INFORMATION ON GOODS AND SERVICES

GOODS

CENSUS BASIS

The Census basis goods data are compiled from the documents collected by the 
U.S. Customs Border and Protection and reflect the movement of goods between 
foreign countries and the 50 states, the District of Columbia, Puerto Rico, 
the U.S. Virgin Islands, and U.S. Foreign Trade Zones.  They include government 
and non-government shipments of goods, and exclude shipments between the United 
States and its territories and possessions, transactions with U.S. military, 
diplomatic and consular installations abroad, U.S. goods returned to the United 
States by its Armed Forces, personal and household effects of travelers, and 
in-transit shipments.  The General Imports value reflects the total arrival of 
merchandise from foreign countries that immediately enters consumption channels, 
warehouses, or Foreign Trade Zones.

For imports, the value reported is the U.S. Customs Border and Protection 
appraised value of merchandise; generally, the price paid for merchandise for 
export to the United States.  Import duties, freight, insurance, and other 
charges incurred in bringing merchandise to the United States are excluded.
Exports are valued at the f.a.s.- free alongside ship value of merchandise at 
the U.S. port of export, based on the transaction price including inland freight, 
insurance, and other charges incurred in placing the merchandise alongside the 
carrier at the U.S. port of exportation. Monthly data include actual month's 
transactions as well as a small number of transactions for previous months.  
Each month we revise the aggregate seasonally adjusted (current and chain-
weighted dollar) and unadjusted export, import and trade balance figures, as 
well as the end-use totals for the prior month.  SITC and country detail data 
are not revised monthly.  The timing adjustment shown in Exhibit 14 is the 
difference between monthly data as originally reported and as recompiled. 
Quarterly revisions are made to the chain-weighted dollar series. In the last 
month of each quarter, the current and previous quarter are revised to 
incorporate the Bureau of Labor Statistics' monthly revisions and align Census 
and the U.S. Bureau of Economic Analysis' quarterly data. Annual revisions for 
the months are made in June to reflect corrections received subsequent to the 
monthly revisions. These revisions are reflected in totals, end-use, SITC, and 
country summary data. The monthly end-use, commodity, and country area data 
presented in this release are on a Census basis.  This refers to Exhibits 6 - 18.

U.S./CANADA DATA EXCHANGE AND SUBSTITUTION

The data for U.S. exports to Canada are derived from import data compiled by 
Canada.  The use of Canada's import data to produce U.S. export data requires 
several alignments in order to compare the two series.

1. Coverage -- Canadian imports are based on country of origin.  U.S. goods 
shipped from a third country are included.  U.S. exports exclude these foreign 
shipments. For September 2007, these shipments totaled $220.1 million.  U.S. 
export coverage also excludes certain Canadian postal shipments.  For September 
2007, these shipments totaled $21.6 million.

U.S. import coverage includes shipments of railcars and locomotives from Canada.  
Effective with January 2004 statistics, Canada excludes these shipments from its 
goods exports to the United States, therefore creating coverage differences between 
the two countries for these goods.

2. Valuation -- Canadian imports are valued at the point of origin in the United 
States.  However, U.S. exports are valued at the port of exit in the United States 
and include inland freight charges, making the U.S. export value slightly larger.  
Canada requires inland freight to be reported. Inland freight charges for September 
2007 accounted for 2.1 percent of the value of U.S. exports to Canada.

3. Reexports -- U.S. exports include reexports of foreign goods.  Again, the 
aggregate U.S. export figure is slightly larger.  For September 2007, reexports to 
Canada were  $3,018 million.

4. Exchange Rate -- Average monthly exchange rates are applied to convert the 
published data to U.S. currency. For September 2007, the average exchange rate 
was 1.0252 Canadian dollars per U.S. dollar.

5. Other -- There are other minor differences which are statistically 
insignificant, such as rounding error.


Canadian Estimates

Effective with January 2001 statistics, the current month data for exports to 
Canada contain an estimate for late arrivals and corrections.  The following 
month, this estimate is replaced, in the press release tables only, with the 
actual value of late receipts and corrections.  This estimate improves the 
current month data for exports to Canada and treats late receipts for exports 
to Canada in a manner more consistent with the treatment of late receipts for 
exports to other countries.

