Transcript Presentation 3

Services Account:
Treatment of Transport and Travel
Workshop on
International Trade in Services
Beirut
April 18-20, 2011
Transport Services: Coverage
Transport services includes:
 services provided by all modes of transport
performed by residents of one economy for
those of another.
 carriage of passengers and the movement of
goods (freight) as well as rentals (charters) of
carriers with crew.
 supporting and auxiliary services: cargo
handling, navigation fees and maintenance and
cleaning of carriers.
 ostal and courier services cover the pick-up,
transport, and delivery of letters, newspapers
etc., including post office counter and mailbox
rental services.
Services Account--Transport and
Travel
Transport Services: Classification
By type of carrier
 Sea Transport
 Air Transport
 Other Transport
 Postal and Courier Services
By functional category
 Passenger
 Freight
 Other
Services Account--Transport and
Travel
Transport Services: Classification
 The standard components breakdown
transport by both dimensions.
 A breakdown of total transport services into
freight transport passenger transport and
other transport alone is proposed as
simplified standard components for those
countries that are unable (for example, for
reasons of confidentiality) to provide the
full breakdown by mode of transport.
Services Account--Transport and
Travel
Transport Services: Classification
 By type of carrier
 Sea transport covers all transport services by
sea.
 Air transport covers all transport services
provided by air, including international
passenger transport.
 Other transport:
 Additional modes such as
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Space
Rail
Road
Inland waterway
Pipeline transport and electricity transmission
Services Account--Transport and
Travel
Passenger Services
 All services provided, between the compiling
economy and abroad or between two foreign
economies, in the international transport of:
 Nonresidents by residents carriers (credit);
and
 Residents by nonresident carriers (debit)
 Excluded are passenger services provided to
nonresidents
 by resident carriers within the resident
economies (included under “travel”)
 Included are passenger services performed
within an economy by nonresident carriers.
Services Account--Transport and
Travel
Passenger Services:
Exclusions
 Services to nonresidents within the
economy of the carrier; this is travel.
 Carriers do not ask the residence of
internal ticket buyers.
 All goods and services bought by
nonresidents within compiling economy
are either travel or government services
n.i.e.
Services Account--Transport and
Travel
Passenger Services:
Inclusions
Fares and incidental outlays:
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On-board food, gifts, souvenirs
Excess baggage charges
Accompanying personal effects, including autos
Any taxes levied on passenger services e.g., sales or value
added taxes.
For practical reasons fares that are part of package tours
are included, but exclude cruise fares which are included in
travel.
Rental of transport equipment with crew to transport
persons.
Covers rentals or operational leases of vessels, aircraft,
freight cars, or other commercial vehicles with crews for
limited periods for the carriage of passengers.
Services Account--Transport and
Travel
Freight Services
 The treatment of freight services is a
consequence of adopting FOB as the
uniform valuation principle for goods.
 Since the FOB valuation is as at the
customs frontier of the exporting economy,
so:
 all freight costs up to the customs frontier are
shown as incurred by the exporter;
 all freight costs beyond the customs frontier are
shown as incurred by the importer.
Services Account--Transport and
Travel
Freight Services
 When actual arrangements for paying freight costs
differ from the FOB terms of delivery, rerouting is
needed.
 Rerouting of freight services may mean that a
transaction that is actually between two residents is
treated as a transaction between a resident and a
nonresident and vice versa, as shown in Box 10.1 in
BPM6.
 Freight services include loading on board or the
unloading of goods from carriers if the contracts
between owners of goods and carriers require that
carriers provide the service.
Services Account--Transport and
Travel
Other Transport
“Other”
subhead under sea and air includes”:
 Cargo handling (stevedoring-NOT done by or for
account of nonresident carrier)
 Navigation fees
 Maintenance and cleaning of equipment
 Commissions and agent fees for transport related
services Warehousing
 Packing, packaging, binding
 Forwarding, handling, and transferring
 Airport and harbor dues
 Towing, pilotage, and other navigational aid for
carriers
 Salvage operations
Services Account--Transport and
Travel
Travel
 Travel credits cover goods and services for own use
or to give away, acquired from an economy by
nonresidents during visits to that economy.
 Travel debits cover goods and services for own use or
to give away acquired from other economies by
residents during visits to other economies.
 The standard component breakdown of travel is
between business and personal travel.
 Supplementary data for groups of special interest e.g.
border, seasonal, and other short-term workers
within business travel, health-related and educationrelated outlays under personal travel.
