1993 SNA Update Information - Goods sent abroad for processing |
| Issue description | | Issue description in [English] | [French] | [Russian] | [Spanish] | | The 1993 SNA and the Balance of Payments Manual treat the goods sent abroad for processing differently. The 1993 SNA only records gross flows in the case of substantial processing (reclassification of the good at three-digit CPC). The Balance of Payments Manual, as a practical matter, suggests a convention that all processing be assumed substantial and therefore
gross flows are recorded. Can a distinction be made between the different levels of processing? Further, the position is that when goods are sent abroad for processing, no change in ownership takes place and thus there are no actual transactions. It is mentioned that the current treatment of goods for processing in the 1993 SNA was to facilitate input-output analysis. Is this still a valid reason to record goods for processing on a gross basis or does the advent of globalization and the increasing amount of goods processed abroad suggest a change in practice would be appropriate? |
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| Corresponding papers (Click on icon to see document in either pdf or word format) | | AEG papers: | Posted on 8/15/2005 |  |  | Goods sent abroad for processing | | | Posted on 12/22/2004 | | | Goods for processing | | | | AEG summaries: | Posted on 9/30/2005 | | | Goods sent abroad for processing | | | Posted on 1/10/2005 | | | Goods sent abroad for processing |
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| Statistics | | Number of AEG recommendations: | 1 | | Number of country comments: | 44 | | Number of expert comments: | 1 |
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