Nonsampling errors

The goods data are a complete enumeration of documents collected by the U.S. 
Customs and Border Protection and are not subject to sampling errors; but they 
are subject to several types of nonsampling errors.  Quality assurance 
procedures are performed at every stage of collection, processing and tabulation; 
however the data are still subject to several types of nonsampling errors.  The 
most significant of these include reporting errors, undocumented shipments, 
timeliness, data capture errors, and errors in the estimation of low-valued 
transactions.

Reporting Errors: Reporting errors are mistakes or omissions made by importers, 
exporters or their agents in their import or export declarations.  Most errors 
involve missing or invalid commodity classification codes and missing or 
incorrect quantities or shipping weights.  They have a negligible effect on 
import, export and balance of trade statistics.  However, they can affect the 
detailed commodity statistics.

Undocumented Shipments: Federal regulations require importers, exporters or 
their agents to report all merchandise shipments above established exemption 
levels.  The U.S. Census Bureau has determined that not all required documents 
are filed, particularly for exports.

Timeliness and Data Capture Errors: The U.S. Census Bureau captures import and 
export information from administrative documents and through various automated 
collection programs.  Documents may be lost, and data may be incorrectly keyed, 
coded or recorded.  Transactions may be included in a subsequent month's 
statistics if received late.

Low-valued Transactions: The total values of transactions valued as much as or 
below $2,500 for exports and $2,000 ($250 for certain quota items) for imports 
are estimated for each country, using factors based on the ratios of low-valued 
shipments to individual country totals for past periods.

The U.S. Census Bureau recommends that data users incorporate this information 
into their analyses, as nonsampling errors could impact the conclusion drawn 
from the results.  For a detailed discussion of errors affecting the goods data, 
see "U.S. Merchandise Trade Statistics: A Quality Profile" available on the 
internet at www.census.gov/foreign-trade/aip/index.html#infopapers or from the 
Foreign Trade Division, U.S. Census Bureau.

AREA GROUPINGS (See Exhibits 14 and 14A)

North America - Canada, Mexico

Europe - Albania, Andorra, Armenia, Austria, Azerbijan, Belarus, Belgium, 
Bosnia-Hercegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, 
Faroe Islands, Finland, France, Germany, Georgia, Gibralter, Greece, Hungary, 
Iceland, Ireland, Italy, Liechtenstein, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, 
Luxembourg, Malta and Gozo, Macedonia, Moldova, Monaco, Netherlands, Norway, 
Poland, Portugal, Romania, Russia, San Marino, Serbia and Montenegro, Slovakia, 
Slovenia, Spain, Svalbard, Jan Mayen Island, Sweden, Switzerland, Turkey, 
Tajikistan, Turkmenistan, Ukraine, United Kingdom, Uzbekistan, Vatican City.

European Union - Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, 
Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, 
Slovenia, Spain, Sweden, United Kingdom.

Euro Area - Austria, Belgium, Finland, France, Germany, Greece, Ireland,  Italy, 
Luxembourg,  Netherlands, Portugal, Slovenia, Spain.

Pacific Rim - Australia, Brunei, China, Hong Kong, Indonesia, Japan, Korea, 
Macao, Malaysia, New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan.

South/Central America - Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, 
Barbados, Belize, Bermuda, Bolivia, Brazil, British Virgin Islands, Cayman 
Islands, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, 
El Salvador, Falkland Islands, French Guiana, Grenada, Guadeloupe, Guatemala, 
Guyana, Haiti, Honduras, Jamaica, Martinique, Montserrat, Netherlands Antilles, 
Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, St. Lucia, St. Vincent 
and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands, 
Uruguay, Venezuela.

OPEC - Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, 
Saudi Arabia, United Arab Emirates, Venezuela.

Africa - Algeria, Angola, Benin, Botswana, British Indian Ocean Territories, 
Burkina, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, 
Congo (Brazzaville), Congo (Kinshasa), Djibouti, Egypt, Equatorial Guinea, 
Eritrea, Ethiopia, French Southern and Antarctic Lands, Gabon, Gambia, Ghana, 
Guinea, Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Madagascar, 
Malawi, Mali, Mauritania, Mauritius, Mayotte, Morocco, Mozambique, Namibia, 
Niger, Nigeria, Reunion, Rwanda, St. Helena, Sao Tome and Principe, Senegal, 
Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, 
Togo, Tunisia, Uganda, Western Sahara, Zambia, Zimbabwe.

