.

38. All outlays of travelling businessmen, government officials, crews, etc, which axe reimbursable by their employers, are excluded from the items dis- cussed in the previous paragraph. These outlays should instead be treated as intermediate consumption expenditure of the industries of the employers and as exports or imports of commodities. The outlays cover expenditure on suc\

items as hotel and restaurant services and household consumption goods in addition to expenditures on rent for office space and for secretarial assis- tance, etc. In practice, sufficient data may not be available which makes it possible to allocate, in particular, an appropriate portion of household

consumption expenditure to this category of outlays. Part, or the whole, of.

the expenditures of travelling .businessmen, government officials, etc.,

therefore may have .to be included in direct purchases in the domestio market.

by non-resident households and direct purchases abroad by resident households.

B. Other, items included in exports and imports

39. The items covered under this heading consist of compensation of employees and various transfer payments, including property and entrepreneurial income, r*seived from and paid to the rest of the. world; the net amount of finance of gross accumulation received from abroad; and transactions in financial claims

with the rest of the world. .

1. Items of current income *■

(a) Compensation of employees '

40. Compensation of employees received from the rest of the world by resident individuals and compensation of employees paid to the rest of the world by resident producers are included on the" external transactions accounts of the SNA as ourrent receipts and current disbursements", respectively. The items of compensation of employees included on the external^transactions accounts thus relate to amounts received by and paid to workers who are not residents

of the same countries as the producers for whom they work.

41. Non-resident workers include border workers, "i.e., persons who cross the border between two countries daily or slightly less frequently, but regularly, but live in the other country, and seasonal workers, i.e., peisons who are, and are expected to be, in the country explicitly for purposes of seasonal employment only. Also included are crew members on foreign ships, local employees of foreign embassies and of other extra-territorial bodies of foreign governments, and employees of non-resident enterprises who have come to a country for less than one year for purposes of installing machinery and equipment purchased from their employer. The value of the installation services rendered by the latter category of non-resident employees should be included in the exports of goods and services by the country of residence of

their employer.

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Property and entrepreneurial■income

42. Pioperty income received by resident institutional sectors from the rest of the world and paid by resident institutional sectors to the rest, of the.

world includes interest, dividends, land rents and royalties. , The amount of a interest entered on the external transactions accounts should, in principle, f include imputed interest on foreign-owned life insurance and pension funds,

Beceipts and payments for the lease of foreign bases are in.cluded in the land rents shown on the accounts. Royalties paid to and received from the rest of the world cover periodic fees in respect of the use of patents, trademarks, copyrights and similar exclusive rights owned by foreign economic agents.

43. Entrepreneurial income received from and paid to the rest of the world includes actual withdrawals i>y the parent companies of profits of branches and subsidiaries located abroad. All unincorporated branches and subsidiaries of foreign parent enterprises are in the SNA treated as quasi-corporations. The retained income of quasi-corporations is considered to constitute their own

saving.

44. The Balance of Payments Manual of the IMF includes all profits of foreign branphes and subsidiaries-in entrepreneurial income received from and paid to the rest of the world, regardless whether part of the profits is retained by the foreign branches and subsidiaries. In order to make possible a reconoilia- tion of the figures presented in the national accounts with those of the

balance of payments, the SETA requires that data on the saving (retained income) of branches and subsidiaries of resident companies which are located abroad and of the resident branches and subsidiaries of foreign companies should be furnished in memoranda items to the table on external, transactions. The branches and subsidiaries may be corporations or quasi-corporations.

(c) Other current transfers from and to the rest of the world

45. This item should be shown separately for general government and other resident institutional sectors. As far as general government is oonoerned, the item for the most part consists of transactions in cash orin kind received from or paid to foreign governments for purposes of financing outlays and general deficits on current account. Examples are transfers of food, clothing and military equipment; grants to finance military equipment; grants to finance military outlays, current health, educational and other social expenditures and budgetary deficits on current account; and payments of assessments and other periodic contributions to international organizations. MinbT amounts of current transfers paid to or received from other institutional sectors, such as direct taxes, social-security contributions and miscellaneous current transfers, in principle, should also be included'. :

46. Current transfers to and from the rest of the world by other institutional

sectors consist of items such as accident and life insurance premiums net of

service charges, insurance claims, write-offs of bad debts, migrants' remit

tances, migrants' transfers of personal and household goods, and the value of

gifts in kind between resident and non-resident households.

