WRITTEN QUESTION E-0720/98 by Amedeo Amadeo (NI) and Salvatore Tatarella (NI) to the Commission (18 March 1998)

Subject: Statistics relating to the trading of goods between Member States - nomenclature of products

This question concerns the proposal for a European Parliament and Council Regulation (EC) amending Council Regulation (EEC) No 3330/91 on the statistics relating to the trading of goods between Member States, with specific reference to the nomenclature of products (COM(97) 275 final - 97/0162 COD) ((OJ C 245, 12.8.1997, p. 12. )).

The present Intrastat system is expensive, complicated and frustrating, especially for SMEs. would it be possible to reduce the number of items in the Intrastat Nomenclature to about 7 000?

It would also be useful to standardize throughout Europe the threshold for entering intra-Community trade in the Intrastat system of statistical information and set it near the upper limit of the current range of thresholds, so as to reduce as far as possible the burden on small businesses, which are less well equipped to cope with it.

Answer given by Mr de Silguy on behalf of the Commission (20 May 1998)

The Commission's proposal ((COM(97) 275 final. )) for simplifying the Intrastat system aims at simplifying the application of the combined nomenclature (CN) when used for intra-Community trade. The proposal is part of a simplification package proposed by the Commission based on the recommendations of the Slim/Intrastat team for reducing the declaration burdens on businesses in particular the small and medium-sized enterprises (SMEs).

Reducing the declaration burdens on SMEs implies that the nomenclature is much simpler and more user-friendly.

To this end, the Commission has proposed not to design a new nomenclature but to ensure a simplified use of the Combined Nomenclature (CN).

The Commission has based this position on reactions met during its many contacts with representatives of users and declarants. In particular it has been emphasised that a specific nomenclature for Intrastat would entail the risk of a separate coding system. This would not be cost effective for the users, the declarants or administrations. The Commission has therefore expressed its support for a single nomenclature for intra and extra-Community trade statistics due to the cost considerations, and this nomenclature should be based on the CN.

The number of codes of the simplified CN cannot be set at an arbitrary level but should ensure that the quality of the data collected meets the requirement.

An important cornerstone for simplifying and modernising the application of the CN is therefore the work currently undertaken by the Commission (SLIM/CN). Equally important is the conclusion of the Council on 27 November 1997 to develop informatic tools with the aim of facilitating the use of the CN, and including the commercial terminology used by the enterprises.

In addition to the simplification of the CN itself the Commission will propose measures which will allow in particular SMEs a simplified Intrastat declaration.

As far as the statistical threshold is concerned the present application takes into account the discrepancies between the national economies in particular the structural pattern of their enterprises and products. Most Member States have raised their thresholds since the introduction in 1993, thereby exempting an even larger number of small but also medium sized enterprises. More than 60% of all intra-Community operators are now exempted from the statistical declaration obligation.

Taking into account the differences across Member States a uniform threshold applied Community wide could not be set at a high level without detrimental effects on trade statistics. A uniform threshold at a low level would on the other hand not be efficient, and the objective of exempting a substantial part of enterprises could therefore not be reached.