Section 1

Introduction


  This publication is intended to serve as a guide to the various

sources of foreign trade statistics and to inform users of the content

and general arrangement of the data.



  The foreign trade statistics program is unique among the Census

Bureau's economic statistics programs in that the information is not

collected from forms sent to respondents soliciting responses as in the

case of surveys. Rather, the information is compiled from forms and

automated reports filed initially with the U.S. Customs Service or, in

some cases, directly with the Census Bureau, for virtually all

shipments leaving (exports) or entering (imports) the United States.

Furthermore, exports to Canada are compiled from Canadian import data.



  The United States may be said to have had an adequate set of export and

import statistics only since about 1821. Existing figures on the total

value of imports prior to 1821 were apparently estimated by the

Secretary of the Treasury. In the case of exports, while it was

required by statute that the dollar value should be reported by the

master of the vessel on which the goods left the country, it was common

practice for Customs officials to adjust this reported value quite

arbitrarily. By an Act of Congress, approved in February 1820,

provision was made for the preparation of statistical accounts of

commerce of the United States with foreign countries to show the kinds,

quantities, and value of all articles exported to and of all articles

imported from each foreign country. The burden of reporting exports was

shifted from the master of the vessel to the actual exporter thereby

decreasing the need for adjustments by Customs. From these meager

beginnings the statistics on U.S. foreign trade in merchandise have

evolved to the current broad range of highly detailed statistics

designed to meet the needs of a variety of users.



  The most significant change in recent years occurred when the United

States, in January 1989, adopted the Harmonized Commodity Description

and Coding System (Harmonized System) as the nomenclature for

classifying both exports and imports. The Harmonized System was

developed, with United States participation, by the Customs Cooperation

Council based in Brussels, Belgium. Most countries, including our major

trading partners (Canada, the European Economic Community, and Japan),

are using this system providing the benefits of increased data

comparability between countries and the U.S./Canadian data exchange.



  The development of sounder collection bases and greater detail in

publicly available trade data occurred because of an increased need for

accurate trade data for commercial, economic and political purposes.



  Government uses the foreign trade statistics in developing the

merchandise trade figures in balance of payments accounts: to appraise

and analyze major movements and trends (commodity and geographic) in

international trade; to evaluate and plan such programs as export

expansion, agricultural development and assistance, and programs under

the Foreign Assistance Act and the Merchant Marine Act; and to measure

the impact of tariff and trade concessions under the General Agreement

on Tariffs and Trade (GATT) and the Generalized System of Preferences

(GSP). The foreign trade data are also used extensively as the

statistical base to implement and analyze operations under various

international agreements, such as the Multi-Fiber Agreement (MFA), the

U.S.-Canadian Free Trade Agreement, etc.



  Trade data are also used to meet a wide variety of legal and regulatory

requirements. For example, accurate, detailed import data are essential

to correctly assess import duties, administer embargoes and quotas,

restrict counterfeit items entering the country, and implement control

policies. Similarly, detailed export data are necessary to effectively

administer export control and regulatory policies. Such export

restrictions may be for national security or foreign policy reasons,

for implementing export quotas or embargo programs, or for

administrating short supply programs.



  Nongovernment users in industry, finance, research institutions,

transportation, and other fields, use the foreign trade data to

appraise the general trade situation and outlook; in

share-of-the-market analyses and market penetration studies; in product

and market development; for measuring the impact of competition; and,

in general, as one of the statistical bases for determining marketing

policies. The transportation industry-in particular vessel and

air-makes extensive use of the data not only in market share and

penetration analyses but also in the critical area of anticipating the

need for and design of future facilities and equipment.



  The material in this Guide reflects the foreign trade statistical

program in 1992. In view of the dynamic nature of the foreign trade

statistics program and the desire to keep this program responsive to

the varying needs of users, it is always possible that additional

changes in the program may be required. As in the past, any changes of

a substantial nature affecting the coverage or presentation of the

statistics will be announced in the appropriate publications.