The differences between International trade in goods (change of ownership) and cross border movements of goods:

There are two main approaches to record commodity transactions in international trade. The first one former is based on the principle of movement of goods across the borders, which corresponds to traditional foreign trade statistics. Export from the Czech Republic (CR) according to this approach is understood as physical crossing of goods across Czech borders abroad. Import is reversely the moment when the goods cross the border of the Czech Republic from abroad. To the value of export and import are therefore added also non-resident´s transactions carried out on the Czech territory, in contrary to international trade in goods (change of ownership), which is another approach (for more information see International trade in goods (change of ownership) - methodology). The former records exclusively the physical movement of goods across the border no matter if there trade occurs between Czech and foreign trader. Economic subjects often need information about real movement of goods across the border of specific country, thus about the overall import and export regardless of the ownership change. The data obtained by approach described above are internationally comparable and might be employed as the trade value development indicator.

By contrast the latter concept is based on the change of ownership of goods and therefore is consistent with standards on Balance of Payments and National Accounts. The movement of goods across borders used to be sufficient approximation for the change of ownership before CR joined the European Union (EU) however globalization in trade led to separation of these concepts. Hence the variety of transactions was also extended, because crossing the borders is not necessarily followed by the change of ownership. International trade in goods builds appropriate bases for country´s Balance of Payment compilation since it records international trade according to the financial flows. Moreover it corresponds well to the concept of Czech National Bank´s Balance of Payment.

There exist several reasons for implementation of both statistics mentioned above. Especially Czech joining the EU followed by liberalization of intra-EU trade for the Czech Republic allowed that goods could remain under the ownership of foreign importer or exporter, thus in the ownership of non-resident, after crossing Czech borders (more information International trade in goods (change of ownership) - methodology).

Cross border movements of goods

1. Definitions

After the accession of the Czech Republic (CR) to the European Union (EU), cross border movements of goods of the CR is the total of intra-Union trade (trade with EU Member States) and trade with non-EU countries.
Statistics on cross border movements of goods are based on two systems: on data collection through the system Intrastat, which records movement of goods within the EU (intra-Union imports and intra-Union exports), and on using some data from Single Administrative Document (SAD) for Extrastat, which measures trade with non-EU states (extra-Union imports and extra-Union exports).

Exports
Exports are value of goods that were exported abroad and crossed the state border for the purpose of being left abroad, permanently or temporarily. Total exports consist of exports to EU Member States and exports to non-EU countries.

Imports
Imports are value of goods that were imported from abroad and crossed the state border for the purpose of being left in the Czech Republic, permanently or temporarily. Total imports consist of imports from EU Member States and imports from non-EU countries.

2. Legislative framework

In terms of legislation, statistics on cross border movements of goods are governed in particular by the following legal regulations of the European Communities, as amended:

- Regulation (EU) 2152/2019 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics

- Commission Implementing Regulation (EU) 1197/2020 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics

- Commission Implementing Regulation (EU) 1470/2020 of 12 October 2020 on the nomenclature of countries and territories for the European stastistics on international trade in goods and on the geographical breakdown for other business statistics

- Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code

- Regulation (EC) No 450/2008 of the European Parliament and of the Council of 23 April 2008 laying down the Community Customs Code (Modernized Customs Code)

- Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff

- Information from the Commission No 915/1998 – Explanatory Notes to the Combined Nomenclature of the European Communities

- Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

Further, surveys on cross border movements of goods of the CR are governed by the following national legislation:

- Act No 242/2016 Coll.,  the Customs Act, as amended

- Act No 17/2012 Coll., on the Customs Administration of the Czech Republic, as amended

- Decree No 328/2020 Coll., on the territorial departments of customs offices which are not in their settlements

- Government Regulation No 333/2021 Coll., from 23 August 2021 on the implementation of certain provisions of the Customs Act in the scope of statistics

- Decree No 245/2016 Coll., implementing certain provisions of the Customs Act, as amended

- Communication of the Czech Statistical Office No 497/2021 Coll., on the list of goods not intended for simplified reporting

- Communication of the Czech Statistical Office No 498/2021 Coll., on the List of selected goods and supplementary statistical sign, effective from 1 January 2022.