Adjustments for Seasonal and Working-Day Variations

Goods are initially classified under the Harmonized System (HS) which describes 
and measures the characteristics of goods traded.  Combining trade into 
approximately 140 export and 140 import end-use categories makes it possible to 
examine goods according to their principal uses (See Exhibits 7 and 8).  These 
categories are used as the basis for computing the seasonal and working-day 
adjusted data.  These adjusted data are then summed to the six end-use aggregates 
for publication (Exhibit 6).  These data are provided to the U.S. Bureau of 
Economic Analysis, from the U.S. Census Bureau, for use in the Balance of 
Payments and the National Income and Product Accounts.

The seasonal adjustment procedure is based on a model that estimates the monthly 
movements as percentages above or below the general level of each end-use 
commodity series (unlike other methods that redistribute the actual series 
values over the calendar year).  Because of the extremely variable movements of 
the data series for aircraft, users studying data trends may wish to analyze 
aircraft separately from other trade.

Adjustments for Price Change

Data adjusted for seasonal variation on a chained-dollar basis (2000 base year) 
are presented in Exhibits 10 and 11.  This adjustment for price change is done 
using the Fisher chain-weighted methodology.  The deflators are primarily based 
upon the monthly price indexes published by the Bureau of Labor Statistics using 
techniques developed for the National Income and Product Accounts by the U.S. 
Bureau of Economic Analysis.

SITC Data

Goods data appearing in Exhibit 15 are classified in terms of the Standard 
International Trade Classification (SITC) Revision 3.  Agricultural goods consist 
of non-marine food products and other products of agriculture which have not 
passed through complex processes of manufacture, such as raw hides and skins, 
fats and oils, and wine. A few goods such as essential oils, starches, casein, 
and albumin, considered to be agricultural by the U.S. Department of Agriculture, 
have been excluded from agricultural goods and are included in manufactured goods 
where they are classified in the SITC.

Manufactured goods conform to the SITC sections that include chemicals and 
related products; manufactured goods classified chiefly by material; machinery 
and transport equipment; miscellaneous manufactured articles; and goods and 
transactions not classified elsewhere.

Reexports are foreign merchandise entering the country as imports, and at the time 
of exportation are in substantially the same condition as when imported.  Reexports, 
included in overall export totals, appear as separate line items in Exhibit 15.

Advanced Technology Products (ATP)

About 500 of some 22,000 commodity classification codes used in reporting U.S. 
merchandise trade are identified as "advanced technology" codes and they meet the 
following criteria:

1. The code contains products whose technology is from a recognized high technology 
field (e.g., biotechnology).

2. These products represent leading edge technology in that field.

3. Such products constitute a significant part of all items covered in the selected 
classification code.

The aggregation of the goods results in a measure of advanced technology trade 
which appears in Exhibits 16 and 16A.  This product and commodity-based measure of 
advanced technology differs from broader NAICS industry-based measures which include 
all goods produced by a particular industry group, regardless of the level of 
technology embodied in the goods.

BALANCE OF PAYMENTS (BOP) BASIS

Goods on a Census basis are adjusted by the U.S. Bureau of Economic Analysis to 
goods on a BOP basis to bring the data in line with the concepts and definitions 
used to prepare the international and national accounts.  Broadly, the adjustments 
include changes in ownership that occur without goods passing into or out of the 
customs territory of the United States.  These adjustments are necessary to 
supplement coverage of the Census basis data, to eliminate duplication of 
transactions recorded elsewhere in the international accounts, and to value 
transactions according to a standard definition.

The export adjustments include:

U.S. military sales contracts - This deduction of U.S. military sales contracts is 
made because the U.S. Census Bureau has included these contracts in the goods data, 
but BEA includes them in the service category "Transfers Under U.S. Military Sales 
Contracts."  BEA's source material for these contracts is more comprehensive, but 
has no distinction between goods and services.

