The 2008 SNA explains the treatment of freight and insurance costs associated with imports and valuation of imports of goods at FOB in more detail compared to the 1993 SNA. However, its recommendation that “the question of whether the value of goods covers the cost of transportation or not depends on whether the exporter or importer is responsible for transport (2008 SNA, paragraph 14.68)” is not consistent with the FOB valuation of export. There is a need for clarifying and articulating the treatment of freight and insurance, output valuation at basic prices, and the FOB valuation of exports in the 2008 SNA.

The AEG discussed the issue at its 8th meeting and below are its conclusions.

The AEG:

• Noted that both the 2008 SNA and BPM6 recommend recording imports and exports of goods at Free on Board (FOB) value; and recognised that the 2008 SNA does not fully reconcile the FOB principle for the valuation of exports with the principle of output valuation at basic prices.


• Agreed that the recommendations of the 2008 SNA and BPM6 on the principle agreed for the recording of cross border trade transactions should be implemented.


• Agreed that in the longer term, the change of ownership principle should be applied across the SNA, BPM and Foreign Trade Statistics with the full involvement of all these partners; and requested Canada, as Chair of the Friends of the Chair Group on Internationalization, to bring this issue to the attention of this Group.