Regulation (EC) No 184/2005 of the European Parliament and of the Council of 12 January 2005 on Community statistics concerning balance of payments, international trade in services and foreign direct investment
Date: 2005-01-12
Institutions: Council of the European Union, European Parliament
Subjects: EU statistics, Eurostat, balance of payments, data collection, data transmission, direct investment, economic indicator, foreign investment, international trade, quality standard, service industry

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REGULATION (EC) No 184/2005 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 12 January 2005

on Community statistics concerning balance of payments, international trade in services and foreign
direct investment

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

(4)

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 285(1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Central Bank, deliv-
ered in accordance with Article 105(4) of the Treaty (1),

Acting in accordance with the procedure laid down in Article 251
of the Treaty (2),

Whereas:

(1)

(2)

(3)

The Treaty requires the Commission to submit reports to
the Council in order to enable the Council to monitor eco-
nomic developments in each of the Member States and in
the Community as well as the consistency of economic
policies with certain broad guidelines.

According to the Treaty, the Commission must submit
proposals to the Council for implementing the common
commercial policy and the Council must authorise the
Commission to open the necessary negotiations.

The implementation and the review of trade agreements,
including the General Agreement on Trade in Services
(GATS) (3) and the Agreement on Trade-Related aspects of
Intellectual Property Rights (TRIPs) (4), as well as the
current and future negotiations on further agreements, call
for the relevant statistical information to be made available.

(5)

(6)

(7)

Council Regulation (EC) No 2223/96 of 25 June 1996 on
the European System of national and regional accounts in
the Community (5) (ESA 95) contains the reference frame-
work of common standards, definitions, classifications,
and accounting rules for drawing up the accounts of the
Member States for the statistical requirements of the Com-
munity, in order to obtain comparable results between
Member States.

The Action Plan on EMU Statistical Requirements pre-
sented to the Council in September 2000 and the 3rd, 4th
and 5th Progress Reports, also supported by the Council,
provide for quarterly European accounts by the institu-
tional sector within 90 days. The timely provision of quar-
terly balance-of-payments figures is a prerequisite for the
compilation of these quarterly European accounts.

Council Regulation (EC, Euratom) No 58/97 of 20 Decem-
ber 1996 on Structural Business Statistics (6), established a
common framework for the collection, compilation, trans-
mission and evaluation of Community statistics on the
structure, activity, competitiveness and performance of
businesses in the Community and sets out the characteris-
tics which should be collected in this area.

Regulation (EC) No 2560/2001 of the European Parlia-
ment and of the Council of 19 December 2001 on cross-
border payments in euro (7), had a direct impact on the
collection of statistics; an increase in the threshold pro-
vided for in that Regulation would have a significant
impact on the reporting burden of undertakings and on
the quality of balance of payments statistics of Member
States, especially in the Member States that have collection
systems based on settlements.

(1) OJ C 296, 6.12.2003, p. 5.
(2) Opinion of the European Parliament of 30 March 2004 (not yet pub-
lished in the Official Journal) and Council Decision of 13 December
2004.

(3) OJ L 336, 23.12.1994, p. 191.
(4) OJ L 336, 23.12.1994, p. 214.

(5) OJ L 310, 30.11.1996, p. 1. Regulation as last amended by Regula-
tion (EC) No 1267/2003 of the European Parliament and of the Coun-
cil (OJ L 180, 18.7.2003, p. 1).

(6) OJ L 14, 17.1.1997, p. 1. Regulation as last amended by Regulation
(EC) No 1882/2003 of the European Parliament and of the Council
(OJ L 284, 31.10.2003, p. 1).
(7) OJ L 344, 28.12.2001, p. 13.

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(8)

(9)

Collectively, the Balance of Payments Manual of the Inter-
national Monetary Fund, the Guideline of the European
Central Bank (ECB) of 2 May 2003 on the statistical report-
ing requirements of the European Central Bank in the field
of balance of payments and international investment posi-
tion statistics, and the international reserves template (1),
the Manual on statistics of international trade in services of
the United Nations, and the OECD Benchmark Definition
of Foreign Direct Investment, define the general rules for
compiling statistics on balance of payments, international
trade in services, and foreign direct investment.

In the field of balance of payments statistics, the ECB and
the Commission coordinate work on compilation issues as
appropriate. This Regulation defines in particular the sta-
tistical information that the Commission needs from the
Member States in order to produce Community statistics
on balance of payments, international trade in services and
foreign direct investment. For the purposes of producing
and disseminating those Community statistics, the Com-
mission and the Member States consult with each other on
matters concerning the quality of the data supplied and its
dissemination.

(10)

Council Regulation (Euratom, EEC) No 1588/90 of 11 June
1990 on the transmission of data subject to statistical con-
fidentiality to the Statistical Office of the European Com-
munities (2), provides that national rules on statistical con-
fidentiality may not be invoked to prevent the transmission
of confidential statistical data to the Community authority
(Eurostat) where an act of Community law governing a
Community statistic provides for the transmission of such
data.

(13)

There is a clear need to produce Community statistics on
balance of payments, international trade in services and
foreign direct investment which follow common statistical
quality standards.

(14)

Since the objective of this Regulation, namely the creation
of common statistical quality standards for the production
of comparable statistics on balance of payments, interna-
tional trade in services and foreign direct investment, can-
not be sufficiently achieved by the Member States and can
therefore be better achieved at Community level, the Com-
munity may adopt measures, in accordance with the prin-
ciple of subsidiarity as set out in Article 5 of the Treaty. In
accordance with the principle of proportionality, as set out
in that Article, this Regulation does not go beyond what is
necessary in order to achieve that objective.

(15)

In order to guarantee the fulfilment of the obligations laid
down in this Regulation, the national institutions respon-
sible for the collection of data within the Member States
may need to gain access to administrative data sources
such as business registers held by other public institutions
and to other databases containing information on cross-
border transactions and positions, wherever such data are
necessary for the production of Community statistics.

(16)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of implementing powers con-
ferred on the Commission (5),

(11)

Council Regulation (EC) No 2533/98 of 23 November
1998 concerning the collection of statistical information
by the European Central Bank (3), lays down a confidenti-
ality regime that applies to confidential statistical informa-
tion transmitted to the ECB.

HAVE ADOPTED THIS REGULATION:

(12)

The production of specific Community statistics is gov-
erned by the rules set out in Council Regulation (EC)
No 322/97 of 17 February 1997 on Community
statistics (4).

(1) OJ L 131, 28.5.2003, p. 20.
(2) OJ L 151, 15.6.1990, p. 1. Regulation as last amended by Regulation

(EC) No 1882/2003.

(3) OJ L 318, 27.11.1998, p. 8.
(4) OJ L 52, 22.2.1997, p. 1. Regulation as amended by Regulation (EC)

Article 1

Subject matter

This Regulation establishes a common framework for the system-
atic production of Community statistics on balance of payments,
international trade in services and foreign direct investment.

No 1882/2003.

(5) OJ L 184, 17.7.1999, p. 23.

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Article 2

Submission of data

1. Member States shall submit to the Commission (Eurostat)
data on balance of payments, international trade in services and
foreign direct investment as referred to in Annex I. The data shall
be as defined in Annex II.

2. Member States shall submit the data to the Commission
(Eurostat) in accordance with the deadlines shown in Annex I.

Article 3

Data sources

1. Member States shall collect the information required pursu-
ant to this Regulation using all the sources they consider relevant
and appropriate. These may include administrative data sources
such as business registers.

