Question 1: Mode of Transport and Second Partner Reporting – When a reporting country includes a 2nd partner and specifies a mode of transport in its import data, does this mode of transport indicate how the goods were transported from the 2nd partner to the reporting country? Example: If Germany reports imports from the US, with the UK as the 2nd partner and “air” as the mode of transport, does this mean the goods traveled by air from the UK to Germany?
Answer: The mode of transport refers to the transport when crossing the border (when entering or leaving the reporting territory). The example of Germany is correct, but please be mindful that the second country may not be the last country of shipment. For example, goods imported by Zambia that originated from Japan (country of origin) were bought by UAE (country of consignment) and transited through Tanzania (country of shipment). In the Zambia data, the country of origin is Japan, the country of consignment is UAE, and the mode of transport is the road. The transiting country (Tanzania) won’t be recorded in trade statistics.
Question 2: What does the mode of transport signify when no 2nd partner is reported? If a reporting country does not include a 2nd partner in its import data, does the mode of transport indicate the last recorded mode used in the trade chain?
Answer: The same with question no 1, the mode of transport is when crossing the border, but it does not necessarily direct from the country of origin (could be from the country of consignment of the transiting country)
Question 3: How can 2nd partner transactions be mirrored in trade data? When a reporting country lists a 2nd partner in its import data, can it trace the transaction within the trade records of the 2nd partner and the original partner? Example: If the UK is listed as the 2nd partner in a transaction where Germany imports goods originating in the US:
- Will the UK report an import from the US and an export (or re-export) to Germany?
- Can we differentiate export records of goods that merely transit through the 2nd partner from those produced in the 2nd partner country?
Answer: The full breakdown when the country reports 2nd partner country (case of imports of Germany from the US with 2nd partner country in the UK):
- Germany: Imports from the US (1st partner) and from the UK (2nd partner)
- UK: Imports from the US. Re-exports to Germany with the country of origin of re-exports from the US {the latter is not captured in Comtrade, but it will be recommended as a new data item in the next manual}
- US: Exports to the UK or Germany (depending on how the exporters record the destination – very likely the UK)
Re-exports are one way to distinguish domestic production and exports through imports.
Question 4: How are trade flows reported when multiple intermediaries are involved? If exports pass through several intermediate countries, how is the trade chain documented? Does the “second partner” always refer to the most recent intermediary before the goods arrive at the reporting country?
Answer: IMTS will record only the origin and the last country of consignment regardless of whether there are multiple intermediaries/consignments. Again, the 2nd partner does not mean the last country of shipment.
When comparing reported and mirror data, using the second partner might result in fewer discrepancies as it implies the transactions changing legal status of the goods. However, the country of origin is necessary when applying the duties/tariff.
See more at IMTS 2010 Compilation Guide – Chapter 16 Partner Country.