Services Account--Transport and
Travel
Travel
 A separate supplementary breakdown of travel into types
of goods and services is also suggested.
 A demand oriented activity; travelers moves to the
location of the provider (residents of the economy
visited) for the goods and services desired. An
assortment of services, consumed by travelers. It is a
transactor-based classification and is for this reason not
identified as a service in the Central Product
Classification.
 Travel covers goods and services acquired in an economy
by travelers during visits of less than ONE year in the
economy.
Services Account--Transport and
Travel
Travel
 One year rule does not apply to students
and medical patients; their expenditures
are included in travel.
 Travel excludes goods for resale, which are
included in general merchandise.
 Travel excludes acquisition of valuable,
consumer durable goods, and other
consumer purchases for own use that are
included in general merchandise (i.e., in
excess of customs threshold).
Services Account--Transport and
Travel
Exclusions from Definition of
Travelers
 Personnel stationed on a military base
 Diplomats and embassy personnel
 Individual temporarily engaged in a
productive activity directly for an entity
resident in the compiling economy, BUT
their expenditures on goods and services in
the host economy are included in travel
(BPM6).
Services Account--Transport and
Travel
Business Travel
 Carrier crews stopping over (but in-flight, or
shipboard expenses incurred by resident crew on
resident carrier not included)
 Government employees on official travel
 Employees of international organizations on official
business
 Employees doing work for enterprises that are not
resident in the economies in which the work occurs.
 Travel includes the personal acquisition of goods and
services while on business travel, but not the sales or
purchases business travelers may conclude on behalf
of the enterprise they represent.
Services Account--Transport and
Travel
Personal Travel
Personal travel - travelers going abroad for purposes other
than business
Goods and services covered under travel:
 All goods and services acquired by travelers from the
economies in which they are traveling and for their own
use.
 Paid or provided without quid pro quo (contra entry:
current transfers)
 Where important, supplementary data into
subcomponents:
 Health-related outlays incurred by patients.
 Education-related outlays incurred by students.
 All other personal travel
Services Account--Transport and
Travel
Other Issues Related to Travel
A separate supplementary breakdown of travel
may be provided according to product group:
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Goods
Local transport services
Accommodation services
Food serving services; and
Other services
This breakdown would allow for close links with
tourism satellite accounts as well as supply and
use tables.
Services Account--Transport and
Travel
Other Issues Related to Travel
 The term time-share covers a wide range of
arrangements.
 They can roughly be classified in the
categories described in Table 10.3 of BPM6.
 Accommodation services consumed by the
time-share holder would be partially received
and paid in kind (with a counter entry of
investment income receivable for the value of
accommodation services in kind, net of
operational costs such as periodic
management fees)
Services Account--Transport and
Travel
Treatment of Alternative TimeShare Arrangements
TYPE OF
ARRANGEMENT
DEEDED
OWNERSHIP
CLASSIFICATION
OWNERSHIP OF LAND
UP-FRONT PAYMENT
DIRECT INVESTMENT
AND BUILDINGS
IN NOTIONAL UNIT IN
ECONOMY WHERE
THE TIME SHARE IS
ASSET
EQUITY OF THE
TIME-SHARE
HOLDER (DIRECT
INVESTMENT)
PERIODIC FLOW
ACCOMMODATION
SERVICES IN TRAVEL
(IMPUTED BASED ON
EQUIVALENT
MARKET PRICES) AND
LOCATED
INVESTMENT INCOME
RIGHT TO USE
TRANSFERABLE
PREPAYMENT OF
TRADE CREDIT AND
(INCOME ON EQUITY)
ACCOMMODATION
RIGHT TO USE
ACCOMMODATION
ADVANCES
SERVICES IN TRAVEL
(AMOUNTS TO
+
CONTRACTS, LEASES,
AND LICENSES (ONLY
+
NONPRODUCED
RECOGNIZED WHEN
ASSET (CAPITAL
RESOLD, DIFFERENCE
ACCOUNT)
ECONOMIC ASSET)
NONFINANCIAL
BETWEEN SELLING
PRICE AND VALUE OF
PREPAID
ACCOMMODATION
SERVICES)
MEMBERSHIP
SYSTEM
NONTRANSFERABLE
RIGHT TO USE (DOES
PREPAYMENT OF
TRADE CREDIT AND
ACCOMMODATION
ACCOMMODATION
ADVANCES
SERVICES IN TRAVEL
NOT AMOUNT TO
ASSET)
Services Account--Transport and
Travel