1

Quasi transit trade in the European Union

Item 10 of the agendaIssue paper n. 11

Daniela CominiEurostat

2

Y A B

X

50

50 150

EU

?

Example 1

150

Y A B

X

50

50 150

150

EU

?

Example 2

From page 14 of doc n. 11

3

Y A B

X

50 goods

50 150

EU

?

Example 1

150 goods

Y A B

X

50

50 150

150

EU

?

Example 2

Hot to correct the gap: impu-tation under services

100 services/merchanting

100 services branding

4

Quasi transit trade in Belgium : page 21 doc n.11

Belgium: quasi transit trade

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

2004 2006 2007

Extra EU imports

Intra EU exports

Value gap

5

Where shall the value added be recorded? Page 17 doc n.11

Country Y Country A Country B Country XUses Resources Uses Resources Uses Resources Uses Resources

Domestic use 150Exports/Imports of Goods 50 150 50 150Exports/Imports of Services 100 100Value Added 50 0 0 100

Country Y Country A Country B Country XAssets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities

Financial Accounts 50 150 150 50100 100

Extra EU imports

Intra-EU Exports

Imports of services

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Questions for participants (page 20 doc 11)

Q1 - Is "Quasi transit trade" a problem only for the European Union and the countries of the EU, or does it affect other countries?

Q2 - Is "Quasi transit trade" a problem only for economic unions and custom areas, or does it represent a problem also for national economies?

Q3 – In case of merchandise trade involving subsidiaries of multinational enterprises, do the experts foresee a major change in the way the transactions in goods will be recorded in the future, as a consequence of the drop of the assumption of change of ownership?