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. 
Bureau of Customs and Border Protection 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 import or export transaction.  However,  
importers and exporters do not always 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 tables as 
"nonreported." 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.  For more information on data sources and 
methodology, please read the document "Information on the Collection and 
Publication of Trade Statistics" at            
http://www.census.gov/foreign-trade/reference/guides/tradestatsinfo.html
.  

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 transaction 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. import 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 $2,000, 
excluding certain textile articles, and all export transactions valued $2,500 or 
less are estimated.  

Re-exports: Exports of foreign merchandise that previously entered the U.S. 
Customs Territory and are exported in substantially the same condition as when 
imported. 
                                                  
On May 1, 2004 the European Union expanded to twenty-five countries.  As a result, 
beginning with year 2004 issue of the Related Party Trade release, Exhibits 1 and 
2 are modified to reflect the new European Union.

Inquiries related to these data may be directed to the U.S. Census Bureau, Foreign 
Trade Division, Special Projects Branch, Washington, D.C. 20233.  Contact name: 
Emmanuel O. Omoruyi (301) 763-3251 or emmanuel.o.omoruyi@census.gov.