Revisions announcement.
Data published by Eurostat -
Revisions to UK historical
data for gold.
1. Who should read this?
This revision affects customers who use UK trade in non-monetary gold data (commodity code 71081310) that is published by Eurostat on the Comext database.
2. What is the revision?
The majority of the UK trade originally classified in the monetary gold commodity code (71082000) has been reclassified as non-monetary gold (71081310).
3. What does this announcement contain?
· Information about the revisions to non-monetary gold (commodity code 71081310) data, for the period 2005-2011, in Eurostat published data only.
· The reasons for the revision and the impact it will have on Eurostat and UK published data.
4. What is the impact on published data?
· There will be an increase in the UK trade reported under commodity code 71081310, and also the overall UK trade total published by Eurostat (imports and exports, EU and non-EU) for 2005 to present.
· Total UK Imports from non-EU countries will increase by over 10 per cent for the years 2009, 2010 and 2011. The increase in 2009 is the largest, at over 15 per cent.
· Total UK exports to non-EU countries will increase by over 5 per cent for the years 2008, 2010 and 2011. The increase in 2011 is the largest, at just under 14 per cent.
· Only the trade in goods data released by Eurostat on Comext will be amended.
The UK published Overseas Trade Statistics (OTS) and Balance of Payment (BoP) statistics are not changing at this time.
The treatment of non-monetary gold in BoP statistics published by the Office for National Statistics (ONS) will be updated in 2014, when changes will also be made to the OTS published by HMRC.
5. Why make the change to the way gold is recorded?
This change will help bring the UK recording of non-monetary gold in line with international standards and legislation. It will ultimately allow better comparability with the statistics produced by other countries.
Due to its position as one of four major gold bullion markets, the UK had a long standing exemption from the International reporting requirements for gold. This means that gold held as a ‘store of wealth’ has not been recorded as trade in goods. It has been classified as monetary gold, which is excluded from trade in goods as per international guidelines.
This approach allowed national consistency between trade recorded in both the OTS and BoP statistics. Changes to Eurostat published data are being made now, but changes to UK published data cannot be made until 2014 when the new BoP methodology is being introduced (BPM6[1]). Both HMRC and ONS will look to incorporate the revisions made for Eurostat publication for non-monetary gold into UK national publications in 2014.
The diagram below shows the reclassification change:
6. What is the plan for the future?
The UK will update the treatment of gold in BoP and OTS statistics. This will be done as part of the implementation of broader International standards to BoP in 2014.
When trade in gold is incorporated into the BoP trade statistics, this will be based on the balance of payments concept of 'change of ownership' rather than the OTS basis of 'physical movement'. For this reason, there is likely to be a divergence in the trade statistics published within the UK by HMRC and ONS. ONS is currently working with the Bank of England and the London Bullion Market to obtain data on trade in gold based on 'change of ownership'.
7. Data tables.
Tables 1 and 2 show the previously published and subsequently revised annual non-monetary gold values for 2005-2011. Table 3 shows the increases in non-monetary gold as a result of this revision.
Table 1: Previously published UK annual value of non-monetary gold (71081310) for 2005-2011: £ millions
Year2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2011
Imports from EU / 8 / 7 / 8 / 12 / 35 / 22 / 16
Exports to EU / 22 / 24 / 30 / 40 / 30 / 32 / 63
Imports from non-EU / 12 / 5 / 4 / 6 / 11 / 23 / 151
Exports to non-EU / 37 / 18 / 40 / 116 / 110 / 263 / 386
Source: HMRC, Trade Statistics branch
Table 2: Revised UK annual value of non-monetary gold (71081310) for 2005-2011: £ millions
Year2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2011
Imports from EU / 343 / 512 / 15 / 56 / 692 / 586 / 1,270
Exports to EU / 318 / 89 / 68 / 151 / 46 / 77 / 133
Imports from non-EU / 2,333 / 7,635 / 6,882 / 12,953 / 22,669 / 18,260 / 21,719
Exports to non-EU / 3,219 / 1,168 / 1,360 / 6,814 / 1,083 / 6,301 / 18,725
Source: HMRC, Trade Statistics branch
Table 3: Increases in annual UK value of non-monetary gold (71081310) as a result of revisions for 2005-2011: £ millions
Year2005 / 2006 / 2007 / 2008 / 2009 / 2010 / 2011
Imports from EU / 336 / 506 / 7 / 44 / 657 / 563 / 1,254
Exports to EU / 296 / 64 / 37 / 111 / 17 / 45 / 69
Imports from non-EU / 2,321 / 7,630 / 6,878 / 12,947 / 22,658 / 18,237 / 21,568
Exports to non-EU / 3,183 / 1.149 / 1,321 / 6,699 / 972 / 6,038 / 18,339
Source: HMRC, Trade Statistics branch
Due to the nature of this trade this revision will only affect UK statistics published by Eurostat at this time, and will not currently impact the UK Overseas Trade Statistics or Balance of Payments.
8. Further information.
ONS – for Balance of Payments information
Dr Marilyn Thomas - Head of UK Trade & Transfers, Business Indicators & Balance of Payments Division
Email:
Telephone: 01633 455708
Office for National Statistics
Government Building,
Newport
NP10 8XG
HM Revenue & Customs – for Overseas Trade Statistics information
Trade Statistics Customer Services
Email:
Telephone: +44 (0) 1702 367 485
3rd Floor Central,
Alexander House,
21 Victoria Avenue,
Southend on Sea,
Essex.
SS99 1AA
Page 2 of 4
[1] The sixth edition of the Balance of Payments and International Investment Position Manual. This provides guidance on the recording of cross-border transactions and positions according to a set of internationally-agreed guidelines.