Explanatory Memorandum to COM(2000)458 - Set of actions relating to the trans-European network for the collection, production and dissemination of statistics on the trading of goods within the EC and between the EC and non-member countries (Edicom)

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dossier COM(2000)458 - Set of actions relating to the trans-European network for the collection, production and dissemination of statistics on the ...
source COM(2000)458 EN
date 20-07-2000
1. The introduction of the internal market in 1993 completely changed the statistical system for monitoring trade in goods between Member States of the European Union, by abolishing customs declarations and replacing them with a system based on collecting statistical information directly from businesses (Intrastat i).

In order to support this significant change, the Council adopted a Decision (Edicom) aiming to implement an interoperable system at European level for the collection, production and dissemination of these statistics. The actions implemented, which came within the scope of the priorities for the guidelines on trans-European telecommunications networks, aimed to modernise the statistical system and promote the production of quality harmonised statistics whilst limiting the burden on businesses. The Council Decision, adopted in 1994 for a period of five years ihas now expired.

The evaluation of the actions shows that they have considerably improved the quality of intra-Community statistics which had been affected by the changes in 1993. The joint work enabled results to be achieved which would have been impossible if the work had been carried out only at Member State level. In particular, information is now being made available more quickly and the businesses responsible for providing information have accepted the new measure, as shown by the reduction in the non-response rate. The standardisation and development of tools also meant that the electronic transmission of information was used extensively before the recent explosion of Web-based techniques.

2. The development of statistics on external and intra-Community trade is now entering a new phase where it faces major challenges. Statistics are required to meet the growing and increasingly demanding needs of users in a new climate of uncertainty surrounding the administrative environment of the collection system and the availability of resources at both Community and national level. One of the priorities identified by the Council i is to cater for the immediate needs of Economic and Monetary Union by providing reliable, accurate macroeconomic statistics in good time.

In this context, the Commission (Eurostat) proposed a number of guidelines on the future of statistics on the trading of goods in a strategic document (see Annex 1) which, in 1999, was the subject of a wide-ranging consultation with national administrations responsible for these statistics and with the business sector. These guidelines were well received in particular by the Statistical Programme Committee, the Committee on monetary, financial and balance-of-payments statistics, the Committee on statistics relating to the trading of goods between Member States, the Customs Policy Committee (full members) and the European trade federations (FEBI).

An action plan must therefore be implemented without delay, covering both Intrastat and Extrastat, in order to increase data accuracy and reliability, speed up the availability of statistics and change the range of statistics on offer. A more extensive overhaul will also be required: improved integration of statistics on the trading of goods into the European and international statistical system is needed in order to respond more consistently and appropriately to user needs; the Extrastat system needs improvement in order to meet growing demands in relation to monitoring trade with non-member countries, in particular by using a more statistical approach which is less reliant on customs formalities; the reform of the Intrastat regulations, which is the logical outcome of the SLIM i initiative, should be carried out with a view to a possible change in the VAT system and should form part of a new approach entailing the compulsory provision of results to meet European Union needs, with a strong emphasis on quality and subsidiarity in collection methods.

The work programme implementing these general guidelines will be based on changes in statistical methods and continued modernisation to reduce further the burden on businesses whilst at the same time increasing the efficiency of the statistical system.

3 The system should continue to be modernised under a new Parliament and Council Decision covering a period of five years. In the first phase of Edicom, the focus was on the development of interoperable systems at European level for the collection of returns on the trading of goods between Member States (Intrastat) from businesses, the validation and pre-processing of such returns and the dissemination of the statistics derived therefrom.

2.

The new phase of the programme will have two main objectives:


- to promote a modern, rational and efficient organisation of the trans-European network for collecting, processing and disseminating intra- and extra-Community statistics, and improve and harmonise statistical methods in order to produce information which:

- is more reliable, less expensive for businesses and administrations, and which is available more quickly;

- responds more appropriately to the new needs of users.

In this context, the focus will be on the needs of Economic and Monetary Union and on improving the integration of statistics on the trading of goods into the statistical system at national, European and international level.

- to develop existing tools for the collection, processing, transmission and dissemination of statistical information, taking into account the latest technological advances and seeking to optimise cost-effectiveness. The explosion in electronic data exchange is completely changing relations between economic players, and statistical administrations at national and Community level must adapt to this new technological environment.

These overall objectives, as well as the types of action required to achieve them, were identified and confirmed during preparatory and arbitration work directly involving the relevant national administrations. The ex-ante evaluation is the outcome of that work which sought to closely involve the partners in the network.

3.

The programme thus targets:


- private and institutional users of statistics, who should have information that is of better quality, harmonised and in line with their expectations;

- statistical information providers and administrations responsible for collecting such information, who will benefit from the facilities provided by simplifying tasks and modernising the network.

The purpose of the programme requires financing from the Community budget. In fact, in addition to efforts to seeking the best cost-effectiveness ratio of the programme, the modernisation of the network and the adaptation of statistical methods will be boosted by a common, consistent and - if possible - harmonised approach. The improvement in statistical results will be uniform across the European Union. Every economic operator and statistical service will be able to benefit from suitable tools that make it possible to simplify the completion and processing of declarations and to access reference information.


