Statistics NZ > Products & services > External Trade Statistics > Standard definitions Dec 2004

Standard definitions and notes

Agricultural exports

This uses the standard WTO5 definition for agriculture. Products

include HS codes 1-24 inclusive, with the exception of HS 03

and some of HS 16 (processed fish). It also includes casein,

hides and skins, and raw wool.

 

CIF

Cost, insurance, freight – the market value (or FOB equivalent)

of the imported goods plus the cost of freight and insurance

from the source to destination.

 

Confidential classifications

Traders may ask, for commercial reasons, Statistics New

Zealand to suppress details of their imports or exports. A value

for all ‘confidential’ trade now appears under catch-all HS 98.

Through to April 2002, ‘confidential’ was included in HS 9707,

but was subsequently placed in HS 98. Examples of exports

currently classified as confidential include methanol, coal, wood

pulp, clay, sphagnum moss, mushrooms and some iron and

steel products. A full list of the goods classified under this

heading is available on the Statistics New Zealand website

(www.stats.govt.nz). The value of ‘confidential’ trade is

considerable – exports of $995 million (including re-exports of

$12 million) and imports of $120 million for the June 2004 year.

 

FOB

Free on board – the value of the goods delivered to the port of

export and loaded onto a vessel for transportation out of the

country of origin. Used for exported goods.


Government services nie

These comprise transactions of central government, the central

bank and local government. Both New Zealand government

and foreign government transactions are recorded.

 

Insurance

Insurance and re-insurance of all types, including freight

insurance. The values recorded alongside insurance measure

the value of insurance services provided by an economy to

non-residents (the MFAT ‘exports’ series or, in BOP terms, the

credit item) and the value of insurance services purchased by

residents from non-residents’ insurers (the MFAT ‘imports’

series, or BOP debits item). Insurance services is measured

by multiplying the total amount of insurance premiums exported

or imported by the five-year average domestic service charge

ratio. The latter is the ratio of the domestic insurance service

charge to total domestic premiums when the service charge is

calculated as premiums minus claims.

 

Merchandise goods

Exports or imports of goods that alter the nations stock of

material resources.

 

Non-agricultural exports

This uses the standard WTO definition. Non-agricultural exports

are comprised of all other exports not included in agricultural

exports.

 

Non-merchandise goods

Goods returned after repair or modification in New Zealand;

goods on short-term loan or lease; and service transactions,

eg aircraft for repair.

 

Other

This item covers those international service transactions not

covered under the travel, transportation, insurance or

government services nie items. They include communication

services, construction services, financial services, computer

and information services, royalties and licence fees, personal,

cultural and recreational services, and other business services.

Other business services includes merchanting, and other

business, technical and professional services.

 

Provisional data

Readers may also note that the June and December editions

of this publication differ, reflecting the availability of data

sourced from Statistics New Zealand. Care must be taken to

clarify whether import data is CIF or VFD, and whether export

data includes re-exports or not. Re-exports are not included in

this publication unless specifically stated. The most recent data

is provisional and subject to revisions. Note also that Statistics

New Zealand releases import data some three weeks before

the provisional export data is released, but an estimate of the

provisional export data is given at the time of the import data

release. The Ministry of Foreign Affairs and Trade waits until

‘final provisional’ export data is released rather than using the

earlier estimate, as there may be several changes at a more

detailed level.

 

Re-exports

This data records goods brought into New Zealand and

exported without a ‘substantial transformation’. Although not a

hard and fast rule, 50 percent value added is used as a

yardstick to measure ‘substantial transformation’; above that

level, the goods are classified as domestic exports. Transshipment

goods are not included. Goods that are re-exported

will have previously figured in some form in the import statistics.

Re-exports are not included in the general tables of this

publication, and therefore underestimate the total trade in some

cases.

 

Services

Items that are generally intangible, or not physically moveable

– services.

 

Transportation

Transportation measures the value of transactions in

transportation services between residents of different

economies. Transportation services are those services

provided through carriers (such as ships and aircraft) by their

operators, and the goods and services consumed by carriers

in the course of their operations. By international convention,

exports are foreigners carried by a New Zealand carrier, either

here or overseas. Imports are New Zealanders carried by a

foreign carrier. New Zealanders carried by a domestic carrier

(either here or overseas) constitute a domestic transaction and

are not part of international trade.


The types of services provided through carriers include the

carriage of freight (exports and imports) and passengers. Other

transportation services covered include the charter of carriers,

and airport and harbour fees. Goods consumed by carriers in

the course of their operations, including bunkering and

provisioning, are recorded under merchandise goods.

 

Travel

Travel covers the goods and services acquired from an

economy by individuals defined as travellers during their stay

in that economy. The international carriage of travellers is not

included here but is classified as transportation.

VFD

Value for duty – the market value of imported goods as used

for Customs’ valuation purposes for tariff assessment in New

Zealand.

Additional notes

The merchandise trade statistics are incompatible with the

services data. Services data is collected and collated by

Statistics New Zealand in line with the principles set by the IMF

for balance of payments (BoP) data. These principles also have

methodology for the collation and presentation of goods data

that differs from that of the merchandise goods data used above.

The key point is that one should not add the merchandise trade

figures to services in order to obtain an overview of ‘goods and

services trade’. Instead, readers are referred to the full BoP

series, which adjust merchandise goods values according to

the principles set down by the IMF. In particular, the value of

imported goods is adjusted to a FOB-equivalent basis in BoP

statistics, but not in merchandise trade series. Further

information on BoP concepts and methods is available from

Statistics New Zealand.