By Rea Cu, March 20 2019; Business Mirror
Image Credit to Business Mirror
THE TradeNet platform is seen to address the rise in export and import data discrepancies, which reached 30 percent in 2018 coming from only 24.8 percent in 2016, the Department of Finance (DOF) has said.
Based on an economic bulletin of the DOF, data collection should be improved to address the rise in the gaps, and thus enhance the capabilities of revenue collectors, as well as trade facilitation.
“The rise in export data discrepancy implies the need for data-collection improvements…. transaction-based data using TradeNet will minimize this discrepancy,” the DOF said.
Data from the International Monetary Fund (IMF) Direction of Trade Statistics, as well as from the Philippine Statistics Authority (PSA) indicated export trade data discrepancies grew to $28.889 billion last year from only $18.975 billion in 2016.
“A comparison between trade data reported in the IMF Direction of Trade Statistics and the PSA shows that trade data discrepancy declined from 26.7 percent in 2016 to 25.1 percent in 2017, but this rose to 26.8 percent in 2018 due primarily to export discrepancy,” it added.
Based on data from the IMF, merchandise exports amounted to $96.377 billion last year, $89.097 billion in 2017 and $76.382 billion in 2016.
On the other hand, PSA data showed that merchandise exports for 2018 amounted to $67.489 billion, $68.713 billion for 2017 and $57.406 billion in 2016.
This showed an export trade discrepancy of about $28.889 billion for 2018, $20.384 billion in 2017, and $18.975 billion in 2016.
“Export data discrepancy declined from 24.8 percent in 2016 to 22.9 percent in 2017, but rose to 30.0 percent in 2018. In 2018, PSA statistics show a 1.8- percent decline year-on-year but trading partner data indicate an 8.2 percent increase. This implies data collection problems on exports,” the DOF said.
IMF data showed that merchandise imports reached $144.524 billion in 2018, $131.018 in 2017, and $116.748 billion in 2016, while PSA data showed merchandise imports hitting $108.928 billion, $96.093 billion and $84.107 billion, respectively.
This shows a decline in import trade discrepancies of about $35.596 billion last year, $34.925 billion in 2017 and $32.641 billion in 2016.
“Import data discrepancy declined from 28.0 percent in 2016 to 26.7 percent in 2017, and further to 24.6 percent in 2018…. The drop in trade discrepancy data for imports indicates the upgraded capability of tax collectors to assess and collect properly tax revenues from taxpayers,” it added.
Data from the IMF also pointed out that total trade to the Philippines for 2018 amounted to $240.901 billion, $220.115 billion in 2017 and $193.130 billion in 2016.
Meanwhile, data from the PSA showed that total trade for 2018 amounted to only $176.417 billion, $164.806 billion in 2017 and $141.514 billion in 2016.
This showed a discrepancy in trade data amounting to $64.485 billion for 2018, $55.309 billion in 2017, and $51.616 billion in 2016.
According to the DOF, trade data discrepancy occurs when trade data reported by a country differ from those reported by its trading partners. This occurs due to a variety of reasons: timing differences; smuggling; valuation differences; differing treatment of reexports and transshipment; wrong attribution; and misinvoicing.
TradeNet is the government’s digital import and export permit platform which aims to link 76 trade regulatory government agencies through a common database, and shorten the processing of transactions for import and export clearances.