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The Census and Statistics Department (C&SD) released today (February 4) the statistics on Hong Kong's exports of services relating to offshore trade for 2006, with breakdowns by type of service and destination.
In Hong Kong's exports of services, those relating to offshore trade are categorised under "merchanting and other trade-related services", which is the largest major service group of exports of services. According to the trade in services statistics for 2006, on which a separate press release was issued today, exports of services relating to offshore trade constituted 93.0% of the exports of "merchanting and other trade-related services", or 29.3% of total exports of services of Hong Kong, in 2006.
In 2006, Hong Kong earned $165.7 billion from offshore trade, up by 11.2% over 2005. Within this total, the gross margin from "merchanting" was $143.5 billion (up by 11.6% over 2005), and the commission from "merchandising for offshore transactions" was $22.3 billion (up by 8.8%).
Offshore trade covers the services of "merchanting" and "merchandising for offshore transactions" provided by establishments operating in Hong Kong (excluding their affiliates located outside Hong Kong). Earnings from offshore trade include gross margin from "merchanting" and commission from "merchandising for offshore transactions".
"Merchanting" is defined as services associated with the trading of goods purchased from and then sold to parties outside Hong Kong without the goods ever entering and leaving Hong Kong. The establishment engaged in "merchanting" in Hong Kong takes ownership of the goods involved. Also included are transactions of goods manufactured through sub-contract processing arrangement and directly sold to parties outside Hong Kong without the goods entering and leaving Hong Kong.
"Merchandising for offshore transactions" is defined as services of arranging on behalf of buyers/sellers outside Hong Kong the purchases/sales of goods according to their specifications (including multiple sourcing, marketing, contract and price negotiation, sample and volume procurement, shipment, inspection and arrangement of follow-up order). The goods involved are sold by a party outside Hong Kong to another party outside Hong Kong under the arrangement of a Hong Kong entity without the goods ever entering and leaving Hong Kong. Unlike "merchanting", the establishment in Hong Kong, in its capacity as an agent or broker, does not take ownership of the goods involved and hence recording of the value of goods involved is not required in their accounting systems.
In 2006, the sales value of goods involved in "merchanting" grew by 16.5% over 2005 to $1,781.7 billion. Meanwhile, the sales value of goods involved in "merchandising for offshore transactions" was estimated at $564.8 billion in 2006, up by 1.2% over 2005.
There is a difference in the level of involvement of the service providers in "merchanting" and "merchandising for offshore transactions". This could be reflected by the difference in trade margin of "merchanting" (8.1%) and commission rate of "merchandising for offshore transactions" (3.9%) estimated in 2006.
Whilst not providing exactly the same type of services, "merchanting" and "merchandising for offshore transactions", if taken together, involved a total of $2,346.5 billion in terms of the sales value of goods in 2006, up by 12.4% over 2005.
By comparison, the value of re-exports was $2,326.5 billion in 2006, up by 10.0% over 2005. The rate of re-export margin was estimated at 17.0%.
Analysed by destination of exports of services relating to offshore trade, the mainland of China (the Mainland) was the major destination in terms of offshore trade earnings, accounting for 27.5% of the total margin/commission earned in 2006. It was followed by the United States (27.1%), Japan (5.8%), the United Kingdom (5.7%) and Germany (5.3%).
Analysed by destination of goods sold under "merchanting", the Mainland was the major destination, accounting for 36.1% of the total value of goods sold under such arrangement in 2006. It was followed by the United States (19.3%), Japan (9.5%), the United Kingdom (4.0%) and Singapore (3.2%).
Commentary
A Government spokesman noted that the strong growth momentum in offshore trade continued in 2006. This was attributable to the vibrant global demand as well as strong trade flows with the Mainland in that year. The fact that the total sales value of goods involved in offshore trade in 2006 was slightly larger than the value of goods involved in re-exports reflected the increasingly important role played by offshore trade in Hong Kong's external trade.
Further information
Table 1 presents analysis of activities of exports of services relating to offshore trade against re-exports of goods in 2005 and 2006.
Table 2 presents analysis of exports of services relating to offshore trade by main destination of exports of services in 2005 and 2006.
Table 3 presents analysis of merchanting by main destination of sales of goods involved in merchanting in 2005 and 2006.
More detailed statistics relating to offshore trade presented in the context of trade in services statistics will be given in the ˇ§Report on Hong Kong Trade in Services Statistics for 2006ˇ¨. Users can download this report free of charge at the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp) as from February 15, 2008.
Print version of this report will be available for sale as from mid March 2008. Purchase can be done in person at the Publications Unit of the C&SD (Address : 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/ˇ@index.jsp). Print version of this report is also available for sale online
at the Government Bookstore of the Information Services Department
(www.bookstore.gov.hk).
Enquiries about trade in services and offshore trade statistics can be directed to the Trade in Services Statistics Section of the C&SD (Tel: 2802 1372 or E-mail: tis@censtatd.gov.hk).
Ends/Monday, February 4, 2008
Issued at HKT 16:15
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