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21.1.        Introduction. The present chapter elaborates the concept of trade transactions between related parties as set out in paragraph 1.22 of IMTS 2010, and discusses the importance of identifying these transactions. The means of identifying trade between related parties are discussed and a country example is provided. This chapter is related to the chapter XX on goods for processing, as goods are frequently sent to another country for processing at affiliates or branches belonging to the same enterprise. 

21.2.        Recommendation on separately identifying trade between related parties. As trade between related parties is an important dimension of international trade, there is a need to obtain more information on this kind of trade. While trade between related parties has always been included within the scope of IMTS, and in this sense is not different from trade between unrelated parties, IMTS 2010 encourages countries to separately identify (code) such transactions and the types of the relationships in order to be able to review their valuation and to provide more detailed information on this transactions to users. It is acknowledged, however, that depending on their specific data needs and overall compilation strategies, rather than identify such goods in their regular trade data compilations, countries may find it more appropriate to estimate their share in imports and exports by conducting periodic surveys of companies that have foreign affiliates or are affiliates of the foreign companies.[1] Countries should describe their practices in this respect in their metadata to ensure proper use of their statistics and to assist in international comparisons.

 


[1] Some countries view it as more appropriate to estimate the share of intra-firm trade by surveys conducted every two or three years than to collect that information in the frame of regular foreign trade statistics, in particular as this information may not be needed on a monthly basis.