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Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union Text with EEA relevance

Type Regulation

Publication 2013-06-26

Last updated 2025-09-01

State In force

Department Council of the European Union, European Parliament

Source EUR-Lex

articles 13

Reform history JSON API

(a) Non-life insurance. Under a non-life insurance policy, the insurance company accepts a premium from a client and holds it until a claim is made or the period of the insurance expires. The insurance company invests the premium and the resulting property income is an extra source of funds. The property income represents income foregone by the client and is treated as an implicit supplement to the actual premium. The insurance company sets the level of the actual premiums to be such that the sum of the premiums plus the property income earned on them less the expected claims will leave a margin that the insurance company will retain as the output of the insurance company. Non-life insurance output is calculated as: total premiums earned plus implicit premium supplements (equal to the property income earned on technical reserves) less adjusted claims incurred. The insurance corporation has at its disposal reserves consisting of unearned premiums (actual premiums relating to the next accounting period) and claims outstanding. Claims outstanding cover claims that have not yet been reported, have been reported but are not yet settled or have been reported and settled but are not yet paid. These reserves are called technical reserves and are used to generate investment income. Holding gains and losses are not income from investment of the insurance technical reserves. Insurance technical reserves may be invested in secondary activities of the insurance company, e.g. the letting of dwellings or offices. The net operating surplus on these secondary activities is income from the investment of insurance technical reserves. The appropriate level of claims used in calculating output is called 'adjusted claims' and these can be determined in two ways. The expectation method estimates the level of adjusted claims from a model based on the past pattern of claims payable by the corporation. The second method uses accounting information: adjusted claims are derived ex post as actual claims incurred plus the change in equalisation provisions, i.e. the funds set aside to meet unexpectedly large claims. Where the equalisation provisions are insufficient to bring adjusted claims back to a normal level, contributions from own funds are added to the measure of adjusted claims. A major feature of both methods is that unexpectedly large claims do not lead to volatile and negative estimates of output. Changes in technical reserves and equalisation provisions in response to changes in financial regulation are recorded as other changes in the volume of assets; they are irrelevant for calculating output. If, due to lack of information, both methods for estimating adjusted claims are not possible, it may be necessary to estimate output instead by the sum of costs including an allowance for normal profits. In case of with-profits insurance, the change in the reserves for with-profits insurance is deducted to obtain output.

(b) A life insurance policy is a type of saving scheme. For a number of years, the policyholder pays premiums to the insurance corporation against a promise of benefits at some future date. These benefits may be expressed in terms of a formula related to the premiums paid or may be dependent on the level of success the insurance corporation has in investing the funds. The method of calculating output for life insurance follows the same general principles as for non-life insurance. However, because of the time intervals between the time when premiums are received and when benefits are paid, special allowances must be made for changes in the technical reserves. The output of life insurance is derived as: premiums earned plus premium supplements, less benefits due less increases (plus decreases) in life insurance technical reserves. Premiums are defined in exactly the same way for life insurance as for non-life insurance. Premium supplements are more significant for life insurance than for non-life insurance. Benefits are recorded as they are awarded or paid. There is no need under life insurance to derive an adjusted estimate of benefits since there is not the same unexpected volatility in the payment under a life policy. Life insurance technical reserves increase each year because of new premiums paid and new investment income allocated to the policyholders (but not withdrawn by them) and decrease because of benefits paid. It is thus possible to express the level of output of life insurance as the difference between the total investment income earned on the life insurance technical reserves less the part of this investment income actually allocated to the policy holders and added to the insurance technical reserves. When this method is not feasible for data reasons or does not yield meaningful results, output of life insurance shall also be calculated as the sum of production costs plus an allowance for 'normal profit'.

(c) The output of reinsurance is to be determined in exactly the same way as for non-life insurance, whether it is life or non-life policies that are being reinsured.

(d) The output of running a social insurance scheme depends on the way in which it is organised. The following are examples of how such schemes are organised.
(1) Social security schemes are social insurance schemes that cover the community at large, and are imposed and controlled by government. Their purpose is to provide benefits for citizens to meet the demands of old age, invalidity or death, sickness, work injury, unemployment, family and health care, etc. If separate units are distinguished, their output is determined in the same way as all non-market output as the sum of costs. If separate units are not distinguished, the output of social security is included with the output of the level of government at which it operates.
(2) When an employer operates his own social insurance scheme, the value of the output is determined as the sum of costs including an estimate for a return to any fixed capital used in the operation of the scheme. The value of output is measured in the same way where the employer establishes a separate pension fund to manage the scheme.
(3) Where an employer uses an insurance corporation to manage the scheme on his behalf, the value of the output is the fee charged by the insurance corporation.
(4) For a multi-employer scheme, the value of output is measured as for life insurance policies: it is investment income received by the schemes less the amount added to reserves.

(e) Measuring the output of standardised loan guarantee schemes depends on the type of producer involved. If a standardised loan guarantee scheme operates as a market producer, the value of output is calculated in the same way as non-life insurance. If the scheme operates as a non-market producer, the value of output is calculated as the sum of costs.

Real estate services (Section L)

3.75The output of services of owner-occupied dwellings is valued at the estimated value of rental that a tenant would pay for the same accommodation, taking into account factors such as location, neighbourhood amenities, etc., as well as the size and quality of the dwelling itself. For garages located separately from dwellings, which are used by the owner for final consumption purposes in connection with using the dwelling, a similar imputation is to be made. The rental value of owner-occupied dwellings abroad, e.g. holiday homes, should not be recorded as part of domestic production, but as imports of services and the corresponding net operating surplus as primary income received from the rest of the world. For owner-occupied dwellings owned by non-residents, analogous entries are made. In case of time-sharing apartments, a proportion of the service charge is recorded.

3.76To estimate the value of owner-occupied dwelling services, the stratification method is used. The stock of dwellings is stratified by location, nature of dwelling and other factors that affect the rental. Information about actual rentals from rented dwellings is used to obtain an estimate of the rental value of the total stock of dwellings. The average actual rental per stratum is applied to all dwellings in that particular stratum. If the information on rentals is derived from sample surveys, the grossing-up to total stock rentals relates to both a part of the rented and all owner-occupied dwellings. The detailed procedure to determine a rental per stratum is carried out for a base year and is then extrapolated to the later periods.

