BPM6—Update on Revision and Implementation

Strategies

Meeting of the Working Party on International Trade in Goods and Trade

in Services Statistics

September 22-24, 2008

Major changes: Goods and services

Among the most notable changes regarding goods and services are:

Fees for processing goods to be included in services Major processing In BPM5, a change of ownership of goods was imputed Gross transactions to be recorded as supplementary items

Merchanting transactions to be treated as trade in goods for the economy of the merchant

Purchases—negative exports Re-sales—exports Transactions are standard components

Major changes: Goods and

services High value goods acquired by travelers to

be recorded as merchandise rather than under travel services (previously could be double-counted)

Repairs on goods to be classified as services, not goods.

The sales of research and development such as patents and copyrights, are treated as produced assets and included in services; previously in the capital account as non-produced assets.

Major changes: Goods and services

Financial intermediation services indirectly measured (FISIM) to be recorded as a service Margin between interest payable or receivable

and the reference rate on loans and deposits Pure interest included in primary income

Insurance services to be calculated taking account of the volatility of claims. Also, premium supplements taken account in

estimating services

Major changes: Goods and services

Charges for use of intellectual property, n.i.e.

Use of intellectual property

Sale/purchase of ownership rights

Franchises and trademarks Charges for the use of intellectual property

capital account entry

Outcomes of research and development

Charges for the use of intellectual property

research and development

services

Computer, audiovisual, and related services:

License to use excluding

reproduction and distribution

License to reproduce and/or

distribute

(a) Customized all types relevant service

item

(b) Noncustomized—downloaded or otherwise electronically delivered

relevant service item

(c) Noncustomized—provided on physical media with periodic license fee

relevant service item

relevant service item*4

(d) Noncustomized—provided on physical media with right to perpetual use

goods

charges for the use of intellectual property n.i.e.

Way Ahead

A revised version will be prepared for BOPCOM’s agreement in November 2008, and then posted, subject to final editing, by end 2008.

Hardcopy publications expected during 2009

Conversion of Balance of Payments Statistics Yearbook (BOPSY) and International Financial Statistics (IFS)

As for BPM5, the intention is to convert the BOP data in both publications at the same time

BOPCOM provisionally agreed on 2012/2013 as the range of possible dates for BOPSY conversion

A firm date to be set at 2008 BOPCOM meeting

A central element of the conversion to BPM5 was the conversion tables

IMF staff have prepared a conversion table, mapping the BPM5 to the BPM6 presentation for use by member economies

Update of written material

IMF staff to update the Compilation Guide and the Textbook to be in line with BPM6

The update of the Compilation Guide to be undertaken during 2009-2010

The update of the Textbook, comprising a further elaboration of concepts and examples of particular types of transactions, is a longer-term project:

Work could start on the Textbook once a final version of the Guide is posted on the website

The External Debt Statistics Guide, the Guidelines for a Data Template (Guidelines), and the Manual on Statistics of International Trade in Services to be brought in line with BPM6

Other strategies The Fund intends to send a questionnaire to

member countries in the course of 2009 on country implementation—similar to that undertaken in 1994—regarding

action plans and specific implementation strategies

issues especially difficult to implement topics for further assistance

Such an exercise would be reported to the BOPCOM, and possible support strategies could be proposed

BOPCOM strongly supported this proposal

Other strategies

As was the case during the implementation of BPM5, BOPCOM supported the idea of preparing contributions on implementation-related issues drawn from their own experiences

Indeed, a list of key transition issues could be developed, perhaps drawing on the questionnaire results, on which country experiences would be welcome

Cooperation with SNA At the request of the UNSC, the ISWGNA

developed a strategy paper for the implementation of 2008 SNA 

The outlines of the implementation strategy being discussed include similar elements to those proposed for BPM6: training technical assistance dissemination of statistical guidance and applied research (papers addressing

specific compilation issues)

Cooperation with SNA

The implementation of BPM6 and 2008 SNA needs to be a coordinated effort, especially for significant issues such as

Manufacturing services (goods for processing); merchanting; and FISIM, on which balance of payments compilers could draw from the experience of national accountants

Conclusion

Significant work ahead to implement BPM6

The strategy builds on the successful BPM5 experience

It is important to have close cooperation and dialogue among international agencies and with member countries