The common quality standards, as well as the content and
3.
periodicity of the quality reports, shall be specified in accordance
with the procedure referred to in Article 11(2), taking into account
the implications as regards the cost of collecting and compiling
the data as well as important changes concerning data collection.

The quality of the data transmitted shall be assessed, on the basis
of the quality reports, by the Commission with the assistance of
the Balance of Payments Committee referred to in Article 11. This
assessment by the Commission shall be sent to the European Par-
liament for information.

4. Member States shall communicate to the Commission
major methodological or other changes that would influence the
data transmitted, not later than three months after any such
change becomes applicable. The Commission shall notify the
European Parliament and the other Member States of any such
communication.

Article 5

Data flows

The statistics to be produced shall be grouped for transmission to
the Commission (Eurostat) according to the following data flows:

2.
Natural and legal persons required to supply information
shall, when responding, comply with the time limits and defini-
tions set by the national institutions responsible for the collection
of data within the Member States in accordance with this
Regulation.

(a) balance of payments euro indicators;

(b) balance of payments quarterly statistics;

3. Where the required data cannot be collected at a reasonable
cost, best estimates may be transmitted (zero values included).

(c)

international trade in services;

(d)

foreign direct investment (FDI) flows;

Article 4

Quality criteria and reports

(e) FDI positions.

The data flows shall be as further specified in Annex I.

1. Member States shall take all reasonable measures they con-
sider necessary to ensure the quality of the data transmitted
according to common quality standards.

Article 6

Reference period and periodicity

2. Member States shall supply the Commission with a report
on the quality of the data transmitted (hereinafter referred to as
‘quality report’).

Member States shall compile the data flows according to the rel-
evant first reference period and the periodicity as specified in
Annex I.

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Article 7

Transmission of data

Such measures shall concern:

Member States shall transmit to the Commission (Eurostat) the
data required by this Regulation following a format and a proce-
dure defined by the Commission, in accordance with the proce-
dure referred to in Article 11(2).

Article 8

Transmission and exchange of confidential data

Notwithstanding the rules laid down in Article 5(4) of Regu-
1.
lation (Euratom, EEC) No 1588/90, the transmission of confiden-
tial data between Eurostat and the ECB may take place to the
extent this transmission is necessary to ensure coherence between
the balance of payments figures of the European Union and those
of the economic territory of the Member States which have
adopted the single currency.

Paragraph 1 shall apply on condition that the ECB takes due
2.
account of the principles defined in Article 10 of Regulation (EC)
No 322/97 and complies with the conditions laid down in
Article 14 of the same Regulation.

3.
The exchange of confidential data, as defined by Article 13
of Regulation (EC) No 322/97, shall be allowed between Member
States where the exchange is necessary to safeguard the quality of
the balance of payment figures of the European Union.

Member States receiving confidential data from other Member
States shall treat that information confidentially.

Article 9

Dissemination

The Commission (Eurostat) shall disseminate the Community sta-
tistics produced pursuant to this Regulation, with a periodicity
similar to that specified in Annex I.

(a)

the updating of the definitions (Annex II);

(b)

the updating of data requirements,
including submission
deadlines as well as revisions, extensions and eliminations of
data flows (Annex I).

Article 11

Committee procedure

The Commission shall be assisted by a Balance of Payments

1.
Committee, hereinafter the ‘Committee’.

2. Where reference is made to this paragraph, Articles 5 and 7
of Decision 1999/468/EC shall apply, having regard to the pro-
visions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

3.

The Committee shall adopt its Rules of Procedure.

The ECB may attend the meetings of the Committee as an

4.
observer.

Article 12

Report on implementation

By 28 February 2010, the Commission shall submit a report to
the European Parliament and the Council on the implementation
of this Regulation.

In particular, the report shall:

Article 10

Adaptation to economic and technical changes

(a)

record the quality of the statistics produced;

The measures necessary to take account of economic and techni-
cal changes shall be laid down in accordance with the procedure
referred to in Article 11(2).

(b) assess the benefits accruing to the Community, the Member
States and the providers and users of statistical information
of the statistics produced in relation to the costs;

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(c)

(d)

identify areas for potential improvement and amendments
considered necessary in the light of the results obtained;

review the operation of the Committee and recommend
whether the scope of implementing measures should be
redefined.

Article 13

Entry into force

This Regulation shall enter into force on the 20th day following
its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Strasbourg, 12 January 2005.

For the European Parliament
The President
J. P. BORRELL FONTELLES

For the Council
The President
N. SCHMIT

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ANNEX I

DATA FLOWS

referred to in Article 5

1. Balance of payments euro indicators

BOP EUR
Euro Indicators

Current Account

Services

(1) t = reference period (year or quarter).

2. Balance of payments quarterly statistics

BOP Q
Quarterly Data

I.

Current Account

Goods

Services

Transportation

Travel

Communications services

Construction services

Insurance services

Financial services

Computer and information services

Royalties and licence fees

Other business services

Personal, cultural and recreational services

Government services, not included elsewhere.

Income

Compensation of employees

Investment Income

— Direct Investment

— Portfolio Investment

— Other Investment

Current transfers

General Government

Deadline: t (1) + 2 months
Periodicity: Quarter
First reference period: First quarter of 2006

Credit

Extra-EU

Extra-EU

Debit

Extra-EU

Extra-EU

Net

Extra-EU

Extra-EU

Deadline: t + 3 months
Periodicity: Quarter
First reference period: First quarter of 2006

Credit

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Extra-EU

Extra-EU

Level 1

Extra-EU

Debit

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Extra-EU

Level 1

Extra-EU

Net

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

World

Extra-EU

Level 1

Extra-EU

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BOP Q
Quarterly Data

Other sectors

II.

Capital Account

III.

Financial Account

Direct Investment

Abroad

— Equity capital

— Reinvested earnings

— Other capital

In the reporting economy

— Equity capital

— Reinvested earnings

— Other capital

Portfolio Investment

Financial derivatives

Other Investment

3.

International trade in services

BOP ITS
International Trade in Services

Total Services

Transportation

Sea transport

— Passenger

— Freight

— Other

Air transport

— Passenger

— Freight

— Other

Other transport

— Passenger

— Freight

— Other

Deadline: t + 3 months
Periodicity: Quarter
First reference period: First quarter of 2006

Credit

Extra-EU

Extra-EU

Net assets

Debit

Extra-EU

Extra-EU

Net liabilities

Extra-EU

World

Extra-EU

Extra-EU

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Credit

Level 3

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Debit

Level 3

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Net

Extra-EU

Extra-EU

Net

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

Level 1

World

Extra-EU

Net

Level 3

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Extended classification of other transport

Space transport

Level 2

Level 2

Level 2

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BOP ITS
International Trade in Services

Rail transport

— Passenger

— Freight

— Other

Road transport

— Passenger

— Freight

— Other

Inland waterway transport

— Passenger

— Freight

— Other

Pipeline transport and electricity transmission

Other supporting and auxiliary transport services

Travel

Business travel

— Expenditure by seasonal and border workers

— Other

Personal travel

— Health-related expenditure

— Education-related expenditure

— Other

Communications services

Postal and courier services

Telecommunications services

Construction services

Construction abroad

Construction in the compiling economy

Insurance services

Life insurance and pension funding

Freight insurance

Other direct insurance

Reinsurance

Auxiliary services

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Credit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Debit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Net

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

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BOP ITS
International Trade in Services

Financial services

Computer and information services

Computer services

Information services

— News agency services

— Other information provision services

Royalties and licence fees

Franchises and similar rights

Other royalties and license fees

Other business services

Merchanting and other trade-related services

— Merchanting

— Other trade-related services

Operational leasing services

Miscellaneous business, professional and technical services

— Legal, accounting, management consulting and public relations

— Legal services

— Accounting, auditing, bookkeeping and tax consulting services

— Business and management consulting and public relations services

— Advertising, market research, and public opinion polling

— Research and development

— Architectural, engineering and other technical services

— Agricultural, mining and on-site processing services

— Waste treatment and depollution

— Agricultural, mining and other on-site processing services

— Other business services

— Services between related enterprises, not included elsewhere.

