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FOR IMMEDIATE RELEASE AT 8:30 A.M. EST, THURSDAY, FEBRUARY 5, 2015

CB 15-23
BEA 15-06
FT-900 (14-12)

U.S. International Trade in Goods and Services, December 2014

U.S. Census Bureau
U.S. Bureau of Economic Analysis
NEWS
U.S. Department of Commerce * Washington, DC 20230
U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES
December 2014

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of
Commerce, announced today that the goods and services deficit was $46.6 billion in December, up
$6.8 billion from $39.8 billion in November, revised. December exports were $194.9 billion, down
$1.5 billion from November. December imports were $241.4 billion, up $5.3 billion from November.

The December increase in the goods and services deficit reflected an increase in the goods deficit
of $6.9 billion to $66.0 billion and an increase in the services surplus of $0.1 billion to
$19.5 billion.

For 2014, the goods and services deficit was $505.0 billion, up $28.7 billion or 6.0 percent from
2013. Exports were $2,345.4 billion, up $65.2 billion or 2.9 percent. Imports were $2,850.5
billion, up $93.9 billion or 3.4 percent.

Goods and Services Three-Month Moving Averages (Exhibit 2)

The average goods and services deficit increased $1.1 billion to $42.7 billion for the three
months ending in December.

* Average exports of goods and services decreased $0.2 billion to $196.6 billion in December.
* Average imports of goods and services increased $0.9 billion to $239.4 billion in December.

Year-over-year, the average goods and services deficit increased $5.2 billion from the three
months ending in December 2013.

* Average exports of goods and services increased $2.7 billion from December 2013.
* Average imports of goods and services increased $8.0 billion from December 2013.

Exports (Exhibits 3, 6, and 7)

Exports of goods decreased $2.5 billion to $134.3 billion in December.
Exports of goods on a Census basis decreased $2.1 billion.
* Industrial supplies and materials decreased $3.1 billion.
o Nonmonetary gold decreased $1.2 billion.
o Other petroleum products decreased $0.6 billion.
Net balance of payments adjustments decreased $0.4 billion.

Exports of services increased $1.0 billion to $60.6 billion in December. The increase mostly
reflected increases in transport ($0.4 billion), which includes freight and port services and
passenger fares, in financial services ($0.3 billion), and in travel (for all purposes including
education) ($0.2 billion).

Imports (Exhibits 4, 6, and 8)

Imports of goods increased $4.4 billion to $200.3 billion in December.
Imports of goods on a Census basis increased $4.4 billion.
* Industrial supplies and materials increased $2.7 billion.
o Crude oil increased $1.1 billion.
o Other petroleum products increased $0.5 billion.
Net balance of payments adjustments decreased less than $0.1 billion.

Imports of services increased $0.9 billion to $41.2 billion in December. The increase mostly
reflected increases in transport ($0.5 billion) and in travel (for all purposes including
education) ($0.3 billion).

Real Goods in 2009 Dollars – Census Basis (Exhibit 11)

The real goods deficit increased $6.0 billion to $54.7 billion in December.

* Real exports of goods decreased less than $0.1 billion to $123.3 billion.
* Real imports of goods increased $6.0 billion to $178.0 billion.

Revisions

In addition to revisions to source data for the November statistics, the seasonally adjusted
goods data were revised for January through November so that the totals of the seasonally
adjusted months equal the annual totals.

Revisions to November exports
* Exports of goods were revised upward $0.1 billion.
* Exports of services were revised downward less than $0.1 billion.

Revisions to November imports
* Imports of goods were revised upward $0.9 billion.
* Imports of services were revised downward $0.1 billion.

Goods by Selected Countries and Areas: Monthly – Census Basis (Exhibit 19)

The December figures show surpluses, in billions of dollars, with South and Central America ($2.6),
Brazil ($0.4), and United Kingdom ($0.1). Deficits were recorded, in billions of dollars, with
China ($30.4), European Union ($12.7), Germany ($5.6), Mexico ($5.6), Japan ($5.4), Canada ($3.3),
South Korea ($2.7), OPEC ($2.3), India ($2.1), Italy ($2.1), France ($1.1), and Saudi Arabia
($1.0).