3.77The rental to be applied to owner-occupied dwellings in the stratification method is defined as the private market rental due for the right to use an unfurnished dwelling. The rentals for unfurnished dwellings from all private market contracts are used to determine imputed rentals. Private market rentals that are at a low level due to government regulation are included. If the information source is the tenant, the observed rental is corrected by adding any specific rental allowance, which is paid directly to the landlord. If the sample size for the observed rentals as defined above is not large enough, observed rentals for furnished dwellings may be used for imputation purposes, provided they are adjusted for the furniture element. Exceptionally, also increased rentals for public-owned dwellings may be used. Low rentals for dwellings let to relatives or to employees should not be used.

3.78The stratification method is used for grossing up to all rented dwellings. The average rental for imputation as described above may not be suitable for some segments of the rental market. For example, scaled-down rentals for furnished dwellings or increased public rentals are not appropriate for the respective actually rented dwellings. In this case, separate strata for actually rented furnished or social dwellings combined with appropriate average rentals are required.

3.79In the absence of a sufficiently large rental market, where accommodation is characteristic of owner-occupied dwellings, the user-cost method is applied for owner-occupied dwellings.

Under the user-cost method, the output of dwelling services is the sum of intermediate consumption, consumption of fixed capital, other taxes less subsidies on production and net operating surplus (NOS).

The NOS is measured by applying a constant real annual rate of return to the net value of the stock of owner-occupied dwellings at current prices (replacement costs).

3.80The output of real estate services of non-residential buildings is measured by the value of the rentals due.

Professional, scientific and technical services (Section M); Administrative and support services (Section N)

3.81The output of operating leasing services, such as renting out machinery or equipments, is measured by the value of the rental paid. Operating leasing is different from financial leasing: financial leasing is financing the acquisition of fixed assets, by making a loan from the lessor to the lessee. Financial leasing payments consist of repayments of principal and interest payments, with a small charge for direct services provided (see Chapter 15: Contracts, leases and licences).

3.82Research and development (R&D) is creative work undertaken on a systematic basis to increase the stock of knowledge, and use of this stock of knowledge for the purpose of discovering or developing new products, including improved versions or qualities of -existing products, or discovering or developing new or more efficient processes of production. R&D of a significant size relative to the principal activity is recorded as a secondary activity of the local KAU. A separate local KAU is distinguished for R&D where possible.

3.83The output of R&D services is measured as follows:

(a) R&D by specialised commercial research laboratories or institutes is valued at the revenues from sales, contracts, commissions, fees, etc. in the usual way;

(b) the output of R&D for use within the same enterprise is valued on the basis of the estimated basic prices that would be paid if the research were subcontracted. In the absence of a market for subcontracting R&D of a similar nature, it is valued as the sum of production costs plus a mark-up (except for non-market producers) for NOS or mixed income;

(c) R&D by government units, universities and non-profit research institutes is valued as the sum of the costs of production. Revenues from the sale of R&D by non-market producers of R&D are to be recorded as revenues from secondary market output.

Expenditure on R&D is distinguished from that on education and training. Expenditure on R&D does not include the costs of developing software as a principal or secondary activity.

3.84Public administration, defence services and compulsory social security services are provided as non-market services and valued accordingly.

3.85For education services and health services, a precise distinction is drawn between market and non-market producers and between their market and non-market output. For example, for some types of education and medical treatment, nominal fees can be levied by government institutions (or by other institutions due to specific subsidies), but for other education and special medical treatments they may charge commercial tariffs. Another example is that the same type of service (e.g. higher education) is provided by, on the one hand, the government and, on the other hand, commercial institutes.

Education and health services exclude R&D activities; health services exclude education in health care, e.g. by academic hospitals.

Arts, entertainment and recreation services (Section R); other services (Section S)

3.86The production of books, recordings, films, software, tapes, disks, etc. is a two-stage process and is measured accordingly:

(1) the output from the production of originals — an intellectual property product — is measured by the price paid if sold, or, if not sold, by the basic price paid for similar originals, its production costs (including a mark-up for NOS) or the discounted value of the future receipts expected from using it in production;

(2) the owner of this asset may use it directly or to produce copies in subsequent periods. If the owner has licensed other producers to make use of the original in production, the fees, commissions, royalties, etc. received from the licenses are the output of services. However, the sale of the original is negative fixed capital formation.

Private households as employers (Section T)

3.87The output of household services produced by employing paid staff is valued by the compensation of employees paid; this includes any compensation in kind such as food or accommodation.

INTERMEDIATE CONSUMPTION (P.2)

3.88 Definition: intermediate consumption consists of goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. The goods and services are either transformed or used up by the production process.

3.89Intermediate consumption includes the following cases:

(a) goods and services used as inputs into ancillary activities. Common examples are purchasing, sales, marketing, accounting, data processing, transportation, storage, maintenance, security, etc. These goods and services are not distinguished from those consumed by the principal (or secondary) activities of a local KAU;

(b) goods and services which are received from another local KAU of the same institutional unit;

(d) fees for short-term contracts, leases and licences recorded as non-produced assets; this excludes the outright purchase of such non-produced assets;

(e) the subscriptions, contributions or dues paid to non-profit business associations (see paragraph 3.35);

(f) items not treated as gross capital formation, such as:
(1) inexpensive tools used for common operations, such as saws, spades, knives, axes, hammers, screwdrivers, spanners, wrenches and other hand tools; small devices such as pocket calculators. All expenditure on such durables is recorded as intermediate consumption;
(2) the regular maintenance and repair of fixed assets used in production;
(3) services of staff training, market research and similar activities, purchased from an outside agency or provided by a separate local KAU of the same institutional unit;
(4) expenditure on R&D will be treated as fixed capital formation when a sufficiently high level of reliability and comparability of the estimates by the Member States has been achieved;

(g) expenditure by employees, reimbursed by the employer, on items necessary for the employers' production, like contractual obligations to purchase on own-account tools or safety-wear;

(h) expenditure by employers which is to their own benefit as well as to that of their employees, because it is necessary for production. Examples are:
(1) reimbursement of employees for travelling, separation, removal and entertainment expenses incurred in the course of their duties;
(2) providing amenities at the place of work. A list of relevant expenditure is presented in the paragraphs on compensation of employees (D.1) (see paragraph 4.07);

(i) non-life insurance service charges paid by local KAUs (see Chapter 16: Insurance). To record only the service charge as intermediate consumption, the premiums paid are discounted for, e.g. claims paid out and the net change in actuarial reserves. The net change in actuarial reserves shall be allocated to the local KAUs as a proportion of the premiums paid;

(j) FISIM purchased by resident producers;

(k) the non-market output of the central bank output should be entirely allocated to the intermediate consumption of other financial intermediaries.

