The category of goods for processing does not provide for the transfer of ownership.
Consider some items of the current account of the balance of payments.
The item “Goods” covers most current account transactions that reflect the transfer of ownership of goods (exports and imports) from non-resident to resident and vice versa. We emphasize that when accounting for transactions under this item of the current account, it is necessary to keep in mind the following features:
1. Energy – are allocated a separate code. Goods for processing are goods that cross the border for the purpose of their processing, and then return to the country – the owner of the goods. The category of goods for processing does not provide for the transfer of ownership. These goods are accounted for on a gross basis (total cost of goods before and after processing). If there are payments for the processing of goods, they are taken into account in the category of other business services.
Repair of goods – the cost of repair of mobile equipment performed by a non-resident or for a non-resident. This article does not include other types of repairs: repair of buildings and structures (construction services), repair of computer equipment (computer and information services) and maintenance of transport equipment in sea and air ports (other transport services).
Goods purchased in ports by transport organizations – fuel, food, supplies, auxiliary materials. The provision of related services (vehicle maintenance, pilotage services, etc.) does not fall under this article.
Non-monetary gold is gold as a means of accumulation and gold for industrial purposes, which is not included in the reserve assets of monetary authorities.
The article “Services” reflects the movement professional lab report writing of funds associated with the provision of both traditional services, such as travel and transportation, and new – communication, financial and computer services, copyright and licensing rights, various business services and more. The role of new services in international trade is growing. The traveler (consumer of services) needs the goods and services of the host country (service provider).
Main types of services:
1. Transport services – freight and passenger transportation by all modes of transport and related services. The item “other” reflects ancillary services, including rental of vehicles with crews, as well as warehousing, loading, unloading, maintenance of vehicles, pilotage services, commissions, agency services related to passenger and freight transport. The use of the term “other transport” requires a specific clarification of the type of transport.
2. Services under the item “Travel” reflect the value of all types of goods and services purchased by visitors. This category of services includes payments for tourist vouchers, hotel accommodation, purchase of personal goods, as well as private transfers from abroad to non-residents (including foreign students), cash sold on business trips, etc.
3. Communication services – communication services, including telecommunication, provision of telephone, telex, telegraph communication, radio broadcasting, e-mail, satellite, facsimile and television communication, postal services.
4. Construction services – construction of facilities, installation of equipment, repair of buildings and structures outside the economic territory.
5. Insurance services – cover various types of insurance provided by resident insurance companies for non-residents, and vice versa (for example, insurance of foreign trade goods). Financial services are the services of financial intermediaries (for example, in connection with the opening of credit lines), payment or collection of commissions for transactions with letters of credit, bank acceptances, financial leasing. Financial services also include the payment or collection of commissions for securities transactions, asset management, maintenance of correspondent accounts, etc.
6. Computer and information services – database processing, software implementation, including development and programming of specific customer systems, computer management, computer consulting, operation and repair of computers, news agency services, direct (individual) subscription for periodicals.
7. Royalties and licensing services – officially permitted use of intangible assets (patents, licenses, copyrights, trademarks, technologies). However, the purchase and sale of such assets belong to capital transactions (capital transfers).
8. Services for individuals and services in the field of culture and recreation – the creation of feature films, radio and television programs, sports, cultural and health programs, services related to education or treatment abroad.
9. Government services – foreign trade operations of embassies, consulates, military missions, which they conduct with residents of the country where they are located.
10. Other business services – various types of business, professional, technical and research-related services that are not included in the above categories of services. These include:
processing of toll raw materials; operating leasing – rental of equipment without personnel, leasing (charter) of sea and aircraft and other transport equipment without crew and crew; document preparation services, consulting in the field of accounting, auditing and tax legislation, providing operational assistance to firms; services in the field of advertising and marketing, holding exhibitions and trade fairs; research and development performed by residents for non-residents, and vice versa; architectural, engineering and other technical services, geological exploration, inspection and certification of product quality, technical control; services in the field of agriculture, extraction of minerals, on-site processing of products received for import and not subject to re-export, and vice versa (for example, processing of nuclear waste); recruitment services (eg ship crews), translation and interpretation, payment for construction materials by non-resident companies carrying out construction work in the country. agency services – payment by companies for the services of their foreign agents, including representative offices.
The item “Income” of the current account includes compensation to employees, investment income (income from direct investment and other dividends and interest). This article reflects the relationship between income and capital account, as well as between the balance of payments and the balance of foreign investment.
The main types of income reflected in the current account. Remuneration – wages and other benefits received by workers and employees outside the country in which they are residents.
Direct investment income:
income from equity participation in the capital of companies – dividends, distributed and retained earnings of foreign branches, reinvested earnings; interest on debt obligations is interest paid to a direct investor by a direct investment enterprise, and vice versa.
Income from portfolio investments is the movement of funds between residents and non-residents, which arises from the ownership of shares, bonds, long-term securities, money market instruments. It includes:
income from equity participation in the capital of companies (dividends); income from debt obligations (interest).
Income from other investments:
interest on long-term loans (guaranteed or non-guaranteed); other income from other investments – interest on other financial claims / liabilities (interbank loans, borrowings, deposits, for the use of balances on the correspondent account, etc.).
The item “Current transfers” reflects transactions carried out on a gratuitous basis. This group of transactions increases the income and consumption of the recipient country through the income and consumption of the supplier country. Current transfers include cash transfers to governments to finance expenditures, humanitarian assistance, annual or regular contributions to international organizations, and the payment by the government or international organizations of expenses (including salaries to staff) for the provision of technical assistance.
Public administration sector – humanitarian aid, contributions of state bodies to the funds of international organizations, taxes and fines paid by non-residents to state bodies of Ukraine.
remittances of persons working abroad – free remittances to families; other transfers – gifts, inheritance; child support and other child support payments; pensions and other benefits under social security programs paid by non-governmental organizations; private transfers received by residents from non-residents, or vice versa; periodic contributions (including membership fees) to charitable, religious, scientific and cultural organizations; payment of duties and fines, if it is carried out by residents of Ukraine in favor of government agencies of other countries.
Account of capital transactions and financial transactions. This account is divided into the capital account and the financial account.
The capital account reflects all payments on capital transfers and for the acquisition / placement of intangible, non-financial assets. Capital transfers can be in cash and in kind. Cash capital transfers are intended for the acquisition / placement of fixed assets. Capital transfers in material form are a reflection of changes in ownership of fixed assets, write-off of receivables.
The financial transactions account shows all transactions related to the change of ownership of foreign financial assets or liabilities of the country. First of all, these are operations that involve the presentation and repayment of financial claims of one country to other countries, and vice versa.
The main component of capital and financial accounts is capital transfers. A transfer is considered capital when there is a transfer of ownership of fixed capital or cancellation of debt by the creditor, when one of the parties does not receive the value equivalent.