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The Census and Statistics Department (C&SD) released today (February 11) the statistics on Hong Kong's exports of services relating to offshore trade for 2009, with breakdowns by type of service and destination.
In Hong Kong's exports of services, those relating to offshore trade are classified under "merchanting and other trade-related services", which is a major service group within exports of services. According to the trade in services statistics for 2009, on which a separate press release was issued today, exports of services relating to offshore trade constituted 95.1% of the value of exports of "merchanting and other trade-related services", or 29.3% of the value of total exports of services of Hong Kong, in 2009.
In 2009, Hong Kong earned $196.6 billion from offshore trade, down by 3.7% compared with 2008. Within this total, the gross margin from "merchanting" was $171.5 billion (down by 2.8% compared with 2008), and the commission from "merchandising for offshore transactions" was $25.1 billion (down by 8.9%).
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 which are purchased from and then sold to parties outside Hong Kong, without the goods entering and leaving Hong Kong. An establishment engaged in "merchanting" in Hong Kong takes ownership of the goods involved. Also included are transactions of goods manufactured outside Hong Kong through sub-contract processing arrangement and sold directly 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 (examples of such services include 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 an establishment operating in Hong Kong, without the goods entering and leaving Hong Kong. Unlike "merchanting", an establishment engaged in such merchandising transactions 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 its accounting system.
In 2009, the sales value of goods involved in "merchanting" fell by 10.8% compared with 2008 to $2,470.8 billion. Meanwhile, the sales value of goods involved in "merchandising for offshore transactions" was estimated at $460.3 billion in 2009, down by 22.3% compared with 2008.
There is a difference in the level of involvement of the service providers in "merchanting" and "merchandising for offshore transactions" activities. This might be reflected by the difference between the rate of gross margin from "merchanting" (6.9%) and the commission rate from "merchandising for offshore transactions" (5.5%) estimated in 2009.
Whilst not providing exactly the same type of services, "merchanting" and "merchandising for offshore transactions", if taken together, involved a total of $2,931.2 billion in terms of the sales value of goods in 2009, down by 12.8% compared with 2008.
Correspondingly, the value of re-exports was $2,411.3 billion in 2009, down by 11.8% compared with 2008. The rate of re-export margin was estimated at 16.9%.
Analysed by destination of exports of services relating to offshore trade, the United States of America and the mainland of China (the Mainland) were the two major destinations in terms of offshore trade earnings, accounting for 28.0% and 21.1% respectively of the gross margin/commission earned in 2009. They were followed by the United Kingdom (6.2%), Japan (5.3%) and Germany (5.2%).
Analysed by destination of goods sold under "merchanting", the Mainland was the major destination, accounting for 39.1% of the total value of goods sold under such arrangement in 2009. It was followed by the United States of America (15.9%), Singapore (6.8%), Japan (6.7%) and the United Kingdom (4.2%).
Commentary
A Government spokesman notes that offshore trade fell notably in 2009, due to the collapse of world trade in the early part of that year amid the global recession. Nevertheless, exports of services relating to offshore trade rebounded notably in the latter part of 2009 and maintained strong growth in 2010. He also pointed out that the sales value of goods involved in offshore trade continued to exceed that involved in re-exports in 2009, reflecting the important role of offshore trade in Hong Kong's trade structure.
Further information
Table 1 presents the analysis of activities of exports of services relating to offshore trade and re-exports of goods in 2008 and 2009.
Table 2 presents the analysis of gross margin/commission earned from offshore trade by main destination of exports of services in 2008 and 2009.
Table 3 presents the analysis of merchanting activities by main destination of sales of goods involved in merchanting in 2008 and 2009.
More detailed statistics relating to offshore trade presented in the context of trade in services statistics will be given in the "Report on Hong Kong Trade in Services Statistics for 2009". Users can download the publication free of charge at the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/statistical_report/external_trade/index.jsp) as from February 25, 2011.
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/Friday, February 11, 2011
Issued at HKT 16:34
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