Trade Statistics Report

Transcription

1 Trade Statistics Report Published: 27 May TRIENNIAL REVIEW OF THE UK uktradeinfo Customer Services: INTRASTAT SURVEY website: (V1.00) Purpose HM Revenue and Customs - Statistical Survey Review INTRASTAT 2009

2 1 Executive Summary Introduction Background Progress since the previous review / survey Improvements made through applying recommendations: Other Improvements Uses of statistics derived from Intrastat Examples of UK Government Uses Non-Government / Private Uses EU Uses International Uses International and Statutory Requirements Legal Coverage Data Providers Intrastat Register and Provider Compliance Data Submission Quality Assurance Trade Challenges Below Threshold Trade Review Methodology Outline of Methodology Providers Survey Sample Users Survey Sample Independent Reviewer Respondent s Views Results of Survey of Providers of Intrastat Data Results of Survey of Users of Intrastat Data Main findings from the Review Main findings from Providers Main findings from Users Costs Costs to Business Cost to Government Conclusions Use of the Intrastat Online Submission system Use of the Intrastat Combined Nomenclature Use of Notice Use of uktradeinfo Costs to Business Recommendations Appendix 1: Key Intrastat Survey Facts...38 Appendix 2: Sampling Statistical Theory...40 Appendix 3: Questionnaire sent to data providers...43 Appendix 4: Questionnaire sent to data users...49

3 1 Executive Summary Purpose: The main purpose of this review is to establish whether the UK Trade Statistics Intrastat survey remains a cost effective approach to collecting trade data, and how it can be developed to improve the experience of both data providers and data users. Background: The Intrastat survey (Intrastat) is a monthly survey of the trade in goods made between the UK and other European Union Member States by approximately 33,500 businesses. The survey is compulsory under EU legislation and all businesses whose EU Imports or EU Exports exceed a specified threshold ( 270,000 for 2009) must take part. The data collected from Intrastat form part of the UK Overseas Trade Statistics (OTS) published by HM Revenue & Customs (HMRC) and the statistical branch of the EU, Eurostat. They are also used by the Office for National Statistics (ONS) in the calculation of UK Trade which is fed into the Balance of Payments. There are also many other uses of the statistics at Government, National, European and International level. The review followed the guidance for controlling Government statistical surveys (including the procedures for reviewing surveys), which were issued by the Prime Minister s office in All surveys with annual compliance costs in excess of 250K, are subject to a comprehensive review every three years involving an external observer. Intrastat is one of the surveys that require this triennial review. Methodology: Information for the review was collected by administering two postal questionnaires; one for the providers of data (the businesses who take part in Intrastat) sent out on 1 June 2009, and one for the users of the data sent out on 15 June Respondents were given two months to reply. Each questionnaire was used to collect trait data (e.g. main economic area, no. of employees) and also opinion data (e.g. ease in declaring trade, satisfaction with the quality of the statistics) from the providers and users. The data collected was taken from 426 usable replies from data providers and 157 from data users. Main Findings: Costs: - The overall cost of Intrastat to data providers was 18.2million in 2005 and 19.0million in 2009 ( 17.1million in constant 2005 prices). This reduction in constant prices can be attributed to a fall in the number of traders and decrease in the number of data elements requested for trade in certain commodity codes. - The Costs of Intrastat to HMRC (includes the cost of processing and distributing non-eu trade statistics) in 2005 was 12.2 million. This has been reduced to 10.0 million for 2009 ( 9.0 million at 2005 prices). This decrease in constant prices is attributed to a large reduction in the resource employed in the collection, validation and publication functions within the Intrastat survey The Intrastat survey has seen its real cost reduce since the previous 2005 review. Further burden reducing measures have taken affect from January 2010.

4 Providers who participated in the review perceive online submission of Intrastat data as beneficial over alternative methods: - 82% agree that online submission improves time-saving (Compared to 46% in the 2005 survey). - 48% agree that it saved money (Compared to 36% in the 2005 survey) - 88% agree that it eased the task of declaration completion. - 63% agree that it offered security. HMRC has sought to improve the online submission system (IS2) since the previous review (2005), to increase its efficiency and improve the declarants experience. Where problems have been experienced with online submission, as reported by a small number of respondents, most have related to difficulties with classifying goods. Encouragingly, providers have expressed satisfaction with HMRC s responses to such issues. HMRC provides a dedicated helpline to classify products. The proportion of users who access free data online has increased since 2005: - 81% of users questioned as part of this review stated they used free data (Compared to only 31% in the 2005 survey). This change reflects a move to a zero charge policy for access to OTS products and services that are available on uktradeinfo. The vast majority of users expressed satisfaction with both HMRC s service and the quality of statistics produced: - 71% of those who contacted HMRC to obtain trade data were satisfied with the service they received. - 74% were satisfied with the quality of statistics produced by HMRC. Appendix 1 provides Key Intrastat Survey Facts. Next Steps: Improve the service to data providers: - Further develop the Intrastat Online Submission System (IS2) so that it provides a more reliable and robust online service This is the medium through which the majority of declarations are made. - Further promote and enhance the use of services and metadata provided by HMRC that assist data providers with submitting declarations (The Intrastat Classification Nomenclature (ICN) on-line services, Classification Helpline, and Public Notice 60) - Make Notice 60 exclusively online, therefore ensuring customers have full access to up-to-date and complete Intrastat guidance. Improve the service to data users: - Increase the presence of the uktradeinfo helpdesk contact details on the uktradeinfo website. - Investigate providing functionality allowing the presentation and download of multiple year data in the uktradeinfo interactive tables. - Take steps to improve user understanding of the data available to them by improving the metadata offered and the availability / linkage to other data products. May 2010