- Act No 235/2004 Coll., on Value Added Tax, as amended

- Act No 90/2012 Coll., the Business Corporation Act, as amended

- Act No 563/1991 Coll., the Accounting Act, as amended

- Act No 280/2009 Coll., Tax Code, as amended

3. International comparability

Among the decisive changes that unify the methodology of statistics on cross border movements of goods of the CR step by step with the practice used in the Member States of the European Union are in particular:
- Implementation of the Single Administrative Document
- Implementation of the Combined Nomenclature
- Implementation of Intrastat–statistical system that measures movement of goods between Member States of the European Union

4. Scope of data

Trading system

Intrastat:
The system of statistics on intra-Union trade called Intrastat monitors particularly movement of Union goods between Member States of the European Union. In accordance with the provision of Article 4 Council Regulation (EEC) No 2913/92 (the Community Customs Code), Union goods are goods that are fully gained or produced on the EU territory, goods released for free circulation by states and territories outside the customs territory and goods produced from such goods. Under specific conditions, Intrastat monitors also movements between Member States of goods under the customs procedure of inward processing or processing under customs supervision, but these cases are rare. Intrastat includes data on goods irrespective of their origin and trading country.

Extrastat:
The system of statistics on cross border movements of goods with non-EU states called Extrastat is based on collecting data from customs declarations (Single Administrative Documents - SADs). Extrastat does not include data on goods put in a free customs zone or a free customs warehouse released for the customs procedures of storage in a customs warehouse and temporary use; neither included are data on goods re-exported immediately after one of these customs approved destinations. Data on goods in transit customs procedure are not recorded in Extrastat either.

Transactions included in statistics

Statistics on cross border movements of goods include especially data on all trade transactions against payment irrespective of their manner, including barter and free trade and also e.g. trade carried out at the government account. Included is also trade between linked enterprises (for example enterprises in common ownership), data on goods intended for uncertain sale (e.g. on goods in consignment, distribution and similar warehouses), data on goods intended for processing as per contract and for the purpose of inward processing and on goods returned after these transactions. Statistics on cross border movements of goods also include data on goods intended for financial leasing.

Transactions not included in statistics

Statistics on cross border movements of goods do not include data on goods in transit procedure and goods in simplified circulation between the Member States, data on goods temporarily transported to/from the Czech Republic for repair or maintenance and returned after repair or maintenance (since 1 January 2005 they are included in statistics of international trade in services). Further, Statistics on cross border movements of goods do not include data on goods in the customs procedure of temporary use (goods for trade fairs, exhibitions, tests, etc.); goods released for free circulation after inward processing procedure or after processing procedure under customs supervision. They also do not cover illegal trade, operational leasing and other temporary import and export of goods not connected with a change of their owner for a period not exceeding two years, and also data on the following items crossing the border: monetary gold, means of payment that are legal tender and securities, goods subject to diplomatic or similar immunity, goods as emergency relief for areas hit by natural disasters, and other goods excluded from statistics on cross border movements of goods on the basis of Commission Regulation (EU) No 1197/2020.

Further, Intrastat does not include individual trade transactions carried out by persons not registered as VAT payers. Duty to report to Intrastat does not apply to reporting units below the threshold of CZK 12 million a year both for intra-Union exports and intra-Union imports, but their trade is included in statistics through mathematical and statistical imputation (see point 6).

From 1 January 2022, reporting units may submit the Simplified Report if they exceed the threshold of CZK 12 million and at the same time do not exceed the value of CZK 20 million and do not trade in goods listed in the Communication of the CZSO No 497/2021 Coll., on the list of goods not intended for simplified reporting.
The exhaustive definition is set out in legal regulations on statistics on cross border movements of goods (see point 2).

