5489.0 - International Merchandise Trade, Australia: Concepts, Sources and Methods, 2015  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 11/11/2015   
   Page tools: Print Print Page Print all pages in this productPrint All

GOODS INCLUDED IN AUSTRALIA'S INTERNATIONAL MERCHANDISE TRADE STATISTICS

2.10 Paragraphs 2.11-2.40 describe the goods included in Australia's international merchandise trade statistics. Any limitations associated with the inclusion of the goods is also explained. Goods excluded from Australia's statistics are described in the section titled Goods Excluded from Australia's International Merchandise Trade Statistics.

2.11 Non-monetary gold. Non-monetary gold refers to gold that is traded like any other commodity. It includes unrefined gold, gold powder, semi-processed, other unwrought or semi-manufactured gold, coins, bullion and bars. Such gold might be for industrial use, jewellery making, or use as a store of value. These are regarded as commodities, rather than financial assets, as they principally derive their worth from either their gold content or their value as collectors pieces.

2.12 Banknotes, securities and coins, unissued or not in circulation. These are regarded as commodities rather than financial assets and are valued at their production cost, not face value. Banknotes are classified to the HS heading number 4907 while coins are classified to heading number 7118 (unless presented as coin collections, or as separate pieces clearly intended for a particular collection, when they are classified to heading number 9705). The ABS investigates significant export and import declarations to determine the nature of the transaction, that is, financial or trade in goods. Any financial transactions are removed.

2.13 Goods traded in accordance with barter agreements. The exchange of goods under barter agreements involves payment in kind rather than through a financial transaction. These goods are included when the DIBP determines that the value is in excess of the customs value threshold.

2.14 Goods traded on government accounts. These include government purchases and sales of civilian and military use goods which cross Australia's customs frontier. Goods supplied under foreign aid programs (including goods permanently traded under grants, loans, barter or transfer arrangements). War reparations are also included.

2.15 Humanitarian aid, including emergency aid. Articles of food, clothing, medicine and other goods entering or leaving Australia under aid programs or as emergency assistance, whether provided by governments, international organisations or non-government organisations are included.

2.16 Goods for military use. Military goods that cross the customs frontier are included in Australia's international merchandise trade statistics, unless they are used by the Australian Defence Force overseas, or are excluded under an inter-governmental agreement.

2.17 Goods acquired by travellers, including non-resident workers and international students. These goods are included when the amounts or values of such goods exceed the customs value thresholds or other legal requirements as defined by Australian law for reporting to the DIBP. Most of the goods purchased by Australians travelling overseas or non-resident travellers in Australia fall below the customs value thresholds. These are recorded as travel services (credits and debits respectively) in the balance of payments but they are not included in international merchandise trade statistics.

2.18 Goods on consignment. These are goods, such as diamonds, pearls, artworks, exported or imported for sale by an agent. Although title for the goods is held by the consignor until the goods are actually sold, it is expected that consigned goods will be sold, rather than returned after export or import.

  • Customs declarations are required for goods on consignment. The way these goods are reported to DIBP and their treatment in international merchandise trade depends on the owner's or their agent's (generally a customs broker acting on behalf of the actual importer) understanding of the concepts of international merchandise or non-merchandise trade and their confidence of a sale occurring. Where the transaction has a value in excess of the edit value thresholds applied by the ABS it will be checked by an ABS editor to determine the most accurate classification (i.e. merchandise or non-merchandise trade).
  • If the goods are subsequently returned after initially being included in merchandise trade, the treatment upon return will be either:
    • to include the goods as a merchandise trade (effectively balancing the initial treatment). This treatment reflects the difficulty matching the returned goods with the initial transaction if part of the consignment is sold (and the quantities and values are different), (see paragraph 2.22 below).
    • to include the goods as non-merchandise trade and revise the initial export/import to non-merchandise trade. While this treatment is more accurate it is often difficult to apply in practice as the initial transaction may be outside the revision period (see paragraph 10.16 in Dissemination Policies and Practices) or cannot be identified.