5 2 Introduction Government guidance on the control of statistical surveys requires that reviews of all regular surveys to businesses are conducted. Surveys with annual compliance costs in excess of 250K, such as Intrastat, are subject to a comprehensive review every three years involving an external observer. Such reviews should be comprehensive, and should consider the following: - The need for the information. Internal to the department and external (distinguishing between Government and non-government users); - The conduct of the survey. Outlining existing and proposed arrangements for conducting the survey, mentioning specifically any changes which have taken place since the last review; - Costs. Including costs to both Government and respondents. - Respondents views. A small representative sample of respondents should be consulted and their views on the problems of supplying the information and resources involved in completing the survey should be indicated. - Options for change. Considering alternative data sources, also options for simplifying or reducing the survey and their implications; The guidance for controlling Government statistical surveys, including the procedures for reviewing surveys, were issued by the Prime Minister s office in The guidance re-iterated the continuing need to review all regular surveys of business. 3 Background The purpose of this review is to establish the current efficacy of the Intrastat survey. The main aim is to establish the cost to business and identify options for change that would allow improvements to be made while still allowing the UK to meet its legal requirements. 4 Progress since the previous review / survey The last review for conducted for 2005 produced the following recommendations: 1. The Trade Statistics Unit should ensure that all guidance clearly states that delivery terms are only required from businesses whose trade is above the threshold. 2. The Trade Statistics Unit should increase publicity of both paper and electronic versions of The Intrastat Guide Notice 60.

6 3. Promotional activities should focus on making businesses aware of the savings associated with electronic submission. 4. Trade Statistics, in association with the EU and other Member States (MS), should explore the possibility of reducing the Intrastat reporting and coverage requirements for businesses. In addition to these, a change in legislation from January 2006 allowed HMRC to only request either netmass or supplementary unit on each Intrastat line of trade. The quantity unit required (netmass or supplementary unit) was dependent on the commodity code traded. This has therefore lead to a reduction in the burden on business when declaring in specific commodity codes. 4.1 Improvements made through applying recommendations: 1. Requirements for delivery terms are now stated in Notice 60 as well as in a step by step guide on the website. Trade Statistics also ensures that the following years Intrastat threshold is announced in advance to all customers who subscribe to the alert service, of which there are over 21,000. The service is free and available to anyone involved in importing goods into, or exporting goods from the UK. More information is available at In addition, action has been taken to update the Intrastat online submission system (IS2). Specifically, a delivery terms validation feature was implemented allowing the system to ensure that only those businesses that needed to submit delivery terms were able to do so (the delivery terms field is blanked out for those providers that need not submit them). Other improvements made to IS2 since 2005 are highlighted in Section Approximately 33,500 updated paper Notice 60s were distributed on 1 January This distribution exercise was made known to all customers subscribing to the alert system. Current copies of the Notice 60 are also available to all who visit the Trade Statistics stand at business advice open days. The uktradeinfo site now has an online step by step guide to complement the electronic version of the Notice 60. News of the updated version of the online Notice 60 appeared on uktradeinfo on 10 February Trade Statistics promotes the use of electronic submission on a monthly basis via the alert system. Announcements made through the alert system also contain links to details explaining submission methods. This has lead to an increase in the number of traders submitting electronically from 41 per cent in 2005 to 70 per cent in The number of trade lines that were submitted electronically increased from 87 per cent of all lines in 2005 to 96 per cent in Opportunities to explain the benefits of electronic submissions are also taken during telephone contact with customers. Explanatory leaflets covering online