3.90Intermediate consumption excludes:

(a) items treated as gross capital formation, examples being:
(1) valuables;
(2) mineral exploration;
(3) major improvements beyond those required to keep the fixed assets in good working order. Examples are renovation, reconstruction or enlargement;
(4) software purchased outright or produced on own-account;
(5) military weapons and the equipment to deliver them;

(b) expenditure treated as the purchase of non-produced assets. Examples are long-term contracts, leases and licences (see Chapter 15);

(d) use by market or own-account producer units of collective services provided by government units (treated as collective consumption expenditure by government);

(e) goods and services produced and consumed within the same accounting period and within the same local KAU (they are also not recorded as output);

(f) payments for government licenses and fees that are treated as other taxes on production;

(g) payments for licences for using natural resources (e.g. land) that are treated as rents, i.e. as a payment of property income.

Time of recording and valuation of intermediate consumption

3.91Products used for intermediate consumption are recorded and valued at the time they enter the process of production. They are valued at the purchasers' prices for similar goods or services at the time of use.

3.92Producer units do not record the use of goods in production directly. They record the purchases intended to be used as inputs less the increase in the amounts of such goods held in inventory.

FINAL CONSUMPTION (P.3, P.4)

3.93Two concepts of final consumption are used:

(a) final consumption expenditure (P.3);

(b) actual final consumption (P.4).

Final consumption expenditure is expenditure on goods and services used by households, NPISHs and government to satisfy individual and collective needs. In contrast, actual final consumption refers to its acquisition of consumption goods and services. The difference between these concepts lies in the treatment of certain goods and services financed by the government or NPISHs but supplied to households as social transfers in kind.

Final consumption expenditure (P.3)

3.94 Definition: final consumption expenditure consists of expenditure incurred by resident institutional units on goods or services that are used for the direct satisfaction of individual needs or wants or the collective needs of members of the community.

3.95Household final consumption expenditure includes the following examples:

(a) services of owner-occupied dwellings;

(b) income in kind, such as:
(1) goods and services received as income in kind by employees;
(2) goods or services produced as outputs of unincorporated enterprises owned by households that are retained for consumption by members of the household. Examples are food and other agricultural goods, housing services by owner-occupiers and household services produced by employing paid staff (servants, cooks, gardeners, chauffeurs, etc.);

(c) items not treated as intermediate consumption, such as:
(1) materials for small repairs to and interior decoration of dwellings of a kind carried out by tenants as well as owners;
(2) materials for repairs and maintenance to consumer durables, including vehicles;

(d) items not treated as capital formation, in particular consumer durables, that continue to perform their function in several accounting periods; this includes the transfer of ownership of some durables from an enterprise to a household;

(e) financial services directly charged and the part of FISIM used for final consumption purposes by households;

(f) insurance services by the amount of the implicit service charge;

(g) pension funding services by the amount of the implicit service charge;

(h) payments by households for licences, permits, etc. which are regarded as purchases of services (see paragraphs 4.79 and 4.80);

(i) the purchase of output at not economically significant prices, e.g. entrance fees for a museum.

3.96Household final consumption expenditure excludes the following:

(a) social transfers in kind, such as expenditures initially incurred by households but subsequently reimbursed by social security, e.g. some medical expenses;

(b) items treated as intermediate consumption or gross capital formation, such as:
(1) expenditures by households owning unincorporated enterprises when incurred for business purposes — e.g. on durable goods such as vehicles, furniture or electrical equipment (gross fixed capital formation), and also on non-durables such as fuel (treated as intermediate consumption);
(2) expenditure that an owner-occupier incurs on the decoration, maintenance and repair of the dwelling not typically carried out by tenants (treated as intermediate consumption in producing housing services);
(3) the purchase of dwellings (treated as gross fixed capital formation);
(4) expenditure on valuables (treated as gross capital formation);

(d) all those payments by households which are to be regarded as taxes (see paragraphs 4.79 and 4.80);

(e) subscriptions, contributions and dues paid by households to NPISHs, such as trade unions, professional societies, consumers' associations, churches and social, cultural, recreational and sports clubs;

(f) voluntary transfers in cash or in kind by households to charities and relief and aid organisations.

3.97Final consumption expenditure of NPISHs includes two separate categories:

(a) the value of the goods and services produced by NPISHs other than own-account capital formation and other than expenditure made by households and other units;

(b) expenditures by NPISHs on goods or services produced by market producers that are supplied — without any transformation — to households for their consumption as social transfers in kind.

3.98 Final consumption expenditure (P.3) by general government includes two categories, similar to those recorded for NPISHs:

(a) the value of the goods and services produced by general government itself (P.1) other than own-account capital formation (corresponding to P.12), market output (P.11) and payments for non-market output (P.131);

(b) purchases by general government of goods and services produced by market producers that are supplied to households, without any transformation, as social transfers in kind (D.632). General government pays for these goods and services that the sellers provide to households.

3.99Corporations do not make final consumption expenditures. Their purchases of goods and services as used by households for final consumption are either used for intermediate consumption or provided to employees as compensation of employees in kind, i.e. imputed household final consumption expenditure.

Actual final consumption (P.4)

3.100 Definition: actual final consumption consists of the goods or services that are acquired by resident institutional units for the direct satisfaction of human needs, whether individual or collective.

3.101 Definition: goods and services for individual consumption ('individual goods and services') are goods and services acquired by a household and used to satisfy the needs and wants of members of that household. Individual goods and services have the following characteristics:

(a) it is possible to observe and record the acquisition of the goods and services by an individual household or member thereof and also the time at which the acquisition took place;

(b) the household has agreed to the provision of the goods and services and takes the action necessary to consume the goods and services, for example by attending a school or clinic;

(c) the goods and services are such that their acquisition by one household or person, or by a group of persons, precludes its acquisition by other households or persons.

3.102 Definition: collective services are services for collective consumption that are provided simultaneously to all members of the community or all members of a particular section of the community, such as all households living in a particular region. Collective services have the following characteristics:

(a) they can be delivered simultaneously to every member of the community or to particular sections of the community, such as those in a particular region or locality;

(b) the use of such services is usually passive and does not require the agreement or active participation of all the individuals concerned;

(c) the provision of a collective service to one individual does not reduce the amount available to other in the same community or section of the community.