2. Gross accumulation and its finance

47- The only items of gross accumulation which appear on the external tran sactions accounts are net purchases of intangible assets from the rest of the world and net lending to the rest of the world.- By definition, the other com

ponents of gross accumulation, i.e., gross capital formation and net purchases a of land.are only applicable to the capital finance accounts of resident f institutional sectors. ■

48. The items of finance of gross accumulation included on the external trans

actions account are the surplus on current external transactions and net

capital transfers received from abroad. The surplus on current transactions is the balance between current incomes received from the rest of the world and current expenditures paid to the rest of the world. These incomes and ex penditures arise from transactions in goods and-services, faotor incomes and

ourrent transfers. T

49» He"t lending to the rest of the world is also a balancing item on tae external account. It equals the surplus on current transactions plus net

capital transfers received from the rest of the, world less net purchases of intangible assets from the rest of the, world. T?he definitions of the latter items are discussed below. It should be noted that net lending to the rest of the world is also equal to the difference between net acquisitions of foreign

financial assets and net incurrence oi foreign liabilities (see paragraph 63

below). .

(a) Capital transfers from the rest of the world, net

50. The figures on net capital.transfers from the rest cf the world must be obtained as the difference between estimates of capital' transfers received from and paid to the rest of the world. The capital transfers are shown net on the external transactions account because, it is assumed that the gross figures of inflows and outflows will have a relatively high margin of error.

51. Net capital transfers received from the rest of the world should be shown separately for general government and other institutional sectors.

Capital transfers between the governments of two countries consist of grants for purposes of financing fixed capital formation, unilateral transfers of capital goods, separation payments and similar items. Capital transfers to and from other institutional sectors will mainly consist of migrants' transfers of financial assexs or the capital assets of their businesses.

(k) Purohases of intangible assets n.e.c. from the rest of thff world, net

52. The item should be obtained as the difference between separate estimates of purohases from, and sales to, the rest of the world, of intangible assets n.e.c. Intangible assets n.e.c. consist of items such as exclusive rights to exploit mineral deposits and fishing grounds, patents, copyrights and trademarks.

Purohases and sales of intangible assets n.e.c. refer to the once-for-all transfer of the legal title to such exclusive rights as distinct from, for instance, the issue of licences to use patented processes or to publish copy righted material. The periodic payments in respect of the latter type of transactions are classified as royalties and are inoluded in property income

(see paragraph 42 above).

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53, The data inquired to make estimates of net purchases of intangible assets n.e.o. from the rest of the world will be difficult to obtain in many cases, and the item is likely to be of small importance in most countries.

T 3* Transactions in financial.claims-'

(a) Gold and Special Drawing Itighta

54- This item is part of the net acquisition of foreign financial assets. It

covers (i) changes in holdings of gdd except for industrial use or embedded in

final products such as jewellery, by monetary institutions and other domestic

institutional sectors, including households, and (ii) changes in Special Drawing

Rights allocated to the country by the International Monetary Fund. The

initial allocation of Special Drawing Rights to a country by the IMF should be shown in a memorandum item to the table on external transactions.

(b) Currency and transferable deposits

55. The net acquisition of foreign financial assets includes changes in notes and coins and deposits changeable on demand which constitute liabilities of foreign banks and governments. Correspondingly, changes in financial claims of this type issued by domestic banks and governments, which are liabilities to the rest of the world, are included in the incurrence of foreign liabilities.

(c) Other deposits

56. This item covers changes in claims other than currency and transferable deposits, that are represented by evidence of deposits. Changes in such claims on the monetary institutions, other financial institutions and government

organs of the rest of the world are included in the net acquisition of foreign

• financial assets. Changes in other deposits in domestic monetary institutions etc. by the rest of the world are included in the net incurrence of foreign liabilities.

(d) Bills, short-term bonds and long-term bonds

57* Changes in holdings by domestic institutional sectors..of bills, short- term bonds and long—term bonis issued by the rest of the world are included in the net acquisition of foreign financial assets. The changes in holdings by the rest of the world of similax instruments issued by domestic institutional sectors are included in the net incurrence of financial liabilities.

3/ For a detailed definition of each category of financial claims.} see table 7»2 Financial assets and liabilities of A System of National Accounts. The basis of recording and valuation of financial assets and liabilities are discussed in paragraphs 7-103 through 7*109 of the same publication.

(e) Corporate equities, including capital participations

■ . . _ ■ .- ■>

58. The changes in holdings of foreign corporate equity securities by resi

dents and the changes in holdings by non-residents of such securities issued 1 by resident enterprises-should be included in changes in foreign financial

assets and in foreign liabilities, iespectively. ~,rhere possible, transactions in corporate equities, including capital participations, in respect- of incor porated subsidiaries should be shown separately from similar transactions in respect of other non-resident, respectively resident, incorpor ted units.'