7 submission methods are also available to all who visit the Trade Statistics stand at business advice open days. 4. A simplification of Intrastat was enacted from This had the effect of reducing the number of traders that needed to submit Intrastat declarations. Council Regulation (EC) No 222/2009 (which amended Article 10.3 of Regulation (EC) 638/2004) requires that the percentage coverage that Member States are required to collect from businesses for the arrivals (EU Imports) flow has been reduced from 97 per cent of total trade by value to 95 per cent. The percentage coverage required for the dispatches (EU Exports) flow remains at 97 per cent. This allowed HM Revenue & Customs (HMRC) to raise the Arrivals Exemption threshold to such a level that the number of businesses required to submit arrivals returns was reduced. The revised Arrivals Exemption threshold was applied from 1 January 2010, meaning that around 35 per cent of traders who previously supplied arrivals information are no longer required to do so, which has reduced the total Intrastat business population. In the long term, the UK is committed to supporting work in the EU towards the introduction of a Single Flow system whereby each EU Member State would report only one flow (either arrivals or, more likely, the dispatches flow) and then exchange this with other Member States. HMRC and Eurostat will also consider other possible simplifications. If Single Flow is not achievable in the mid term, HMRC and Eurostat will also consider other options such as a reduction in the dispatches (EU exports) percentage coverage. 4.2 Other Improvements A number of changes have been made to the Intrastat online submission system (IS2) since the 2005 review. These were largely concerned with improving validation procedures to reduce the amount of erroneous data flowing through the system. This, in turn, has reduced the probability of a trader needing to re-submit as a result of initial submission of inaccurate data. In addition to the incorporation of validation checks on delivery terms as described above (4.1.1) the system also encompassed validation checks on Net Mass and Supplementary Unit entries to ensure they were correct with respect to the commodity code entry submitted (a single commodity code entry, depending on its identity, requires either an accompanying Net Mass entry or Supplementary Unit entry or both). If an invalid entry was made, the system update would allow for an error message to be displayed to the user informing them of what is required and who they can contact if needed. IS2 was further improved through addition of features such as a password reminder (through use of a hint), and a submission button that greys out while validation takes place (thus preventing data submission during this important step). Furthermore, an online link to the ICN was added to the IS2 online submission form to make selection of the correct commodity code easier for Intrastat data providers.

8 5 Uses of statistics derived from Intrastat 5.1 Examples of UK Government Uses The UK s EU Trade statistics are used by the Office for National Statistics (ONS) in the preparation of the UK Balance of Payments (BoP), and are regarded by the Bank of England and Treasury as an important economic indicator of the performance of the UK. Export data in particular is used as an indicator of the state of health of the UK manufacturing industry. EU Trade Statistics form part of the Overseas Trade Statistics published by HMRC. These are published both in hard form via monthly, quarterly and annual books and electronically via the uktradeinfo website, where it is available free of charge. Aggregated data is available in pre-defined fixed tables, whilst detailed commodity code level data is found in the Interactive tables. Trade statistics are also used by the Department for Environment, Food and Rural Affairs (DEFRA). DEFRA have interest in statistics relating to trade in food, feed and drink and specifically use these statistics to inform their policy decisions relating to trade discussions, common agricultural policy (CAP), and animal health and welfare planning and decision making. The statistics are also fed into DEFRA s main statistical document, Agriculture in the UK, which informs industry members and other interested parties and fulfils a ministerial requirement under the Agriculture Act The Department of Energy & Climate Change (DECC) receive trade data specific to fuels and related commodity codes. They use the trade statistics provided by HMRC to both quality assure it and also to verify the data they receive from other sources Intrastat data is used to compile Regional Trade Statistics (RTS) by HMRC. The Welsh Assembly Government (WAG) is a key stakeholder for the RTS. They receive the RTS on a quarterly basis and produce their own RTS bulletin which mainly highlights Welsh exports. The Department for Business, Innovation and Skills (BIS) are also key stakeholders for the RTS. They are the main user of regional data and receive data across all commodity codes. They publish trade under various classifications. 5.2 Non-Government / Private Uses Aside from Government, there are a range of other users of the Trade Statistics. Those in the commercial world (e.g. manufacturers) use them to assess markets both within the UK (to gauge import penetration) and externally (to establish new markets for their goods). Commercial banks use the statistics to understand the economy and thus decide where to invest. They also use the statistics to gain knowledge of market conditions and trends. This knowledge can be used to evaluate lending risk and thus set an appropriate level of credit etc.

9 Trade associations collect the statistics and make them available to their members. They may also use the statistics for quality assurance purposes i.e. for comparison with the statistics they already collect from their members. Academics use the statistics to produce research papers and journal articles that document and discuss the nature of trade in the past. The press will look for statistics of high-interest and publish these in the newspapers. 5.3 EU Uses The data supplied provides vital economic information to a number of key European users including Eurostat, the EU Statistical Organisation and the European Central Bank. Eurostat publish the UK s EU trade statistics alongside those of the other EU Member States on their Comext website ( 5.4 International Uses Other international bodies such as the United Nations (UN), the Office for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) also use these EU trade statistics. The UN, in particular, adopts the trade statistics produced by HMRC (and those reported by statistical authorities in close to 200 other countries or areas), and publishes them on the United Nations Commodity Trade Statistics Database ( These allow for international comparisons of trade performance to be made.

