Scope of Distributive Trade Statistics Workshop for African countries on the Implementation of International Recommendations for Distributive Trade Statistics 27-30 May 2008, Addis Ababa, Ethiopia - PowerPoint PPT Presentation

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Scope of Distributive Trade Statistics Workshop for African countries on the Implementation of International Recommendations for Distributive Trade Statistics 27-30 May 2008, Addis Ababa, Ethiopia

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Title: Scope of Distributive Trade Statistics Workshop for African countries on the Implementation of International Recommendations for Distributive Trade Statistics 27-30 May 2008, Addis Ababa, Ethiopia


1
Scope of Distributive Trade Statistics Workshop
for African countries on the Implementation of
International Recommendations for Distributive
Trade Statistics 27-30 May 2008, Addis Ababa,
Ethiopia
UNITED NATIONS STATISTICS DIVISION Trade
Statistics Branch Distributive Trade Statistics
Section
2
Scope of DTS (1)
  • Distributive trade statistics (DTS)
  • IRDTS 2008 defines the scope of DTS as statistics
    reflecting characteristics and activities of the
    units belonging to distributive trade sector of
    an economy
  • Distributive trade sector
  • The scope of distributive trade sector is defined
    in terms of ISIC, Rev.4
  • All resident entities recognised as statistical
    units and classifiable in section G Wholesale
    and retail trade repair of motor vehicles and
    motorcycles
  • All units irrespective of their size, form of
    economic and legal organization and ownership
  • Distributive trade activities carried out by
    entities not classified in Section G of ISIC,
    Rev.4 are not covered by distributive trade
    statistics

3
Scope of DTS (2)
  • Data items within the scope of DTS
  • Characteristics of entities belonging to the
    distributive trade sector
  • Receipts and other revenues and purchases of
    those entities which are recorded in their profit
    and loss statements and used for calculation of
    trade output
  • Intermediate consumption and value added
  • Investments of entities in non-financial assets
    and changes in inventories
  • Employment information which is closely related
    to the most of previous groups of items
  • Data items outside the scope of DTS
  • Data items on financial position of the entities
    they are compiled as part of financial or other
    relevant statistics

4
Distributive trade as an economic activity
  • Distributive trade as an economic activity
    consists of
  • Provision of a service to various types of
    customers (retailers and other commercial users
    or general public) by storing and displaying a
    selection of goods and making them available for
    buying
  • Provision of other services incidental to the
    sale of those goods or subordinated to the
    selling such as the delivery, after-sale repair
    and installation services
  • What makes distributive trade different from
    other economic activities?
  • Specificity of the production process referred to
    as Resale

5
Resale
  • Resale is a number of actions which might be
    undertaken to make goods available for buying
  • Negotiating transactions between buyers and
    sellers
  • Buying goods from the manufacturer on own account
  • Transporting, storing, sorting, assembling,
    grading, packing
  • Displaying a selection of goods in convenient
    locations
  • By convention, resale of goods represents sale
    without transformation

6
Boundary of distributive trade (1)
  • The following activities are not considered to be
    transformation of goods and are included in
    distributive trade
  • Sorting, grading and physical assembling of goods
  • Mixing (blending) of goods (for example sand)
  • Bottling (with or without preceding bottle
    cleaning)
  • Packing, breaking bulk and repacking for
    distribution in smaller lots
  • Storage (whether or not frozen or chilled) and
    refrigerating
  • Delivering and after-sale installation
  • Cleaning and drying of agricultural products
  • Cutting out of wood fibreboards or metal sheets
    as secondary activities
  • Engaging in sales promotion for their customers
    including the label designing
  • Washing, polishing of vehicles

7
Boundary of distributive trade (2)
  • The following are activities considered as either
    transformation of goods or as not being part of
    relevant distributive trade divisions and classes
    and are excluded
  • Renting of motor vehicles or motorcycles
  • Renting and leasing of goods
  • Packing of solid goods and bottling of liquid or
    gaseous goods, including blending and filtering,
    for third parties
  • Sale of farmers' products by farmers
  • Manufacture and sale of goods, which is generally
    classified as manufacturing
  • Sale of food and drinks for consumption on the
    premises and sale of take-a-way food
  • Renting of personal and household goods to the
    general public

8
Structure of distributive trade in ISIC, Rev.4
  • Three divisions
  • 45 Wholesale and retail trade and repair of
    motor vehicles and motorcycles (4 groups and 4
    classes)
  • 46 Wholesale trade, except of motor vehicles and
    motorcycles (7 groups and 14 classes)
  • 47 Retail trade, except of motor vehicles and
    motorcycles (9 groups and 25 classes)
  • Distinction between division 46 (wholesale) and
    division 47 (retail sale) - based on the
    predominant type of customer
  • Two additional levels of distinction within
    divisions 46 and 47 based on the type of
    operation of units and kind of products sold

9
Wholesale trade
  • Defined as the resale (sale without
    transformation) of new and used goods to
  • Retailers
  • Business-to-business trade (industrial,
    commercial, institutional or professional users)
  • Other wholesalers
  • Acting as an agent or broker in buying
    merchandise for, or selling merchandise to, such
    persons or companies
  • Types of wholesale trade businesses
  • Wholesalers who take title to the goods sold
  • Merchandise and commodity brokers
  • Commission merchants and agents