Private gift parcels - This addition is made for parcels mailed to foreigners by 
individuals through the U.S. Postal Service.  (Only commercial shipments are 
covered in Census goods exports.)

Gold exports, nonmonetary - This addition is made for gold that is purchased by 
foreign official agencies from private dealers in the United States and held at 
the Federal Reserve Bank of New York.  The Census data only include gold that 
leaves the customs territory.

Some smaller adjustments are also made to exports:

Deductions for repairs of goods, developed motion picture film, and military 
grant-aid.  Additions for sales of fish in U.S. territorial waters, exports of 
electricity to Mexico, and vessels and oil rigs that change ownership for which 
no export document is filed.

The import adjustments include:

Inland freight in Canada - An addition is made for inland freight in Canada.  
Imports of goods from all countries are valued at the foreign port of export, 
including inland freight charges ("customs value").  In the case of Canada, 
this should be the cost of the goods at the U.S. border.  However, the customs 
value for imports for certain Canadian goods is the point of origin in Canada.  
The BEA makes an addition for the inland freight charges of transporting these 
Canadian goods to the U.S. border to make the value comparable to the customs 
value as reported by all other countries.  Insurance and freight charges for 
transporting goods to the United States from all other countries to the U.S. 
border are included in services by the BEA.  (The same procedure is used for 
Mexico as an Other Adjustment, but is much smaller.)

Gold imports, nonmonetary - This addition is made for gold sold by foreign 
official agencies to private purchasers out of stock held at the Federal 
Reserve Bank of New York.  The Census data only include gold that enters the 
customs territory.

Imports by U.S. military agencies - This deduction of U.S. military sales 
contracts is made because the U.S. Census Bureau has included these contracts 
in the goods data, but BEA includes them in the service category "Direct 
Defense Expenditures."  BEA's source material is more comprehensive, but has 
no distinction between goods and services.

Some smaller adjustments are also made to imports:

Deductions for repairs of goods and developed motion picture film.  
Additions for imported electricity from Mexico, conversion of vessels for 
commercial use, repairs to U.S. vessels abroad, and valuation of 
prepackaged software imports at market value.

SERVICES

The statistics are estimates of services transactions between foreign 
countries and the 50 states, the District of Columbia, Puerto Rico, the U.S. 
Virgin Islands, and other U.S. territories and possessions.  Transactions 
with U.S. military, diplomatic, and consular installations abroad are excluded 
because they are considered to be part of the U.S. economy.

Services are shown in seven broad categories.  Types of services for imports 
and exports are the same for six of the seven categories.  For the seventh, 
exports is "Transfers Under U.S. Military Sales Contracts" while for imports 
the category
is "Direct Defense Expenditures."  The following is a brief description of the 
types of services included in each category:

Travel - Purchases of services and goods by U.S. travelers abroad and by 
foreign visitors to the United States.  A traveler is defined as a person who 
stays for a period of less than 1 year in a country of which the person is not 
a resident.  Includes expenditures for food, lodging, recreation, gifts, and 
other items incidental to a foreign visit.

Passenger Fares - Fares paid by residents of one country to residents of other 
countries.  Receipts consist of fares received by U.S. carriers from foreign 
residents for travel between the United States and foreign countries and between 
two foreign points.  Payments consist of fares paid by U.S. residents to foreign 
carriers for travel between the United States and foreign countries.

Other Transportation - Charges for the transportation of goods by ocean, air, 
waterway, pipeline, and rail carriers to and from the United States.  Includes 
freight charges, operating expenses that transportation companies incur in 
foreign ports, and payments for vessel charter and aircraft rentals with crew.

Royalties and License Fees - Transactions with foreign residents involving 
intangible assets and proprietary rights, such as the use of patents, techniques, 
processes, formulas, designs, know-how, trademarks, copyrights, franchises, and 
manufacturing rights.  The term "royalties" generally refers to payments for the 
utilization of copyrights or trademarks, and the term "license fees" generally 
refers to payments for the use of patents or industrial processes.

