EXPORTS ORIGIN BY PROVINCES Argentine Republic

2nd MEETING OF THE WORKING PARTY ON INTERNATIONAL TRADE IN GOODS AND TRADE IN SERVICE STATISTICS

(WPTGS)

OECDNovember 16 -18, 2009

INTRODUCTION

INFORMATION SOURCES METHODOLOGY

Primary Products Manufactured Goods

DEFINITIONS

TREATMENTS OF SPECIAL CASESManufacture of foreign originCrude oil

INFORMATION DISSEMINATION

Export Origin by Provinces

Publications and reports on Argentine exports to describe their behaviour and trends, broken down by product categories and destination countries were available only at national level. The importance of this information by territorial origin has determined the need for adequate estimation methods by using additional sources of information.

Initially the INDEC began providing data on export origin by provinces based solely on exporters’ customs declared. This source made it possible to determine the provincial origin of only two thirds of the total exports.

This was largely due to difficulty in discrimination export origin of cereals, oilseeds and other agricultural products, whose commercialization modes did not allow identification of provincial origin. Nor could the provincial origin of crude oil be determined when coming from drillings that comprised more than one province.

INTRODUCTION

PRIMARY INFORMATION SOURCES

SHIPPING PERMITS: the shipping document (field: Origin/Country/Province) records information about provincial origin. Data often appears as a caption reading “Argentina” or “Undetermined”, thus indicating that the product in question has more than one provincial origin or that it is of an unknown origin.

The rate of indeterminate information from customs clearance is approximately 38%.

The methodology that The INDEC adopts, using additional information sources, has achieved accuracy in the classification of EXPORTS BY PROVINCIAL ORIGINS, with an indeterminate rate not exceeding approximately 1,8%.

PRIMARY PRODUCTSThe origin of primary products is determined by the share of each producing province in the total domestic production, regardless of their contribution to total exports.

MANUFACTURED GOODSThe origin for these products is determined according to the location of the manufacturing plants. For this purpose, export firms are surveyed as well as other relevant information compiled by the INDEC through the National Survey of Big Enterprises and the Industrial Survey.

METHODOLOGY

THE ORIGIN PRODUCTS OF A PROVINCE ARE DEFINED AS:

The vegetable and mineral products extracted, harvested and gathered in its territory including rivers and lakes.

The animal products, whether born or raised in that jurisdiction.

The products processed or produced entirely in the province.

Products using materials originated in another province or abroad, but are processed and transformed in the province, giving them a new identity and are, therefore, classified under a different tariff heading.

DEFINTIONS

CONTRARY TO THE DEFINITIONProducts are not considered province originated when

Resulting from operations or processes consisting only in mounting, assembly, packaging, subdivision, marking of goods or simply dissolution in water or other substances without alteration of the main features of the product.

CRITERIA USEDTo establish the geographical origin by province are

SIMILAR

To those DETERMINED in MERCOSUR To establish the national origin of goods.

HANDLING OF SPECIAL CASES

FOREIGN GOODSIn order to determine the foreign provenance of a given product, the information in the customs statements is normally used:

Year, customs office, type of destination, condition of the goods, temporary imported inputs to be processed, imported inputs for direct consumption.

INPUTS SHOULD COMPLY WITH THE FOLLOWING PARAMETER:

If the total amount of inputs (temporary or for direct consumption) exceeds 40% of the F.O.B. price of the import, it must be deemed as of foreign

provenance.

HANDLING OF SPECIAL CASES

CRUDE OILThe main reason for reassigning the provincial origin of crude oil exports is:

– The possibility of determining the percentages of provincial productions sold to local refineries (internal market), so that remainding percentage is what will be effectively available for foreign markets.

The percentage structure of production by provincial origin is the net result of the country’s crude oil internal consumption.

MONTHLY WORKING CIRCUIT

1- Reception of the Customs CD with monthly data of export-import operations.

2- Data entry and validation process in the production data base.

3- Manual correction of validation errors. Data entry of non-customs sources (energy, ship and aircraft supplies, etc).

4- Monthly data transmission to the operation data base of foreign trade

5- Process of the provincial origin of exportations. Storage of the resulting information to the subsequent generation of publications and data for users.

Information Dissemination: www.indec.gov.ar

Origin of exports by economic regions and provinces.

Classified exports by main items.

Exports by economic zones and provinces.

Exports by provincial origin according to main items.

Origin of exports according to economic region and provinces.

Exports by provincial origin according to the main chapters of the MERCOSUR Common Nomenclature (NCM).

EXAMPLE: SOYBEANS

Exports by provincial origin according to customs documentation

Province Fob 2008 Percentage share

Buenos Aires 704,9 15,47

Catamarca 9,1 0,2

Unspecified 3.802,20 83,47

Córdoba 23,9 0,52

Salta 0,1 0

undeclared 8,8 0,19

Santiago del Estero 0,5 0,01

Santa Fe 4,6 0,1

San Luís 0,1 0

Mendoza 1,1 0,02

TOTAL 4.555,30 100

Province Tons produced in 2008Percentage

share

Córdoba 12.750.000 27,58

Buenos Aires 12.246.799 26.49Santa Fe 11.480.000 24.83

Entre Ríos 3.289.065 7,11

Chaco 1.750.000 3,79Salta 1.450.000 3,14

Santiago del Estero 1.550.000 3,35

Tucumán 803.925 1,74

La Pampa 430.000 0,93

San Luís 257.950 0,56

Unspecified 225.348 0,49

TOTAL 46.232.087 100

Production by province in tons (Program of provincial origin, based on data from the SAGPyA)

1.7

7.1

3.7

3.1

3.3

0.9

0.5

26.4

Buenos Aires

24.8

Santa Fe

Córdoba

27.6

24.8

Santa Fe

Provincial exports of soybeansPercentage share in 2008

EXAMPLE: CORN GRAINS

Provínce Fob 2008 Percentage share

Unspecified 3.161,00 92,50

Buenos Aires 177,5 5,19

Santa Fe 42,6 1,25

Córdoba 30,7 0,90

Salta 3,6 0,11

San Luís 0,9 0,03

Tucumán 0,3 0,01

Rió Negro(1) 0,3 0,01

Jujuy 0,2 0,01

Entre Ríos 0,1 0,00

Chaco 0,1 0,00

La Rioja 0 0

Total 3.417,40 100

Exports by provincial origin according to customs

documentation

Production by province in tons (Program of provincial origin, based on data from the

SAGPyA)

Province Tons produced in

2008Percentage

share

Córdoba 8.748.610 39,74

Buenos Aires 7.077.260 32,14

Santa Fe 2.538.680 11,53

La Pampa 782.950 3,56

Entre Ríos 1.128.630 5,13

San Luís 253.760 1,15

Chaco 422.050 1,92

Santiago del Estero

482.800 2,19

Tucumán 195.730 0,89

Salta 216.000 0,98

Unspecified 170.456 0,77

Total 22.016.926 100

Provincial origin exports of corn grainsPercentage share in 2008

3.5

5.1

1.1

1.92.1

0.9

0.9

32.1

Buenos Aires

Córdoba

11.5

Santa Fe

39.7

Fin de la presentación

Muchas Gracias