Contents

1.

ANNEX


4.

External and intra-Community trade statistics


5.

A strategy for the future


External and intra-Community trade statistics have entered a new phase of their development, marked by important challenges. In fact, they have to satisfy growing and more demanding information requirements of users in a context of uncertainty concerning the administrative environment of the collection system and available resources, at both Community and national level. A strategy to prepare the system to meet these challenges is needed.

The Council i has set as a matter of priority a response to the urgent requirements of the Economic and Monetary Union by providing fast, reliable and accurate macroeconomic statistics. To this end, the existing system needs to be strengthened without delay. This involves an adaptation of the methods and the continuation of modernisation actions (Edicom programme), which should make it possible to reduce further the burden on enterprises while improving the effectiveness of the statistical system. An action plan is proposed, covering both Intrastat and Extrastat, designed to improve the accuracy and reliability of results, to speed up the availability of statistics and to reorganise statistical supply.

The work on the evaluation and improvement of data quality will be a prerequisite for future actions. It will involve a revision of the conformity of national systems (Intrastat/Extrastat) with the regulations with a view to submitting to the Committee proposals designed to improve quality in the current framework.

In the longer term, more radical adaptations will need to be scheduled.

Better integration of statistics on trade in goods in the European and international statistical system should make it possible to cover the needs of users in a more consistent and relevant manner.

The Extrastat system needs to increase its ability to satisfy the growing needs relating to the monitoring of trade with non-member countries, especially through more statistical means that are less reliant on customs procedures.

The reform of the Intrastat regulations, logical outcome of the SLIM initiative, will have to be prepared in the light of the introduction of a common VAT system and be part of a new approach involving a requirement to provide results for the requirements of the European Union, with a strong emphasis on quality and subsidiarity with regards to collection methods.

On the basis of these strategic guidelines, a work programme including timetable will be prepared subsequently. The timetable of future actions will take into account the need to avoid introducing a new legal act before preliminary work on several questions has been properly carried out.


Statistics on trade in goods traditionally provide key information for economic operators and decision-makers. They thus help the Commission, which is a privileged user, in defining its trade policy or in measuring the progress of European integration in economic and monetary fields. They are used at a detailed level by businesses to identify supply sources and external outlets. They also make an important contribution to national accounting and balance-of-payment systems. This incomplete list clearly reveals the importance and permanence of the requirements to be satisfied, as well as the variety of users.

In approving last January a report on the information requirements of the Economic and Monetary Union, the Council showed that the priority was to respond in a more appropriate manner (with relevant, reliable and quickly available information) to requirements for the purposes of macroeconomic and short-term policy stemming from the introduction of the single currency. In addition, there is increasing pressure for accuracy in economic indicators (especially GDP and balance of payments), consistency among the various sources used for statistics on trade in goods i and consideration of new requirements, especially in connection with economic globalisation.

6.

Statistics must adapt to changing demand for information in a difficult context:


- The system of monitoring trade in goods between Member States (Intrastat) has been faced with difficulties since its introduction in 1993: persistent non-response or late response i by information providers; deadlines for transmitting results to Eurostat that are not complied with.

- In addition, the system will have to adapt to possible developments in the field of taxation which could affect the existing link between Intrastat and the VAT system.

- The call for the Intrastat system to be simplified has been insistent since the launch of the SLIM initiative by the internal market ministers in 1996. Concrete results have already been achieved, but mostly it is consideration of a more radical long-term reform of the system that is taking place. The desire on the part of information providers for the system to be simplified nevertheless conflicts with the need for detailed information by some users, including businesses themselves. Ideas about the future must therefore be guided by the search for a balance between these conflicting positions.

- The system for monitoring trade with non-member countries (Extrastat) has a reliable and detailed source of information in the customs declaration. However, customs adaptations to changes in its own environment (liberalisation of trade, single market, development of data processing tools, etc) are expected, and these could have an impact on the nature of statistical information and the arrangements for its collection.

In order to meet the challenges that the statistical system will have to meet in the future, a strategy is proposed that is designed to strengthen the existing system while preparing for the adaptations that will be needed in the longer term, in order to anticipate rather than react to coming changes.

1- Priority for proposals to strengthen the current system.

Actions affecting both Intrastat and Extrastat need to be taken in the short term to improve the accuracy of results, to speed up the availability of statistics and to reorganise statistical supply.

- Priority will need to be given to proposals designed to increase the reliability of economic indicators and to satisfy the pressing needs of the EU's economic and monetary policy, especially through the fast production of results, the introduction of new aggregates i and the creation of seasonally adjusted time series.

- Actions designed to evaluate and improve data quality will need to be continued by a review of the conformity of national (Intrastat/Extrastat) systems with the regulations, in order to submit to the Committee proposals to improve quality in the current situation. Priority will be given to Intrastat and to statistics on trade between the EU and its main partners. The continuing problem of 'asymmetry' will be dealt with in close collaboration with the services responsible for the balance of payments and national accounts, especially by considering all the conclusions in the reports and recommendations of the ad hoc working party 'asymmetry'. The work will be reinforced by the adoption of a method for a complete and quantitative evaluation of quality, in order to define the minimum relevant requirements.