10 6 International and Statutory Requirements 6.1 Legal Intrastat data is collected under Council Regulation (EC) No 638/2004 (as amended by Council Regulation (EC) No 222/2009). The implementing regulation is Commission Regulation (EC) No 1982/2004 (as amended by Commission Regulation (EC) No 1915 /2005). In addition, all VAT registered businesses must complete two boxes on their VAT returns showing the total value of goods supplied to other EU countries (dispatches) and the total value of goods acquired from other EU countries (arrivals). 6.2 Coverage VAT registered businesses whose trade with other EU countries exceeds a set threshold must supply information each month on their trade in goods with other EU member states via forms known as Supplementary Declarations (SDs). This is known as the exemption threshold. For the period up to and including 2009, EC legislation requires the UK to collect at least 97 per cent of the trade by value for arrivals and dispatches. For 2009 the threshold was set at 270,000 per annum for arrivals from, and dispatches to other member states. The thresholds are reviewed annually and are changed at the beginning of a calendar year. The thresholds for the following year are announced in November. 6.3 Data Providers The business responsible for completing the SD in the UK is the one that concluded the contract giving rise to the movement of the goods into or out of the country. If the business that concluded the contract is not resident in the UK then responsibility rests with the entity that arranged for the physical dispatch of the goods, or the entity that takes physical responsibility for goods that have arrived in the UK. Complete and accurate declarations must be received by HMRC no later than one month following the reference period to which they relate. The reference period is normally a calendar month. 6.4 Intrastat Register and Provider Compliance Central to the survey is the Intrastat Register. Based on information supplied from the VAT return, the Intrastat Register compiles a list of all businesses that exceed the threshold and which are therefore required to submit trade declarations. The information contained is used to coordinate Trade Statistics compliance strategy, ensuring that traders supply timely and accurate data. A target response rate is in place and is designed to meet certain quality criteria laid down by Eurostat. Every effort is made to educate and assist data providers with their Intrastat requirements. However, those who continually fail to submit complete, accurate and

11 timely declarations may be subjected to penalty action. This can involve Trade Statistics issuing financial penalties or, in cases of persistent non-compliance, instigate court proceedings. 6.5 Data Submission There are various ways in which data can be submitted, the two main options being: Paper Electronic (including Internet) 6.6 Quality Assurance All submissions received are transferred on a daily basis to the Trade Statistics mainframe computer system (TS93). All lines are checked for validity whilst a riskbased system is used to identify lines which also need to be checked for credibility. This assures the quality and accuracy of trade statistics provided to customers. 6.7 Trade Challenges When certain criteria are met and resources permit, Trade Statistics will investigate and respond to enquiries relating to published data. Outcomes of investigations are reported to the enquirer and are used to update quality profiles. The investigation may involve contacting the data provider or their agent to establish whether the data submitted were correct. 6.8 Below Threshold Trade The total value of EU trade made by traders below the Intrastat thresholds are available from their VAT returns. This enables HMRC to produce detailed estimates of Below Threshold Trade Allocations (BTTAs), which are added at full 8-digit commodity code and country level to the EU trade statistics. 7 Review Methodology Outline of Methodology In this review, questionnaires were used to gain opinions from the data providers and users on the effectiveness of Intrastat. In order to calculate the appropriate number of completed and returned questionnaires needed to make the results of the review worthwhile (i.e. so that the results are seen as an accurate representation of the opinions held by the Intrastat trader population as a whole), the same sampling statistical theory used in the 2005 review was used for this 2009 review. The sampling statistical theory used determined that, for a 95 per cent confidence level with 5 per cent confidence intervals, a random sample of Intrastat traders (total population 33500) can only be achieved with 384 completed and returned questionnaires from the providers, and also from the users (See Appendix 2 for the background to this statistical theory).

12 Both providers and users questionnaires contained questions designed to identify possible routes to take for beneficial change in order to improve both parties experience of Intrastat. Also, additional questions were included in the providers questionnaires to establish the burdens of providing trade data for businesses, and for users, additional questions were included to establish the usefulness of trade statistics to businesses. Once the content of these questionnaires were agreed with the independent review reviewer, they were issued to the sample population with a month return date. Completed questionnaires were recorded to a central database. For quality assurance purposes, this recording was conducted using a double keying method. Specifically, this involved recording the selections made on each questionnaire onto the central database twice, and then comparing the two inputs, in order to minimise the possibility of inaccurate recording. The subsequent data contained within the central database was then subjected to internal analysis. The analysis, findings and recommendations were referred to an independent reviewer to ensure impartiality prior to their publication in this report. The sample population for both providers and users were found as detailed below. 7.2 Providers Survey Sample A simple random sample of the active Intrastat population was undertaken in order to increase the probability of achieving the desired 384 responses. The active Intrastat population was defined as those traders who had submitted Intrastat documentation within the twelve months prior to the survey. This referred to April 2008 to March In order to ensure that these confidence levels were met by achieving a sample size in excess of 384, a total of 1,000 questionnaires were dispatched. This is almost double that of the previous review which used the same statistical theory. Sending out this larger volume of questionnaires compensated for those businesses that chose not to respond. 7.3 Users Survey Sample A database containing signed-up users to the website acted as the main source for assembling the user sample. Because the survey aimed to allow improvement of overall customer satisfaction, use of the Trade Statistics customer contact database was agreed for the supply of contact details. Users of all UK EU Trade Statistics were purposely targeted for the sample in addition to those just making use of the statistics published directly on uktradeinfo. As a means of gaining voluntary participants, and thus increasing the size of the sampling frame, an invitation to participate was published in the November 2008 BSUG news, on uktradeinfo.com as a news item, and as a web alert. Also, Trade Statistics main government customers were asked to supply details of their own trade statistics customers.