* The deficit with Canada increased $1.7 billion to $3.3 billion in December. Exports decreased
$0.8 billion to $25.8 billion and imports increased $0.9 billion to $29.0 billion.
* The deficit with Mexico increased $1.2 billion to $5.6 billion in December. Exports decreased
$0.6 billion to $19.6 billion and imports increased $0.6 billion to $25.2 billion.

ANNUAL SUMMARY FOR 2014

Goods and Services (Exhibit 1)

For 2014, the goods and services deficit was $505.0 billion, up $28.7 billion from $476.4 billion
in 2013. Exports were $2,345.4 billion in 2014, up $65.2 billion from 2013. Imports were $2,850.5
billion in 2014, up $93.9 billion from 2013.

The 2014 increase in the goods and services deficit reflected an increase in the goods deficit
of $35.2 billion or 5.0 percent to $736.8 billion and an increase in the services surplus of
$6.5 billion or 2.9 percent to $231.8 billion.

As a percentage of U.S. gross domestic product, the goods and services deficit was 2.9 percent
in 2014, up from 2.8 percent in 2013.

Exports (Exhibits 3, 6, and 7)

Exports of goods increased $42.3 billion to $1,635.1 billion in 2014.
Exports of goods on a Census basis increased $43.7 billion.
* Capital goods increased $15.8 billion.
o Other industrial machines increased $5.3 billion.
o Civilian aircraft increased $4.3 billion.
* Consumer goods increased $10.1 billion.
o Pharmaceutical preparations increased $2.6 billion.
o Artwork, antiques, and stamps increased $2.5 billion.
Net balance of payments adjustments decreased $1.4 billion.

Exports of services increased $22.9 billion to $710.3 billion in 2014.
* Travel (for all purposes including education) increased $5.9 billion.
* Charges for the use of intellectual property increased $5.7 billion.
* Financial services increased $5.4 billion.

Imports (Exhibits 4, 6, and 8)

Imports of goods increased $77.5 billion to $2,371.9 billion in 2014.
Imports of goods on a Census basis increased $77.5 billion.
* Capital goods increased $36.8 billion.
o Other industrial machines increased $6.5 billion.
o Telecommunications equipment increased $4.3 billion.
* Consumer goods increased $25.2 billion.
o Pharmaceutical preparations increased $8.0 billion.
o Cell phones and other household goods increased $5.8 billion.
Net balance of payments adjustments increased less than $0.1 billion.

Imports of services increased $16.4 billion to $478.5 billion in 2014.
* Travel (for all purposes including education) increased $6.7 billion.
* Other business services increased $5.6 billion.
* Transport, which includes freight and port services and passenger fares, increased $3.7
billion.

Goods by Selected Countries and Areas – Census Basis (Exhibits 14 and 14a)

The 2014 figures show surpluses, in billions of dollars, with Hong Kong ($35.1), South and
Central America ($34.4), Australia ($16.0), and Singapore ($14.1). Deficits were recorded, in
billions of dollars, with China ($342.6), European Union ($141.1), Germany ($73.7), Japan ($67.0),
Mexico ($53.8), OPEC ($49.4), Canada ($34.0), Saudi Arabia ($28.4), Italy ($25.1), South Korea
($25.1), India ($23.6), and Venezuela ($18.9).

*The deficit with China increased $23.9 billion to $342.6 billion in 2014. Exports increased
$2.3 billion to $124.0 billion and imports increased $26.2 billion to $466.7 billion.
*The deficit with Germany increased $6.8 billion to $73.7 billion in 2014. Exports increased
$2.1 billion to $49.4 billion and imports increased $8.8 billion to $123.2 billion.

NOTES:

* All statistics referenced are seasonally adjusted; statistics are on a balance of payments
basis unless otherwise specified. Additional statistics, including not seasonally adjusted
statistics and details for goods on a Census basis, are available in Exhibits 1-20b of this
release. For information on data sources, definitions, and scheduled release dates through
December 2015, see the information section on page A-1 of this release. The next release is
March 6, 2015.

* For definitions of goods on a balance of payments basis, goods on a Census basis, and net
balance of payments adjustments, see the information section on page A-1 of this release.