Personal, cultural and recreational services

Audiovisual and related services

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Credit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Debit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Net

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

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BOP ITS
International Trade in Services

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Other personal, cultural and recreational services

— Education services

— Health services

— Other

Government services (not included elsewhere)

Embassies and consulates

Military units and agencies

Other government services

Memorandum items

Audiovisual transactions

Postal services

Courier services

4. Foreign Direct Investment (FDI) flows

BOP FDI
Direct Investment Flows (*)

A

Geographical breakdown

Item

Direct investment abroad

510

525

530

Equity capital

Reinvested earnings

Other capital

505

Direct investment abroad: Total

Direct investment in the reporting economy

560

575

580

Equity capital

Reinvested earnings

Other capital

555

Direct investment in the reporting economy: Total

Direct investment income

332

Dividends

333

Reinvested earning and undistributed branch profits

334

Income on debt

330

Direct investment income: Total

(*) Only the geographical breakdown.

Credit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 1

Level 1

Level 1

Debit

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 1

Level 1

Level 1

Net

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 2

Level 1

Level 1

Level 1

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Data type

Geographical
breakdown

Activity
breakdown

Net

Net

Net

Net

Net

Net

Net

Net

Credit,
debit, net

Credit,
debit, net

Credit,
debit, net

Credit,
debit, net

Level 2

Level 2

Level 2

Not required

Not required

Not required

Level 3

Not required

Level 2

Level 2

Level 2

Not required

Not required

Not required

Level 3

Not required

Level 2

Not required

Level 2

Not required

Level 2

Not required

Level 3

Not required

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BOP FDI
Direct Investment Flows

A

Geographical breakdown

Item

Direct investment abroad

510

Equity capital

525

Reinvested earnings

530

Other capital

505

Direct investment abroad: Total

Direct investment in the reporting economy

560

Equity capital

575

Reinvested earnings

580

Other capital

555

Direct investment in the reporting economy: Total

Direct investment income

332

Dividends

333

Reinvested earning and undistributed branch profits

334

Income on debt

330

Direct investment income: Total

B

Activity breakdown

Item

505

Direct investment income: Total

555

Direct investment in the reporting economy: Total

330

Direct investment income: Total

Deadline: t + 21 months
Periodicity: Year
First reference period: 2006

Data type

Geographical
breakdown

Activity
breakdown

Net

Net

Net

Net

Net

Net

Net

Net

Credit,
debit, net

Credit,
debit, net

Credit,
debit, net

Credit,
debit, net

Level 2

Not required

Level 2

Not required

Level 2

Not required

Level 3

Not required

Level 2

Not required

Level 2

Not required

Level 2

Not required

Level 3

Not required

Level 2

Not required

Level 2

Not required

Level 2

Not required

Level 3

Not required

Data type

Geographical
breakdown

Activity
breakdown

Net

Net

Net

Net

Credit,
debit, net

Credit,
debit, net

Level 1

Level 2

Level 1

Level 2

Level 1

Level 2

Level 2

Level 1

Level 2

Level 1

Level 2

Level 1

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5. Foreign Direct Investment (FDI) positions

BOP POS
Direct Investment Positions (*) (1)

A

Geographical breakdown

Item

Direct investment assets

Deadline: t + 9 months
Periodicity: Year
First reference period: 2006

Data type

Geographical
breakdown

Activity
breakdown

506

Equity capital and reinvested earnings

Net Positions

Level 1

Not required

530

Other capital

Net Positions

Level 1

Not required

505

Direct investment abroad: Total assets, net

Net Positions

Level 2

Not required

Direct investment liabilities

556

Equity capital and reinvested earnings

Net Positions

Level 1

Not required

580

Other capital

Net Positions

Level 1

Not required

555

Direct investment in the reporting economy: Total liabilities, net

Net Positions

Level 2

Not required

(*) Only the geographical breakdown.
(1) FDI positions as at 31.12.2005 will be transmitted in September 2007 pursuant to existing gentlemen’s agreements.

BOP POS
Direct Investment Positions (1)

A

Geographical breakdown

Item

Deadline: t + 21 months
Periodicity: Year
First reference period: 2006

Data type

Geographical
breakdown

Activity
breakdown

506

530

505

556

580

555

B

Direct investment assets

Equity capital and reinvested earnings

Other capital

Direct investment abroad: Total assets, net

Direct investment liabilities

Equity capital and reinvested earnings

Other capital

Net Positions

Net Positions

Net Positions

Net Positions

Net Positions

Direct investment in the reporting economy: Total liabilities, net

Net Positions

Level 2

Level 2

Level 3

Level 2

Level 2

Level 3

Not required

Not required

Not required

Not required

Not required

Not required

Activity breakdown

Item

Data type

Geographical
breakdown

Activity
breakdown

505

Direct investment abroad: Total assets, net

Net Positions

555

Direct investment in the reporting economy: Total liabilities, net

Net Positions

Level 1

Level 2

Level 1

Level 2

Level 2

Level 1

Level 2

Level 1

(1) The revised data on FDI positions as at 31.12.2005 will be transmitted in September 2008 pursuant to this Regulation.

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6. Geographical breakdown levels

Level 1

Level 2

A1

D3

U4

4A

D5

World (all entities)

EU-25 (Intra-EU-25)

Extra-euro-zone

European Union institutions

Extra-EU-25

CH

Switzerland

CA

US

Canada

United States of America

JP

Japan

Z8

C4

Extra- EU-25 non-allocated

Offshore financial centres (1)

(1) Only for FDI.

A1 World (all entities)

D3

U4

4A

D5

IS

LI

NO

CH

BG

HR

RO

RU

TR

EG

EU-25 (Intra-EU-25)