(f) Short-term and lonfc-term loans, n.e.c.

59. ,_The changes in all types of loans not classified elsewhere which are rendered by residents to non-residents aie included in net acquisitions of foreign financial assets, and the changes in similar loans rendered by non residents to residents are iniuded in net incurrence of foreign liabilities.

Short-term loans have an original maturity of less than one year, while long- term loans have an original maturity of one year or more,

(g) Net additions to the accumulation of quasi-corporate enterprises 60. The net additions of resident proprietors to the accumulation of their non-resident quasi-corporate enterprises and the net additions of non—resident proprietors to the accumulation of their quasi-corporate enterprises located in the country to which the accounts refer are included in net additions to

foreign financial assets and net additions to foreign liabilities, respectively.

The quasi-corporate enterprises in question are unincorporated branches and

subsidiaries of foreign parent enterprises (see paragraph 43 above). The net

additions consist of financial and other resources made available to these enterprises by their owners for purposes oi their capital investments. Since net additions are the difference between gross additions and withdrawals the item may* of course, be negative in some instances.

(h) Trade credits and advances

61. The item consists of trade credits extended by resident exporting enter prises to importers in foreign countries and credits received by resident importers from foreign exporters, respectively. In aiost cases? both trading

partners are enterprises, but trade credits may also be extended on general

government imports and occasionally on imports by households.

(i) Other accounts receivable and payable

62. This item covers changes in accounts receivable and payable relating to transactions between residents and non-residents which are not included in any of the items discussed above. The amounts receivable andpayaole may, for instance, be 'in respect of taxes, interest, dividends, rents, wages and salaries, or insurance claims.

(j) Ither

63. Where possible, any discrepancies which are assumed to have occured in

the receding of external financial claims because of unavoidable errors in

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gathering and compiling the data and because the transactions are recorded at different dates by the payer and the receiver, should be recorded in this item.

If it is not possible to make a separate adjustment of this kind, the discrepan cies mentioned will be implicitly included in an overall item for statistical discrepancy which is included in the table on external transactions (see item 42 of table 1 of the Annex). This item of statistical discrepancy is introduced ■ because the figures for net lending *° tne rest .of the world estimated as the difference between gross accumulation and its finance on the external account and-as-a difference between the. net acquisition of foreign financial assets and the net acquisition of foreign liabilities ""(see paragraph"49 above) iri! practice will-be..unequal -al.thougfcutLhey. conceptually should ;be equal. The discrepancy of the estimates of the figures for net lending arrived af from the two'^sldes is caused by differences in the statistical sources used in'deriving the underlying data on gross accumulation and its finance on the external account, and on-

foreign financial transactions, respectively.

II. CLASSIFICATION

64. This chapter deals with the classifications needed for national-accounts purposes, of transactions in goods and services, of current income paid to and received from the rest of the world, of the items of vross accumulation and its finance included on the external transations accounts, and of external financial

transactions.

1. Transactions in goods and services (a) Classification by type of transaction

65. The SNA classification of'exports and imports of goods and services, by type of transaction shows how tl^ese totals are distributed on merchandise, other commodities including transport, and insurance' services'; and other goods and • services such as direct purchases in the domes.tip: market by non-resident house holds and direct purchases abroad by resident households. Items adjusting the figures for exports and imports "of merchandise %o a change^of-ownership basis are also included. These-adjustment items are neecLed in ot&et to bring the valuation o£ merchandise exports and imports into line with -the valuation of

the other items on the national aocounts (see paragraphs 20 and 21 above).

66. The classification ^f .feoods and services by type of transaction is repro duced below. It corresponds.to items 1 through 11 and items 18 through 29 <tf

table 1 of the Annex -to this paper.

Exports and imports of goods and services by type of transaction

1. Exports of merchandise, f.o.b.

2. Transport and communication services 1. In respect of merchandise imports ii. Other

insurance service charges

i. In respect of merchandise imports ii. Other

Exports and imports of goods -and services by type of traaeaotion, otd.

3- Insurance service charges

i. In respect of merchandise imports ii. Other

4. Other commodities

5. Adjustment of merchandise exports to change-of-ownership basis 6. Direct purchases in the domestic market by non-resident households

7. Exports of goods and services

9-

10 11 12

8. Imports of merchandise, c.i.f.

1.

ii.

iii iv.

