EXPORT AND IMPORT OF GOODS - data on foreign trade in goods statistics is compiled on the basis of "Methodological regulations of Ukraine's foreign trade statistics", approved by the order of the State Statistics Committee of Ukraine of December 9, 2005 NN417. IMPORT - is a customs regime that allows to bring in the commodities into the customs territory of Ukraine for their free circulation without any time limits set for their stay on this territory and which could be used without any customs restrictions. EXPORT - is a customs regime that allows to take out the commodities over boundaries of the customs territory of Ukraine for free circulation without any obligations to return them to this territory and any conditions set for their usage outside the customs territory of Ukraine. BALANCE OF FOREIGN TRADE - is the difference between value of exports and value of import. DATA GENERATION SOURCES - Statistical observations over foreign trade in goods are conducted on the basis of cargo customs declarations (CCDs) that are completed when customs processing of goods is done and include crude oil and natural gas (Ministry of Energy and Coal Industry of Ukraine, National Joint-stock Company Naftogas Ukrainy) and statistical reports from enterprises and organizations of Ukraine about the commodities not subject to customs declaration. DATA COVERAGE TRADE SYSTEM - Ukraine statistics of foreign trade in goods covers all commodities that are added to Ukraine material resources stocks or deducted from them as a result of their in-coming (imports) into or out-coming (exports) over the boundaries of the customs territory. Ukraine uses the general trade system as recommended by the UN Statistical Division, 2010. Trade in goods includes: - non-monetary gold, precious metals that are not used as payments, securities, banknotes and coins not in circulation; - commodities sold through the state accounts that include civil and military commodities, for instance for commercial transactions carried out by the governments, commodities shipped through the state programs for international assistance as free of charge aid, loan, commodity exchange transactions (barter) or a transfer to international organizations and military reparation and restitution; - humanitarian or technical aid; - commodity given as gifts; - commodities leased for 1 year and more; - military commodities; - commodities transferred within the consignation agreements; - commodities that are brought as contribution to statutory fund and exportation of commodities produced by enterprises with foreign investment; - commodities imported (exported) as raw material; - commodities that are used as media and software for general use (apart from specially-tailored), user manuals and audio and video materials to be used for commercial purposes; - returned goods; - commodities that cross Ukraine boarder as a transaction between main corporations and enterprises of their direct investment (branches or units); - caught fish, minerals from the sea bed that are unloaded from foreign vessel in the national port or purchased by the national vessel from foreign vessel in the high sea; - caught fish, sea products, minerals from sea bed and the rescued cargo sold by the national vessel in the foreign port or to foreign vessel in the high sea; - commodities sent by mail or through courier service. These commodities are subject to recording if their volume or value exceed the level fixed by Ukraine legislation; - commodities imported for the needs of foreign enclaves in Ukraine; - commodities imported (exported) for mutual barter or purchasing/selling between specific legal persons; - bunker fuel, ballast, vessel stock or other materials. DATA COVERAGE TRADE SYSTEM (CONTINIED) - Exports/imports of goods exclude: - direct transit trade; - charter flights, leasing; - commodities whose value does not exceed the threshold of statistical observation; - national and foreign currency (excluding those used for numismatics), securities; - commodities that are not used for commercial transactions (are include into foreign services); - commodities moved by natural persons whose volume or value does not exceed the level fixed by the Ukraine legislation for written declaration; - periodicals (papers, magazines) set out by direct subscription; - commodities bought by diplomatic representative offices for their own needs, armed forces, research organizations or other Ukraine representative offices on the country's territory where they are located; - material specially-tailored media that contain the intellectual activity objects, for instance for military, special and dual purposes and that are not meant for direct realization on retail market; - commodities that are temporarily imported/exported for less than 1 year; - commodities that are lost or destroyed after transportation from the economic territory of exportercountry but before they were brought to the economic territory of importer-country are not subject to inclusion into imports statistics of importer-country (although they are included into exports statistics of exporter-country); - commodities meant for the national organizations activities abroad; - commodities moved through the customs boarder between the country's military units deployed on the country's customs territory and outside this territory; - commodities delivered for reclamation, guarantee maintenance; - air vessels moved through the country's boarder for technical maintenance; - commodities moved through the country's boarder for repair; - demonstration articles; - commodities moved for entertainment and sport events; - commodities delivered on account of mortgage; - samples of commodities; - transportation packing moved through the boarder, for instance empty bottles return for re-use; - wastes resulted from processing of goods on the country's customs territory and processing for internal consumption; - natural gas delivered to underground gas reservoirs; - commodities moved through pipelines for commissioning work; - commodities previously imported and placed under other customs regime on the country's customs territory that have been included into the country's imports are not recorded once more in customs statistics of the country's foreign trade; - fish caught in the high seas by the country's national vessel and shipped on the economic territory; - volumes of commodities that imported/exported by natural persons. TIME FOR COMMODITIES RECORDING - The recording of commodities is done when they are imported into or exported outside the country's economic territory. The customs statistics of Ukraine foreign trade record imports and exports of commodities transportedby water, rail, motor