Extra-euro-zone

European Union institutions

Extra-EU-25

Iceland

Liechtenstein

Norway

Switzerland

Bulgaria

Croatia

Romania

Russian Federation

Turkey

Egypt

MA Morocco

NG

ZA

CA

US

Nigeria

South Africa

Canada

United States of America

MX Mexico

AR

BR

CL

UY

VE

IL

CN

HK

IN

ID

JP

KR

MY

PH

SG

Argentina

Brazil

Chile

Uruguay

Venezuela

Israel

China

Hong Kong

India

Indonesia

Japan

South Korea

Malaysia

Philippines

Singapore

TW Taiwan

TH

AU

NZ

Z8

C4

Thailand

Australia

New Zealand

Extra- EU-25 non-allocated

Offshore financial centres

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7Z

AD

AE

AF

AG

AI

AL

AM

AN

AO

AQ

AR

AS

AT

AU

International Organisations excluding
European Union Institutions

Andorra

United Arab Emirates

Afghanistan

Antigua and Barbuda

Anguilla

Albania

Armenia

Netherlands Antilles

Angola

Antarctica

Argentina

American Samoa

Austria

Australia

AW Aruba

AZ

BA

BB

BD

BE

BF

BG

BH

BI

BJ

BM

BN

BO

BR

BS

BT

BV

Azerbaijan

Bosnia and Herzegovina

Barbados

Bangladesh

Belgium

Burkina Faso

Bulgaria

Bahrain

Burundi

Benin

Bermuda

Brunei Darussalam

Bolivia

Brazil

Bahamas

Bhutan

Bouvet Island

BW

Botswana

BY

BZ

CA

CC

CD

CF

CG

CH

CI

Belarus

Belize

Canada

Cocos (Keeling) Islands

Congo, the Democratic Republic of
the

Central African Republic

Congo

Switzerland

Côte d’Ivoire

CK

CL

CM

CN

CO

CR

CS

CU

CV

CX

CY

CZ

DE

DJ

DK

DM

DO

DZ

EC

EE

EG

ER

ES

ET

FI

FJ

FK

FM

FO

FR

GA

GB

GD

GE

GG

GH

GI

GL

GM

GN

GQ

GR

Level 3

Cook Islands

Chile

Cameroon

China

Colombia

Costa Rica

Serbia and Montenegro

Cuba

Cape Verde

Christmas Island

Cyprus

Czech Republic

Germany

Djibouti

Denmark

Dominica

Dominican Republic

Algeria

Ecuador

Estonia

Egypt

Eritrea

Spain

Ethiopia

Finland

Fiji

Falkland Islands (Malvinas)

Micronesia, Federated States of

Faeroe Islands

France

Gabon

United Kingdom

Grenada

Georgia

Guernsey (No official ISO 3166-1
country code, exceptionally reserved
code elements)

Ghana

Gibraltar

Greenland

Gambia

Guinea

Equatorial Guinea

Greece

GS

GT

GU

South Georgia and the South Sand-
wich Islands

Guatemala

Guam

GW Guinea-Bissau

GY

HK

Guyana

Hong Kong

HM

Heard Island and McDonald Islands

HN

HR

HT

HU

ID

IE

IL

IM

IN

IO

IQ

IR

IS

IT

JE

JM

JO

JP

KE

KG

KH

KI

KM

KN

KP

Honduras

Croatia

Haiti

Hungary

Indonesia

Ireland

Israel

Isle of Man (No official ISO 3166-1
country code, exceptionally reserved
code elements)

India

British Indian Ocean Territory

Iraq

Iran, Islamic Republic of

Iceland

Italy

Jersey (No official ISO 3166-1 coun-
try code, exceptionally reserved code
elements)

Jamaica

Jordan

Japan

Kenya

Kyrgyzstan

Cambodia (Kampuchea)

Kiribati

Comoros

St Kitts and Nevis

Korea, Democratic People’s Republic
of (North Korea)

KR

Korea, Republic of (South Korea)

KW Kuwait

KY

KZ

Cayman Islands

Kazakhstan

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LA

LB

LC

LI

LK

LR

LS

LT

LU

LV

LY

MA

MD

MG

MH

Lao People’s Democratic Republic

Lebanon

Saint Lucia

Liechtenstein

Sri Lanka

Liberia

Lesotho

Lithuania

Luxembourg

Latvia

Libyan Arab Jamahiriya

Morocco

Moldova, Republic of

Madagascar

Marshall Islands

MK (1) Macedonia, the Former Yugoslav

Republic of

Mali

Myanmar

Mongolia

Macao

Northern Mariana Islands

Martinique

Mauritania

Montserrat

Malta

Mauritius

Maldives

ML

MM

MN

MO

MP

MQ

MR

MS

MT

MU

MV

MW Malawi

MX

MY

MZ

NA

NC

NE

NF

NG

NI

NL

Mexico

Malaysia

Mozambique

Namibia

New Caledonia

Niger

Norfolk Island

Nigeria

Nicaragua

Netherlands

Level 3

NO

NP

NR

NU

NZ

Norway

Nepal

Nauru

Niue

New Zealand

OM

Oman

PA

PE

PF

PG

PH

PK

PL

PN

PR

PS

PT

PW

PY

QA

RO

RU

Panama

Peru

French Polynesia

Papua New Guinea

Philippines

Pakistan

Poland

Pitcairn

Puerto Rico

Palestinian Territory, Occupied

Portugal

Palau

Paraguay

Qatar

Romania

Russian Federation

RW Rwanda

SA

SB

SC

SD

SE

SG

SH

SI

SK

SL

SM

SN

SO

SR

ST

SV

Saudi Arabia

Solomon Islands

Seychelles

Sudan

Sweden

Singapore

St Helena

Slovenia

Slovakia

Sierra Leone

San Marino

Senegal

Somalia

Suriname

Sao Tome and Principe

El Salvador

SY

SZ

TC

TD

TG

TH

TJ

TK

TL

TM

TN

TO

TR

TT

TV

TW

TZ

UA

UG

UM

US

UY

UZ

VA

VC

VE

VG

VI

VN

VU

WF

WS

YE

YT

ZA

ZM

Syrian Arab Republic

Swaziland

Turks and Caicos Islands

Chad

Togo

Thailand

Tajikistan

Tokelau

Timor Leste

Turkmenistan

Tunisia

Tonga

Turkey

Trinidad and Tobago

Tuvalu

Taiwan, Province of China

Tanzania, United Republic of

Ukraine

Uganda

United States Minor Outlying Islands

United States

Uruguay

Uzbekistan

Holy See (Vatican City State)

St Vincent and the Grenadines

Venezuela

Virgin Islands, British

Virgin Islands, US

Vietnam

Vanuatu

Wallis and Futuna

Samoa

Yemen

Mayotte

South Africa

Zambia

ZW Zimbabwe

(1) Provisional code that does not affect the definitive denomination of the country to be attributed after the conclusion of the negotiations currently taking place in the

United Nations.

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7. Activity breakdown levels

Level 1

Level 2

MINING & QUARRYING

MINING AND QUARRYING

AGRICULTURE AND FISHING

Of which:

Extraction of petroleum and gas

MANUFACTURING

MANUFACTURING

Food products

Textiles and wearing apparel

Wood, publishing and printing

TOTAL textiles and wood activities

Refined petroleum products and other treatments

Manufacture of chemicals and chemical products

Rubber and plastic products

Petroleum, chemical, rubber, plastic
products

TOTAL petroleum, chemical, rubber, plastic products

Metal products

Mechanical products

TOTAL metal and mechanical products

Office machinery and computers

Radio, TV, communication equipment

Office machinery, computers, RTV,
communication equipment

TOTAL machines, computers, RTV, communication equipment.

Motor vehicles

Other transport equipment

Vehicles, other transport equipment

TOTAL vehicles and other transport equipment

ELECTRICITY, GAS & WATER

ELECTRICITY, GAS AND WATER

Manufacturing n.i.e.