Imports of merchandise, f.o.b.

Transport services on merchandise imports, rendered by

non-resident carriers

Transport services on merchandise imports, rendered by resident carriers

Insurance services on merchandise imports, rendered

by non-residents

v. Insurance services on merchandise imports, rendered by residents Other transport and communication services, rendered by non-residents

Otuer insurance services, rendered by non-residents

Other commodities

Ad ustment of merchandise imports to change-of-ownership basis

13. Imports of other goods and services

14. Imports of goods and services

67, As was indicated in paragraph 18 above, the value oi transport and in surance services rendered by the resident industries of a country in respect of its merchandise imports must be included in the country's exports of goods and services when imports are valued c.i.f. and therefore include these services.

Transport and insurance services rendered by residents in respect of the mer chandise imports of a country are shown as part of exports of goods and services in items 21 and 31, respectively, cf the classification shown above.

68, The c.i.f. value of imports is shown in item 8 of the classification.

Total imports c.i.f. are subdivided into imports f.o.b. and transport and insurance services rendered by non-resident and resident industries, respec tively. Sub-items 8iii and 8v which refer to transport and insurance services on merchandise imports rendered by resident industries correspond to sub-items 2i and 3i of exports of goods and services which were discussed in the previous

paragraph,

69, Some countries may estimate the f.o.b. value of imports of merchandise only. In that case sub-iteais 2i, 3i and 8ii through 8v should be eliminated

from J-he above classification.

Page 15

70. Some countries may wish to separate out from items 4 and 11 of the classi fication (exports and imports of other commodities, respectively), the value of gifts in kind sent to and received from abroad. In most cases it may not be -v necessary to show separate figures for exports and imports of gifts in kind,

but the net value of gifts in kind as an item of exports of. goods and services

g to the rest of the world may instead be included.

71. If sufficient information is available, it would be useful to show

separate figures for purchases abroad on capital account by government servioes.

These purchases are included in iteoi 11 of the above classification which

rdates to imports of other commodities. Also, if possible, separate figures

should be shown for the components of imports of other goods and services (item 13 of the classification). These components are direct purchases abroad by resident households, and direct purchases abroad on current account by

government services.

(b) Classifications by commodity group

72. Classifications of imports and exports by commodity group are needed for the accounts and tables of the SWA which relate to the supply and disposition of commodities. These classifications must conform to the classification used for domestic output according to commodity group in order to make possible a

classification by commodity group of total supply and its disposition.

73. The commodity classification adopted for use in the SNA is based on the

International Standard Industrial Classification (iSlC)-'and relates to com modities which are the characteristic products of specified industries. It is therefore necessary to regroup the items of external trade statistics, which in

most countries are classified according to the Standard International Trade

classification (SITC)5/ in order to arrive at the commodity classification

required for the national accounts- For. this purpose a United Nations publioa- w

tion which provides links between the SITC and the ISIC provides useful guidance.^

74. A quite detailed classification of imports and exports according to characteristic produots of specified industries is needed for the input-Output tables of the SNA. This classification is shown in table 2 of the Annex to this paper. Some of.the items of the classification are certain tp be-of minor importance and are difficult to estimate, because they are not included in

external trade statistics. This is so, for instance, in the oase of item 63

Restaurants and hotels and the part of item 83 which refers to real estate services. These items will include only refundable payments made by business

and official travellers. Similarly^ item 50 Construction will relate only to

building and construction work undertaken by resident contractors for extra territorial bodies' such as foreign embassies.

- International Standard Industrial Classification of All Economic Activities,

Statistical Papers, Series M, Ho, 4, Bev. 2, United Hat ions, Hew York, I968;

5/ Standard International Trade Classification, Revised, Statistical Papers, Series M, No. 34, United Nations, New York, 196l«

6/ Classification of Commodities by industrial Origin, Statistical Papers, Series M, Fo. 43, #ev. 1> United Nations, New York, 1971-

.,v

75. Some items of the commodity classification of the SITA are relevant ocly to domestic output and not to exports and imports. This is so, for instance, in the oase of sanitary and similar services ana the services of welfare institu tions. Also, services which are rendered to foreign tourists, for exaaple, by

libraries and museum and by providers of personal and household services are

not considered to be commodity-type services in the SNA, but are included in direct purchases by non-resident hbuseholds in the domestic market and by

resident households abroad, respectively. Expenditures on education and medical services by non-residents in the country and by residents abroad are also in cluded in direct purchases by households.

