Trade data discrepancy declining
Trade data discrepancies are on the downtrend and will further be reduced once a digital platform becomes operational, the Finance department said on Friday.
In an economic bulletin, the department said that a comparison of data reported in the International Monetary Fund’s Direction of Trade Statistics and by the Philippine Statistics Authority (PSA) showed that trade data discrepancy had declined to 33.1 percent in 2017 from 40.8 percent and 37.3 percent in 2015 and 2016, respectively.
“Trade data discrepancy occurs when trade data reported by a country differ from those reported by its trading partners,” it explained.
In particular, the department said that import data discrepancy had declined to 27 percent in 2016, from 40.9 percent in 2015, but edged up slightly to 27.5 percent in 2017.
Export data discrepancy, meanwhile, rose to 53.3 percent in 2016, from 40.8 percent in 2015, but dropped to 33.1 percent in 2017.
Discrepancy occurs due to a variety of reasons, including timing differences, smuggling, valuation differences, differing treatment of re-exports and transshipment, and wrong attribution and mis-invoicing, the Finance department said.
The lower discrepancy, it claimed, implies that fewer problems were found and that “the drop in trade discrepancy data indicates the upgraded capability of tax collectors to assess and collect properly tax revenues from taxpayers.”
The automation of trade processes before the end of the year via TradeNet, it added, “will further reduce trade data discrepancy, improve revenue collectors’ capabilities and at the same time, facilitate trade.”
Launched last December, TradeNet aims to reduce the processing time and number of transactions for import and export clearances.
It will also serve as the Philippines’ link to the Asean Single Window (ASW) gateway and is expected to minimize the costs of doing business and cut the processing time for the issuance of import and export permits.
The ASW is a regional initiative that aims to speed up cargo clearances and promote economic integration by enabling the electronic exchange of border documents among the organization’s 10 member-states.
Indonesia, Malaysia, Singapore and Thailand are already using the ASW to exchange information on customs clearances.
The Tradenet platform will eventually link 66 government agencies through a common database.
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