CONSTRUCTION

CONSTRUCTION

TOTAL SERVICES

TOTAL SERVICES

TRADE AND REPAIRS

TRADE AND REPAIRS

Sale, maintenance and repair of motor vehicles and motor cycles; retail sale of
automotive fuel

NACE rev. 1

Section A and B

Section C

Div 11

Section D

Subsection DA

Subsection DB

Subsections DD
and DE

Div 23

Div 24

Div 25

Subsection DJ

Div 29

Div 30

Div 32

Div 34

Div 35

Section E

Section F

Section G

Div 50

Wholesale trade and commission trade, except of motor vehicles and motor cycles Div 51

Retail trade, except of motor vehicles and motor cycles; repair of personal and
household goods

Div 52

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Level 1

Level 2

HOTELS & RESTAURANTS

HOTELS AND RESTAURANTS

TRANSPORT, STORAGE AND
COMMUNICATIONS

TRANSPORT, STORAGE AND COMMUNICATIONS

NACE rev. 1

Section H

Section I

Transport and storage

Div 60, 61, 62, 63

Land transport; transport via pipelines

Water transport

Air transport

Supporting and auxiliary transport activities; activities of travel agencies

Post and telecommunications

Post and courier activities

Telecommunications

FINANCIAL INTERMEDIATION

FINANCIAL INTERMEDIATION

Financial intermediation, except insurance and pension funding

Insurance and pension funding, except compulsory social security

Activities auxiliary to financial intermediation

REAL ESTATE ACTIVITIES

RENTING OF MACHINERY AND EQUIPMENT WITHOUT bPERATOR
AND OF PERSONAL AND HOUSEHOLD GOODS

Div 60

Div 61

Div 62

Div 63

Div 64

Group 641

Group 642

Section J

Div 65

Div 66

Div 67

Section K, Div 70

Section K, Div 71

COMPUTER & RELATED
ACTIVITIES

COMPUTER AND RELATED ACTIVITIES

Section K, Div 72

RESEARCH & DEVELOPMENT

RESEARCH AND DEVELOPMENT

OTHER BUSINESS ACTIVITIES

OTHER BUSINESS ACTIVITIES

Legal accounting, market research, consultancy

Legal activities

Accounting, bookkeeping and audit; tax consultancy

Market research and public opinion polling

Section K, Div 73

Section K, Div 74

Group 741

Class 7411

Class 7412

Class 7413

Business and management consultancy activities

Class 7414, 7415

Architectural, engineering and other technical activities

Advertising

Business activities not elsewhere classified.

Group 742

Group 744

Group 743, 745,
746, 747, 748

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Level 1

Level 2

EDUCATION

HEALTH AND SOCIAL WORK

SEWAGE AND REFUSE DISPOSAL

ACTIVITIES OF MEMBERSHIP ORGANISATIONS NOT ELSEWHERE
CLASSIFIED.

NACE rev. 1

Section M

Section N

Section O, Div 90

Section O, Div 91

RECREATIONAL, CULTURAL,
SPORTING ACTIVITIES

RECREATIONAL, CULTURAL, SPORTING ACTIVITIES

Section O, Div 92

Motion picture, radio, television, other entertainment activities

News agency activities

Library, archives, museums, other cultural activities

Sporting and other recreational activities

OTHER SERVICE ACTIVITIES

Not allocated

Group 921, 922,
923

Group 924

Group 925

Group 926, 927

Section O, Div 93

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ANNEX II

DEFINITIONS

referred to in Article 10

GOODS (CODE 100)

The goods component of the Balance of Payments Current Account covers moveable goods for which change of ownership
(between residents and non-residents) occurs. These goods should be measured at market value on an f.o.b. basis. Excep-
tions to the change of ownership rule (transactions in these items are recorded in goods) include: goods on financial lease,
goods transferred between a parent enterprise and a branch, and some goods for processing. Intra-EU Trade in Goods: the
partner country should be defined according to the consignment principle. It includes: general merchandise, goods for pro-
cessing, repairs on goods, goods procured in ports by carriers and non-monetary gold.

SERVICES (CODE 200)

Transportation (code 205)

Covers all transportation services that are provided by residents of one economy for those of another and that involve the
carriage of passengers, the movement of goods (freight), rentals (charters) of carriers with crew, and related supporting and
auxiliary services.

Sea transport (code 206)

Covers all transportation services by sea. The following breakdown is required: Passenger Sea Transport (code 207); Freight
Sea Transport (code 208), and Other Sea Transport (code 209).

Air transport (code 210)

Covers all transportation services provided by air. The following breakdown is required: Passenger Air Transport (code 211);
Freight Air Transport (code 212), and Other Air Transport (code 213).

Other transport (code 214)

Covers all transportation services not provided by sea or air. The following breakdown is required: Passenger on Other Trans-
port (code 215); Freight on Other Transport (code 216), and Other on Other Transport (code 217).

An extended classification for Other Transport (code 214) is required as follows:

Space transport (code 218)

Includes satellite launches undertaken by commercial enterprises for the owners of the satellites (such as telecommunication
enterprises) and other operations performed by operators of space equipment, such as transport of goods and people for
scientific experiments. Also included, is space passenger transport and the payments made by an economy in order to have
its residents included on the space vehicles of another economy.

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Rail transport (code 219)

Covers transport by train. A further subdivision between Passenger Rail Transport (code 220), Freight Rail Transport
(code 221) and Other rail transport (code 222) is required.

Road transport (code 223)

Covers transport by lorries, trucks, buses and coaches. A further subdivision between Passenger Road Transport (code 224),
Freight Road Transport (code 225) and Other Road Transport (code 226) is required.

Inland Waterway Transport (code 227)

Relates to international transportation on rivers, canals and lakes. Included are waterways that are internal to one country
and those that are shared among two or more countries. A further subdivision between Passenger Inland Waterway Trans-
port (code 228), Freight Inland Waterway Transport (code 229) and Other Inland Waterway Transport (code 230) is
required.

Pipeline Transport and Electricity Transmission (code 231)

Covers international transport of goods in pipelines. Also included are charges for the transmission of electricity when this
is separate from the production and distribution process. The provision of electricity itself is excluded, as is the provision of
petroleum and related products, water and other goods supplied through pipelines. Also excluded are distribution services
of electricity, water, gas and other petroleum products (included in Other Business Services (code 284)).

Other Supporting and Auxiliary Transport Services (code 232)

Other supporting and auxiliary transport services covers all other transportation services that cannot be allocated to any of
the components of transportation services described above.

Travel (code 236)

Travel covers primarily the goods and services acquired from an economy by travellers during visits of less than one year to
that economy. The goods and services are purchased by, or on behalf of, the traveller or provided, without a quid pro quo
(that is, are provided as a gift), for the traveller to use or give away. Excluded are transportation of travellers within the econo-
mies that they are visiting, where such transportation is provided by carriers not resident in the particular economy being
visited, as well as the international carriage of travellers, both of which are covered in passenger services under transporta-
tion. Also excluded are goods purchased by a traveller for resale in the traveller’s own economy or in any other economy.
Travel is divided in two subcomponents: Business Travel (code 237) and Personal Travel (code 240).

Business Travel (code 237)

Business travel covers the acquisition of goods and services by business travellers. Also includes the acquisition of goods and
services for personal use by seasonal, border and other workers who are not resident in the economy in which they are
employed and whose employer is resident in that economy. Business travel is further divided into Expenditure by seasonal
and border workers (code 238) and Other Business Travel (code 239).

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Expenditure by seasonal and border workers (code 238)

Includes the acquisition of goods and services for personal use by seasonal, border and other workers who are not resident
in the economy in which they are employed and whose employer is resident in that economy.

Other Business Travel (code 239)

Covers all Business Travel (code 237) not included in Expenditure by seasonal and border workers (code 238).

Personal Travel (code 240)

Personal travel covers goods and services acquired by travellers going abroad for purposes other than business, such as holi-
days, participation in recreational and cultural activities, visits with friends and relations, pilgrimage, and education- and
health-related purposes. Personal travel (code 240) is divided in three subcomponents: Health-related Expenditure (code 241),
Education-related Expenditure (code 242) and Other Personal Travel (code 243).

Health-related Expenditure (code 241)

It is defined as the total expenditure by those travelling for medical reasons.

Education-related expenditure (code 242)

It is defined as the total expenditure by students.