3.103All household final consumption expenditure is individual. All goods and services provided by NPISHs are treated as individual.

3.104For the goods and services provided by government units, the borderline between individual and collective goods and services is drawn on the basis of the classification of the functions of government (COFOG).

All government final consumption expenditure under each of the following headings is treated as expenditure on individual consumption:

(a) - 7.1 Medical products, appliances and equipment
7.2 Outpatient services
7.3 Hospital services
7.4 Public health services;

(b) - 8.1 Recreational and sporting services
8.2 Cultural services;

(c) - 9.1 Pre-primary and primary education
9.2 Secondary education
9.3 Post-secondary non-tertiary education
9.4 Tertiary education
9.5 Education not definable by level
9.6 Subsidiary services to education;

(d) - 10.1 Sickness and disability
10.2 Old age
10.3 Survivors
10.4 Family and children
10.5 Unemployment
10.6 Housing
10.7 Social exclusion not elsewhere included.

3.105Alternatively individual consumption expenditure of general government corresponds to division 15 of the classification of individual consumption by purpose (Coicop), which includes the following groups:

15.1 Housing (equivalent to COFOG group 10.6)

15.2 Health (equivalent to COFOG groups 7.1 to 7.4)

15.3 Recreation and culture (equivalent to COFOG groups 8.1 and 8.2)

15.4 Education (equivalent to COFOG groups 9.1 to 9.6)

15.5 Social protection (equivalent to COFOG groups 10.1 to 10.5 and group 10.7).

3.106Collective consumption expenditure is the remainder of the government final consumption expenditure.

It consists of the following COFOG groups:

(a) general public services (division 1);

(b) defence (division 2);

(d) economic affairs (division 4);

(e) environmental protection (division 5);

(f) housing and community amenities (division 6);

(g) general administration, regulation, dissemination of general information and statistics (all divisions);

(h) research and development (all divisions).

3.107The relationships between the various consumption concepts employed can be shown in Table 3.2.

Table 3.2 — Sector making expenditure

	Government	NPISHs	Households	Total acquisitions
Individual consumption	X (= Social transfers in kind	X (= Social transfers in kind)	X	Households actual individual final consumption
Collective consumption	X	0	0	Government's actual collective final consumption
Total	Government's final consumption expenditure	NPISHs final consumption expenditure	Households' final consumption expenditure	Actual final consumption = Total final consumption expenditure
X: applicable 0: not applicable	X: applicable 0: not applicable	X: applicable 0: not applicable	X: applicable 0: not applicable	X: applicable 0: not applicable

3.108Final consumption expenditure of NPISHs is all individual. Total actual final consumption is equal to the sum of households' actual final consumption and actual final consumption of general government.

3.109There are no social transfers in kind with the rest of the world (though there are such transfers in monetary terms). Total actual final consumption is equal to total final consumption expenditure.

Time of recording and valuation of final consumption expenditure

3.110Expenditure on a good is recorded at the time of change of ownership; expenditure on a service is recorded when the delivery of the service is completed.

3.111Expenditure on goods acquired under a hire purchase or similar credit agreement, and also under a financial lease, is recorded at the time the goods are delivered even if there is no change of ownership at this point.

3.112Own-account consumption is recorded when the output retained for own final consumption is produced.

3.113The final consumption expenditure of households is recorded at purchasers' prices. This is the price the purchaser actually pays for the products at the time of the purchase. A more detailed definition is in paragraph 3.06.

3.114Goods and services supplied as employee compensation in kind are valued at basic prices when produced by the employer and at the purchasers' prices of the employer when bought in by the employer.

3.115Retained goods or services for own consumption are valued at basic prices.

3.116Final consumption expenditures by general government or NPISHs on products produced by themselves are recorded at the time they are produced, which is also the time of delivery of such services by government or NPISHs. For the final consumption expenditure on goods and services supplied via market producers, the time of delivery is the time of recording.

3.117Final consumption expenditure (P.3) by general government or NPISHs is equal to the sum of their output (P.1), plus the expenditure on products supplied to households via market producers, part of social transfers in kind (D.632), minus the payments by other units, market output (P.11) and payments for non-market output (P.131), minus own-account capital formation (P.12).

Time of recording and valuation of actual final consumption

3.118Goods and services are acquired by institutional units when they become the new owners of the goods and when the delivery of services to them is completed.

3.119Acquisitions (actual final consumption) are valued at the purchasers' prices for the units that incur the expenditures.

3.120Transfers in kind other than social transfers in kind from government and NPISHs are treated as if they were transfers in cash. Accordingly, the values of the goods or services are recorded as expenditures by the institutional units or sectors that acquire them.

3.121The values of the two aggregates of final consumption expenditure and actual final consumption are the same. The goods and services acquired by resident households through social transfers in kind are valued at the same prices as those at which they are valued in the expenditure aggregates.

GROSS CAPITAL FORMATION (P.5)

3.122Gross capital formation consists of:

(a) gross fixed capital formation (P.51g):
(1) consumption of fixed capital (P.51c);
(2) net fixed capital formation (P.51n);

(b) changes in inventories (P.52);

3.123Gross capital formation is measured gross of consumption of fixed capital. Net capital formation is calculated by deducting consumption of fixed capital from gross capital formation.

Gross fixed capital formation (P.51g)

3.124 Definition: gross fixed capital formation (P.51g) consists of resident producers’ acquisitions, less disposals, of fixed assets during a given period plus certain additions to the value of non-produced assets realised by the productive activity of producer or institutional units. Fixed assets are produced assets used in production for more than one year.

3.125Gross fixed capital formation consists of both positive and negative values:

(a) positive values:
(1) new or existing fixed assets purchased;
(2) fixed assets produced and retained for producers' own use (including own account production of fixed assets not yet completed or fully mature);
(3) new or existing fixed assets acquired through barter;
(4) new or existing fixed assets received as capital transfers in kind;
(5) new or existing fixed assets acquired by the user under a financial lease;
(6) major improvements to fixed assets and existing historic monuments;
(7) natural growth of those natural assets that yield repeat products;

(b) negative values, i.e. disposals of fixed assets recorded as negative acquisitions:
(1) existing fixed assets sold;
(2) existing fixed assets surrendered in barter;
(3) existing fixed assets surrendered as capital transfers in kind.