5. Classifications

Data on external trade of the CR are produced and published in the following breakdowns:
a) According to commodity classifications - Combined Nomenclature, Harmonised System, Standard International Trade Classification (SITC), Rev. 4, Classification of Products by Activity (CZ-CPA)
b) According to Geonomenclature (nomenclature of countries with 2-character alphabetical codes)

6. Data sources and data processing

Intrastat:
The source of data on intra-Union exports and intra-Union imports of goods are Intrastat declarations whose collection and first check are carried out by the Customs Administration of the Czech Republic, while the Czech Statistical Office (CZSO) is in charge of further processing, checks and subsequent publication.

Data processing also includes mathematical and statistical imputation, which compensates for a loss of information due to non-response and statistical thresholds. Based on testing, the month-on-month index method combined with the year-on-year index method was chosen for non-response imputation. Imputed in this way are data on companies that failed to report, and data on their trade in preceding periods are used to this end. When imputing values of trade carried out by enterprises below the threshold, data from the VAT returns, which are also indexed, provide the basis.

For the purpose of publishing more accurate data on imports of natural gas into the Czech Republic and using the possibility of requiring data from other sources according to the Annex V., section 26, paragraph 4 Commission Implementing Regulation (EU) 1197/2020 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics, the Czech Statistical Office uses the data from the Department of Industry, constructions and energetics which are obtained directly from the gas grid operator of the Czech gas system from 9 March 2017 (i. e. from the publishing the data on external trade statistics for the whole year 2016).

Extrastat:
The source of data on extra-Union exports and extra-Union imports is information from Single Administrative Documents (SADs). Data collection and first check are carried out by the Customs Administration, while the CZSO is responsible for further processing, checks and subsequent publication.

Data collection is always completed on the 20th working day and data on total external trade are published on the 37th calendar day after the end of the reference month. The marked reference period is decisive for Intrastat declarations to be included in the data processing. Data from SADs get in the processing according to the date of their receipt.  Starting with the release of the February 2020 data (6 April 2020), the way in which the foreign trade in goods data are refined has changed. When the data of the reference period (t) are published, the six preceding months are always also refined. Preliminary data for the full year (t-1) are published with the publication of the year (t) data for January (published in March of year t). All months of year (t-1) will be refined with the publication of year (t) data for March (published in May of year t). The final outputs for all months of year (t-1) are always published with the publication of the data for July of year (t), i.e. always in September of year (t).

7. Value of exports and imports

Statistical value

Intra-Union exports and extra-Union exports:
Invoiced value of goods provides the basis for the statistical value of goods intra-Union exported and extra-Union exported. Direct trading costs (particularly freight and insurance) incurred in connection with transport of goods intra-Union exported and extra-Union exported within the territory of the CR are part of the statistical value, irrespective whether they are paid by the buyer or seller. Not included in the statistical value are bank charges and compensation connected with intra-Union exports and extra-Union exports of goods and export-related levies and taxes.

Intra-Union imports and extra-Union imports:
Invoiced value of goods provides the basis for the statistical value of goods intra-Union imported and extra-Union imported. Only direct trading costs connected with transport of goods intra-Union imported and extra-Union imported outside the territory of the CR are part of the statistical value, irrespective whether they are paid by the buyer or seller. Not included in the statistical value is bank compensation connected with intra-Union imports and extra-Union imports of goods and import-related levies and taxes.

Conversion of foreign currency value to national currency value

External trade is measured in the national currency. For conversion of foreign currency into Czech crowns the exchange rate, valid for the person carrying out the conversion, the date on which the obligation to pay VAT, or the date of importing or exporting of goods is used.

Publication of foreign currency data

External trade data published in foreign currency (EUR, USD) are converted from values in Czech korunas, using the average monthly exchange rate announced by the Czech National Bank.