2.19 Media whether or not recorded. CDs, DVDs and other media with software, video or audio recordings developed for general use (not customised) are included in Australia's international merchandise trade statistics at their full transaction value. Media containing original recordings, customised software (software created for a specific client), or data with fixed-period use licences are excluded as these are treated as services in the balance of payments (defined in paragraph 2.34 below, paragraphs 2.49 and 2.55 in Goods Excluded from Australia's International Merchandise Trade Statistics and paragraphs 2.71-2.72 in Special Cases and their Treatment).

2.20 Goods for processing with or without a change of ownership. Goods for processing enter or leave a country to undergo specific operations or manufacturing.
  • In Australia, some goods for processing are identified:
    • at the time of importation as goods for processing by ABS editors who allocate treatment code 721 to indicate that the goods are being imported to undergo processing. At the time of exportation the owner or their agent may use Australian Harmonized Export Commodity Classification (AHECC) 98050000 (goods re-exported from Australia after industrial processing).
    • at the time of exportation when the exporter or their agent uses AHECC 98060000 (goods exported from Australia which are to be re-imported after industrial processing). However, these goods will not be separately identifiable from all other re-imports at the time of re-importation.
  • ABS editors attempt to identify large value transactions of goods for processing where there is no change of ownership. These goods are included in international merchandise trade statistics at their full value but they are excluded from goods in the balance of payments. The manufacturing service fee, however, is included in international trade in services.

2.21 Goods which cross borders as a result of transactions between related parties (e.g. parent corporations and their direct investment enterprises (affiliates/branches)). These include capital equipment and other goods provided by foreign multinational companies to their Australian subsidiaries or Australian companies to their foreign subsidiaries.

2.22 Returned goods. If previously exported Australian produced merchandise is subsequently returned to Australia, the inward transaction should be recorded as a merchandise re-import (see paragraph 3.4 in Trade System) at the time the good is returned. Similarly, where merchandise previously treated as imported into Australia is subsequently returned overseas, the outward transaction should be recorded as a merchandise re-export, (see paragraph 3.5 in Trade System). Where identifiable the value of the returned goods is the same as the initial transactions value. This treatment maintains the equilibrium between the incoming and outgoing transaction, albeit increasing the overall volume of both merchandise exports and imports.

2.23 Electricity, gas, oil and water. Australia does not export or import electricity, but has exports of gas, oil and water. Australia's valuation of these goods is the net of any delivery charges.

2.24 Goods dispatched or received through postal or courier services. These are included if the value of the goods being traded exceeds the customs value threshold.

2.25 Migrants' effects - imports. Migrants to Australia are required to lodge an import declaration or Self Assessed Clearance (SAC) for the following goods:
  • cars, motorcycles, or other vehicles
  • parts for cars, motorcycles or other vehicles
  • goods which are intended for sale
  • goods purchased from overseas after the migrant has arrived in Australia
  • goods which were bequeathed to the migrant.

2.26 Where an import declaration is completed and the value of goods exceeds the customs value threshold the goods are included in Australia's international merchandise trade statistics. Migrants' effects are excluded from goods in the balance of payments as there is no change of ownership between a resident and a non-resident. DIBP do not require export declarations for personal or household effects of passengers (including emigrants) meaning these goods are not included in international merchandise exports.

2.27 Goods transferred from or to a buffer stock organisation. These organisations try to influence the supply, demand and price of certain commodities by maintaining a large stock. Where these organisations or schemes operate and goods are imported to, or exported from, Australia the goods are included in Australia's international merchandise trade statistics. A buffer stock scheme was operated by the Australian Wool Corporation during the 1970s and 1980s.