3.126The disposals components of fixed assets exclude:

(a) consumption of fixed capital (which includes anticipated normal accidental damage);

(b) exceptional losses, such as those due to drought or other natural disasters, which are recorded as other change in the volume of assets.

3.127The following types of gross fixed capital formation are distinguished:

(1) dwellings;

(2) other buildings and structures; this includes major improvements to land;

(3) machinery and equipment, such as ships, cars and computers;

(4) weapons systems;

(5) cultivated biological resources, e.g. trees and livestock;

(6) costs of ownership transfer on non-produced assets, like land, contracts, leases and licences;

(7) R&D, including the production of freely available R&D. Expenditure on R&D will only be treated as fixed capital formation when a high level of reliability and comparability of the estimates by the Member States has been achieved;

(8) mineral exploration and evaluation;

(9) computer software and databases;

(10) entertainment, literary or artistic originals;

(11) other intellectual property rights.

3.128Major improvements to land include:

(a) reclamation of land from sea by the construction of dikes, sea walls or dams for this purpose;

(b) clearance of forests, rocks, etc. to enable land to be used in production for the first time;

(c) draining of marshes or the irrigation of deserts by the construction of dikes, ditches and irrigation channels; prevention of flooding or erosion by the sea or rivers by the construction of breakwaters, sea walls or flood barriers.

These activities may lead to the creation of substantial new structures such as sea walls, flood barriers and dams, but these structures are not used to produce other goods and services, but obtain more or better land, and it is the land, a non-produced asset, that is used in production. For example, a dam built to produce electricity serves a different purpose from a dam built to keep out the sea. Only the latter type of dam is classified as an improvement to land.

3.129Gross fixed capital formation includes the following borderline cases:

(a) acquisitions of houseboats, barges, mobile homes and caravans used as residences of households and any associated structures such as garages;

(b) structures and equipment used by the military;

(d) changes in livestock used in production year after year, such as breeding stock, dairy cattle, sheep reared for wool and draught animals;

(e) changes in trees that are cultivated year after year, such as fruit trees, vines, rubber trees, palm trees, etc.;

(f) improvements to existing fixed assets beyond ordinary maintenance and repairs;

(g) the acquisition of fixed assets by financial leasing;

(h) terminal costs, i.e. large costs associated with disposal, e.g. decommissioning costs of nuclear power stations or clean up costs of landfill sites.

3.130Gross fixed capital formation excludes:

(a) transactions included in intermediate consumption, like:
(1) purchase of small tools for production purposes;
(2) ordinary maintenance and repairs;
(3) the acquisition of fixed assets to be used under an operational leasing contract (see also Chapter 15: Contracts, leases and licences). For the enterprise that is using the fixed asset, rentals are treated as intermediate consumption. For the owner of the asset, the cost of acquisition is recorded as gross fixed capital formation;

(b) transactions recorded as changes in inventories:
(1) animals raised for slaughter, including poultry;
(2) trees grown for timber (work-in-progress);

(d) holding gains and losses on fixed assets;

(e) catastrophic losses on fixed assets, e.g. destruction of cultivated assets and livestock by outbreaks of disease which is not normally covered by insurance, or damage due to abnormal flooding, wind damage or forest fires;

(f) funds set aside or put in reserve without any commitment for the actual purchase or construction of a specific capital good, e.g. a government fund for infrastructure.

3.131Gross fixed capital formation in the form of improvements to existing fixed assets is recorded as acquisitions of new fixed assets of the same kind.

3.132Intellectual property products are the result of research and development, investigation or innovation leading to knowledge, use of which is restricted by law or other means of protection.

Examples of intellectual property assets are:

(a) results of R&D;

(b) results of mineral exploration, measured as the costs of actual test drilling, aerial or other surveys, transportation, etc.;

(d) entertainment, literary or artistic originals of manuscripts, models, films, sound recordings, etc.

3.133For both fixed assets and non-produced non-financial assets, the costs of ownership transfer incurred by their new owner consist of:

(a) charges incurred in taking delivery of the asset (new or existing asset) at the required location and time, such as transport charges, installation charges, erection charges, etc.;

(b) professional charges or commissions incurred, such as fees paid to surveyors, engineers, lawyers, valuers, etc., and commissions paid to estate agents, auctioneers, etc.;

(c) taxes payable by the new owner on the transfer of ownership of the asset. These taxes are taxes on the services of intermediaries and any tax on the transfer of ownership but not taxes on the asset bought.

All these costs are to be recorded as gross fixed capital formation by the new owner.

Time of recording and valuation of gross fixed capital formation

3.134Gross fixed capital formation is recorded when the ownership of the fixed assets is transferred to the institutional unit that intends to use them in production.

This rule is modified for:

(a) financial leasing, when a change of ownership from lessor to lessee is imputed;

(b) own-account gross fixed capital formation, which is recorded when it is produced.

3.135Gross fixed capital formation is valued at purchasers' prices including installation charges and other costs of ownership transfer. When produced on own-account it is valued at the basic prices of similar fixed assets, and if such prices are not available, at the costs of production plus a mark-up (except for non-market producers) for net operating surplus or mixed income.

3.136Acquisitions of intellectual property products are valued in different ways:

(a) for mineral exploration: by the costs of actual test drillings and borings, and the costs incurred to make it possible to carry out tests, such as aerial or other surveys;

(b) for computer software: by purchasers' prices when purchased on the market, or at its estimated basic price, or if no basic price is available, at its costs of production plus a mark-up for net operating surplus (except for non-market producers) when developed in-house;

(c) for entertainment, literary or artistic originals: valued at the price paid by the purchaser when it is sold, or if not sold, the following methods of estimation are acceptable:
(i) at the basic price paid for similar originals;
(ii) the sum of its production costs plus a mark-up (except for non-market producers) for net operating surplus; or
(iii) the discounted value of expected receipts.

3.137Disposals of existing fixed assets by sale are valued at basic prices, deducting any costs of ownership transfer incurred by the seller.

3.138Costs of ownership transfer can apply to both produced assets, including fixed assets, and non-produced assets, such as land.

These costs are included in the purchasers’ prices in the case of produced assets. They are separated from the purchases and sales themselves in the case of land and other non-produced assets, and recorded under a separate heading (P.512) in the classification of gross fixed capital formation.

