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NSCB Resolution No. 8
Series of 2005

APPROVING THE INTERIM METHODOLOGY FOR THE
REVISION OF ELECTRONICS IMPORT STATISTICS

WHEREAS, in the January 7, 2002 meeting of the NSCB Executive Board, the Bangko Sentral ng Pilipinas (BSP) raised the issue on the need to revise trade statistics, particularly, imports, based on the findings of an ad hoc group it created, which was composed of the BSP, National Economic and Development Authority (NEDA), National Statistical Coordination Board (NSCB), and the National Statistics Office (NSO), that there was understatement of import data;

WHEREAS, in response, the Board asked the BSP, NEDA, NSCB, and NSO, being the key players on import statistics, to submit a joint report for discussion/resolution in a special meeting of the Board in February 2002:

WHEREAS, the BSP created the Task Force on Import Statistics (TFIS) composed of BSP, NSO, NEDA, NSCB, Bureau of Customs (BOC), and Philippine Economic Zone Authority (PEZA), to further study the issue;

WHEREAS, in the February 22, 2002 special meeting of the Board, the TFIS reported that based on the review of trade statistics, focusing on consigned imports and exports, and based on consultation with major electronic firms, there was indeed an understatement of imports, and recommended that a revision of the historical data from 1996 be done to account for the underestimation, and to reflect the results in the balance of payments and external accounts to proper perspective;

WHEREAS, the Board approved the recommendations and directed the NSO to revise imports data for the years 1996-2001, and tasked the TFIS to look into the bilateral trade data of other countries;

WHEREAS, in the November 6, 2002 meeting of the Board, the TFIS reported that a Survey of Imported Raw Materials would be jointly conducted by the NSO and BSP on an annual basis for the years 1997 to 2001 and on a monthly basis for 2002, the results of which will be used in the revision of import statistics;

WHEREAS, on January 15, 2003, the Board approved the methodology for the revision of imports data as well as the revised figures for 2000 and 2001 based on the results of the Survey of Imported Raw Materials among the top 15 electronic companies, representing 90% and 75% of the electronic industry for the years 2000 and 2001, respectively;

WHEREAS, based on the approved methodology and responses of 10 sample companies in a subsequent survey, the NSO computed and released the revised import data for 2002 together with the import revisions for 2000-2001 by month;

WHEREAS, on March 5, 2004, the TFIS submitted its recommendations to the Board, which included the creation of the Inter-Agency Committee (IAC) on Trade Statistics to carry on the work of the TFIS and other activities that are beyond the TFIS’ terms of reference;

WHEREAS, the Board approved the TFIS recommendations, and specifically tasked the IAC on Trade Statistics (IACTrS) to: (1) do further work towards the review of the present definition and valuation of exports; (2) ensure strict implementation on the filling out of BOC-PEZA administrative forms; (3) coordinate with electronic companies; and (4) undertake periodic assessment of the reporting and monitoring system with the BOC and PEZA;

WHEREAS, based on a succeeding evaluation by the IAC-TrS, the Survey on Imported Raw Materials was found to have only partially addressed the understatement of imports data and the derived parameters could not be used in correcting subsequent reports;

WHEREAS, the IAC-TrS deemed that the above Survey was not sustainable due to budget constraints and respondent’s burden, and proposed an alternative, interim methodology to estimate the true measure of imports of consigned electronics using the material value compiled from the Export Declarations (ED) instead of the f.o.b. import figures from the Import Entry and Internal Revenue Declaration (IERD) of consigned electronic exports;

WHEREAS, the proposed interim methodology, being dependent on the information derived from the Export Declaration and the Automated Exports Declaration System (AEDS) of the Bureau of Customs (BOC), calls for the mandatory filling out of the material value contents of exports (Box 44 of the AEDS form) by the concerned companies;

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that the Board approve the interim methodology (Annex BR-08-2005-01), for use in the revision of electronics import statistics until such time that an improved and more viable valuation methodology has been developed.

BE IT RESOLVED FURTHER that the NSO and BOC ensure strict compliance of the mandatory filling out of Box 44 of the AEDS form by the concerned companies.

Approved this 18th day of May 2005, in Pasig City.

Attested by:

 

ROMULO A. VIROLA
Secretary General