                                             
                                   Technical Documentation
                                 

Sources and Limitations

The data in this release are compiled from administrative records from the official U.S. import
and export merchandise trade statistics.   The merchandise trade data are a complete enumeration
of documentation collected by the U.S. Customs Service and are not subject to sampling error. 
Quality assurance procedures are performed at every stage of collection, processing and
tabulation; however, the data are still subject to nonsampling errors. These include
undocumented shipments, timeliness, data capture errors and errors in the estimation of low-
valued transactions.

Related party shipments are identified by an indicator, "R" for related or "N" for nonrelated, that
is required on every export transaction.  A major problem is the failure of importers and
exporters, especially exporters, to report  the indicator on their shipments.  No attempt is made to
estimate the related party status of shipments with missing indicators; instead, they are
categorized on the data Exhibits as "unreported."  Therefore, the ratios of related and unrelated
party trade are understated.  

Users are advised to consider these limitations  in their analysis of this data as they may affect
the results. 


Definitions -- Related party trade:

Imports:  As defined in Section 402(e) of the Tariff Act of 1030, related party trade includes
transactions between parties with various types of relationships including "any
person directly or indirectly, owning, controlling or holding power to vote, 6
percent of the outstanding voting stock or shares of any organization."  

Exports: The Foreign Trade Statistics Regulations, 30.7(v), define a related party               
transactions as one between a U.S. exporter and a foreign consignee, where
either party owns,  directly or indirectly, 10 percent or more of the other party.

Imports for Consumption: The import data shown in this report are imports for consumption
that  measure all merchandise that has physically cleared through Customs, either entering
consumption channels immediately or after withdrawal from bonded warehouses under Customs
custody or from Foreign Trade Zones.

Customs Value: The import data in this report are based on Customs value, generally defined as
the price actually paid or payable for merchandise when sold for exportation to the United States,
excluding U.S. export duties, freight, insurance and other charges incurred in bringing the
merchandise to the United States.

F.A.S. Value: Exports are valued on a free alongside ship basis, which reflects transaction price
including inland freight, insurance and other charges incurred in placing the merchandise
alongside the ship as the port of export.

Low Value Estimates: Import and export transactions below specific values are estimated using
factors based on the ratios of low-valued transactions to individual country totals for past
periods.  Import transactions valued $2000 or less, excluding certain textile articles, and all
export transactions valued $2500 or less are estimated.  

Re-exports: Exports of foreign merchandise that previously entered the United States Customs 
territory and, at the time of export, are substantially in the same condition as when imported. 

Inquiries related to these data may be directed to the Bureau of the Census, Foreign Trade
Division, Special Projects Branch, Washington, D.C. 20233.  Contact name: Kathleen J. Puzzilla
(301) 457-3251.