NOTICE

Upcoming Changes to the FT-900 and the FT-900 Supplement

With the release of the “U.S. International Trade in Goods and Services: January 2015” report
(FT-900) and the accompanying FT-900 Supplement on March 6, 2015, the following changes will be
made:

* Exhibit 3 of the FT-900 Supplement, “General Imports of Crude Oil by Country,” will be moved
to the FT-900 and will be numbered Exhibit 17a. The content of this exhibit will not change.
* Exhibit 4 of the FT-900 Supplement, “Exports and Imports of Goods by SITC Commodity Sections,”
will be eliminated because the data in this exhibit are available in Exhibit 15 of the FT-900.
* Exhibits 5, 6, and 6a of the FT-900 Supplement will be renumbered Exhibits 3, 4, and 4a,
respectively.
* The Euro Area will include Lithuania, which joined on January 1, 2015. This change will
affect Exhibit 14 of the FT-900 and Exhibit 4 (current Exhibit 6) of the FT-900 Supplement.

If you have questions or need additional information, please contact the International Trade
Indicator Macro Analysis Branch of the U.S. Census Bureau’s Economic Indicators Division on
(301) 763-2311 or at ftd.data.dissemination@census.gov.

Full Release & Tables (PDF)

Text Full Release (Text)

Tables Only (Excel)

Release Highlights (Monthly) (PDF)

Release Highlights (Annual) (PDF)

U.S. Trade in Goods and Services, 1992-present (Excel)

Interactive Tables

Services - Technical

Jeffrey Bogen

(202) 606-9592

News Media

Jeannine Aversa

(202) 606-2649

Goods - US Census Bureau

Matthew Przybocki

(301) 763-3148

Goods - US Census Bureau

Maria Iseman

(301) 763-2311

INFORMATION ON GOODS AND SERVICES

GOODS (CENSUS BASIS)

Data for goods on a Census basis are compiled from the documents collected by the U.S. Customs
and Border Protection and reflect the movement of goods between foreign countries and the 50
states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and U.S. Foreign Trade
Zones. They include government and non-government shipments of goods and exclude shipments
between the United States and its territories and possessions; transactions with U.S. military,
diplomatic, and consular installations abroad; U.S. goods returned to the United States by its
Armed Forces; personal and household effects of travelers; and in-transit shipments. The General
Imports value reflects the total arrival of merchandise from foreign countries that immediately
enters consumption channels, warehouses, or Foreign Trade Zones.

For imports, the value reported is the U.S. Customs and Border Protection appraised value of
merchandise—generally, the price paid for merchandise for export to the United States. Import
duties, freight, insurance, and other charges incurred in bringing merchandise to the United
States are excluded.

Exports are valued at the f.a.s. (free alongside ship) value of merchandise at the U.S. port of
export, based on the transaction price including inland freight, insurance, and other charges
incurred in placing the merchandise alongside the carrier at the U.S. port of exportation.

REVISION PROCEDURE (CENSUS BASIS)

Monthly Revisions: Monthly data include actual month's transactions as well as a small number
of transactions for previous months. Each month, the U.S. Census Bureau revises the aggregate
seasonally adjusted (current and real chained-dollar) and unadjusted export, import, and trade
balance figures, as well as the end-use totals for the prior month. Country detail data and
commodity detail data, based on the Standard International Trade Classification (SITC) Revision
4 and the North American Industry Classification System (NAICS), are not revised monthly. The
timing adjustment shown in Exhibit 14 is the difference between monthly data as originally
reported and as recompiled.

For November, unadjusted exports of goods were revised downward $0.2 billion and unadjusted
imports of goods were revised upward $0.9 billion. Goods carry-over in December was $0.2 billion
(0.1 percent) for exports and $2.1 billion (1.1 percent) for imports. For November, revised export
carry-over was $0.1 billion (less than 0.1 percent) and revised import carry-over was $0.2 billion
(0.1 percent).

Quarterly Revisions to Chain-Weighted Dollar Series: For March, June, September, and December
statistical month releases, revisions are made to the real chained-dollar series presented in
Exhibits 10 and 11: the previous five months are revised to incorporate the Bureau of Labor
Statistics’ revisions to price indexes, which are used to produce the real chained-dollar series
and to align Census data with data published by the U.S. Bureau of Economic Analysis (BEA) in
the National Income and Product Accounts (NIPAs).

Annual Revisions: Each June, not seasonally adjusted goods data are revised to redistribute
monthly data that arrived too late for inclusion in the month of transaction. In addition,
revisions are made to reflect corrections received subsequent to the monthly revisions. Seasonally
adjusted data are also revised to reflect recalculated seasonal and trading-day adjustments.
These revisions are reflected in totals, end-use, commodity, and country summary data.

