Jasmine Gladstone

The most common causes of methodological asymmetries are the following:

• simplified product reporting: Where the EU legislation allows simplified codification of goods for certain transactions, some Member States apply the simplifications but others do not;
• Only export/dispatches to be reported in the case of supplies to ships and aircraft;
• different approaches to estimating or compiling trade data for specific goods and movements not covered by customs or statistical declarations, such as gas, electricity, vessels or aircraft;
• confidentiality: It is possible that data are considered confidential by only one of the two partners. However, the application of the confidentiality procedures should not impact the results at total trade level;
• time lag: the same operation can be recorded under a different reference period because of transport times or processing delays;
• CIF/FOB valuation: imports are valued on a CIF basis and exports on a FOB basis. This causes a systematic asymmetry as the value of the imports should then be higher than the value of the mirror exports;
• differences in methods and data used to estimate missing trade;
• different practices in the treatment of revisions;
• currency conversion; and
• other methodological differences such as definition of partner country, definition of statistical territory, trade system (special or general).

Under the new Union Customs Code (UCC) and customs special procedures, you do have to be authorized to use Inward Processing. This is either Authorization by Declaration, if you only use the procedure up to 3 times a year, or Full Authorization for use of more than 3 times a year.

The UCC came into force on 1st May 2016, so authorizations for Inward processing relief that were granted prior to that date can still be used until the authorization needs renewing.

This is OK to do as the export declaration to UK customs does allow for this. The only issue from the commercial point of view is the exchange rate as fluctuations can result in reduced profitability.

Also, receiving payments in US Dollars into your bank can carry charges, which again may affect the profitability of the transaction.

The ISM manufacturing index, also known as the purchasing managers' index (PMI), is a monthly indicator of U.S. economic activity based on a survey of purchasing managers at more than 300 manufacturing firms. It is considered to be a key indicator of the state of the U.S. economy.

Formally called the Manufacturing ISM Report on Business, the survey is conducted by the Institute for Supply Management (ISM).

The ISM manufacturing index or purchasing managers' index is considered a key indicator of the state of the U.S. economy.

It indicates the level of demand for products by measuring the amount of ordering activity at the nation's factories.

The PMI number, which is announced on the first business day of each month, can greatly influence investor and business confidence.

A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service. Most often, the merger is effected to increase synergies, gain more control of the supply chain process, and ramp up business. A vertical merger often results in reduced costs and increased productivity and efficiency.