INFORMATION ON GOODS AND SERVICES



GOODS
CENSUS BASIS
The Census basis goods data are compiled from the documents 
collected by the U.S. Customs and Border 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 and 
Border 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 and 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 
June 2009, these shipments totaled $102.9 million.  U.S. 
export coverage also excludes certain Canadian postal 
shipments.  For June 2009, these shipments totaled $20.2 
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. 
Combining the inland freight and the Canadian reported import 
value provides a consistent valuation for all U.S. exports.  
Inland freight charges for June 2009 accounted for 2.4 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 June 2009, reexports to Canada were  $2,591.6 
million.

4. Exchange Rate -- Average monthly exchange rates are 
applied to convert the published data to U.S. currency. For 
June 2009, the average exchange rate was 1.1264 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, Georgia, Germany, Gibraltar, Greece, Hungary, 
Iceland, Ireland, Italy, Kazakhstan, Kosovo, Kyrgyzstan, 
Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, 
Moldova, Monaco, Montenegro, Netherlands, Norway, Poland, 
Portugal, Romania, Russia, San Marino, Serbia, Slovakia, 
Slovenia, Spain, Svalbard-Jan Mayen Island, Sweden, 
Switzerland, Tajikistan, Turkey, 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, Cyprus, Finland, France, Germany, 
Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, 
Portugal, Slovakia, 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, Ecuador, 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 
(2005 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 and Mexico - An addition is made 
for inland freight in Canada and Mexico.  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 and Mexico, this should be the cost of the 
goods at the U.S. border.  However, the customs value for 
imports for certain Canadian or Mexican goods is the point 
of origin in Canada or Mexico.  The BEA makes an addition 
for the inland freight charges of transporting these 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.

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.

Locomotives and railcars - An addition is made for imports 
of certain locomotives and railcars that are not reported to 
U.S. Customs and not included in Census data.  Estimates 
based on trade data from other countries are included 
beginning with January 2001, when a reporting exclusion 
began to materially impact the total value of U.S. imports 
of locomotives and railcars.

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 affiliated 
and unaffiliated foreign residents.  (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 involve 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 and 
unaffiliated foreign residents.  (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 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 preceding month are released.  After the initial 
revision, 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 estimates 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

Jan
03-13-09
Friday

Feb
04-09-09
Thursday

Mar
05-12-09
Tuesday

Apr
06-10-09
Wednesday

May
07-10-09
Friday

Jun
08-12-09
Wednesday

Jul
09-10-09
Thursday

Aug
10-09-09
Friday

Sep
11-13-09
Friday

Oct
12-10-09
Thursday




Quarterly and annual estimates of services are included as part 
of the U.S. international transactions accounts, published in 
news releases in March, June, September, and December and in the 
January, April, July, and October issues of the Survey of Current 
Business.  The next release of the international transactions 
accounts is scheduled for September 16, 2009.  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/newsreleases/international/trade/tradnewsrelease.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


