BOP Services Classification for a revised Balance of Payments Manual

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BOP Services Classification for a revised Balance
of Payments Manual

• William Cave
• OECD Statistics Directorate

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Goods and services overview for BOP
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Introduction

• Starting point Annotated Outline 2004 Chapter 9
• Considers developments at the BOPTEG June 2004,
  BOPCOM Oct 2004, SNA AEG, and UN TSG on
  Classifications
• Identifies unresolved issues related to these.
• Incorporates the outcome of classification
  discussions at the February 2005 meeting of
  (ITFSITS),
• Some other issues.
• Proposed next steps.

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BOPCOM 2004 agreed

• goods for repair should be changed from goods to
  services
• additional detail on travel be included on a
  supplementary basis
• communication and computing services be combined,
  provided that postal and courier services
  separated away
• construction services be shown with an additional
  split, construction services abroad separately
  from construction services in the compiling
  economy
• the treatment of financial services be
  harmonized, in line with developments at OECD and
  AEG, to the extent possible
• international passenger services should remain in
  transportation services
• a residual category for transactions between
  related entities not be included in
  BOPS classification.

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Unresolved issues in SNA/BPM/CPC revision

• Goods for processing (now resolved by AEG)
• Merchanting BPM/AEG
• Franchise fees and payments for the use of
  similar rights? AEG/Canberra II - name and
  coverage
• Originals and copies and extended licenses to
  reproduce. Will software license fees for
  reproduction be included in trade - if not where
  will they go?
• Links to CPC

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Proposals from ITFSITS

• 2 Transport (proposed inclusion of post and
  courier services)
• Of which passenger freight other
• 2.1 Sea Transport
• 2.1.1 Passenger
• 2.1.2 Freight
• 2.1.3 Other
• 2.2 Air transport
• Ditto
• 2.3 Other modes of transport
• Ditto
• 2.4 Post and courier services

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• 4. Telecommunications, computer and other
  information Services (suggested name change -
  AO Information technology services?)
• 4.1 Telecommunications services
• 4.2 Computer services
• 4.3 Other information provision services
• (border line with audiovisual services and CPC
  issues?)

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Insurance and financial services

• Direct insurance and reinsurance (optional items)
• Explicitly charged and implicitly charged
  financial services(FISIM?)

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Other issues

• Franchise fees and payments for the use of
  similar rights? (coverage name)
• Digital products or information products,
• Goods not in HS should they be in services?
• Goods v services There are grey areas.
• How to treat trade in produced assets that are
  not classified as goods in HS? For example
  software originals, and presumably patents
• travel, travel agents and tour operators (raised
  by World Tourism Organization).
• Does DITEG work on construction services have any
  implications for measurement of construction
  services?
• Government services n.i.e. Is it appropriate to
  leave this item to be a residual?

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Next steps and process

• presented to IMF BOPCOM in June 2005
• seek views of OECD-Eurostat Expert Group
  September 2005
• examine links BOPS to CPC planned by October
  2005, or before CPC is finalized. Also important
  for subsequent revision of EBOPS
• revised draft proposals on BOPS to be submitted
  to ITFSITS by end 2005.
• final draft proposals to IMF BOPCOM by April 2006

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Questions for classification

• Do delegates agree with structure and process?
• Software in CPC version 2 is proposed split into
  HS CD-ROMs, DVD (package software) etc, online
  delivery, licences, originals. Should online
  delivery of software be recorded in
  Telecommunication and Information Technology
  services?
• Should a grey area be considered in BOPS which
  is neither goods nor services for GFP,
  merchanting, repairs, others?