vehicles, air according to the date when the customs declaration is completed. The record of commodities shipped through pipelines (oil, refinery products, water, ammonia, etc.) takes into account the specifics of their declaration and is based on the date of their last transport document while the for natural gas on the date of the month's last day when the customs formalities are completed. The moment of imports/exports of commodities not subject to customs declaration is the date when acceptance and delivery act is completed or the date of the payment document for these commodities. TIME FOR COMMODITIES RECORDING - The recording of commodities is done when they are imported into or exported outside the country's economic territory. The customs statistics of Ukraine foreign trade record imports and exports of commodities transportedby water, rail, motor vehicles, air according to the date when the customs declaration is completed. The record of commodities shipped through pipelines (oil, refinery products, water, ammonia, etc.) takes into account the specifics of their declaration and is based on the date of their last transport document while the for natural gas on the date of the month's last day when the customs formalities are completed. The moment of imports/exports of commodities not subject to customs declaration is the date when acceptance and delivery act is completed or the date of the payment document for these commodities. STATISTICAL THRESHOLD - Statistical observation cover the commodities whose customs value exceeds the sum set by the national legislation for written declaration of commodities for customs authorities. The statistical threshold when completing the customs declaration and submitting statistical reports for legal and natural persons is 100 euros. For the natural persons, the statistical threshold is 200 euros (300 euros for unit products) with limitations of 50 kg. CLASSIFICATIONS - Since July 1, 2001, to record exports/imports of commodities Ukrainian Classification of Commodities in Foreign Trade took its effect which is developed on the basis of the 6-digit Harmonized System for Description and Coding of Commodities (HS) and the 8-digit Combined Nomenclature of European Economic Commonwealth (CNEEC) dated 1996. The Classification of the world's countries which are harmonized with international standard, ISO 3166- 1:2009, approved by order of the State Statistics Committee of Ukraine No. 260 as of 08.07.2002 and currencies harmonized with international standard, ISO 4217:2001 and approved by order of the State Statistics Committee of Ukraine No. 260 as of 08.07.2002 STATISTICAL VALUE OF COMMODIT - To ensure comparisons of data from statistics of foreign trade in goods, statistical value of commodities is identified: - for exported commodities at FOB prices; - for imported commodities at SIF prices. Value at FOB prices includes value of commodities and services for the delivery of products to the boarder of the exporter –country. Value at SIF prices includes value of commodities and services for delivery of products to the boarder of the exporter-country and value of services for delivery of products from the boarder of the exportercountry to the boarder of the importer-country. The terms of commodity deliveries used when compiling Ukraine statistics of foreign trade are identified according to International Rules for Treatment of Trading Terms (2010) that are applied in Ukraine. The statistical value is calculated through the conversion of value of commodities into the US dollars according to rate set by the National Bank of Ukraine for the day when the customs declaration was completed. For the commodities that are presented via statistical reports, the conversion of value of commodities into the US dollars is based on average monthly and average quarterly official rates for currencies fixed by the National Bank of Ukraine. QUANTITATIVE RECORD OF COMMODITIES - The quantitative record of commodities is based on net weight, kilograms. If necessary, for collection and processing of statistical data, the parallel record of commodities is done by quantity expressed in additional units of measurement (pieces, liters, cubic liters, etc.). These units of measurement are indicated in the Classification line Additional unit of measurement. PARTNER-COUNTRIES - In Ukraine statistics of foreign trade in goods, there are the following partner-countries: - for exports – country of destination; - for imports – country of origin. The record of commodity exports is done by trading country if at the moment of commodity exports the country of destination is unknown. The record of commodity imports is done by shipment country: - commodities whose country of origin is unknown at the moment of shipment; - re-imported commodities; - commodities included in Group 97 of Ukrainian Classification of Commodities in Foreign Trade (art works, collection items, antique items); - commodities received as human aid. The country of destination is the last country to which (as far as it is known at the moment of exporting) the commodities should be delivered regardless of the country to which they have been shipped at the very beginning and whether they were or not were the subject of commercial and other transactions that change their legal status. When exporting, the trading country is the country where a person is registered or resides who is a partner of the national person when implementing the foreign economic agreement. The country of origin is the country where the commodity has undergone full processing or was enough processed to satisfy the criteria or procedures set by Customs Code of Ukraine. The country of commodity origin could be a group of countries, customs unions of countries, a region or a part of the country if it is necessary to specify the commodity origin. EXPORT VOLUMES - includes payments from non-residents for services provided (imports). IMPORT VOLUMES - includes payment to non-resident for services received (imports). DIRECT INVESTMENT ENTERPRISE - is an enterprise in which a foreign investor owns at least 10% of the value of the authorized capital of entrerprise. EXPORT AND IMPORT OF SERVICES - Foreign economic services are the goods not subject to customs control for which no cargo customs declaration is issued. Services are not identified as material objects covered by property rights. Services sale and production are inseparable. The main fact in trade in services is there should be a sale and purchase transaction covering the activities of economic entities of Ukraine and foreign economic entities (residents and non-residents) built on interrelation between them taking place both within and