Other Personal Travel (code 243)

Covers all Personal Travel (code 240) not included in Health-related Expenditure (code 241) or Education-related Expendi-
ture (code 242).

Other services (code 981)

All Services (code 200) not included in Transportation (code 205) or Travel (code 236).

Communication services (code 245)

Comprises Postal and Courier Services (code 246) and Telecommunication Services (code 247).

Postal and Courier Services (code 246)

Comprises Postal Services (code 958) and Courier Services (code 959).

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Postal Services (code 958)

Includes poste restante services, telegram services and post office counter services, such as sales of stamps, money orders etc.
Postal services are often, but not exclusively, supplied by national postal administrations. Postal services are subject to inter-
national agreements, and the flows between operators of different economies should be recorded on a gross basis.

Courier Services (code 959)

Courier services focuses on express and door-to-door delivery. Couriers may use self-owned, privately shared or public trans-
portation to supply these services. Included are express delivery services, which might include, for example, on-demand
pick-up or time-definite delivery.

Telecommunications Services (code 247)

Encompasses the transmission of sound, images or other information by telephone, telex, telegram, radio and television cable
and broadcasting, satellite, electronic mail, facsimile services etc., including business network services, teleconferencing and
support services. It does not include the value of the information transported. Also included are cellular telephone services,
Internet backbone services and online access services, including provision of access to the Internet.

Construction Services (code 249)

Comprises Construction Abroad (code 250) and Construction in the Compiling Economy (code 251).

Construction Abroad (code 250)

Comprises the construction services provided to non-residents by enterprises resident in the compiling economy (credit) and
the goods and services purchased in the host economy by these enterprises (debit).

Construction in the Compiling Economy (code 251)

Comprises construction services provided to residents of the compiling economy by non-resident construction enterprises
(debit) and the goods and services purchased in the compiling economy by these non-resident enterprises (credit).

Insurance Services (code 253)

Covers the provision of various types of insurance to non-residents by resident insurance enterprises, and vice versa. These
services are estimated or valued by the service charges included in total premiums rather than by the total value of the pre-
miums. It comprises Life insurance and pension funding (code 254), Freight insurance (code 255), Other direct insurance
(code 256), Reinsurance (code 257) and Auxiliary services (code 258)

Life Insurance and Pension Funding (code 254)

Holders of life insurance policies, both with profit and without profit, make regular payments to an insurer (there may be
just a single payment), in return for which the insurer guarantees to pay the policy holder an agreed minimum sum or an
annuity, at a given date or at the death of the policy holder, if this occurs earlier. Term life insurance, where benefits are
provided in the case of death but in no other circumstances, is a form of direct insurance, and is excluded here and included
in Other direct insurance (code 256).

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Pension funds are separate funds established for the purpose of providing income on retirement for specific groups of
employees. They are organised and directed by private or public employers or jointly by employers and their employees.
They are funded by contributions from the employer and/or the employees and by the investment income earned on fund
assets, and they also engage in financial transactions on their own account. They do not include social security schemes orga-
nised for large sections of the community that are imposed, controlled or financed by general government. Pension fund
management services are included. In the case of pension funds, ‘premiums’ are generally described as ‘contributions’, while
‘claims’ are generally described as ‘benefits’

Freight Insurance (code 255)

Freight insurance services relate to insurance provided on goods that are in the process of being exported or imported, on
a basis that is consistent with the measurement of goods f.o.b. and freight transportation.

Other Direct Insurance (code 256)

Other direct insurance covers all other forms of casualty insurance. Included are term life insurance; accident and health
insurance (unless these are provided as part of government social security schemes); marine, aviation and other transport
insurance, fire and other property damage, pecuniary loss insurance, general liability insurance and other insurance, such as
travel insurance and insurance related to loans and credit cards.

Reinsurance (code 257)

Reinsurance is the process of subcontracting parts of the insurance risk, often to specialised operators, in return for a pro-
portionate share of the premium income. Reinsurance transactions may relate to packages that mix several types of risks.

Auxiliary Services (code 258)

Comprises transactions that are closely related to insurance and pension fund operations. Included are agents’ commissions,
insurance brokering and agency services, insurance and pension consultancy services, evaluation and adjustment services,
actuarial services, salvage administration services, and regulatory and monitoring services on indemnities and recovery
services.

Financial Services (code 260)

Financial services covers financial intermediation and auxiliary services, except those of life insurance enterprises and pen-
sion funds (which are included in life insurance and pension funding) and other insurance services that are conducted
between residents and non-residents. Such services may be provided by banks, stock exchanges, factoring enterprises, credit
card enterprises and other enterprises. Included are services provided in connection with transactions in financial instru-
ments, as well as other services related to financial activity, such as advisory, custody and asset management services.

Computer and Information Services (code 262)

Comprises Computer Services (code 263) and Information Services (code 264).

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Computer Services (code 263)

Consists of hardware and software-related services and data-processing services. Included are hardware and software con-
sultancy and implementation services; maintenance and repair of computers and peripheral equipment; disaster recovery
services, provision of advice and assistance on matters related to the management of computer resources; analysis, design
and programming of systems ready to use (including web page development and design), and technical consultancy related
to software; development, production, supply and documentation of customised software, including operating systems made
on order for specific users; systems maintenance and other support services, such as training provided as part of consul-
tancy; data-processing services, such as data entry, tabulation and processing on a time-sharing basis; web page hosting ser-
vices (i.e. the provision of server space on the Internet to host clients’ web pages); and computer facilities management.

Information Services (code 264)

Comprises News Agency Services (code 889) and Other information provision services (code 890).

News Agency Services (code 889)

News agency services include the provision of news, photographs, and feature articles to the media.

Other information provision services (code 890)

Includes database services - database conception, data storage and the dissemination of data and databases (including direc-
tories and mailing lists) - both online and through magnetic, optical or printed media and web search portals (search engine
services that find internet addresses for clients who input keyword queries). Also included are direct, non-bulk subscriptions
to newspapers and periodicals, whether by mail, electronic transmission or other means.

Royalties and licence fees (code 266)

Comprises Franchises and similar rights (code 891) and Other royalties and licence fees (code 892).

Franchises and similar rights (code 891)

Comprises international payments and receipts of franchising fees and the royalties paid for the use of registered trademarks.

Other royalties and licence fees (code 892)

Includes international payments and receipts for the authorised use of intangible, non-produced, non-financial assets and
proprietary rights (such as patents, copyrights and industrial processes and designs) and the use, through licensing agree-
ments, of produced originals or prototypes (such as manuscripts, computer programs, and cinematographic works and
sound recordings).

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Other business services (code 268)

Comprises Merchanting and other trade-related services (code 269), Operational leasing services (code 272) and Miscella-
neous business, professional, and technical services (code 273).

Merchanting and other trade-related services (code 269)

Comprise Merchanting (code 270) and Other trade-related services (code 271)

Merchanting (code 270)

Merchanting is defined as the purchase of a good by a resident of the compiling economy from a non-resident and the sub-
sequent resale of the good to another non-resident; during the process, the good does not enter or leave the compiling
economy.

Other trade-related services (code 271)

Covers commissions on goods and service transactions between (a) resident merchants, commodity brokers, dealers, and
commission agents and (b) non-residents.

Operational leasing services (code 272)

Covers resident/non-resident leasing (rental) and charters, without operators, of ships, aircraft and transportation equip-
ment, such as railway cars, containers and rigs, without crew.

