Ships and aircraft – The economic ownership principle –

status on implementation Nordic meeting on Trade in Goods and Services/BoP 2014

Tórshavn, Faroe Islands, 16-18 September 2014Søren Rich, Senior Adviser, Statistics Denmark

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In general satisfied with the outcome Very important that business accounts standards IAS17 was

adopted as a tool/method No Holy Grail found: the perfect data source was not identified Use of commercial databases like IHS Fairplay was

fortunately not adopted as main data source… … and recommendations from Task Force ‘Trade in Ships and

Aircraft’ allow for the necessary freedom of collection methods.

Good cooperation with Iceland about finding a joint position on the issue and getting influence on the outcome of Task Force ‘Trade in Ships and Aircraft’

Outcome of Eurostat discussions 2010-2013 –Danish view

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Gradual implementation of economic ownership in External Trade in Goods Statistics: Ships: Bareboat leasing included since 2010 Aircraft: Activities of Danish leasing companies included

since 2011 Ships: Flagging in/out currently under investigations

Point of departure: Ships under foreign flag should not be included… … but a confirmation is needed.

Full implementation of economic ownership is expected to take place with the finalisation of statistics for 2012 next year.

Danish implementation of economic ownership principles so far

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Close dialogue and exchange of experience on how to implement economic ownership concept within ships and aircraft

Exchange of (micro) data on identified transactions can facilitate the implementation of economic ownership and improve the quality

Sweden, Norway and Denmark could intensify the cooperation on how to record the transactions by Scandinavian Airlines

Potential for Nordic cooperation

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According to EU Commissions proposal for new legislation for business statistics (FRIBS) the following will happen to economic ownership principle: Ships and aircraft: the principle is kept in FRIBS Spacecraft: the principle is kept in FRIBS Goods delivered to ships and aircraft: replaced by the flag nation of the ship/aircraft

Sea products: replaced by the flag nation of the ship landing the products.

The future of economic ownership in External Trade in Goods

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Thanks for your attention!

Questions, comments?

Søren Rich, sri@dst.dk

The end