outside the economic territory of Ukraine. Export volumes include proceeds from non-resident for services rendered (export). Import volumes include funds transfer to a non-resident for services received (import). Moment of services accounting registration The moment of carrying out of services export-import procedure is the date of their actual provision or receipt based on accrual principle (according to the invoices issued), the registration date for such operations most often coincides with the services production time. However, there are exceptions when the payments are transferred based on the results of each year, then the service registration time is recorded by the terms of payment under the certificates provided. Time of accounting may be related to such factors as contract signing term, payment term, term of payment obligation for the services. These dates do not always coincide with the accounting date. In these cases services are registered after the ownership right transfer, and when the service value is created, exchanged, transferred the posting is made in payment documents of the exporter and the importer. Export (import) of services is registered at the moment of signing a foreign economic contract (agreement). This is a executed material agreement between two or more entities of foreign economic activity and their foreign contractors aimed at establishment, amendment or termination of their mutual rights and obligations in foreign economic activity. The moment of contract execution is the moment at which all obligations under the specified contract are assigned, including the issuance of bills of exchange or conclusion of loan agreements. Data generation sources Statistical surveys over the services volume are carried out by state statistics bodies by collecting statistical reporting from enterprises and organizations that carry out activities related to provision (export) of services to foreign partners and receipt (import) of services from foreign partners both within and outside the territory Ukraine according to the contracts (agreements) in compliance with the Ukrainian legislation. EXPORT AND IMPORT OF SERVICES (CONTINUED) - Classifications Services are accounted for in monetary terms (in the contract currency) according to the Classification of Services of Foreign Economic Activity (DK 012-97) developed based on the Classifier of Types of Economic Activity of the Statistical Commission of the European Union and approved by order of the State Committee of Ukraine for Technical Regulation and Consumer Policy No. 324 dated 02.06.1997. Currencies are classified according to Currencies Classification approved by order of the State Statistics Committee of Ukraine No. 260 as of 08.07.2002, as countries classification Country classification approved by order of the State Statistics Committee of Ukraine No. 476 as of 28.12.2007 is used. Services conversion in US dollars is based on the average quarterly official exchange rate established by the National Bank of Ukraine. According to statistical observation results with regard to external services, indicators of export-import operations in services of Ukraine with countries of the world for all types of services in accordance with the Classification of Services of Foreign Economic Activity are calculated. Types of services - The main types of foreign economic services are: transport, travel, construction, insurance, financial, computer and information, royalty and licensing, legal, accounting, research and development, architectural and engineering, public services, communications services, services for individuals and services in culture and recreation. -Transport services include services related to goods delivery to customs border of the importing country and goods destination, passengers carriage made by all modes of transport, ensuring transport infrastructure operation (loading and unloading, rescue and salvage operations, services of ports, stations, parking lots, transport agencies, customs brokers, etc.), pipeline transportation of gas, ammonia, petroleum, electricity. -Travels include hotel, restaurant, travel agency and travel agency services, education and health services. -Construction services include construction objects erection, equipment installation, construction of motorways, roads, sports and recreational facilities, services related to construction equipment lease, etc. Insurance services include housing and cargo insurance, pension coverage, reinsurance, etc. -Financial services include monetary intermediation, financial leasing, services in financial market management, securities portfolios, etc. -Computer services include consulting services on informatization, software development, data processing, databases creation. -Royalties and licensing services include services related to patent and licensing activities. -Legal and accounting services include law, accounting, business and management services. -Research and development services include services related to research and development in natural and technical sciences, social sciences and the humanities. - Architectural, engineering services include services related to activities in architecture and construction, technical control and analysis, certification activities. -Public services include services related to general public administration in economic and social sphere, with activities attributed to public authorities competence. -Communication services include postal and telecommunications services (receiving, processing, transportation of letters, newspapers, parcels, transmission of audio information by telephone, telegraph, e-mail, internet, etc.) -Services for individuals and in culture and recreation include services related to creation of audiovisual programs, work of museums, libraries, archives. DIRECT INVESTMENT - is a category of international investment activity that reflects the desire of an institutional unit - a resident of one country to exercise control or significant influence on the activities of a company that is a resident of another country. The investment is direct if the capital/property rights of the non-resident makes at least 10% of the value of the authorized capital of the resident company, (or) the non-resident has at least 10% of the votes in the management of the resident company. Direct investment includes investment received on the basis of concession agreements and joint investment agreements; credit resources provided/received in the framework of transactions between an enterprise of direct investment and a direct investor. Direct investment involves participation of the direct investor in the choice of investment objects and placement of capital.