Consumption of fixed capital (P.51c)

3.139 Definition: consumption of fixed capital (P.51c) is the decline in value of fixed assets owned, as a result of normal wear and tear and obsolescence. The estimate of decline in value includes a provision for losses of fixed assets as a result of accidental damage which can be insured against. Consumption of fixed capital covers anticipated terminal costs, such as the decommissioning costs of nuclear power stations or oil rigs or the cleanup costs of landfill sites. Such terminal costs are recorded as consumption of fixed capital at the end of the service life, when the terminal costs are recorded as gross fixed capital formation.

3.140Consumption of fixed capital shall be calculated for all fixed assets (except animals), including intellectual property rights, major improvements to land and costs of ownership transfers associated with non-produced assets.

3.141Consumption of fixed capital is different from the depreciation allowed for tax purposes or the depreciation shown in business accounts. Consumption of fixed capital is estimated on the basis of the stock of fixed assets and the expected average economic life of the different categories of those goods. For the calculation of the stock of fixed assets, the perpetual inventory method (PIM) is applied whenever direct information on the stock of fixed assets is missing. The stock of fixed assets is valued at the purchasers' prices of the current period.

3.142Losses of fixed assets occurring as a result of accidental damage which can be insured against are taken into account in calculating the average service life of the goods in question. For the economy as a whole the accidental damages within a given accounting period will be equal, or close, to the average. For individual units and groupings of units, actual and average accidental damage may differ. In this case, for sectors, any difference is recorded as other changes in volume of fixed assets.

3.143Consumption of fixed capital shall be calculated according to the 'straight line' method, by which the value of a fixed asset is written off at a constant rate over the whole lifetime of the good.

3.144In some cases, the geometric depreciation method is used when the pattern of decline in the efficiency of a fixed asset requires it.

3.145In the system of accounts, consumption of fixed capital is recorded below each balancing item, which is shown gross and net. Recording 'gross' means without deducting consumption of fixed capital, while recording 'net' means after deducting consumption of fixed capital.

Changes in inventories (P.52)

3.146 Definition: changes in inventories are measured by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.

3.147Due to physical deterioration, or accidental damage or pilfering, recurrent losses may occur to all kinds of goods in inventories, such as:

(a) losses of materials and supplies;

(b) losses in the case of work-in-progress;

(d) losses of goods for resale (e.g. shoplifting).

3.148Inventories consist of the following categories:

(a) materials and supplies: materials and supplies consist of all products held in stock with the intention of using them as intermediate inputs in production; this includes products held in stock by the government. Items such as gold, diamonds, etc. are included when intended for industrial use or other production;

(b) work-in-progress: work-in-progress consists of output produced that is not yet finished. It is recorded in the inventories of its producer. Examples of the different forms it can take are the following:
(1) growing crops;
(2) maturing trees and livestock;
(3) uncompleted structures (except those produced under a contract of sale agreed in advance or on own-account; both of these examples are treated as fixed capital formation);
(4) uncompleted other fixed assets, e.g. ships and oil rigs;
(5) partially completed research for a legal or consultant's dossier;
(6) partially completed film productions;
(7) partially completed computer programs. Work-in-progress shall be recorded for any production process that is not finished at the end of the given period. This is significant in quarterly accounts, an example being agricultural crops not completing growth within a quarter of a year. Reductions in work-in-progress take place when the production process is completed. At that point, all work-in-progress is transformed into a finished product;

(c) finished goods: finished goods as part of inventories consist of outputs that their producer does not intend to process further before supplying them to other institutional units;

(d) goods for resale: goods for resale are goods acquired for the purpose of reselling them unchanged from their present state.

Time of recording and valuation of changes in inventories

3.149The time of recording and the valuation of changes in inventories is consistent with those of other transactions in products. This applies in particular to intermediate consumption (e.g. for materials and supplies), output (e.g. work-in-progress and output from storage of agricultural products) and gross fixed capital formation (e.g. work-in-progress). If goods are processed abroad with a change of economic ownership, the goods are to be included in exports (and later in imports). The export is reflected in a concomitant reduction in inventories, and the corresponding later import is recorded as an increase in inventories, provided it is not sold or used at once.

3.150In measuring changes in inventories, goods entering inventories are valued at the time of entry, and goods being withdrawn are valued at the time of withdrawal.

3.151The prices used to value goods in changes in inventories are as follows:

(a) output of finished goods transferred into the producer's inventories is valued as if they were sold at that time, at current basic prices;

(b) additions to work-in-progress are valued in proportion to the estimated current basic price of the finished product;

(c) reductions in work-in-progress due to work withdrawn from inventories when production is finished are valued at current basic prices of the unfinished product;

(d) goods transferred out of inventories for sale are valued at basic prices;

(e) goods for resale entering the inventories of wholesalers and retailers, etc. are valued at the actual or estimated purchasers' prices of the trader;

(f) goods for resale withdrawn from inventories are valued at the purchasers' prices at which they can be replaced at the time they are withdrawn, and not at the price when they were acquired.

3.152Losses as a result of physical deterioration, insurable accidental damage or pilfering are recorded and valued as follows:

(a) for materials and supplies: as materials and supplies actually withdrawn to be used up in production (intermediate consumption);

(b) for work-in-progress: valued as deduction from the additions accruing to production carried out in the same period;

3.153Where information is lacking, the following approximate methods for the estimation of change in inventories are used:

(a) when changes in the volume of inventories are regular, an acceptable approximate method is to multiply the volume change of the inventories by the average prices for the period. Purchasers' prices are used for inventories held by users or by wholesalers or retailers; basic prices are used for inventories held by their producers;

(b) when prices of the goods involved remain constant, fluctuations in the volume of inventories do not invalidate the approximation of estimating the change in inventories by multiplying the volume change by the average price;

(c) if both the volume and the prices of the inventories change substantially within the accounting period, more sophisticated approximation methods are required. For example, quarterly valuation of the changes in inventories or the use of information about the distribution of the fluctuations within the accounting period (fluctuations may be largest at the end of the calendar year, during harvest time, etc.);

(d) if information about the values at the beginning and end of the period are available (e.g. in case of wholesale or retail trade in which inventories often exist of many different products), but no separate information about prices and volumes, the changes in volume between the beginning and end of the period are estimated. One way of estimating the change in volumes is to estimate constant turn-over rates by type of product.