Other Private Services - Transactions with affiliated foreigners, for which no 
identification by type is available, and transactions with unaffiliated foreigners.  
(The term "affiliated" refers to a direct investment relationship, which exists 
when a U.S. person has ownership or control, directly or indirectly, of 10 percent 
or more of a foreign business enterprise's voting securities or the equivalent, or 
when a foreign person has a similar interest in a U.S. enterprise.) Transactions 
with unaffiliated foreigners consist of education services; financial services 
(includes commissions and other transactions fees associated with the purchase and 
sale of securities and noninterest income of banks, and excludes investment 
income); insurance services; telecommunications services (includes transmission 
services and value-added services); and business, professional, and technical 
services. Included in the last group are advertising services; computer and data 
processing services; database and other information services; research, 
development, and testing services; management, consulting, and public relations 
services; legal services; construction, engineering, architectural, and mining 
services; industrial engineering services; installation, maintenance, and repair 
of equipment; and other services, including medical services and film and tape 
rentals.

Transfers Under U.S. Military Sales Contracts (Exports only) - Exports of goods 
and services in which U.S. Government military agencies participate.  Includes 
both goods, such as equipment, and services, such as repair services and training, 
that cannot be separately identified.

Direct Defense Expenditures (Imports only) - Expenditures incurred by U.S. 
military agencies abroad, including expenditures by U.S. personnel, payments of 
wages to foreign residents, construction expenditures, payments for foreign 
contractual services, and procurement of foreign goods.  Includes both goods and 
services that cannot be separately identified.

U.S. Government Miscellaneous Services - Transactions of U.S. Government 
nonmilitary agencies with foreign residents.  Most of these transactions involve 
the provision of services to, or purchases of services from, foreigners; transfers 
of some goods are also included.

Services estimates are based on quarterly, annual, and benchmark surveys and 
partial information generated from monthly reports.  Service transactions are 
estimated at market prices.  Estimates are seasonally adjusted when statistically 
significant seasonal patterns are present.  No country or area detail is available 
due to the lack of adequate source data upon which to base estimates.

The revision Policy is as follows:  Each month, a preliminary estimate for the 
current month and a revised estimate for the immediately receding month are 
released.  After a revised month is released, no further changes are made to that 
month until more complete source data become available in March, June, September, 
and December. The releases in March, June, September, and December contain revised 
data for the previous six months. The release in March also contains revisions for 
all months of the previous year in order to align the seasonally adjusted monthly 
data with annual totals.  The release in June contains annual revisions, which 
reflect updated source data and changes in estimating methodologies.

MONTHLY RELEASE SCHEDULE

Month
Date
Day

Sep
11-09-07
Friday

Oct
12-12-07
Wednesday

Nov
01-11-08
Friday

Dec
02-14-08
Thursday

Jan
03-11-08
Tuesday

Feb
04-10-08
Thursday

Mar
05-09-08
Friday

Apr
06-10-08
Tuesday

May
07-11-08
Friday

Jun
08-12-08
Tuesday

Jul
09-11-08
Thursday

Aug
10-10-08
Friday

Sep
11-13-08
Thursday

Oct
12-11-08
Thursday

Nov
01-13-09
Tuesday

Dec
02-11-09
Wednesday

Quarterly and annual estimates of services are included as part of the U.S. 
international transactions accounts, published in the April, July, October, and 
January issues of the Survey of Current Business.  The next release of the U.S. 
international transactions accounts is scheduled       for December 17, 2007. 
The Survey is available from the Superintendent of Documents, U.S. Government 
Printing Office, Washington, D.C. 20402, or online at 
www.bea.gov/scb/index.htm.

ELECTRONIC AVAILABILITY

The FT-900 and supplement are available on the following:

INTERNET The U.S. International Trade in Goods and Services reports are available 
at:  www.census.gov/ft900 or www.bea.gov/bea/di/home/trade.htm.

STAT-USA The U.S. Department of Commerce's electronic information facility. Call 
1 800 STAT-USA for product information.

Additional data and information on goods are obtainable from: 
Foreign Trade Division, 
U.S. Census Bureau, 
Washington, D.C.  20233

Additional data and information on services are obtainable from: 
Balance of Payments Division, 
U.S. Bureau of Economic Analysis, 
Washington, D.C.  20230