Miscellaneous business, professional, and technical services (code 273)

Comprises Legal, accounting, management consulting, and public relations (code 274), Advertising, market research and
public opinion polling (code 278), Research and development (code 279), Architectural, engineering and other technical ser-
vices (code 280), Agricultural, mining, and on-site processing services (code 281), Other business services (code 284) and
Services between related enterprises, n.i.e. (code 285).

Legal, accounting, management consulting, and public relations (code 274)

Comprises Legal services (code 275), Accounting, auditing, bookkeeping and tax consultancy services (code 276) and Busi-
ness and management consulting and public relations services (code 277).

Legal services (code 275)

Covers legal advisory and representation services in any legal, judicial and statutory procedures, drafting services of legal
documentation and instruments, certification consultancy; and escrow and settlement services.

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Accounting, auditing, bookkeeping and tax consultancy services (code 276)

Covers the recording of commercial transactions for businesses and others, examination services of accounting records and
financial statements, business tax planning and consulting; and preparation of tax documents.

Business and management consulting and public relations services (code 277)

Covers advisory, guidance and operational assistance services provided to businesses for business policy and strategy and
the overall planning, structuring and control of an organisation. Included are management auditing, market management,
human resources, production management and project management consulting; and advisory, guidance and operational ser-
vices related to improving the image of the clients and their relations with the institutions and the general public.

Advertising, market research and public opinion polling (code 278)

Services transacted between residents and non-residents. Covers the design, creation and marketing of advertisements by
advertising agencies, media placement, including the purchase and sale of advertising space, exhibition services provided by
trade fairs, the promotion of products abroad, market research, telemarketing and public opinion polling on various issues.

Research and development (code 279)

Covers those services that are transacted between residents and non-residents and associated with basic research, applied
research and experimental development of new products and processes.

Architectural, engineering and other technical services (code 280)

Covers transactions between residents and non-residents related to architectural design of urban and other development
projects; planning and project design and supervision of dams, bridges, airports, turnkey projects etc.; surveying, cartogra-
phy, product testing and certification; and technical inspection services.

Agricultural, mining and on-site processing services (code 281)

Comprises Waste treatment and depollution (code 282) and Agricultural, mining, and other on-site processing services
(code 283).

Waste treatment and depollution (code 282)

Includes the treatment of radioactive and other waste, stripping of contaminated soil, cleaning up of pollution including oil
spills, restoration of mining sites; and decontamination and sanitation services. Also included are all other services that relate
to the cleaning or restoring of the environment.

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Agricultural, mining, and other on-site processing services (code 283)

Comprises:

(a)

agricultural services that are incidental to agriculture, such as the provision of agricultural machinery with crew, har-
vesting, treatment of crops, pest control, animal boarding, animal care, and breeding services. Services in hunting, trap-
ping, forestry and logging, and fishing are also included here;

(b) mining services provided at oil and gas fields, including drilling, derrick building, repair and dismantling services, and
oil and gas well casing cementing. Services incidental to mineral prospecting and exploration, as well as mining engi-
neering and geological surveying, are also included here;

(c)

other on-site processing services, which covers on-site processing of or work on goods that have been imported with-
out change of ownership, processed but not re-exported to the country from which the goods were consigned (but are
instead either sold in the processing economy or sold to a third economy) or vice versa.

Other business services (code 284)

Covers services transactions between residents and non-residents, such as the placement of personnel, security and investi-
gative services, translation and interpretation, photographic services, building cleaning, real estate services to businesses and
any other business services that cannot be classified to any of the aforementioned business services.

Services between related enterprises, n.i.e. (code 285)

It is a residual category. It covers payments between related enterprises for services that cannot be specifically classified to
any other component. It includes payments from branches, subsidiaries and associates to their parent enterprise or other
related enterprises that represent contributions to the general management costs of the branches, subsidiaries and associates
(for planning, organising and controlling) and also reimbursements of expenses settled directly by parent enterprises. Also
included are transactions between parent enterprises and their branches, subsidiaries and associates to cover overhead
expenses.

Personal, cultural and recreational services (code 287)

Comprises Audiovisual and related services (code 288) and Other personal, cultural and recreational services (code 289).

Audiovisual and related services (code 288)

Comprises services and associated fees related to the production of motion pictures (on film or videotape), radio and tele-
vision programmes (live or on tape) and musical recordings. Included are receipts or payments for rentals; fees received by
resident actors, producers etc. for productions abroad (or by non-residents for work carried out in the compiling economy);
fees for distribution rights sold to the media for a limited number of showings in specified areas and access to encrypted
television channels (such as cable services). Fees to actors, directors and producers involved with theatrical and musical pro-
ductions, sporting events, circuses and other similar events and fees for distribution rights (for television, radio, and film) for
these activities are included.

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Other personal, cultural and recreational services (code 289)

Comprises Education services (code 895), Health services (code 896) and Other or Other personal, cultural and recreational
services not included elsewhere (code 897).

Education services (code 895)

Comprises services supplied between residents and non-residents relating to education, such as correspondence courses and
education via television or the Internet, as well as by teachers etc. who supply services directly in host economies.

Health services (code 896)

Comprises services provided by doctors, nurses and paramedical and similar personnel, as well as laboratory and similar ser-
vices, whether rendered remotely or on-site. Excluded is all expenditure by travellers on education and health (included in
travel).

Other on Other personal, cultural and recreational services (code 897)

It is a residual category covering Other personal, cultural and recreational services (code 289) not included in Education ser-
vices (code 895) and Health services (code 896).

Government services, n.i.e. (code 291)

It is a residual category covering government transactions (including those of international organisations) not contained in
the other components of the Extended Balance of Payments Services classification (EBOPS). Included are all transactions (in
both goods and services) by embassies, consulates, military units and defence agencies with residents of economies in which
the embassies, consulates, military units and defence agencies are located and all transactions with other economies. Excluded
are transactions with residents of the home economies represented by the embassies, consulates, military units and defence
agencies, and transactions in the commissaries and post exchanges of these embassies and consulates.

A breakdown of this item into services transacted by Embassies and consulates (code 292), Services transacted by Military
units and agencies (code 293) and Other government services (code 294) is required.

INCOME (CODE 300)

Income covers two types of transactions between residents and non-residents: (i) those involving compensation of employ-
ees, which is paid to non-resident workers (e.g. border, seasonal and other short-term workers), and (ii) those involving
investment income receipts and payments on external financial assets and liabilities.

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Compensation of employees (code 310)

Compensation of employees comprises wages, salaries, and other benefits, in cash or in kind, earned by individuals, in econo-
mies other than those in which they are resident, for work performed for (and paid for by) residents of those economies.
Included are contributions paid by employers, on behalf of employees, to social security schemes or to private insurance or
pension funds (whether funded or unfunded) to secure benefits for employees.

Investment Income (code 320)

Investment income is income derived from ownership of external financial assets and payable by residents of one economy
to residents of another economy. Investment income includes interest, dividends, remittances of branch profits, and direct
investors’ shares of the retained earnings of direct investment enterprises. Investment income should be classified by direct,
portfolio and other investment components.

Direct investment income (code 330)

Direct investment income, namely income on equity and income on debt, covers income accruing to a direct investor resi-
dent in one economy from ownership of direct investment capital in an enterprise in another economy. Income on direct
investment is presented on a net basis for both direct investment abroad and in the reporting economy (i.e. receipts of
income on equity and income on debt less payments on income on equity and income on debt for each). Income on equity
is subdivided into (i) distributed income (dividends and distributed branch profits), and (ii) reinvested earnings and undis-
tributed branch profits. Income on debt consists of interest payable, on intercompany debt, to/from direct investors from/to
associated enterprises abroad. Income on non-participating preference shares is treated as interest income, rather than divi-
dend income, and is included in income on debt.