Other Revisions: For December and January statistical month releases, each prior month of the
most recent full year is revised so that the totals of the seasonally adjusted months equal the
annual totals.

U.S./CANADA DATA EXCHANGE AND SUBSTITUTION

Data for U.S. exports to Canada are derived from import data compiled by Canada. The use of
Canada's import data to produce U.S. export data requires several alignments in order to compare
the two series.

1. Coverage - Canadian imports are based on country of origin. U.S. goods shipped from a third
country are included. U.S. exports exclude these foreign shipments. For December 2014, these
shipments totaled $318.7 million. U.S. export coverage also excludes U.S. postal shipments
to Canada. For December 2014, these shipments totaled $23.4 million.

U.S. import coverage includes shipments of railcars and locomotives from Canada. Effective
with January 2004 statistics, Canada excludes these shipments from its goods exports to the
United States, therefore creating coverage differences between the two countries for these
goods.

2. Valuation - Canadian imports are valued at the point of origin in the United States. However,
U.S. exports are valued at the port of exit in the United States and include inland freight
charges, making the U.S. export value slightly larger than the Canadian import value. Canada
requires inland freight to be reported separately from the value of the goods. Combining the
inland freight and the Canadian reported import value provides a consistent valuation for all
U.S. exports. Inland freight charges for December 2014 accounted for 2.1 percent of the
value of U.S. exports to Canada.

3. Re-exports - Unlike Canadian imports, which are based on country of origin, U.S. exports include
re-exports of foreign goods. Therefore, the aggregate U.S. export figure is slightly larger
than the Canadian import figure. For December 2014, re-exports to Canada were $4,071.3
million.

4. Exchange Rate - Average monthly exchange rates are applied to convert the published data to
U.S. currency. For December 2014, the average exchange rate was 1.1532 Canadian dollars per
U.S. dollar.

5. Other - There are other minor differences, such as rounding error, that are statistically
insignificant.

Canadian Estimates: Effective with January 2001 statistics, the current month data for exports
to Canada contain an estimate for late arrivals and corrections. The following month, this
estimate is replaced, in the news release exhibits only, with the actual value of late receipts
and corrections. This estimate improves the current month data for exports to Canada and treats
late receipts for exports to Canada in a manner that is more consistent with the treatment of
late receipts for exports to other countries.

NONSAMPLING ERRORS

The goods data are a complete enumeration of documents collected by the U.S. Customs and Border
Protection and are not subject to sampling errors. Quality assurance procedures are performed
at every stage of collection, processing, and tabulation. However, the data are still subject
to several types of nonsampling errors. The most significant of these include reporting errors,
undocumented shipments, timeliness, data capture errors, and errors in the estimation of low-
valued transactions.

Reporting Errors: Reporting errors are mistakes or omissions made by importers, exporters, or
their agents in their import or export declarations. Most errors involve missing or invalid
commodity classification codes and missing or incorrect quantities or shipping weights. They
have a negligible effect on aggregate import, export, and balance of trade statistics. However,
they can affect the detailed commodity statistics.

Undocumented Shipments: Federal regulations require importers, exporters, or their agents to
report all merchandise shipments above established exemption levels. The U.S. Census Bureau has
determined that not all required documents are filed, particularly for exports.

Timeliness and Data Capture Errors: The U.S. Census Bureau captures import and export information
from administrative documents and through various automated collection programs. Documents may
be lost, and data may be incorrectly keyed, coded, or recorded. Transactions may be included in
a subsequent month’s statistics if received late.

Low-valued Transactions: The total values of transactions valued as much as or below $2,500 for
exports and $2,000 ($250 for certain quota items) for imports are estimated for each country,
using factors based on the ratios of low-valued shipments to individual country totals for past
periods.

The U.S. Census Bureau recommends that data users incorporate this information into their analyses,
as nonsampling errors could impact the conclusion drawn from the results. For a detailed discussion
of errors affecting the goods data, see “U.S. Merchandise Trade Statistics: A Quality Profile,”
available at www.census.gov/foreign-trade/aip/quality_profile10032014.pdf or from the Economic
Indicators Division, U.S. Census Bureau.

AREA GROUPINGS

North America: Canada, Mexico.

Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR): Costa Rica,
Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua.

