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Understanding U.S. International Trade Statistics: Methodologies and Data Classifications

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Understanding U.S. International Trade Statistics: Methodologies and Data Classifications

This document outlines the methodologies and definitions employed in compiling and reporting U.S. international trade statistics for goods and services, as collected by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis (BEA).

Goods on a Census Basis

Data for goods on a Census basis are derived from documents collected by U.S. Customs and Border Protection (CBP), reflecting the movement of goods between foreign countries and the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and U.S. Foreign Trade Zones.

Inclusions and Exclusions

  • Includes: Government and non-government shipments of goods.
  • Excludes: Shipments between the U.S. and its territories/possessions; transactions with U.S. military, diplomatic, and consular installations abroad; U.S. goods returned by Armed Forces; personal/household effects of travelers; and in-transit shipments.

Valuation

  • Imports: Generally, the CBP-appraised value of merchandise (price paid for export to the U.S.), excluding import duties, freight, insurance, and other charges incurred to bring merchandise to the U.S. Exhibit 17a specifically presents CIF (cost, insurance, and freight) import value.
  • Exports: Valued at the f.a.s. (free alongside ship) value at the U.S. port of export, based on transaction price, including inland freight, insurance, and other charges to place merchandise alongside the carrier.

Revision Procedures (Census Basis)

Data undergo regular revisions to ensure accuracy:

  • Monthly Revisions: Revisions to aggregate seasonally adjusted and unadjusted export, import, and trade balance figures, and prior month's end-use totals. Country and commodity detail data (SITC Revision 4 and NAICS) are not revised monthly.
  • Quarterly Revisions: For March, June, September, and December releases, real (chained-dollar) series are revised for the previous five months to incorporate U.S. Bureau of Labor Statistics (BLS) price index revisions and align with BEA's national income and product accounts (NIPAs).
  • Annual Revisions (June): Not seasonally adjusted goods data are revised to redistribute late-arriving monthly data and incorporate corrections. Seasonally adjusted data are revised for recalculated seasonal and trading-day adjustments.
  • Other Revisions: For December and January releases, prior months of the most recent full year are revised to ensure seasonally adjusted monthly totals equal annual totals.

U.S./Canada Data Exchange and Substitution

U.S. exports to Canada are derived from Canada's import data, requiring specific alignments:

  • Coverage: Canadian imports are based on country of origin, including U.S. goods shipped from third countries (excluded from U.S. exports) and excluding U.S. postal shipments to Canada.
  • Valuation: Canadian imports are valued at the point of origin in the U.S., while U.S. exports are valued at the U.S. port of exit, including inland freight charges. Adjustments are made to ensure consistent valuation.
  • Re-exports: U.S. exports include re-exports of foreign goods, unlike Canadian imports based on country of origin.
  • Exchange Rate: Average monthly exchange rates are applied to convert data to U.S. currency.

Nonsampling Errors

Goods data are subject to nonsampling errors, despite quality assurance procedures:

  • Reporting Errors: Mistakes or omissions in import/export declarations, primarily affecting detailed commodity statistics.
  • Undocumented Shipments: Failure to file required documents for shipments above established exemption levels, particularly for exports.
  • Timeliness and Data Capture Errors: Lost documents, incorrect keying/coding, or late inclusion of transactions.
  • Low-Valued Transactions: Estimated for each country based on historical ratios for transactions at or below $2,500 (exports) and $2,000 (imports).

Data Classifications and Adjustments

Commodity Classification

  • Goods are initially classified under the Harmonized Commodity Description and Coding System (Harmonized System).
  • U.S. systems: Schedule B for exports and Harmonized Tariff Schedule for imports.
  • Trade is combined into approximately 140 export and 140 import end-use categories for analysis and seasonal adjustment.

Principal Commodities

  • Data in Exhibit 15 use SITC Revision 4, with agricultural goods defined by USDA (based on WTO guidance) and manufactured goods conforming to NAICS.
  • Re-exports (foreign merchandise exported in substantially the same condition as imported) are included in overall export totals and shown separately.

Advanced Technology Products (ATPs)

  • About 500 classification codes are identified as ATPs based on specific criteria, representing leading-edge technology in recognized high-technology fields.
  • This measure differs from broader NAICS-based measures, which include all goods from an industry regardless of technology level.

Seasonal and Trading-Day Variations

  • Data are adjusted using the X-13ARIMA-SEATS procedure to estimate monthly movements as percentages above or below the general series level.
  • Seasonally adjusted data are provided at commodity-based totals and country/world area levels. Comparisons between these two sets should be made with caution due to different aggregations and adjustment models.

Adjustments for Price Change

  • Data adjusted for seasonal variation on a real (chained-dollar) basis (2017 reference year) are presented in exhibits 10 and 11, using the Fisher chain-weighted methodology. Deflators are based on BLS monthly price indexes, consistent with NIPAs.

Trade Reporting and Availability

Advance Economic Indicators Report vs. FT-900

  • Advance Report: Released 24-26 calendar days after the reference month, reflecting nearly complete coverage of goods trade.
  • FT-900 (U.S. International Trade in Goods and Services): Released 34-36 calendar days after the reference month, reflecting complete coverage.
  • The Advance Report provides an earlier high-level snapshot. For advance GDP estimates, BEA uses Advance Report data, applying adjustments to produce detailed estimates.