13 For all cases, those users selected via the customer contact database or those acting as volunteers were screened to make sure they were not surveyed twice. A total of 560 questionnaires were sent out to users. It must be noted that the process of identifying an appropriate user sample was a difficult task. This was due to the fact that it is impossible to identify the entire trade statistics user population as there are a wide range of sources and media where users can obtain EU Trade Statistics, not all of which are controlled by HMRC. As such, the sources used to assemble the sample provided only limited scope for allowing the sample to be truly representative of all users of EU Trade Statistics. As a result the composition of the sample was heavily influenced by those users known to us, i.e. those users of sources controlled by ourselves. In addition, the sources used provided a relatively small number of contactable users and it was for this reason that the desired 384 responses were not received from users as outlined in section Independent Reviewer. An independent reviewer was nominated to oversee all steps of the review. The reviewer was a qualified statistician (Grade 7) working for the Child Maintenance and Enforcement Commission: Mr Donncha Burke (Donncha.Burke@childmaintenance.gsi.gov.uk) The reviewer: Ensured that the review was undertaken in accordance with statistical good practice and legislation; Assured the sampling methodology; Assured the survey questionnaires for Intrastat providers and trade statistics users. Assured that the survey results were compiled in an un-biased way; 8 Respondent s Views 8.1 Results of Survey of Providers of Intrastat Data A total of 426 useable replies were received. This sample size achieves a 95% confidence level with 5% confidence intervals (See Appendix 2) Composition of Providers by Economic Area Respondents to the survey came from a broad range of economic areas. Over 40 per cent of Intrastat data providers that replied declared involvement in Manufacturing. The next largest contribution from a single economic area was that from Wholesale and retail trade; repair of motor vehicles and motorcycles.

14 Table 1: Companies' Main Economic Area Response Numbers Percentage Agriculture, forestry and fishing 33 8 Mining and Quarrying 2 0 Manufacturing Electricity, Gas, Steam and Air Conditioning Supply 2 0 Water Supply; sewerage, waste management 4 1 Construction 14 3 Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and Storage 6 1 Accommodation and Food Service Activities 10 2 Information and Communication 4 1 Financial and Insurance Activities 1 0 Real Estate Activities 0 0 Professional, Scientific and Technical Activities 8 2 Administrative and Support Service Activities 2 0 Public Administration and Defence; Compulsory Social Security 1 0 Education 2 0 Human Health and Social Work Activities 4 1 Arts, Entertainment and Recreation 1 0 Other Service Activities Activities of Households as Employers; undifferentiated goods-and services-producing activities of households for own use 1 0 Total number of selections 420 Total number of respondents to this question 414 Note: Respondents were able to select more than one area. The total number of selections is therefore greater than the total number of respondents. Source: Survey Data, HM Revenue & Customs

15 8.1.2 Composition of Providers by Turnover Just over half (52 per cent) of all providers of Intrastat data who provided their company s turnover had a turnover of less than 5.6million. 85 per cent had turnover of 22.8million or less (see Figure 1). Figure 1: Providers Companies' Turnover for most recent year More than 22.8m Between 5.6m and 22.8m Less than 5.6m Percentage of surveyed providers companies Source: Survey Data, HM Revenue & Customs Composition of Providers by number of employees The majority of traders providing Intrastat data who responded with number of employees details have less than 50 employees (65 per cent). This excludes sole traders who make up only 3 per cent. A quarter employed between 50 and 250 employees with less than 10 per cent employing more than 250 staff (see Figure 2). Figure 2: Providers' Companies' Staff Figures No employees ( sole trader ) 1 9 employees employees employees More than 250 employees Source: Survey Data, HM Revenue & Customs