10
Retail trade
  • Defined as the resale (sale without
    transformation) of new and used goods mainly to
    the general public for personal or household
    consumption or utilization, by
  • Shops
  • Department stores
  • Stalls
  • E-commerce retailers and mail-order houses
  • Hawkers and peddlers
  • Consumer cooperatives
  • Types of retail trade businesses
  • Retailers who take title to the goods sold
  • Commission agents
  • Retail auctioning houses

11
Distributive trade and other classifications (1)
  • CPC, Ver.2
  • Basic statistical tool for establishing DTS by
    product
  • Distributive trade services are classified in
    divisions 61 and 62 of CPC, Ver.2 on the basis of
    two criteria
  • Type of provided service
  • Type of traded goods
  • Correspondence table between CPC, Ver.2 and ISIC,
    Rev.4 to be included in the Distributive Trade
    Statistics Compilers Manual
  • COICOP
  • Relates to the purpose (or function) of the use
    of the commodities sold
  • Retail trade data at detailed COICOP level
    facilitate the compilation of private household
    consumption expenditure in NA

12
Distributive trade and other classifications (2)
  • Groupings of distributive trade data by product
  • Food, beverages and tobacco
  • Clothing and footwear
  • Household appliances, articles and equipment
  • Of which Furniture
  • Machinery, equipment and supplies
  • Of which Information processing equipment
  • Of which Motor vehicles and associated goods
  • Personal and other goods
  • Construction materials
  • Other

13
Recommendations for the scope of Distributive
trade
  • The scope of distributive trade is to be defined
    in terms of ISIC, Rev.4
  • Countries which do not use ISIC, Rev.4 are
    encouraged to develop their national activity
    classifications to be compatible with ISIC, and
    implement them in all national compilations for
    the purposes of international comparability
  • Countries should at the minimum develop clear and
    precise concordances between distributive trade
    classes in their national classification and in
    ISIC, Rev.4
  • Countries are encouraged to draw up their own
    lists for the reporting of DTS by type of product
    based on
  • Product classifications used in their trade
    surveys
  • Need to comply with the international standards
  • The lists for retail trade are desirable to be
    more detailed than those for wholesale trade
    since they are useful in describing the flow of
    goods to households for national accounts purposes

14
Boundary issues (1)
  • Boundary between wholesaling and manufacturing
  • Outsourcing of production - when the principal
    unit (i.e. principal) contracts another
    productive unit (i.e. the contractor) to carry
    out specific aspects of the production activity
    of the principal, in whole or in part in the
    production of a good or a service
  • Activity classification of the contractor
    straightforward, does not change with the
    outsourcing
  • Activity classification of the principal -
    affected by the nature and extent of the
    outsourcing, requires conventions for a
    consistent treatment

15
Boundary issues (2)
  • Types of outsourcing
  • 1. Outsourcing of support functions - the
    principal (wholesaler or retailer) carries out
    the resale of goods and services, but outsources
    certain support functions, such as accounting or
    computer services, to the contractor
  • Principal remains classified to the respective
    ISIC class of section G that represents the core
    production process
  • Contractor is classified to the specific support
    activity it is carrying out, e.g. ISIC class 6920
    or 6202
  • 2. Outsourcing parts of the production process
    - the principal (manufacturer) outsources a part
    of the production process, but not the whole
    process, to the contractor as the principal owns
    the material inputs to be transformed by the
    contractor and thereby has ownership over the
    final outputs
  • Principal is classified in the appropriate
    manufacturing class of ISIC as if it were
    carrying out the complete production process
  • Contractor is classified according to the portion
    of the production process he is undertaking

16
Boundary issues (3)
  • Types of outsourcing (cont.)
  • 3. Outsourcing of complete production process
  • Outsourcing of service producing activities,
    including construction
  • Both the principal and the contractor are
    classified as if they were carrying out the
    complete service activity support functions
  • Outsourcing of manufacturing activities to
    contractor, when the principal does not
    physically transform the goods at the location of
    its unit
  • Principal owns the material inputs and thereby
    has economic ownership of the outputs, but has
    the production done by others - he is classified
    to section C (manufacturing) of ISIC, Rev.4
  • Principal has the production done by others, but
    does not own the material inputs - should be
    classified to section G (distributive trade) of
    ISIC, Rev.4
  • Contractor is classified always to section C
    (manufacturing) of ISIC, Rev.4

17
Boundary issues (4)
  • Boundary between retail trade and financial
    services
  • Units offering purchases on credits (consumer
    credit lines) to customers
  • Two separate units should be identified when the
    originator and holder of a consumer credit is a
    retail trade unit that has a separate
    establishment dealing with consumer credits
  • Unit providing consumer credits should be
    statistically observable (i.e., separate accounts
    of its activity are available)
  • Both units will be classified in their own rights
    non-financial (trade unit) and financial
    (consumer credit unit)
  • One unit should be defined if the unit providing
    consumer credits is not statistically observable
    separately
  • Unit providing consumer credits should be treated
    as an ancillary activity and will not affect
    classification of that unit in distributive trade

18
  • Thank You
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