2.28 Goods under financial lease. Goods are considered to be under financial lease if the lessee assumes the rights, risks, rewards and responsibilities in relation to the goods, and from an economic point of view can be considered the de facto owner. Goods entering, or departing from, Australia under financial lease are included in Australia's international merchandise trade statistics (see paragraphs 2.85-2.86 in Special Cases and their Treatment).

2.29 Ships and aircraft. These are included if there is a change of economic ownership between an Australian resident and a non-resident and the ship or aircraft enters or leaves Australia's territory. Ships and aircraft remaining in international waters or used in international flights are excluded (defined in Goods Excluded from Australia's International Merchandise Trade Statistics (paragraph 2.51 and paragraph 2.58), and Special Cases and their Treatment (paragraph 2.68-2.70)).

2.30 Goods delivered to, or dispatched from, offshore installations located in Australia's territory (from, or to, the territory of another country). For example, Australia's oil exports from the North West Shelf are generally exported directly from the offshore facility. Export declarations are lodged electronically or at the nearest DIBP office and the goods are included in Australia's international merchandise trade statistics.

2.31 Fish catch, minerals from the seabed and salvage. These goods are included if they enter or leave Australia's territory and the value exceeds the customs value threshold.

2.32 Bunkers, stores, ballast and dunnage. When supplied to foreign vessels or aircraft in Australia these goods are included. The value of bunkers is estimated as export declarations are not required for these goods. Imports declarations including the value of fuel on foreign vessels are included in imports.

2.33 Satellites and their launchers. These are only included when there is a change of ownership between an Australian resident and a non-resident, the goods enter or leave Australia's territory and DIBP receives an export or import declaration.

2.34 Goods in electronic commerce. These are goods which are ordered and paid for electronically and physically enter or leave Australia's territory. The goods are included when their value exceeds the customs value threshold requiring a full declaration. Packaged software, e-books and other products bought and received electronically are excluded (defined in Goods Excluded from Australia's International Merchandise Trade Statistics (paragraph 2.55), and Special Cases and their Treatment (paragraph 2.71-2.72)).

2.35 Gifts and donations. Included are gifts and donations with values exceeding the customs value threshold. Financial donations are excluded.

2.36 Power lines, pipelines and undersea cables. These goods are included in Australia's international merchandise trade statistics when they are dispatched from Australia for installation in another country (export) or dispatched from another country for installation in Australia (import). Where the goods are to be installed in international waters they are included in international merchandise trade only if there is a change of ownership between an Australian resident and a non-resident. Temporary imports and exports of equipment for the installation of the pipelines or cable are excluded.

2.37 Prior to June 2014, pipelines and undersea cables which were installed in international waters were included whether or not there was a change of ownership between an Australian resident and a non-resident. This treatment was determined before guidance was provided in the international standards for compiling merchandise trade statistics (i.e. no guidance was provided in the IMTS 2010, Rev. 2). The following points explain the past treatment.
  • Exports of undersea cable laid en route between two countries were attributed to the 'country' receiving the predominant share of the cable or 'International Waters' when the majority of the cable was laid there. For example, an undersea cable laid between Australia and the USA would have been assigned to 'International Waters', as the majority of the cable would be laid outside the territories of all countries along the route (and the change of ownership principle was not applied). No re-allocation was made for the small portion of the cable laid in either Australia's or the USA's territory.
  • The pipeline between the JPDA and the Northern Territory is the only pipeline which is at least partially installed outside Australia's customs territory. Components for this pipeline that arrived in Australia were included in import statistics. Components that were despatched from Australia for installation outside Australia's customs territory were included in export statistics.
  • Temporary imports and exports of equipment for the installation of the pipelines or cable were excluded.

2.38 Used goods. These include industrial equipment, cars, computer equipment and goods entering or leaving Australia under commercial recycling arrangements.

2.39 Waste and scrap. Metal or other materials to be recycled or otherwise disposed of are included if they have a positive value and are not temporary trade.

2.40 Goods received or sent abroad by international organisations. These goods are included in Australia's international merchandise trade statistics when a customs declaration is lodged.