Dividends and distributed branch profits (code 332)

Dividends, including stock dividends, are the distribution of earnings allocated to shares and other forms of participation in
the equity of incorporated private enterprises, cooperatives, and public corporations. Distributed income may be in the form
of dividends on common or preferred shares owned by direct investors in associated enterprises abroad, or vice versa.

Reinvested earnings and undistributed branch profits (code 333)

Reinvested earnings comprise direct investors’ shares - in proportion to equity held, of (i) earnings that foreign subsidiaries
and associated enterprises do not distribute as dividends and (ii) earnings that branches and other unincorporated enter-
prises do not remit to direct investors. (If that part of earnings is not identified, all branch earnings are considered, by con-
vention, to be distributed).

Income on debt (code 334)

Income on debt consists of interest payable, on intercompany debt, to/from direct investors from/to associated enterprises
abroad. Income on nonparticipating preference shares is treated as interest income, rather than dividend income, and is
included in income on debt.

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Equity capital and reinvested earnings abroad (code 506)

Equity capital comprises equity in branches, all shares (whether voting or non-voting) in subsidiaries and associates (except
nonparticipating, preferred shares that are treated as debt securities and included under other direct investment capital), and
other capital contributions. Reinvested earnings consist of the direct investor’s share (in proportion to direct equity partici-
pation) of earnings not distributed as dividends by subsidiaries or associates and earnings of branches not remitted to the
direct investor.

Equity capital and reinvested earnings in the reporting economy (code 556)

Equity capital comprises equity in branches, all shares (whether voting or non-voting) in subsidiaries and associates (except
nonparticipating, preferred shares that are treated as debt securities and included under other direct investment capital), and
other capital contributions. Reinvested earnings consist of the direct investor’s share (in proportion to direct equity partici-
pation) of earnings not distributed as dividends by subsidiaries or associates and earnings of branches not remitted to the
direct investor.

Portfolio investment income (code 339)

Portfolio investment income comprises income transactions between residents and non-residents and is derived from hold-
ings of shares, bonds, notes, and money market instruments. This category is subdivided into income on equity (dividends)
and income on debt (interest).

Other investment income (code 370)

Other investment income covers interest receipts and payments on all other resident claims (assets) on and liabilities to non-
residents, respectively. This category also includes, in principle, imputed income to households from net equity in life insur-
ance reserves and in pension funds. Interest on assets comprises interest on long- and short-term loans, on deposits, on other
commercial and financial claims, and on an economy’s creditor position in the IMF. Interest on liabilities covers interest on
loans, on deposits, and on other claims and interest related to the use of IMF credit and loans form the IMF. Also included
is interest paid to the IMF on the Fund’s SDR holdings in the General Resources Account.

Current transfers (code 379)

Current transfers are offset items to unilateral transactions in which one economic entity provides a real resource or a finan-
cial item to another entity without receiving any real resource or financial item in exchange. These resources are consumed
immediately or shortly after the transfer is made. Current transfers are all transfers that are not capital. Current transfers are
classified according to the sector of the compiling economy into general government and other sectors.

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General government transfers (code 380)

General government transfers comprise current international cooperation and cover current transfers, in cash or in kind,
between governments of different economies or between governments and international organisations.

Other sectors (code 390)

Current transfers between other sectors of an economy and non-residents comprise those occurring between individuals,
between non-governmental institutions or organisations (or between the two groups), or between non-resident governmen-
tal institutions and individuals or non-governmental institutions.

Capital account (code 994)

The capital account covers all transactions that involve the receipt or payment of capital transfers and acquisition/disposal
of non-produced, non-financial assets.

Financial account (code 995)

The financial account covers all transactions associated with changes of ownership in the foreign financial assets and liabili-
ties of an economy. Such changes include the creation and liquidation of claims on, or by the rest of the world. All com-
ponents are classified according to type of investment or by functional subdivision (direct investment, portfolio investment,
financial derivatives, other investment, reserve assets).

DIRECT INVESTMENT (CODE 500)

Foreign direct investment is the category of international investment that reflects the objective of a resident entity in one
economy (direct investor) obtaining a lasting interest in an enterprise resident in an economy other than that of the investor
(direct investment enterprise). ‘Lasting interest’ implies the existence of a long-term relationship between the direct investor
and the enterprise and a significant degree of influence by the investor on the management of the direct investment enter-
prise. Direct investment comprises the initial transaction between the two entities, that is, the transaction that establishes
the direct investment relationship, and all subsequent transactions between them and among affiliated enterprises, both
incorporated and unincorporated.

Direct Investment abroad (code 505)

Direct investment is classified primarily on a directional basis, resident direct investment abroad and non-resident invest-
ment in the reporting economy.

Equity capital (code 510)

Equity capital comprises equity in branches, all shares (whether voting or non-voting) in subsidiaries and associates (except
nonparticipating, preferred shares that are treated as debt securities and included under other direct investment capital), and
other capital contributions. Equity capital also covers the acquisition by a direct investment enterprise of shares in its direct
investor.

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Reinvested earnings (code 525)

Reinvested earnings consist of the direct investor’s share (in proportion to direct equity participation) of earnings not dis-
tributed as dividends by subsidiaries or associates and earnings of branches not remitted to the direct investor. These rein-
vested earnings are recorded as income with an offsetting capital transaction.

Other direct investment capital (code 530)

Other direct investment capital (or intercompany debt transactions) covers the borrowing and lending of funds - including
debt securities, suppliers’ credits and nonparticipating preferred shares (which are treated as debt securities), between direct
investors and subsidiaries, branches, and associates. Debt claims on the direct investor by the direct investment enterprise
are also recorded as direct investment capital.

Direct investment in the reporting economy (code 555)

Direct investment is classified primarily on a directional basis, resident direct investment abroad and non-resident invest-
ment in the reporting economy.

Equity capital (code 560)

Equity capital comprises equity in branches, all shares (whether voting or nonvoting) in subsidiaries and associates (except
non-participating, preferred shares that are treated as debt securities and included under other direct investment capital), and
other capital contributions. Equity capital also covers the acquisition by a direct investment enterprise of shares in its direct
investor.

Reinvested earnings (code 575)

Reinvested earnings consist of the direct investor’s share (in proportion to direct equity participation) of earnings not dis-
tributed as dividends by subsidiaries or associates and earnings of branches not remitted to the direct investor. These rein-
vested earnings are recorded as income with an offsetting capital transaction.

Other direct investment capital (code 580)

Other direct investment capital (or intercompany debt transactions) covers the borrowing and lending of funds, including
debt securities, suppliers’ credits and non-participating preferred shares (which are treated as debt securities), between direct
investors and subsidiaries, branches, and associates. Debt claims on the direct investor by the direct investment enterprise
are also recorded as direct investment capital.

PORTFOLIO INVESTMENT (CODE 600)

Portfolio investment covers transactions in equity and debt securities. Debt securities are subdivided into bonds and notes,
money market instruments, and financial derivatives when the derivatives generate financial claims and liabilities. Unless they
are categorised either as direct investment or as reserve assets.

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Financial derivatives (code 910)

A financial derivatives contract is a financial instrument that is linked to another specific financial instrument or indicator
or commodity and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and com-
modity price risks, credit risks, etc.) can, in their own right, be traded in financial markets.

OTHER INVESTMENT (CODE 700)

The other investment item is defined as a residual category that includes all financial transactions not covered in direct invest-
ment, portfolio investment, financial derivatives or reserve assets accounts.