16 8.1.4 Benefits of Internet Submission Over half the Intrastat data providers that were surveyed agreed that submitting Intrastat online offered security (see Table 4). Just under half agreed that internet use reduced costs, over 80 per cent agreed that it saved time and almost 90 per cent agreed that it was done with ease. These results can be compared with those found in the 2005 Triennial Review where traders were similarly asked about their perception of benefits from internet submission. For this 2005 review, agreement that time was saved was at 42 per cent, around half the 2009 figure. Agreement that the internet reduced costs was at 36 per cent in 2005, again lower than the 2009 figure. Summarising, it can be said that a greater number of traders agreed that the online Intrastat submission facility saved time and reduced costs in 2009 than This result highlights the effectiveness of efforts, made since 2005, to improve the online Intrastat submission facility. Table 4: Companies' perceived benefits of submitting Intrastat online Response Percentage of Numbers Respondents Costs were reduced; Unsure Agreed Disagreed Total number of respondents to this section Time was saved; Unsure 17 6 Agreed Disagreed Total number of respondents to this section Online submission was used with ease; Unsure 16 6 Agreed Disagreed 15 6 Total number of respondents to this section Online submission offered security; Unsure Agreed Disagreed Total number of respondents to this section Source: Survey Data, HM Revenue & Customs

17 8.1.5 Providers Intrastat Compilers Intrastat declarations for both arrivals and dispatches are most likely to be compiled by clerical staff. Other significant sources of compilation include senior managers and directors. Declaration through use of an agent is minimal (see Table 5). Table 5: Compilers of Intrastat Declarations Arrivals Dispatches Percentage of Percentage of Numbers Respondents Numbers Respondents Director Senior Manager Clerical staff Other within Company Declaring agent Not applicable Total number of selections Total number of respondents to this question Note: Some respondents picked more than one source of compilation per suite. Percentage figures refer to number of selections as a proportion of the total number of respondents rather than the total number of selections. Therefore the sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs Staff hours spent completing Intrastat 84 per cent of respondents stated that the number of staff hours spent completing Intrastat declarations was less than four (see Table 6). In 2005, only 64 per cent of traders stated taking less than four hours to complete declarations. This result may highlight the success of improvements made to the online Intrastat submission system since the previous triennial review. Table 6: Staff hours spent completing Intrastat Response declaration (approx per month) Numbers Percentage Less than one hour Between one and less than four hours Between four and less than eight hours Between eight and less than sixteen hours 20 5 Sixteen hours or more 5 1 Total number of respondents to this question Source: Survey Data, HM Revenue & Customs

18 8.1.7 Ease in completing Arrivals/Dispatches fields The ease of completing the arrivals/dispatches fields of the Intrastat declaration was rated. For all fields, over half of those traders questioned reported ease of use in completing the field. However, when comparing between fields, the number of traders reporting difficulties for the fields Commodity Code, Net Mass and Supplementary Units was notably greater than that seen for the other four fields. This was the case for both suites (see Table 7). This is both comparable and highly correlated with the results of the 2005 survey. Table 7: Companies' perceived difficulty of completing 'Arrivals' / 'Dispatches' fields Arrivals Dispatches Response Response Commodity Code; Numbers Percentage Numbers Percentage Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Country of dispatch; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Delivery Terms; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section

19 Invoice Value; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Nature of Transaction; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Net Mass; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Supplementary Units; Very Difficult Quite Difficult Neither Nor Quite Easy Very Easy Total number of respondents to this section Source: Survey Data, HM Revenue & Customs

20 8.1.8 Problems completing Intrastat declarations The vast majority of providers questioned reported no problems with completing their Intrastat declarations. However, where problems were reported, their nature was mainly in the form of Classifying products, Supplying Net Mass, Supplying Supplementary Units and making Electronic Transmissions (see Table 8). The majority of providers experiencing problems did not actually report them to HMRC (64 per cent). This is in contrast to the 2005 survey where 52 per cent sought HMRC s help (42 per cent made no contact). For 2009, 63 per cent of those that did report problems were satisfied with HMRC s response with 20 per cent stating a level of dissatisfaction. The Net Satisfaction score (the difference between overall satisfaction and dissatisfaction) was 43 per cent (Figure 3). Table 8: Problems with completing Responses Intrastat declarations Numbers Percentage Problems over last 12 months; Companies with problems Companies without problems Total number of respondents to this section Nature of problems*; Classifying products Determining partner country 7 6 Supplying Invoice value 6 5 Supplying Net Mass Supplying Supplementary Units Specific movement (e.g. ships, aeroplanes, triangular trade in goods etc.) 11 9 Electronic transmissions Other Total number of selections 214 Total number of respondents to this section 125 Companies' problem reporting to HMRC; Companies making contact Companies not making contact Total number of respondents to this section *Note: Respondents were permitted to select more than one option for 'Nature of Problems'. Percentage figures refer to number of selections as a proportion of the total number of respondents rather than the total number of selections. Therefore the sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs

21 Figure 3: Companies' satisfaction with HMRC's response to problems 11 % 9 % 23 % 17 % Completely Satisfied Somewhat Satisfied Neither / Nor Somewhat Dissatisfied Completely Dissatisfied 40% Net Satisfaction: +43% Source: Survey Data, HM Revenue & Customs Use and satisfaction with Notice 60 Just over half the providers questioned use only the paper version of Notice 60. Far fewer traders use the electronic version of Notice 60 or both versions. Just less than 10 per cent do not use either version. It was decided not to include counts of the number of respondents that were not aware of Notice 60 due to inconsistencies in the data (see Table 9). Table 9: Format of Notice 60 used by Responses companies Numbers Percentage Paper version only Electronic version only Both Neither 33 9 Total number of respondents to this question Source: Survey Data, HM Revenue & Customs Only 4 per cent of the providers questioned were dissatisfied with the clarity of Notice 60 with a far greater percentage of providers expressing some level of satisfaction. Half of the providers questioned expressed neutrality with regard to their satisfaction with the clarity of the Notice 60. The Net satisfaction score was 42 per cent (Figure 4). Figure 4: Companies' satisfaction with clarity of Notice 60

22 3 % 1 % 16 % Completely Satisfied Somewhat Satisfied Neither / Nor Somewhat Dissatisfied Completely Dissatisfied 50 % 30 % Net Satisfaction:+42% Source: Survey Data, HRervenue & Customs Use and satisfaction of the Intrastat Combined Nomenclature (ICN) The ICN is an EU legislated document that classifies products used by all EU member states. All EU trade declarations need to specify the product being traded. The majority of providers have not used the electronic ICN in the last 12 months (see Table 10). Table 10: Companies use of electronic Responses Intrastat Classification Nomenclature (ICN) Numbers Percentage Use of electronic ICN in last 12 months; Yes No Total number of respondents to this question Source: Survey Data, HM Revenue & Customs Just under half were satisfied with the ICN as a whole (electronic or paper versions). However, over 20 per cent expressed dissatisfaction giving a net satisfaction score of 26 per cent (see Figure 5).

23 Figure 5: Satisfaction with the ICN 6% 10% 16 % 38 % Completely Satisfied Somewhat Satisfied Neither / Nor Somewhat Dissatisfied Completely Dissatisfied 30 % Net Satisfaction: +26% Source: Survey Data, HM Revenue & Customs Providers use and receipt of EU trade statistics Although the majority of providers of Intrastat data do not use EU Trade Statistics data themselves, over 10 per cent do (see Table 11). Table 11: Companies' current use / receipt Trade Statistics data Responses of EU Numbers Percentage Users Non-Users Unsure Total number of respondents to this question Source: Survey Data, HM Revenue & Customs

24 8.2 Results of Survey of Users of Intrastat Data A total of 157 replies were received of which 130 were deemed usable (see 8.2.1). This sample size is not large enough to achieve a 95% confidence level with 5% confidence intervals. The confidence interval based on the number of usable replies is therefore determined as 9% (See Appendix 2) Frequency of trade data use The majority of users surveyed said they use EU trade data on a monthly basis (see Table 12). Those who stated that they never used EU trade data were asked not to answer any further questions in the users survey. A total of 130 respondents stated that they used EU Trade Statistics at least annually and it is their responses that make up the results of the users survey. Table 12: Use of EU Trade Data Response Percentage of Number Respondents Monthly Quarterly Annually Regular Users 130 Non Users Total number of respondents Note: Respondents who answered never are removed from the rest of analysis. Source: Survey Data, HM Revenue & Customs Methods for obtaining EU trade data Almost 90 per cent of those users questioned obtain EU trade data from the UKTradeInfo website. Usage of other methods is comparatively far lower. The preference for use of each of these less popular methods is similar. The least used named source for obtaining EU trade data is the Overseas Trade Statistics publication (see Table 13).

25 Table 13: Methods for obtaining EU Trade Data Respondents using Method Percentage of Number Respondents UKTradeInfo web site ( Overseas Trade Statistics publication 11 9 Direct Enquiry to HMRC Commercial Data Providers Comext / Eurostat Other Government Organisation. e.g. BERR, Embassy Other Source 11 9 Total number of selections 203 Total number of respondents 129 Note: Respondents were permitted to select multiple methods Percentage figures refer to number of selections as a proportion of the total number of respondents rather than total number of selections. Therefore, sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs Satisfaction with EU trade data Over 70 per cent of those questioned expressed satisfaction with HMRC s provision of EU trade data. Just over one in ten users expressed dissatisfaction giving a net satisfaction score of 59 per cent (see Figure 6). Figure 6: Satisfaction with HMRC's EU trade data provision 6 % 6 % 17 % 40 % Completely Satisfied Somewhat Satisfied Neither / Nor Somewhat Dissatisfied Completely Dissatisfied 31 % Net Satisfaction: +59% Source: Survey Data, HM Revenue & Customs