Seasonal changes in prices may reflect a change in quality, e.g. clearance prices or off-season prices for fruit and vegetables. These changes in quality are treated as changes in the volume.

Acquisitions less disposals of valuables (P.53)

3.154 Definition: valuables are non-financial goods that are not used primarily for production or consumption, do not deteriorate (physically) over time under normal conditions and are acquired and held primarily as stores of value.

3.155Valuables include the following types of goods:

(a) precious stones and metals, such as diamonds, non-monetary gold, platinum, silver, etc.;

(b) antiques and other art objects, such as paintings, sculptures, etc.;

3.156Such types of goods are recorded as acquisition or disposal of valuables in the following examples:

(a) the acquisition or disposal of non-monetary gold, silver, etc. by central banks and other financial intermediaries;

(b) the acquisition or disposal of these goods by enterprises whose principal or secondary activity does not involve the production or trade in such types of goods. This acquisition or disposal is not included in the intermediate consumption or fixed capital formation of these enterprises;

(c) the acquisition or disposal of such goods by households. Such acquisitions are not included in final consumption expenditure by households.

In the ESA, by convention also the following cases are recorded as acquisition or disposal of valuables:

(a) the acquisition or disposal of these goods by jewellers and art dealers (following the general definition of valuables, the acquisition of these goods by jewellers and art dealers should be recorded as changes in inventories);

(b) the acquisition or disposal of these goods by museums (following the general definition of valuables, the acquisition by a museum of these goods should be recorded as fixed capital formation).

This convention avoids frequent reclassification between the three main types of capital formation, i.e. between acquisition less disposal of valuables, fixed capital formation and changes in inventories, e.g. in the case of transactions of such goods between households and art dealers.

3.157The production of valuables is valued at basic prices. All other acquisitions of valuables are valued at the purchasers' prices paid for them, including any agents' fees or commissions. They include trade margins when bought from dealers. Disposals of valuables are valued at the prices received by sellers, after deducting any fees or commissions paid to agents or other intermediaries. Acquisitions less disposals of valuables between resident sectors cancel out, leaving only agents and dealers margins.

EXPORTS AND IMPORTS OF GOODS AND SERVICES (P.6 and P.7)

3.158 Definition: exports of goods and services consist of transactions in goods and services (sales, barter, and gifts) from residents to non-residents.

3.159 Definition: imports of goods and services consist of transactions in goods and services (purchases, barter, and gifts) from non-residents to residents.

3.160Exports and imports of goods and services do not include:

(a) establishment trade, i.e.:
(1) deliveries to non-residents by non-resident affiliates of resident enterprises, e.g. sales abroad by foreign affiliates of a multinational owned/controlled by residents;
(2) deliveries to residents by resident affiliates of non-resident enterprises, e.g. sales by domestic affiliates of a foreign multinational;

(b) primary income flows to or from the rest of the world, such as compensation of employees, interest and revenues from direct investment. The revenues from direct investment may include an indistinguishable part for the provision of various services, e.g. training of employees, management services and the use of patents and trademarks;

3.161Imports and exports of goods and services are distinguished into:

(a) intra-EU deliveries;

(b) imports and exports outside the EU.

Both types are referred to as imports and exports.

Exports and imports of goods (P.61 and P.71)

3.162Imports and exports of goods occur when economic ownership of goods changes between residents and non-residents. This applies irrespective of corresponding physical movements of goods across frontiers.

3.163For deliveries between affiliated enterprises (branch or subsidiary, or foreign affiliate): a change of economic ownership is imputed whenever goods are delivered between affiliated enterprises. This applies only when the establishment receiving the goods assumes responsibility for making the decisions about the levels of supply and prices at which their output is delivered for the market.

3.164Exports of goods occur without the goods crossing the country's frontier in the following examples:

(a) goods produced by resident units operating in international waters are sold directly to non-residents in foreign countries. Examples of such goods are oil, natural gas, fishery products, maritime's salvage;

(b) transportation equipment or other movable equipment not tied to a fixed location;

(c) goods after changing ownership, which are lost or destroyed before they have crossed the frontier of the exporting country;

(d) merchanting, i.e. the purchase of a good by a resident from a non-resident and the subsequent resale of the good to another non-resident, without the good entering the merchant's economy.

Analogous cases occur for the imports of goods.

3.165Imports and exports of goods include transactions between residents and non-residents in the following:

(a) non-monetary gold;

(b) silver bullion, diamonds and other precious metals and stones;

(d) electricity, gas and water;

(e) livestock driven across frontiers;

(f) parcel post;

(g) government exports including goods financed by grants and loans;

(h) goods transferred to or from the ownership of a buffer stock organisation;

(i) goods delivered by a resident enterprise to its non-resident affiliates, except for goods for processing;

(j) goods received by a resident enterprise from its non-resident affiliates, except for goods for processing;

(k) smuggled goods or products not reported for taxes like import duties and VAT;

(l) other unrecorded shipments, such as gifts and those of less than a stated minimum value.

3.166Imports and exports of goods exclude the following goods which nevertheless may cross the national frontier:

(a) goods in transit through a country;

(b) goods shipped to or from a country's own embassies, military bases or other enclaves inside the national frontiers of another country;

(c) transportation equipment and other movable kinds of equipment which leave a country temporarily, without any change of economic ownership, e.g. construction equipment for installation or construction purposes abroad;

(d) equipment and other goods which are sent abroad for processing, maintenance, servicing or repair; this applies also to goods processed to order abroad when a substantial physical change in the goods is involved;

(e) other goods which leave a country temporarily, being generally returned within a year in their original state and without change of economic ownership. Examples are goods sent abroad for exhibition and entertainment purposes, goods under an operating lease, including leases for several years and goods returned without being sold to a non-resident;

(f) goods on consignment lost or destroyed after crossing a frontier before change of ownership occurs.

3.167Imports and exports of goods are recorded when the ownership of the goods is transferred. A change of ownership is considered to occur at the time the parties to the transaction record it in their books or accounts. This may not coincide with the various stages of the contractual process, such as:

(a) the time of commitment (contract date);

(b) the time of provision of goods and services and acquisition of a claim for payment (transfer date);

3.168Imports and exports of goods are to be valued free on board at the border of the exporting country (FOB). This value is:

(a) the value of the goods at basic prices;

(b) plus the related transport and distributive services up to that point of the border, including the cost of loading on to a carrier for onward transportation;

(c) plus any taxes less subsidies on the goods exported; for intra-EU deliveries this includes VAT and other taxes on the goods paid in the exporting country.