Europe: Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina,
Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France,
Georgia, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kosovo, Kyrgyzstan,
Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro,
Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia,
Spain, Svalbard-Jan Mayen Island, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine,
United Kingdom, Uzbekistan, Vatican City.

European Union: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.

Euro Area: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy,
Latvia, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain.

Newly Industrialized Countries (NICs): Hong Kong, Korea (South), Singapore, Taiwan.

Pacific Rim: Australia, Brunei, China, Hong Kong, Indonesia, Japan, Korea (South), Macau, Malaysia,
New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan.

South/Central America: Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize,
Bermuda, Bolivia, Brazil, British Virgin Islands, Cayman Islands, Chile, Colombia, Costa Rica,
Cuba, Curacao, Dominica, Dominican Republic, Ecuador, El Salvador, Falkland Islands (Islas Malvinas),
French Guiana, Grenada, Guadeloupe, Guatemala, Guyana, Haiti, Honduras, Jamaica, Martinique,
Montserrat, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Sint Maarten, St. Kitts and
Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos
Islands, Uruguay, Venezuela.

OPEC: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United
Arab Emirates, Venezuela.

Africa: Algeria, Angola, Benin, Botswana, British Indian Ocean Territories, Burkina Faso, Burundi,
Cabo Verde, Cameroon, Central African Republic, Chad, Comoros, Congo (Brazzaville), Congo (Kinshasa),
Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, French Southern and Antarctic Lands, Gabon,
Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Madagascar,
Malawi, Mali, Mauritania, Mauritius, Mayotte, Morocco, Mozambique, Namibia, Niger, Nigeria, Reunion,
Rwanda, St. Helena, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South
Africa, South Sudan, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Western Sahara, Zambia,
Zimbabwe.

ADJUSTMENTS FOR SEASONAL AND TRADING-DAY VARIATIONS

Goods are initially classified under the Harmonized Commodity Description and Coding System
(Harmonized System), which is an internationally accepted standard for the commodity classification
of traded goods. The Harmonized System describes and measures the characteristics of the goods
and is the basis for the systems used in the United States: Schedule B for exports and Harmonized
Tariff Schedule for imports. Combining trade into approximately 140 export and 140 import end-use
categories makes it possible to examine goods according to their principal uses (see Exhibits 7
and 8). These categories are used as the basis for computing the seasonal and trading-day adjusted
data. These adjusted data are then summed to the six end-use aggregates for publication (see
Exhibit 6). These data are provided to BEA, from the U.S. Census Bureau, for use in the NIPAs
and in the U.S International Transactions Accounts (balance of payments accounts).

Exhibit 19 shows goods (Census Basis) that are seasonally adjusted for selected countries and
world areas. Unlike the commodity-based adjustments discussed above, these adjustments are developed
and applied directly at the country and world area levels. For total exports and imports, data
users should refer to the commodity-based totals shown in the other exhibits. The seasonally
adjusted country and world area data will not sum to the seasonally adjusted commodity-based
totals because the seasonally adjusted country and world area data and the commodity-based totals
are derived from different aggregations of the export and import data and from different seasonal
adjustment models. Data users should use caution drawing comparisons between the two sets of
seasonally adjusted series.

The seasonal adjustment procedure (X13-ARIMA-SEATS) is based on a model that estimates the monthly
movements as percentages above or below the general level of series (unlike other methods that
redistribute the actual series values over the calendar year). Because the data series for aircraft
is highly variable, users studying data trends may wish to analyze aircraft separately from other
trade.

ADJUSTMENTS FOR PRICE CHANGE

Data adjusted for seasonal variation on a real chained-dollar basis (2009 base year) are presented
in Exhibits 10 and 11. This adjustment for price change is done using the Fisher chain-weighted
methodology. The deflators are primarily based on the monthly price indexes published by the
Bureau of Labor Statistics using techniques developed for the NIPAs by BEA.

PRINCIPAL COMMODITIES

Goods data appearing in Exhibit 15 are classified in terms of the SITC Revision 4, with the
exception of agricultural and manufactured goods. Agricultural goods are defined by the U.S.
Department of Agriculture (USDA); they consist of non-marine food products and other products
of agriculture that have not passed through complex processes of manufacture. Manufactured goods
conform to the NAICS; they consist of goods that have been mechanically, physically, or chemically
transformed. USDA agricultural goods and NAICS manufactured goods are not mutually exclusive
categories.

