International trade in services: documentation of statistics

Computer services include hardware, software and data processing services. The item comprises hardware and software consultancy and implementation services; maintenance and repair of computers and peripheral equipment; disaster recovery services, provision of advice and assistance on matters related to the management of computer resources; analysis, design and programming of systems ready to use, including web page development and design; technical consultancy related to software; licence fees collected for the use of software (other than ordered by the customer); development, production, supply and documentation of customised software, including operating systems made on order for specific users; systems maintenance and other support services, such as training provided as part of consultancy; data processing services, such as data entry, tabulation and processing on a time-share basis; web page hosting services, i.e. provision of server space on the Internet to host customers’ web pages; and computer facilities management.

Construction covers the creation, management, renovation, repair or extension of fixed assets in the form of real estate, land improvements of civil engineering nature and other constructions such as roads, bridges and dams. This also includes related installation and assembly work, site preparation and general construction, as well as specialised services such as painting, plumbing and demolition.

Deliveries of vessel spare parts and supplies, vessel fuel and lubricants, goods meant to be sold to passengers on vessels and to be consumed there by passengers or the crew for vessels and aircraft in professional international traffic.

Leasing based on an agreement where the lessee gets the user right but where the risks and benefits of ownership are not transferred to the lessee. Also includes leasing (rental) and charter of ships, aircraft and transportation equipment, such as railway cars, containers and rigs without operators or crew.

In factoryless production, an enterprise located in Finland (factoryless producer) has outsourced all its production, but its other activities, such as the head office, sales and research and development are located wholly or partly in Finland. A factoryless producer located in Finland organises the international manufacturing process. In addition to manufacturing costs, the sales price of a product includes planning, administration, patents and knowhow, marketing and financing. Especially in high technology goods these immaterial inputs may be considerable compared to the value of materials and assembly. In the balance of payments, the difference between sales and purchases (the margin of sales from abroad to abroad) in factoryless production is recorded in Finland in goods exports.

As a rule, financial services cover financial intermediation of banks and other financial corporations and support activities for them except insurance and pension services.

Foreign trade in services takes place when an economic actor (e.g. a business enterprise) resident in Finland and an economic actor resident abroad conduct trade in services. The exports of services generate income. The imports of services generate an expense item. The distinguishing criterion of foreign trade in services is that a domestic company receives compensation from a foreign economic actor for a service provided, or pays a foreign economic actor for a service it has provided.

When goods are sent abroad for processing, the producer owns the raw materials and the finished product and carries the risk for the whole production process. Economic ownership lies with the foreign producer. The balance of payment recordings depend on whether it is a question of goods sent to Finland for processing charged to a foreign unit or goods sent abroad for processing charged to a Finnish unit.

Global production covers goods sent to Finland for processing charged to a foreign unit, goods sent abroad for processing charged to a Finnish unit, merchanting and factoryless production.

When goods are sent abroad for processing, the Finnish producer owns the raw materials and the finished product and carries the risk for the whole production process. Economic ownership is in Finland. The Finnish producer pays to the foreign processor, which can also be its affiliate, compensation for the work done (service). The manufacturing premium is recorded in balance of payments in Finland's imports of services. Goods exported from Finland for processing and finished goods imported back to Finland are removed in the balance of payments from Finland's goods trade, because their ownership does not change. Goods bought from aboard that have been remodelled abroad and goods sold abroad that have been manufactured abroad are, in turn, added in the balance of payments to Finland's goods trade.

When goods are sent to Finland for processing, the producer owns the raw materials and the finished product and carries the risk for the whole production process. Economic ownership is abroad. The foreign producer pays to the Finnish processor, which can also be its affiliate, compensation for the work done (service). The manufacturing premium is recorded in balance of payments in Finland's exports of services. Goods imported to Finland for processing and finished goods exported back from Finland are removed in the balance of payments from Finland's goods trade, because their ownership does not change.

Provision of news, photographs and background information to the media, database services, optical or printed media and web search portals, non-bulk subscriptions to newspapers and periodicals, other production of web contents, and library and archiving services.

Maintenance and repair services n.i.e. cover repairs made to keep the good in operation, improve the functionality or capacity of the product or extend its service life, excluding cleaning of transport equipment, construction maintenance and repair, and repair and maintenance of computers. The repairs may be performed at the site of the repairer or elsewhere.

Manufacturing services comprise processing, assembly, marking, packaging and so forth, by an enterprise that does not own the goods in question. The manufacturing service is performed by a unit that receives payment for it from the owner. Manufacturing services are also referred to as goods sent abroad for processing, processing and paid work.

In merchanting, a Finnish economic unit purchases a good from abroad and resells it without changes abroad without the goods ever entering Finland. Merchanting is recorded exclusively in exports.

Research and development services, legal services, accounting, auditing, bookkeeping and tax consultancy services, management consulting and public relations services, advertising, market research, public opinion polling, architectural services, engineering services, other technical services, waste treatment and depollution, services for agriculture and forestry and fishing, services related to mining and quarrying and oil and gas extraction, direct leasing services, trade-related services, employment services, and other business services.

Audiovisual services, artistic services, education services, health services, heritage and recreational services and other personal services. Services associated with the production of motion pictures, radio and television programmes and musical recordings. Renting of audiovisual products and related products and fees for watching rights to encrypted television channels, mass-produced audiovisual products sold to continuous use, which are supplied electronically, fees received by performing artists, writers, composers, etc. Services supplied between resident and non-resident actors relating to education, such as correspondence courses and education via television or the Internet, as well as teachers or the like, who supply services direct in host economies. Services provided by doctors, nurses and public health nurses and corresponding professionals, as well as laboratory and corresponding services rendered either remotely or on-site. Services related to museums and other cultural, sports, gambling and recreational activities except for services involving persons outside the national economy where resident. Social work activities, domestic services by paid staff and so on.

Project deliveries may include turnkey deliveries of machines, production equipment and industrial plants, including installation and assembly of machines and other related construction work.

Transactions made by general government (excl. international organisations) concerning goods and services which cannot be classified under other items.

Services related to basic research, applied research and experimental development of new products and processes. Research and development in the fields of natural sciences, social sciences and humanities. Development of technologically advanced software. Commercial research in the fields of electronics, medicine and biotechnology.

Charges collected for the use of intellectual property n.i.e. include charges for the use of propriety rights (such as patents, trademarks, copyrights, protection of methods and designs, incl. trade secrets and franchising). These rights may be produced from research and development and marketing, and charges for licences to reproduce and/or distribute intellectual property embodied in produced originals or prototypes (such as copyrights of books, manuscripts, software, film work, recordings) to make them available to the public or related rights (like television, cable television and satellite broadcasts).

Services are the result of a production activity that changes the conditions of the consuming units or facilitates the exchange of products or financial assets. Services are not generally separate items over which ownership rights can be established and cannot generally be separated from their production.

Telecommunication services comprise the transmission of sound, images or other data by telephone, telex, telegram, radio or cable television, and broadcasting, satellite, electronic mail, etc., including business network services, teleconferencing and support services. The value of the transmitted data are not included here. This also includes mobile telephone services, Internet backbone services and online access services, as well as access to the Internet.

Transport includes sea, air, railway, road and inland water passenger and freight transport and support activities for them. In addition, transport comprises postal and courier services.