In the supply and use and symmetric input-output tables, imports of goods for individual product groups are valued at the cost-insurance-freight (CIF) price at the border of the importing country.

3.169 Definition: the CIF price is the price of a good delivered at the frontier of the importing country, or the price of a service delivered to a resident, before the payment of any import duties or other taxes on imports or trade and transport margins within the country.

3.170Proxies or substitute measures for the FOB value may be necessary under certain circumstances, such as:

(a) barter of goods are valued at the basic prices that would have been received if the goods had been sold for cash;

(b) transactions between affiliated enterprises: as a rule, actual transfer values are used. However, if they differ from market prices, they are replaced by an estimated market price equivalent;

(c) goods transferred under a financial lease: the goods are valued on the basis of the purchasers' price paid by the lessor, and not by the cumulative value of the rental payments;

(d) imports of goods estimated on the basis of customs data (for extra-EU trade) or Intrastat-information (for intra-EU trade). Both data sources do not apply FOB valuation; they use respectively the CIF value at the EU border and CIF values at the national border. As FOB-values are only used at the most aggregate level and CIF-values are used at the product group level, these modifications are applied at the most aggregate level, and the modification is known as the CIF/FOB adjustment;

(e) imports and exports of goods estimated on the basis of survey information or various types of ad hoc information. In such instances, the total value of sales split out by product is obtained. The estimate is based on purchasers' prices and not on FOB values.

Exports and imports of services (P.62 and P.72)

3.171 Definition: exports of services consist of all services rendered by residents to non-residents.

3.172 Definition: imports of services consist of all services rendered by non-residents to residents.

3.173Exports of services include the following cases:

(a) transportation of exported goods after they have left the frontier of the exporting country when provided by a resident carrier (cases 2 and 3 in Table 3.3);

(b) transportation of imported goods by a resident carrier:
(1) up to the frontier of the exporting country when goods are valued FOB to offset the transportation value included in the FOB-value (case 3 in Table 3.4);
(2) up to the frontier of the importing country when goods are valued CIF to offset the transportation value included in the CIF-value (cases 3 and 2 CIF in Table 3.4);

(c) transportation of goods by residents on behalf of non-residents which does not involve imports or exports of the goods (e.g. the transport of goods that do not leave the country as exports or the transport of goods outside the domestic territory);

(d) passenger transportation on behalf of non-residents by resident carriers;

(e) processing and repair activities on behalf of non-residents; these activities are to be recorded net, i.e. as an export of services excluding the value of the goods processed or repaired;

(f) installation of equipment abroad when a project is of limited duration by its nature;

(g) financial services provided by residents to non-residents including both the explicit and implicit service charge, like FISIM;

(h) insurance services provided by residents to non-residents by the amount of the implicit service charge;

(i) expenditure by non-resident tourists and business travellers. The expenditure is classified as services; for the purposes of the supply and use and symmetric input-output tables, a breakdown by component products is necessary;

(j) expenditure by non-residents on health and education services provided by residents; this includes the provision of these services on the domestic territory as well as abroad;

(k) services of owner-occupied holidays homes of non-residents (see paragraph 3.77);

(l) royalties and license fees, receipts of which are associated with the authorised use of intellectual property rights, such as patents, copyrights, trademarks, industrial processes, franchises, etc., and with the use through licensing agreements of produced originals or prototypes, such as manuscripts, paintings, etc. paid by non-residents to residents.

3.174There is an equivalent import of service as a mirror image of the list of exports of services in paragraph 3.173, and only the following imports of services require further description.

3.175Imports of transport services include the following examples:

(a) transportation of exported goods up to the frontier of the exporting country when provided by a non-resident carrier to offset the transportation value included in the FOB-value of the exported goods (case 4 in Table 3.3);

(b) transportation of imported goods by a non-resident carrier:
(1) from the frontier of the exporting country as a separate transportation service when imported goods are valued FOB (cases 4 and 5 FOB in Table 3.4);
(2) from the frontier of the importing country as a separate transportation service when imported goods are valued CIF (in this case the value of the transportation service between the frontiers of the exporting and the importing country is already included in the CIF-value of the good; case 4 in Table 3.4);

(c) transportation of goods by non-residents on behalf of residents which does not involve imports or exports of goods (e.g. transport of goods in transit or transport outside the domestic territory);

(d) international or national passenger transportation on behalf of residents by non-resident carriers.

Imports of transport services do not include transportation of exported goods after they have left the frontier of the exporting country when provided by a non-resident carrier (cases 5 and 6 in Table 3.3). Exports of goods are valued FOB and all such transport services are thus to be regarded as transactions between non-residents, i.e. between a non-resident carrier and a non-resident importer. This applies when these transportation services are paid under export-CIF-contracts by the exporter.

3.176Imports in respect of direct purchases abroad by residents cover all purchases of goods and services made by residents while travelling abroad for business or personal purposes. Two categories must be distinguished because they require different treatment:

(a) all business related expenditure by business travellers are intermediate consumption;

(b) all other expenditure, whether by business travellers or other travellers, are household final consumption expenditure.

3.177Imports and exports of services are recorded at the time at which they are rendered. This time coincides with the time at which the services are produced. Imports of services are valued at purchasers' price and exports of services at basic prices.

Table 3.3 — The treatment of transportation of exported goods

Domestic territory	Territory in-between	Territory of importing country
1. resident carrierImage omitted; see official source	2. resident carrierImage omitted; see official source	3. resident carrierImage omitted; see official source
4. non-resident carrierImage omitted; see official source	5. non-resident carrierImage omitted; see official source	6. non-resident carrierImage omitted; see official source
	Exports of goods (FOB)	Exports of services
---	---	---
1.	x	—
2.	—	x
3.	—	x
4.	x	—
5.	—	—
6.	—	—

3.178Explanation of how to read this table: the first part of this table indicates that there are six possibilities of transportation of exported goods, depending on whether the carrier is resident or not and depending on where the transport takes place: from a place on the domestic territory to the national border, from the national border to the border of the importing country or from the border of the importing country to a place within the importing country. In the second part of this table, for each of these six possibilities, it is indicated whether the transportation costs are to be recorded as exports of goods, exports of services, imports of goods or imports of services.

Table 3.4 — The treatment of transportation of imported goods

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