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International trade in goods - trade by enterprise characteristics (TEC) (ext_tec)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: Statistics Norway

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The main objective of the trade in goods statistics by enterprise characteristics (TEC) is to bridge two major statistical domains which have traditionally been compiled and used separately, business statistics and international trade in goods statistics (ITGS). Specifically, this new domain was created to answer questions such as:

  • What kind of businesses are behind the trade flows of goods?
  • What is the contribution of a particular activity sector to trade?
  • What is the share of small and medium-sized enterprises to total trade?
  • What is the share of enterprises that trade with a certain partner country and the amount of trade value they account for?

For this purpose, the trade in goods between countries is broken down by economic activity, size-class of enterprises, trade concentration, geographical diversification and products traded. The new information is used to carry out more sophisticated kinds of analysis, e.g. to evaluate the role of European companies in the context of globalisation or to assess the impact of international trade in goods on employment, production and value added, essential in a globalised world where economies are increasingly interconnected.

 

Available datasets

TEC data are grouped into ten datasets, each one focusing on a specific aspect. Mandatory datasets 1 to 6 are available for Norway:

1. Trade by activity sector and enterprise size class — Trade by activity sector and employment size class shows the contributions of economic activities and size classes (measured in terms of number of employees) to total trade. This allows the impact of international trade on employment to be analysed and the importance of small and medium-size enterprises (SMEs) to be estimated.

2. Concentration of trade by activity — International trade being typically dominated by a few businesses, this indicator shows the share of the total trade accounted for by the top 5, 10, 20, etc. companies.

3. Trade by partner country and activity — Trade by partner country shows how many companies were trading with certain partner countries or country zones, and the value they accounted for. This indicator enables the most typical export or import markets to be identified.

4. Trade by number of partner countries and activity — Trade by number of partner countries shows how geographically diversified the export markets are. For imports, it shows the number of countries from which goods are imported.

5. Trade by commodity and activity — Trade by commodity and activity sector allocates the trade of each commodity to the activity of the trading enterprise. This indicator shows which sectors were involved in the trading of each product group.

6. Trade by type of trader — This indicator provides information on how traders are involved in international trade. It shows the number of companies trading within only one flow or in both flows and the trade value these companies account for.

23 March 2021

Trade value

The value of traded goods is calculated at the national frontier, on a FOB basis (free on board) for exports and a CIF (cost, insurance, freight) basis for imports. Hence, only incidental expenses (freight, insurance) are included and they are incurred for:

  • exports in the part of the journey located on the territory of the country where the goods are exported from;
  • imports in the part of the journey located outside the territory of the country where the goods are imported to.

 

Number of enterprises

The number of enterprises consists of a count of the number of enterprises involved in trade during at least a part of the reference period. 

 

Partner country

Trade flows are broken down by partner country.

  • For exports it is the country of destination of the goods. That is the last country to which it is known that, at the time of export, the goods are to be delivered.
  • For imports, it is the country of origin of the goods.

 

Product

The product is the outcome of economic activity and the generic term used for goods and services.

Product classifications are designed to categorise goods and services that have common characteristics. They provide the basis for preparing statistics on the production, consumption, international trade and distributive trade. However, the scope of TEC is limited to the trade in goods.

 

Economic activity

The economic activity consists in offering goods and services on a given market. An activity is characterised by an input of products, a production process and an output of products. In other words, an economic activity is said to take place when resources such as equipment, labour, manufacturing techniques, information networks or products are combined, leading to the creation of specific goods or services.

Classifications of economic activities are designed to categorise data that can be related to the unit of activity. They provide the basis for preparing statistics of output, the various inputs to the production process, capital formation and the financial transactions of such units. Economic activities are classified according to NACE, the classification used to classify economic entities (enterprises, local units and similar statistical units). Within the international trade statistics, the NACE classification refers to the economic activity of traders, i.e. enterprises that are active in international trade.