Data Availability

  • The FT-900 and FT-900 Supplement are available on www.census.gov/ft900 and www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services.
  • APIs are available from both the Census Bureau and BEA for programmatic access to data.

Goods on a Balance of Payments (BOP) Basis

BEA adjusts Census basis goods data to a BOP basis to align with concepts and definitions used in international and national economic accounts. These net adjustments supplement coverage, eliminate duplication, and value transactions at market prices.

Export Adjustments (Additions)

  • Gold exports, nonmonetary (purchased by foreign official agencies from private dealers in the U.S. and held at Federal Reserve Bank of New York).
  • Goods procured in U.S. ports by foreign carriers (fuel purchases).
  • Net exports of goods under merchanting (purchase and resale abroad without entering the U.S.).
  • Other additions include sales of fish caught in U.S. waters, electric energy exports to Mexico, private gift parcels, military goods via grants, vessel/oil rig ownership changes, market valuation of software exports, and low-value transactions (1999-2009).

Import Adjustments (Additions)

  • Gold imports, nonmonetary (sold by foreign official agencies to private purchasers from Federal Reserve Bank of New York stock).
  • Goods procured in foreign ports by U.S. carriers (fuel purchases).
  • Imports by U.S. military agencies (purchases abroad reported by Department of Defense).
  • Inland freight in Canada and Mexico (to value imports at the U.S. border, comparable to other countries).
  • Other additions include non-reported imports of locomotives/railcars/aircraft from Canada/Mexico, electric energy from Mexico, vessel conversions, market valuation of software imports, and low-value transactions (1999-2009).

Export/Import Adjustments (Deductions)

  • Equipment repairs (parts and labor), developed motion picture film, military grant-aid (exports), and repairs to U.S. vessels abroad (imports).

Services Trade Statistics

Services statistics cover transactions between foreign countries and the 50 states, District of Columbia, Puerto Rico, U.S. Virgin Islands, and other U.S. territories/possessions, excluding U.S. military/diplomatic installations abroad.

Data Sources and Adjustments

  • Based on quarterly, annual, and benchmark surveys, along with monthly government and private sector reports.
  • Monthly statistics for categories without direct monthly data are derived from quarterly data using temporal distribution methods (e.g., modified Denton proportional first difference method).
  • Services are seasonally adjusted when statistically significant seasonal patterns are present.

Broad Categories of Services

  • Maintenance and repair services n.i.e.: Performed on goods owned by residents of another country, excluding costs included in goods prices.
  • Transport: Transactions for moving people and freight, including supporting and auxiliary services across all modes of transportation, postal, courier, and port services.
  • Travel (for all purposes including education): Goods and services acquired by nonresidents while abroad, encompassing business and personal travel (lodging, meals, transportation, amusement, gifts), excluding international air passenger services and goods for resale.
  • Construction: Services to create, renovate, repair, or extend buildings, land improvements, and civil engineering constructions.
  • Insurance services: Direct insurance services (life, non-life, reinsurance, freight) and auxiliary services, measured as gross premiums earned plus premium supplements less claims payable, adjusted for volatility.
  • Financial services: Financial intermediary and auxiliary services (excluding insurance), including explicit commissions/fees and implicit charges (e.g., bid/ask margins, market-making services, FISIM).
  • Charges for the use of intellectual property n.i.e.: Charges for proprietary rights (patents, trademarks, copyrights, franchises) and licenses to reproduce/distribute intellectual property embodied in originals.
  • Telecommunications, computer, and information services: Broadcast/transmission of information; hardware/software-related services, data processing, customized software sales/licenses, electronically delivered software; news agency, database, and web search portal services.
  • Other business services: Research and development, professional and management consulting (legal, accounting, advertising, market research), and technical, trade-related, and other business services.
  • Personal, cultural, and recreational services: Audiovisual services (production, end-user rights, sales of originals); artistic-related services (performing artists, authors, visual artists); and other services (online education, telemedicine, museum/cultural activities).
  • Government goods and services n.i.e.: Goods and services supplied by/to enclaves (embassies, military bases, international organizations), and goods/services supplied by/to governments not classified elsewhere.

Goods (BOP Basis) and Services by Country and Area

Quarterly statistics for goods on a BOP basis and services are seasonally adjusted by geography (Exhibit 20). These adjustments are developed and applied directly at the country and world area levels, which may not sum to the commodity/service type totals due to differing aggregation and adjustment models.

Revision Procedures (BOP Basis and Services)

  • Monthly Revisions: Preliminary estimate for the current month and a revised estimate for the immediately preceding month. Further revisions occur quarterly.
  • Quarterly Revisions: In March, June, September, and December, previous six months are revised with more comprehensive and updated source data.
  • Annual Revisions (June): Historical data are revised to incorporate new data, definition/classification changes, and estimation method changes. Seasonally adjusted data are recalculated.
  • Other Revisions: December and January releases include revisions for prior months of the most recent full year to reconcile seasonally adjusted monthly totals with annual totals.

Area Groupings

Standard geographical groupings include:

  • North America: Canada, Mexico.
  • Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR): Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua.
  • Europe: Comprehensive list of European nations.
  • European Union: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
  • Euro Area: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain.
  • Pacific Rim: Australia, Brunei, China, Hong Kong, Indonesia, Japan, Korea (South), Macau, Malaysia, New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan.
  • South/Central America: List of Caribbean, Central, and South American nations.
  • Africa: Comprehensive list of African nations.