Re-exports are foreign merchandise entering the country as imports and then exported in substantially
the same condition as when imported. Re-exports, included in overall export totals, appear as
separate line items in Exhibit 15.

ADVANCED TECHNOLOGY PRODUCTS

About 500 of some 22,000 Schedule B and Harmonized Tariff Schedule classification codes used in
reporting U.S. merchandise trade are identified as "advanced technology" codes, and they meet
the following criteria:

1. The code contains products whose technology is from a recognized high technology field
(e.g., biotechnology).

2. These products represent leading edge technology in that field.

3. Such products constitute a significant part of all items covered in the selected classification
code.

The aggregation of the goods results in a measure of advanced technology trade that appears in
Exhibits 16 and 16a. This product- and commodity-based measure of advanced technology differs
from broader NAICS-based measures, which include all goods produced by a particular industry
group, regardless of the level of technology embodied in the goods.

GOODS (BALANCE OF PAYMENTS BASIS) AND SERVICES

Quarterly and annual statistics for goods on a balance of payments (BOP) basis and for services
are included in the U.S. International Transactions Accounts (ITAs), which are published by BEA
in news releases in March, June, September, and December and in the Survey of Current Business
in the January, April, July, and October issues. The next release of the ITAs is scheduled for
March 19, 2015. The Survey of Current Business is available online at www.bea.gov/scb/index.htm.

GOODS (BALANCE OF PAYMENTS BASIS)

Goods on a Census basis are adjusted by BEA to a BOP basis to align the data with the concepts
and definitions used to prepare the international and national economic accounts. These adjustments,
which are applied separately to exports and imports, are necessary to supplement coverage of the
Census data, to eliminate duplication of transactions recorded elsewhere in the international
accounts, and to value transactions at market prices. They include both additions to and deductions
from goods on a Census basis and are presented in this release as net adjustments. Adjustments
that exhibit significant seasonal patterns are seasonally adjusted. BEA also publishes more detailed
quarterly and annual statistics for net adjustments in ITA Table 2.4. U.S. International
Trade in Goods, Balance of Payments Adjustments and in the January, April, July, and October issues
of the Survey of Current Business.

The export adjustments include:

Exports under U.S. military sales contracts - This adjustment reflects the net amount of two
separate adjustments. BEA first deducts goods identified in the Census data as exports under
the U.S. Foreign Military Sales program. BEA then adds primary source data for these exports,
which are reported to BEA by the U.S. Department of Defense.

Gold exports, nonmonetary - This addition is made for gold that is purchased by foreign official
agencies from private dealers in the United States and held at the Federal Reserve Bank of
New York. The Census data only include gold that leaves the U.S. customs territory.

Goods procured in U.S. ports by foreign carriers - This addition is made for foreign air and
ocean carriers’ fuel purchases in U.S. ports.

Net exports of goods under merchanting - This addition is made to include the net value of
the purchase and subsequent resale of goods abroad without the goods entering the United States.
Because these goods do not cross the U.S. customs frontier, their value is not recorded in
the Census data.

Other adjustments to exports include:

Deductions for equipment repairs (parts and labor), developed motion picture film, and military
grant-aid. Additions for sales of fish caught in U.S. territorial waters, exports of electricity
to Mexico, private gift parcels, vessels and oil rigs for which ownership changes, valuation
of software exports at market value, and low-value (below reporting threshold) transactions
for 1999–2009 to phase in a revised Census Bureau low-value methodology that was implemented
for goods on a Census basis beginning with statistics for 2010.

The import adjustments include:

Gold imports, nonmonetary - This addition is made for gold sold by foreign official agencies
to private purchasers out of stock held at the Federal Reserve Bank of New York. The Census
data only include gold that enters the U.S. customs territory.

Goods procured in foreign ports by U.S. carriers - This addition is made for U.S. air and
ocean carriers’ fuel purchases in foreign ports.

Imports by U.S. military agencies - This addition is made for purchases of goods abroad by
U.S. military agencies, which are reported to BEA by the U.S. Department of Defense. The
Census data only include imports of goods by U.S. military agencies that enter the U.S. customs
territory.