76. For the purposes of table, ". as well as table 2a which prasents a simplified classification of exports and imports by commodity group, the SKA requires, that a distinction is made between competitive and complementary imports. Competitive imports consist of commodities which a^ also produced by the importing country, while complementary imports consist of commodities which are not produced by the importing country*

2. Items of current income

77. In the supporting table of the SNA which refers to externp.l transactions

(see item 12 through 16 and 30 through 34 of table 1 of the Annex to this paper),

current incomes paid to and received from the rest of the world are classified

into tue following components: .

1. Compensation of employees

2. Property and entrepreneurial income - 3- Other current transfers

i. General government ii. Other resident sectors

.78. The part of the factor income originating in resident in&usiries which accrues to non-residents and the part of the factor income originating in non resident industries which accrues to residents are refleoted in compensation of employees and property and entrepreneurial income paid to and received from ■ the rest of the world, respectively* The rest of current income transferred between countries consists of unrequited current transfers, insurance premiums 1 net of service charges and insuiance claims- Because of the importance of

unrequited current transfers between govei'nflients, other current transfers paid to and received from the rest of the world by general government and by other resident sectors are distinguished from each other.

3« Gross accumulation and its finance

79. Gross accumulation and its finance are classified in the following way on

: . the external transactions acoount of the SNA: ;

1. Purchases of intangible assets n.e»c from the rest of the

world, net . -.

■ ■ 2. Net leading to the rest of the world

Page 1?

3. Gross accumulation

4* Surplus on current transactions

5. Capital transfers from the rest of the world, net

i'. General government

ii.- Other resident seotors

6. Finance, of gross accumulation

The components of gross accumulation and its finance are also shown in items 36

throu^x 40 of table 1 to the Annex, of this paper. In the above classification however, the items are rearranged so, as to .bring out clearly which items are

components of gross aooumulation and of its finance, respectively.

4- Transactions in foreigi financial claims

(a) Classification by type

80. The following classification by type is proposed for foreign financial olaims included on the external transactions accounts of the SNA (see also items 49 through 71 of table 1 of the Annex).

Foreign financial claims by type

1. Gold and Special Drawing Eights (applicable to foreign financial

• " assets only)

1. Gold

ii. Special Drawing Rights . . 2. Currency and transferable deposits 3. Other deposits

4. Bills and bonds, short-term 5. Bonds, long-term

6. Corporate equity securities, ...including .capital,, participations

i. Subsidies of residents abroad and of non-residents in

country, respectively ...

ii. Other incorporated units of residents abroad and of

non-residents in the country, respectively

7. Short-term loans, n.e.c.

8. Long-term loans, n.e.c. .

9. Besident proprietors' net additions to accumulation of quasi- corporate non-resident enterprises, and non-resident proprietors1 .

net additions to accumulation of resident quasi-oorporate enter

prises.

10. Trade credits and advances

11, Other financial assets in respeot of non-residents, keld by ... .,*-, residents, and other residents' liabilities to non-residents,

respectively.

81. The items of the above classification' are defined in broad terms in

chapter II 3 above. More detailed definitions are presented in Table 1*2 Financial assets and liabilities on pages 133-134 of A System of National Accounts.

82. . As_ a corrollary to item 1 ii of the classification, information on the initial" allocation of Special Drawing Rights alloted to a country by the inter—'

national Monetary Fund should be shown in a memorandum item. The saving

(retained net income) of incorporated and quasi~corporate enterprises abroad wholly owned by residents and the saving (retained net income) of resident in

corporated and quasi-corporate enterprises wholly owned oy non-residents should also be shown as7memorandum items.

83« As was mentioned in paragraph 43 above, net lending to $he rest of the

world is the difference between net acquisitions of foreign financial assets and net incurrence of foreign liabilities. Net lending to the rest of the world is also the balanoing item on the account for gross accumulation and its finance*

84. The only classification of foreign financial claims by institutional sectors considered here is a breakdown by broad categories of applicable items of the net acquisition of foreign financial assets according to subsectors of resident financial institutions. These sub-sectors are the central bank, other

monetary institutions, insurance companies, and other financial institutions.7/

The foreign financial assets concerned are gold and special drawing rights, currency and transferable deposits, other deposits, and short-term loans, n.e.o.

(see table 3 of Annex l). In addition, net lending, total net acquisition of

foreign financial assets and total net incurrence of foreign liabilities are classified in the sub-sectors of resident financial institutions mentioned.