- Communication with users will be improved, especially by means of more consistent and transparent presentation of all statistics on trade in goods (Community and national statistics, balance of payments, national accounts).

- An effort will be made to improve the system for checking Extrastat data by strengthening the partnership with the customs authorities and 'institutional' users. At the same time, measures will be proposed to ensure exhaustive coverage of trade (adaptation of the threshold system together with estimates of missing data, harmonisation of the treatment of certain specific goods) and to make fuller use of the content of customs declarations.

- The modernisation of the system will be continued under Edicom. Hitherto, the emphasis has been placed on greater use of data processing and electronic data transmission. Improvements to the information collection and processing chain, exchanges of best practices, the development of common data processing tools and the use of modern communication technologies will be priority guidelines in a new phase of the programme in support of the objective of fast production of quality statistics as part of a system that is less costly for information providers and administrations.

The renewal of the decision on modernising inter-administration telematic networks for statistics on trade in goods (the current Edicom programme) should make a substantial contribution to the strengthening of the system. A new decision must therefore be adopted for 2000-2002.

2- Focus on several strategic axes in the longer term.

7.

a) Better integration of statistics on trade in goods in the European and international statistical system needs to be sought. The attainment of this objective depends on a preliminary study:


- of the content and relevance of the information to be collected and disseminated, in order to respond to new requirements (globalisation, e-trade, hi-tech products, etc);

- of the link (concepts, asymmetries) with the balance of payments and national accounts, in order to ensure greater consistency between these statistics, in line with international recommendations;

- of the link with business statistics and registers and transport and services statistics, in order to find possible ways to rationalise and improve data collection and processing and to enhance available statistical information.

On the basis of the work of analysis, concrete proposals will gradually be made with regard to the collection, processing and dissemination of data.

b) The adaptation of the Extrastat system will need to be continued, in order to satisfy specific and growing requirements relating to the monitoring of trade with non-member countries by means of an approach that is less reliant on customs procedures, and consistent with international recommendations.

Information requirements with regard to external trade will need to be reevaluated in order to adapt the system to changes in the European Union and international trade (enlargement, globalisation, liberalisation of trade).

In addition, possible changes concerning the collection and content of statistical information will need to be considered in advance of projects designed to modernise, simplify and rationalise customs procedures and organisation (work undertaken by G7 or the Commission).

c) The Intrastat system will need to be gradually reformed.

At the same time as the work designed to speed up the production of quality Intrastat statistics, there must be continued consideration of the longer term reform of the system.

In this context, the consequences of a changeover to a common VAT system will be carefully analysed.

The adaptations to be made to the current system will be examined in the light of the findings of studies on alternative collection methods undertaken as part of the SLIM initiative in collaboration with national administrations (sampling, quality of deliveries compared with purchases).

8.

Amendments to the current system will be prepared by the Committee on Statistics relating to the Trade of Goods, on the basis of the following guidelines:


- Supply, for Community needs, of detailed monthly results (by product and by partner country) for dispatches only, and aggregated monthly results for arrivals (broken down at least by partner country), in accordance with quality requirements regarding coverage, reliability and availability laid down by Community regulations. The content of the results (detailed and aggregate) to be produced will be defined in the light of changing needs as part of the construction of Europe. The text will incorporate a clear formulation of requirements at EU and eurozone levels.

- Possibility of amending current regulatory collection in the Member States, according to arrangements decided at Community level, in order to make it possible to compile detailed national and/or regional statistics, subject to compliance with quality requirements. The revised legislation will not remove any current obligation; there will be no change in status, whereby statistical information that is currently compulsory becomes optional. A change will be possible only if a Member State requests it and it has been accepted by the Committee. The Committee's decision on such a matter will be based on a report describing the request and analysing its impact on the overall quality of the Intrastat system. The decision will have to comply with the evaluation method agreed by the Committee and with the minimum quality requirements defined by the Committee. The effect of such a decision will be restricted to the requesting Member State; in other words, it will not change legal requirements for the other Member States.

- Supplementary analysis of information sources - administrative or statistical - that can be used as references in connection with proposals on the common VAT system; with preference being given to maintaining the link with the VAT system and the use of the general business register.

- Continued development of common and modern declaration procedures, by means of increased use of techniques for the standardisation of messages and the exchange of computerised data, in order in particular to facilitate the work of information providers established in several Member States and to optimise the operation of the system.

The timetable for the reform of the Intrastat system will be drawn up in the light of the Commission work programme to prepare the changeover to the common VAT system. The adaptation of Community legislation will be preceded by a pilot experiment (early application of the system by certain Member States) and a Commission report evaluating the results.

3- An integrated project.

In view of the scope of the project and in order to manage resources properly, it is proposed to plan the reforms as part of an integrated project. This is the objective of Project XT °°° which proposes an adaptation of the system based on a systematic and coordinated approach in which methodological, organisational and legislative activities are based on appropriate data processing tools