Inland freight in Canada and Mexico - This addition is made for inland freight in Canada and
Mexico. Imports of goods from all countries should be valued at the customs value—the value
at the foreign port of export including inland freight charges. For imports from Canada and
Mexico, this should be the cost of the goods at the U.S. border. However, the customs value
for imports for certain Canadian and Mexican goods is the point of origin in Canada or Mexico.
BEA makes an addition for the inland freight charges of transporting these goods to the U.S.
border to make the value comparable to the customs value reported for imports from other
countries.

Other adjustments to imports include:

Deductions for equipment repairs (parts and labor), repairs to U.S. vessels abroad, and developed
motion picture film. Additions for non-reported imports of locomotives and railcars, imports
of electricity from Mexico, conversion of vessels for commercial use, valuation of software
imports at market value, and low-value (below reporting threshold) transactions for 1999–2009
to phase in a revised Census Bureau low-value methodology that was implemented for goods on
a Census basis beginning with statistics for 2010.

SERVICES

The services statistics cover transactions between foreign countries and the 50 states, the
District of Columbia, Puerto Rico, the U.S. Virgin Islands, and other U.S. territories and
possessions. Transactions with U.S. military, diplomatic, and consular installations abroad are
excluded because these installations are considered to be part of the U.S. economy.

Services statistics are based on quarterly, annual, and benchmark surveys and information obtained
from monthly government and industry reports. For categories for which monthly data are not
available, monthly statistics are derived from quarterly statistics through temporal distribution,
or interpolation. The interpolation methodology used by BEA is the modified Denton proportional
first difference method. This method preserves the pattern of the monthly indicator series, if
available, while satisfying the annual aggregation constraints. See “An Empirical Review of
Methods for Temporal Distribution and Interpolation in the National Accounts”
for more information. Services are seasonally adjusted when statistically significant seasonal
patterns are present.

Services are shown in nine broad categories. The following is a brief description of the types
of services included in each category:

Maintenance and repair services n.i.e. (not included elsewhere) - Consists of maintenance and
repair services performed by residents of one country on goods that are owned by residents of
another country. The repairs may be performed at the site of the repair facility or elsewhere.
Excludes such services in which the cost is included in the price of the goods and is not
billed separately or is declared as a part of the price of the goods on the import or export
declaration filed with the U.S. Customs and Border Protection. Maintenance and repair of ships,
aircraft, and other transport equipment are included under transport services, and maintenance
and repair of computers are included under computer services.

Transport - Consists of transactions associated with moving people and freight from one location
to another and includes related supporting and auxiliary services. Transport covers all modes
of transportation, including air, sea, rail, road, space, and pipeline. Postal and courier
services and port services, which cover cargo handling, storage and warehousing, and other
related transport services, are also included.

Travel (for all purposes including education) - Includes goods and services acquired by
nonresidents while abroad. A traveler is defined as a person who stays, or intends to stay,
for less than one year in a country of which he or she is not a resident or as a nonresident
whose purpose is to obtain education or medical treatment, no matter how long the stay. Purchases
can be either for own use or for gifts to others. Travel is a transactor-based component that
covers a variety of goods and services, primarily lodging, meals, transportation in the country
of travel, amusement, entertainment, and gifts. Excludes air passenger services for travel
between countries, which are included in transport, and goods for resale, which are included
in goods.

Travel includes business and personal travel. Business travel covers goods and services acquired
for use by persons whose primary purpose for travel is for business (including goods and services
for which business travelers are reimbursed by employers). Business travel also includes
expenditures by border, seasonal, and other short-term workers in their economy of employment.
Personal travel covers travel for all non-business purposes, including for medical or educational
purposes.

Insurance services - Includes the direct insurance services of providing life insurance and
annuities, non-life (property and casualty) insurance, reinsurance, freight insurance, and
auxiliary insurance services. Insurance is measured as gross premiums earned plus premium
supplements less claims payable, with an adjustment for claims volatility. Premium supplements
represent investment income from insurance reserves, which are attributed to policyholders
who are treated as paying the income back to the insurer. Auxiliary insurance services include
agents’ commissions, brokerage services, insurance consulting services, actuarial services,
and other insurance services.

Financial services - Includes financial intermediary and auxiliary services, except insurance
services. These services include those normally provided by banks and other financial institutions.
Services primarily include those for which an explicit commission or a fee is charged; implicit
fees for bond transactions, measured as the difference between bid and ask prices, are also
included. Services include securities brokerage and underwriting, financial management, financial
advisory, and custody services; credit and other credit-related services; and securities lending,
electronic funds transfer, and other services.