III. ACCOUNTS AND TAEL3S ■

85. One account and four tables relating to external transactions are included in the Annex to this paper. The account is taken directly from the SNA, while the accounts are modified to some extent on the basis of the tables included in

"the National Accounts Questionnaire, 1974 Edition.

1. The external transactions account

86. Account 6 of the consolidated accounts of the nation (accounts I) of the

SKA summarises the transactions of the nation with the rest of the world. The

7/For a difinition of financial institutions, see table 5«1» Tke definition of institutional sectors and sub-sectors, pages 78-79 °f A System of National.

Accounts. ■ .

Page 19

account is divided into two parts, referring to current and capital transactions

respectively.

87. The items of current transactions shown on account 6 are imports and exports of goods and services, and compensation of employees, property and entrepreneurial income and other current transfers received from and paid to the rest of the world. The surplus of the nation on current transactions is the balancing item on this part of the account- The surplus is the difference between the values of the inflows and outflows on current account and should

be shown as an item of outflow. If the outflows exoeed the inflows -..-.. r

of course, the nation has a deficit on its current transactions. The deficit

may be shown as an item of inflow on the account.

88. The surplus or deficit of the nation on current transactions is carried over to the lower panel of the external transactions account which refers to capital' transactions. The other incoming items on this part of the account are net capital transfers received from the rest of the world and net purchases of foreign liabilities. The outgoing items are net purchases of intangible assets

n.e.c. from the rest of the world and net. acquisition of foreign financial

assets1.;... •■_ , . . ..

89. The entries on the external transactions account are counter-entries to * the items of external transactions which are explicitly or implicitly included on the various domestic accounts. The entries on the external account are therefore looked upon from the point of view of the rest of the world, i.e., items such as exports, which represent income for the nation but expenditure for the rest of the world, are debited in the account, while the credit side shows items which represent expenditure for the nation but income for the rest of the world, such as imports.

2. The tables

90. Table 1 of the Annex is a supporting table to all accounts of the SNA, which refers to external transactions. The table covers the same transactions as account 6, tut contains additional classifications in some detail of exports and imports of goods and services, the net acquisition of foreign financial assets, and the net incurrence of foreign liabilities. Also information is included in memorandum items to the table, on initial allocations of special drawing rights by the IMP, and the retained income of incorporated and quasi- corporate enterprises owned by non-residents in the country and by residents abroad, respectively.

91- Table 2 shows a classification of imports and exports of goods and services according to broad coimnodity groups, expressed in terms of characteristic

products of specified industries. This information is needed for the input- output table of the SffA which refers to the supply and disposition of commodi

ties (table 2 on page 168 of A system of National Accounts). Most items of the

classification can be obtained relatively easily by reclassifying external trade data. However, the i^ems which are not included in foreign trade

statistics such as those relating to construction (item 50), restaurants and

hotels (item 63), financial institutions (item 81), real estate and business

services (item 83), recreational and cultural services (item 94)» international

and other extra-territorial bodies (item 96) may have to be estimated by means

of very scanty and inaccurate data.

92. In the case of countries which do not yet estimate input-output tables, a less detailed classification of imports and exports of goods and services acoording to commodity group is required for the purposes of the SNA. This classification which is shown in table 2a of the Annex corresponds to that used in the table on. the supply and disposition of commodities meant for use by develo

ping countries (table 2a on page 177 of A System of National Accounts).

93. It should be noted that data at both current and constant prices are needed ; for tables 2 and 2a. A discussion of the methods to be used in arriving at the estimates in constant prices falls outside the scope of this paper. Most count ries do, however, obtain their oonstant price estimates of imports and exports of goods and services by deflating the current value series by means of unit value indexes which correspond as closely as possible to the current value data in scope and coverage.

94. Table 3 of the Annex sUows a classification of foreign financial transactions of resident institution. The net acquisition of foreign financial assets by

resident financial institutions according to broad categories applicable to resi dent financial institutions is required for this table. The table is not in

cluded in the SNA, but is taken from the National Accounts Questionnaire, 1974

Edition.