 

Number of employees

The number of employees refers to the number of those persons who work for an employer and who have a contract of employment and receive compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind. A worker is considered to be a wage or salary earner of a particular unit if he receives a wage or salary from the unit regardless of where the work is done (in or outside the production unit).

The number of employees is a mandatory variable to be recorded in the business registers for each enterprise and local unit. According to the Business Register Regulation, the intention is to use the situation at the end of the year. However, as the end date approach is not harmonised the annual average can also be used as reference.

 

Type of traders

In the context of the TEC data, the type of trader specifies the type of trade activity of the enterprise. It indicates whether the enterprise is involved only in exports or only imports or trade in both flows.

The type of trader aims to describe the heterogeneity of enterprises according to their involvement in trade.

The statistical unit used should be the enterprise, but Statistics Norway has used the legal unit since this is what is feasible. In most circumstances the legal unit and the enterprise is the same.

The Business Register Regulation defines the link between the legal unit and the enterprise. The same regulation also establishes a link between the business registers and the registers of intra- and extra- EU trade operators through a common unit of reference, namely the legal unit. The enterprise is the statistical unit to be used, which means that trade data must be linked to characteristics available in the Business Register for the enterprise through the legal unit. In this way, trade data are connected with the characteristics of an enterprise and they can be reported in terms of the economic activity and number of employees of the whole enterprise concerned.

The statistical population should comprise all the enterprises involved in trade flows. However, in practice, the linkage between the Trade Register and the Business Register is not systematically straightforward as there may be more complicated links or the linkage may not always provide expected outcomes. This relates in particular to the following cases:

  • Intra-annual business demography changes;
  • Large and complex businesses;
  • Incomplete business register data; and
  • VAT-groups.

 

The reference population used in the compilation of TEC datasets relates to traders who have reported trade transactions under a valid ID number and were successfully matched with the Business Register. This means that the enterprise characteristics reported in the TEC datasets refer only to a part of total trade.  The following data are excluded:

  • Some Norwegian trade data lack an enterprise number. Most notably this concern crude oil and natural gas exports from the Norwegian continental shelf. These data are excluded from the TEC compilation. Otherwise no adjustments are done.
  • Trade carried out by non-resident traders and private individuals, as such traders cannot be associated to an enterprise via the national Business Register; are excluded from TEC.

Norway

The reference period is the same as for monthly trade in goods statistics. It should be the calendar month of export respectively that of import of the goods. However, in practice the reference period is in general the calendar month during which the customs declaration is accepted by the national authorities.

See item 13.1 ‘Accuracy - overall’ of the related metadata ‘ext_tec_sims - International trade in goods – trade by enterprise characteristics (TEC)’.

  • Trade value in thousands of euros
  • Number of enterprises

Data are compiled using different programs.

Data has been compiled from External Trade Data (administrative data), the Business Register (administrative data) and inbound and outbound Foreign Affiliated Trade Statistics.

Trade in goods data are collected on the basis of:

  • Trade data are mainly collected from administrative forms in the form of customs declarations.
  • In addition to that data are collected directly from public administration or enterprises. This applies to exports of electric current, oil, natural gas and fish. Norway also have a survey for imports and exports of ships.

The national business registers serve as the sources for the enterprise characteristics. No samples are drawn from the registers, but the full registers are processed. Some differences in the coverage among the countries can occur. Different administrative sources depending on national law, as well as surveys, are used to update the business registers, and in some countries VAT thresholds for registration apply.

No tables are currently disseminated. Historical data are exceptionally revised.

See item 14.1 ‘Timeliness’ of the related metadata ‘ext_tec_sims - International trade in goods – trade by enterprise characteristics (TEC)’.

See item 15.1 ‘Comparability - geographical’ of the related metadata ‘ext_tec_sims - International trade in goods – trade by enterprise characteristics (TEC)’.

Figures have good comparability over time at an aggregate level. At the most detailed level some volatility must be expected.