Charges for the use of intellectual property n.i.e. - Includes charges for the use of proprietary
rights, such as patents, trademarks, and copyrights, and charges for licenses to use, reproduce,
distribute, and sell or purchase intellectual property.

Telecommunications, computer, and information services - Telecommunications services include
the broadcast or transmission of sound, images, data, or other information by electronic means.
These services do not include the value of the information transmitted. Computer services
consist of hardware- and software-related services and data processing services. Sales of
customized software and related use licenses, as well as licenses to use non-customized software
with a periodic license fee, are also included, as is software downloaded or otherwise
electronically delivered. Cross-border transactions in non-customized packaged software with
a license for perpetual use are included in goods. Information services include news agency
services, database services, and web search portals.

Other business services - Consists of research and development services, professional and
management consulting services, and technical, trade-related, and other business services.
Research and development services include services associated with basic and applied research
and experimental development of new products and processes. Professional and management consulting
services include legal services, accounting, management consulting, managerial services, public
relations services, advertising, and market research. Amounts received by a parent company
from its affiliates for general overhead expenses related to these services are included.
Technical, trade-related, and other business services include architectural and engineering,
construction, audio-visual, waste treatment, operational leasing, trade-related, and other
business services.

Government goods and services n.i.e. - Includes goods and services supplied by and to enclaves,
such as embassies, military bases, and international organizations; goods and services acquired
from the host economy by diplomats, consular staff, and military personnel located abroad and
their dependents; and services supplied by and to governments that are not included in other
services categories. Services supplied by and to governments are classified to specific services
categories when source data permit.

GOODS (BOP BASIS) AND SERVICES BY COUNTRY AND AREA

Monthly country and area detail is not available for goods on a BOP basis or for services. However,
quarterly statistics on goods on a BOP basis and on services that are seasonally adjusted by
geography are shown in Exhibit 20. Unlike the seasonal adjustments by commodity and by service
type that are applied to the global totals, these adjustments are developed and applied directly
at the country and world area levels. For total exports and imports, data users should refer to
the by-commodity and by-service type totals shown in the other exhibits. The seasonally adjusted
country and world area data will not sum to the seasonally adjusted by-commodity and by-service
type totals because the two sets of statistics are derived from different aggregations of the
export and import data and from different seasonal adjustment models. Data users should use
caution drawing comparisons between the two sets of seasonally adjusted series.

The definitions of the world areas shown in Exhibit 20 are consistent with the definitions for
goods on a Census basis (see AREA GROUPINGS above) with a few exceptions. For services, CAFTA-DR
is not available because trade with this area’s member countries cannot be separately identified.
For goods on a BOP basis and for services, European Union and OPEC reflect the composition of
the areas as they were at the time of reporting.

REVISION PROCEDURE (GOODS ON A BOP BASIS AND SERVICES)

Monthly Revisions: Each month, a preliminary estimate for the current month and a revised estimate
for the immediately preceding month are released. After the initial revision, no further revisions
are made to a month until more complete source data become available in March, June, September,
and December.

Quarterly Revisions: The releases in March, June, September, and December contain revised estimates
for the previous six months to incorporate more comprehensive and updated source data.

Annual Revisions: Each June, historical data are revised to incorporate newly available and revised
source data, changes in definitions and classifications, and changes in estimation methods. Seasonally
adjusted data are also revised to reflect recalculated seasonal and trading-day adjustments.

Other Revisions: The release in February contains revisions to goods for January through November
of the most recent year and the release in March contains revisions to both goods and services
for all months of the most recent year. These revisions result from forcing the seasonally adjusted
months to equal the annual totals.

DATA AVAILABILITY

The U.S. International Trade in Goods and Services news release (FT-900) and the FT-900 Supplement
are available at the following:

www.census.gov/ft900

www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

MONTHLY RELEASE SCHEDULE

Statistical Month Date Day
December 02-05-15 Thursday

January 03-06-15 Friday
February 04-02-15 Thursday
March 05-05-15 Tuesday
April 06-03-15 Wednesday
May 07-07-15 Tuesday
June 08-05-15 Wednesday
July 09-03-15 Thursday
August 10-06-15 Tuesday
September 11-04-15 Wednesday
October 12-04-15 Friday