Annex

Annex Accounts and tables relating to external transactions A. Consolidated accounts for the nation

Account 6. All accounts - External transactions

6.2-10 Exports of goods and services

6.4.I Compensation of employees from the rest of the world 6.4.9 Property and entrepreneurial

income from the rest of the world

6.6.22 Other current transfers from the rest of the world

6.1.10 Imports of goods and services

6.3-1 Compensation of employees to the rest of the world 6.4.8 Property and entrepreneurial

income to the rest of the world

6.6.21 Other current transfers to the rest of the world 6.7-3 Surplus of the nation on

current transactions

Current receipts Disposal of current receipts

Capital transactions

6.7*3 Surplus of the nation on 6•7•5

current transactions

6,1,6 Capital transfers from tho

rest of the world, net 6.5-0 6.9.O. Net incurrence of foreign

liabilities

Purchases of intangible assets n.e.c. from the rest of the world, net

Uet acquisition of foreign financial assets

Receipts

B. Supporting table to all accounts

Table IT External transactions-'

Item

11

12 13

14 15

16

18

19

20

21

22

23 24

25

26

27

28

29

Flow Type of transaction

1 2 3 4

5

6

7

8

9

10

6.2.11.1 6.2.11.2

6.2.11.3

6.2.11.4+

6.2.11-9

6.2.11.10 6.2.12.1

6.2.10

6.4-1 6.4-9 6.6.?2

6.1.11.1

6.1.11.2

6.1.11.3 6.1.11.4+

6.1.11.9 6.1.11.10 6.1.12 6.1.10

Exports of merchandise, f.o.b.

Transport and communication services i. In respect of merchandise imports ii. Other

Insurance service charges

i. In respect of merchandise imports ii» Other

Other commodities

Adjustment of merchandise exports to change-of-ownership basis

Direct purchases in the domestic market by non-resident

households __^__-_.___ _______

Sxports of goods and services

Compensation of employees

Property and entrepreneurial income

Other current transfers from the rest of the world to i. General government

ii. Other resident sectors

Current re ce ipt s

Imports of merchandise, c.i.f.

i. Imports of merchandise, f.o.b.

ii^ Transport services on merchandise imports^ rendered by non-resident carriers

iii.Transport services on merchandise imports, rendered by resident carriers

iv. Insurance services on merchandise imports, rendered by non-residents

v. Insurance services on merchandise imports, rendered by residents

Other transport and communication services, rendered by non-residents

Other insurance services, rendered by non-residents Other commodities

Adjustment of merchandise imports to change-of-ownership.

basis

Imports of other goods and services

Imports of goods and services

Annex Page 3

Table I. External transaotions-'(continued)

Type of transaction

30

31 32 33 34 35

36

37 38 39

40

41

42

6-4-1 6*4-8

6.6.21

6.7.2 or 6-7.3

6.7-6

6.7.5

6*7-8 or 6.7.9

Compensation of employees

Property and entrepreneurial income

Other current transfers to the rest of the world, from

i. General government ii. Other resident sectors Current disbursements

Surplus on current transaotions (18 * 36)

Capital transfers from the rest of the world, net

i. To general government ii. To other resident sectors

Lesst Purchases of intangible assets, n.e.o. from

the rest of the world net

Net lending (37 +38+41) or (45 - 61)

Statistical discrepancy

Net acquisition of foreign financial assets 43

"44"

45 46 47 48 49

50

51

53 54

55 56

57

58 6.

6.

6.

6.

6.

6, 6.

6, 6, 6 6 6 6 6

8.

8.

8.

8.

.8. ,8.

,8.

.8 .8.8

.8 .8

•8

.8

0 1

2 3

■ A

-5

.6

•7

.8 .10

.11

.9

.12 and

.13

Gold and Special Drawing Bights i. Gold

ii. Special Drawing Rights

Currency and transferable deposits Other deposits

Bills and bonds, short-term

Bonds, lon^-term ,.

Corporate equity securities, including capital parti

cipations

i. Subsidiaries abroad • . _

ii. Other non-resident incorporated units

Short-term loans, na.c

Long-term loans, n.e.c. _

Proprietors' net additions to accumulation of quasi- corporcLte non-resident enterprises

Trade credit and advances

Other financial assets in respect of non-residents

59 Net incurrence of foreign liabilities

Table 1.

External transactions-'(continued)

Item Slow Type of transaction

60 a

62 64 63

65

66 68

67 69

70

71

6.9 6.9 6.9 6.9-5

6.9.6

6.9.7

6.9.8 6-9*10

6.9.11 6.9.9

6.9-12

6.9.13

Currency and transferable deposits '—---s. • Other deposits

Bills and bonds, short-term Bonds, long-term

Corporate equity securities, including capital

participations

i. Subsidies of non-residents

ii. Other resident incorporated units Short-term loans, n.e.c.

Long—term loans, n.e.c.