26 8.2.4 Composition of Users by type of organisation Although we cannot be sure that the sample is representative of all users, those taking part in the survey came from a broad range of organisations. The most represented organisation category was UK government departments with notable numbers representing Consultancy Services, Trade/Professional Associations and Importers/Exporters (see Table 15). Table 15: Types of organisation using EU trade data Response Number Percentage Importer/Exporter Freight Agent 10 8 Trade/Professional Association Chamber of Commerce 2 2 Research Institute/University 7 5 Press/Media (Journalism) 3 2 UK Government Department Foreign Government or International Organisations 7 5 Consultancy Service Private Individual 1 1 Other Total number of selections 132 Total number of respondents 130 Note: Respondents were permitted to select multiple methods Percentage figures refer to number of selections as a proportion of the total number of respondents rather than total number of selections. Therefore, sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs Users main economic sectors of interest The users taking part in the survey were shown to be involved with a broad range of sectors. The main economic sector of interest of those responding was Manufacturing with the second most prominent sector of interest being Agriculture, Forestry and Fishing. A large number of respondents expressed interest in more than one sector (see Table 16).

27 Table 16: Users' main economic sectors of interest Response Number Percentage of Respondents Agriculture, forestry and fishing Mining and Quarrying Manufacturing Electricity, Gas, Steam and Air Conditioning Supply Water Supply; sewerage, waste management Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and Storage Accommodation and Food Service Activities Information and Communication Financial and Insurance Activities Real Estate Activities 10 8 Professional, Scientific and Technical Activities Administrative and Support Service Activities 11 9 Public Administration and Defence; Compulsory Social Security 11 9 Education Human Health and Social Work Activities 11 9 Arts, Entertainment and Recreation Other Service Activities Activities of Households as Employers; undifferentiated goods-and services-producing activities of households for own use 9 8 Total number of selections 444 Total number of respondents 120 Note: Respondents were permitted to select multiple sectors Percentage figures refer to number of selections as a proportion of the total number of respondents rather than total number of selections. Therefore, sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs

28 8.2.6 Users companies annual turnover The majority of companies that use the EU trade statistics (and declared their turnover) had turnover of less than 5.6million for the most recent year (52 per cent). Over 70 per cent turned over less than 22.9million (see Figure 7). Figure 7: Users' Companies' annual turnover for the most recent year More than 22.8m Between m Less than 5.6m Percentage of surveyed users' companies Source: Survey Data, HM Revenue & Customs

29 8.2.7 Composition of Users companies by number of employees A minority of EU trade statistics users are sole traders, with the majority employing less than 50 employees (52 per cent). Around 41 per cent of companies reported employing more than 50 employees (see Figure 8). This shows that a range of different sized businesses utilize EU trade data, not just big businesses. Figure 8: Current no. of employees in users' companies No employees ( sole trader ) 1 9 employees employees employees More than 250 employees Source: Survey Data, HM Revenue & Customs Users annual spend on EU trade statistics The vast majority of users access EU trade statistics free of charge (see Table 19). This number is far greater than that presented from the 2005 review where only 31 per cent of users stated use of free data. This reflects the cessation of charging for data available via uktradeinfo.com. For access to statistics in 2009, far fewer numbers of users were shown to pay between 1-99 (2 per cent in 2009 Vs.19 per cent in 2005) or (7 per cent in 2009 Vs. 37 per cent in 2005). For 2009, just 9 per cent of users pay more than 500 for EU trade statistics, which is comparable with the 13 per cent figure for Table 19: Users' annual expenditure on EU Trade Statistics Response Percentage of Number Respondents Nil use free data Over Total number of respondents Source: Survey Data, HM Revenue & Customs

30 8.2.9 Most important data elements Users reported three distinctively important data elements in the EU trade statistics. These were Commodity Code, Value and Country/Continent for both arrivals and dispatches data. Distinctively least important for both suites, as perceived by users, were the data elements Chapters and Supplementary Units (see Table 20). Table 20: Most important data Arrivals Dispatches elements of EU trade statistics as perceived by users Respondents selecting Respondents selecting element element Number Percentage of Respondents Number Percentage of Respondents Commodity Code Chapters (first 2 digits of commodity code) Total Trade Level Value Supplementary Units Country / Continent Net Mass Regional Trade Data Total number of selections Total number of respondents Note: Respondents were asked to choose up to 3 elements Percentage figures refer to number of selections as a proportion of the total number of respondents rather than total number of selections. Therefore sum of percentages is greater than 100. Source: Survey Data, HM Revenue & Customs Purpose for use of trade statistics Over half of users questioned reported their main purpose for utilizing trade statistics as monitoring market trends. The other identified purposes (Compiling Secondary Publicatons, Broad Economic Analysis, and Identifying Marketing Opportunities) claimed lower levels of recognition but were comparable (around 30 per cent) (see Table 21).