Contract: “Statistics 4”

Component:External Trade

Leader of the Component:Mrs. Sanadiradze

Update:March 1999

Georgia

State Department for Statistics

Contract “Statistics 4”

Component “External Trade”

1. Introduction

1.1. Past Time Activities and Results Achieved

The project CC40NL02 was operating in the foreign trade area within the TACIS program for the Republic of Georgia in 1993-1998.

1.2 Achieved Results

1. Beginning from the 1993 data, the Georgian Customs Department has presented external trade data as separate declarations to the statistical service of the country on a monthly basis.

2. From 1994, the external trade data structure has been prepared in compliance with the international harmonised goods classification system (HS).

3. In 1997, the software EUROTRACE intended for classification of foreign trade statistical data was received and introduced, which gave us the possibility to adjust foreign trade data using a more reliable and tested method.

4. Use of external trade indices in national accounts was studied.

5. In accordance with the TACIS program of the European Statistical Institution, “mirror statistics” internationally practised in the external trade area is used in the CIS countries.

2. Study of the Problem

1.2 Initial Situation

In 1991-1993, the statistical service of the country-collected data on exports and imports from primary organisations and enterprises summed up the results. In May 1993, the Department for Payment Balance Statistics responsible for methodological and organisational management of foreign trade statistics was set up in the State Committee for Socio-Economic Information and Statistics (the then name of the statistical institution of the country). Through joint efforts by specialists of the statistical and customs services of the country, it became possible to obtain external trade data in early 1994. Since that time, we have received data from the State Department for Statistics on a monthly basis. The introduction of the computer program EUROTRACE made it possible to adjust external trade data at the level of separate declarations. Besides the above, the Department for Statistics of the country uses the method of direct reporting from Georgian enterprises and organisations engaged in foreign trade but not registered on the customs border of the country. It’s external trade in such products as electric power and natural gas. Every month, foreign trade data is published in the report “Socio-Economic Situation in Georgia”.

In accordance with the international practice, imported and exported goods are valued CIF (free import station) and FOB (free departure station).

2.2 The Present Situation

Up to date, the Georgian external trade statistics covers external trade in goods. As to external trade in services, surveillance of activities such as transport, communication and hotel services is conducted; the source of data is the method of direct reporting from economic units. The number of economic units engaged in external trade in services is consistently growing, for which purpose ready blanks for surveying external trade are being developed.

In accordance with the existing bilateral agreements between the relevant units of the statistical services of Armenia and Georgia, and Azerbaijan and Georgia on volume of external trade statistical data for the purpose of “mirror” comparison, relevant data on goods (by four-digit codes) is shared every quarter of a year. In the “mirror” statistics, data is compared to that of other CIS countries.

3. Objectives

To avoid problems in external trade statistics, the following objectives should be achieved:

- Calculation of physical volume and price indication with respect to external trade (application of Eurotrace Version 97);

- Control over costs of imported and exported goods.

- Study of the issue of exported and imported services in external trade.

- Memorandum (volume of export and import data, every year with the Eurostat)

4. Activities and Proposals

4.1 Activities

For the purpose of implementation of the program, the TACIS program from the year 2000 should provide funding.

Creation of a computer network for management of payment balance statistics only: PC - 1 piece, printer - 1 piece.

Justification: a) a large volume of data;

b) Protection of external trade data;

c) Obtaining all field data from customs declarations.

5. Results

1. Study of development, calculation of price indication and physical volume with respect to external trade.

2. Study of methodology of use of external trade turnover in payment balance.

3. Study of methodology of inclusion of non-declared imports and exports (in a hidden way) into the entire external trade turnover.

4. Study and use of methods for prevention of difference in export-import operations with other countries as a result of the “mirror” statistics.

5. Study of methods of calculation of exportation and importation of services.

6. Implementation of a new survey on external services.

The following activities are planned in the project.

Table 1 (List of activities within the project framework)

No. / Date / Location / EU technical assistant / Type of activity / Main subject
1 / Second half 2000 / Tbilisi / Netherlands Stat. Department / Consultation / Calculation of price index, inclusion of hidden imported and exported goods in the whole external trade turnover
2 / Second half 2000 / Holland / Netherlands State. Department / Workshop / Use of foreign trade statistics in payment balance
3 / First half 2001 / Tbilisi / NetherlandsStat. Department / Consultation / Use of results
4 / Second half 2001 / Holland / Netherlands Stat. Department / Workshop / Summing up the results achieved

6. Funds and Expenses

6.1 Funds

- Number of technical assistants invited from the EU

- Expert in foreign trade in goods and services

- Expert in data exchange from the Eurostat

6.2 Number of specialists (involved in implementation of the project)

The Georgian State Department for Statistics includes the following groups:

- Project manager

- Two experts for performance of works (in external trade)

- One expert in mirror statistics

7. Expenses

Equipment: 1 PC -

1 Printer -

The expenses under the project are estimated (paid) in the budget

(Euro)

Total project expenses
Payment
Technical assistance / 20 000
Equipment (outside the project) / 4 000
Training / 10 000
Publication of results
On site (sample survey) / 10 000

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09/19/18