Hon-resident proprietors' net additions to accumulation

of quasi-corporate enterprises Trade" credit and advances

Other liabilities to non-residents and

Memorandum items

72

73 74

1. Initial allocation of SDR's by IMF

2. Saving (retained net income) of incorporated and quasi-corporate

enterprises abroad wholly owned by residents

3. Saving (retained net income) pt resident incorporated and quasi-

corporate enterprises wholly owned by non-residents

1/ This table is a combination of table 26 of A System of National Accounts and table 17 of the National Accounts Questionnaire, 1974 Edition.

C. Supporting tables to the production, consumption, expenditure

and capital formation accounts

Table 2. Classifications of imports and exports by commodity group- 2/

ISIC Division

Commodities acoording to Import characteristic products duties of specified industries

11 Agriculture and hunting 12 ^Forestry and logging 13 Pishing

21 Coal mining

22 Crude petroleum and natural gas production

Imports, Compe titive

o.i.f.

Comple- mentary

Exports f.o.b.

E/CST.14/HAC/56 ..,

Annex Page 5

IPable 2* Classifications of imports and exports by commodity group-' (cont'd) 2/

ISIC Commodities according to Import Division t characteristic products dut'iee , of .specified'.industries, .-, . ...

Imports,! c.'i.f.

Compe titive

Comple-j mentaryt

Exports f.o.b.

23 29 31

32

33

34

35

■■■■■' 36

37 38

39

41

50

63

71 72

81 82 83

94

Metal ore mining Other mining

Manufacture of food, beverages

3/■" '

Textile," wearing apparel and

leather industries 3/

Manufacture of wood and wood products, including furni

ture 3/

Manufacture of paper and paper products, printing and polish

A

Manufacture of'chemicals and chemical, petroleum, co£,

rubber and plastic products 3/

Manufacture of non-metallic mineral products, except pro

ducts of petroleum and coal 3/

Basic raecal industries 3/

Manufacture of fabricated metal products, machinery

and equipment 3/

Other manufacturing industries Electricity, gas and steam

Excluding 4103 Steam and hot watej. supply)

Construction

flestaurants and hotels 3/

Transport and storage 3/

Communication

Financial institutions Insurance

Real estate and business

services 3/

Recreational and cultural

services (Major group 941

Motion picture and other entertainment services only, excluding group 9411 Motion

picture production)

lable- 2. Classifications of imports and exports by commodity group-'(oont!d) 2/,

_ T- Commodities according to 'lot

"Div" io characteristic products ;, L

' of specified industries j 96 International and other extra- j

territorial bodies !

i

Importa Compe titive

c.i.f.

Comple- mentary

Exports f.o.b.

2/ Kiis table contains the parts of table 2, page 168, of A System.of

" National Accounts which are relevant to imports and exports.

3/ These divisions should be divided into ISIC major groups (see table 5«2, pages 84-85, of A System of Rational Accounts).

Table 2a- Simplified classification of imports and exports by commodity group-* 4/

Division

Commodities according to Imports characteristic products duties of specified industries

Imports, o.i.f.

Compe- t Comple- titive mentary

Exports f.o.b.

1. Agriculture, hunting, forest ry and fishing

2 Mining and quarrying 3 Manufacturing

31 Food, beverages and tobacco 32 Textiles, wearing apparel

and leather products 33 Wood and wood products, in

cluding furniture

34 Paper and paper products, printing and publishing 35 Chemicals and chemical,

petroleum, coal, rubber and plastio products

36 Non-metallic mineral pro ducts except petroleum and coal

37 Basic metal products

38 Fabricated metal products,

machinery and equipment 39 Other manufacturing products

4 Electricity, gas and steam

(excluding 4103 Steam and hot water supply)

7 Transport, storage and com munication

63» 8-9 Restaurants and hotels aid

services

4/ This table is based on table 2a, page 177> of A System of National Accounts*

Annex Page 7

Supporting table to the capital finance accounts

Table 3* Foreign financial transactions of resident financial institutions^'

Plow

Type of claim

All fi nancial institu tions

Central bank

Other mo netary

institu tions

Insur

ance compa nies

Qther finan cial insti- stutions

5*7-9 Net lending (5.8.O- 5.9.0)

5«8.O Net acquisition of

foreign financial assets

5.8.1 Gold and Special Drawing Eights i* Gold

iio Special Draw ing Rights

5-8.2 Currency and

able deposits

5*8.3 Other deposits 5.8-7 Short-term loans,

n.e•c*

I

5»9»O7 Net incurrence of foreign liabilities

Memorandum: Initial allocation of Special Drawing Rights

5/ This table is based on table 13 of National Accounts Questionnaire, 1974

Edition.