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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?
Corresponding papers (Click on icon to see document in either pdf or word format)
AEG papers:Posted on 15/08/2005Click here to see pdf documentClick here to see word documentGoods sent abroad for processing
 Posted on 22/12/2004Click here to see pdf documentClick here to see word documentGoods for processing
 
AEG summaries:Posted on 30/09/2005Click here to see pdf documentClick here to see word documentGoods sent abroad for processing
 Posted on 10/01/2005Click here to see pdf documentClick here to see word documentGoods sent abroad for processing
Statistics
Number of AEG recommendations:1
Number of country comments:44
Number of expert comments:1
Corresponding AEG Meetings
The issue was discussed at the following meetings:
December 2004, July 2005
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