## CATT Second Meeting (November 16, 2020) — Summary of Discussions

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**Canonical URL:** [CATT Second Meeting (November 16, 2020) — Summary of Discussions](https://www.imf.org/-/media/files/data/statistics/bpm6/catt/catt-second-meeting-minutes-november-16-2020.pdf)

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### Attendees
- IMF: Ms. Maria Borga, Ms. Silvia Matei, Ms. Kristy Howell, Mr. Malik Bani Hani, Mr. Kenneth Egesa, Ms. Jennifer Ribarsky, Mr. David Stephen Bailey, and Ms. Tatiana Carandang.
- Eurostat: Ms. Lena Frej-Ohlsson, Mr. Robert Leisch, and Ms. Laura Wahrig.
- Country representatives: (Argentina) Ms. Silvia Amiel, (Botswana) Ms. Baby Mogapi, (Brazil) Mr. Thiago Vieira, (Canada) Mr. Denis Caron, (Denmark) Mr. Casper Winther, (Germany) Mr. Jens Walter, (Jamaica) Mr. Esmond McLean, (Kosovo) Mr. Bedri Zymeri, (Mexico) Mr. Gerardo Durand Alcántara, (Moldova) Ms. Angela Gherman–Cernei, (Morocco) Mr. Mounir Rhandi, (Peru) Ms. Consuelo Soto, (Russia) Mr. Robert Pupynin, and (Thailand) Ms. Angsupalee Wacharakiat.
- Other International Organizations: Mr. Rodolfo Ostolaza (OECD) and Mr. Markie Muryawan (UNSD).
- New CATT members introduced: Ms. Jennifer Ribarsky (IMF), Ms. Laura Wahrig (Eurostat), and Mr. David Stephen Bailey (IMF).

### Overview of CATT work and BOPCOM outcomes
- CATT Co-Chairs (Ms. Borga and Ms. Frej-Ohlsson) reviewed work to date and summarized outcomes of the public consultation and the October 2020 BOPCOM meeting for Guidance Notes (GNs) C.1, C.2, C.5.1 and cross-domain GZTT/CATT GN C.11.
- Noted developments:
  - GZTT becoming a joint TT with representation from both balance of payments (BOP) and national accounts (NA).
  - Merging of IPTT with GZTT.
- Emphasized close cooperation with BPTT and the AEG.

### GN C.1 — Recording of Transactor-Based Services (Travel, Construction, Government Services, n.i.e.)
- Key discussion points:
  - Opinions divided on separating components of transactor-based services and classifying them into respective goods and services categories.
  - Supporters: benefit of harmonization with NA.
  - Opponents: compilers would face severe difficulties; travel is an important item for many economies and users should be consulted.
- BOPCOM outcome:
  - Topic to be reconsidered; GN further improved focusing on maintaining reporting of transactor-based services.
  - Include only a supplementary reporting for travel services that is in line with SNA product classification.
  - Revised GN to be circulated among CATT for review and resubmitted to BOPCOM via written procedure.
- Other notes:
  - OECD representative noted need for ensuring consistency with GN C.7.

### GN C.2 — Goods and Services Account by Enterprise Characteristics
- Public consultation:
  - Overall favorable to including an additional breakdown by enterprise characteristics as supplementary items in annual data collection.
  - Concerns that additional breakdowns may overload the framework; suggested inclusion in subsidiary manuals and guides (e.g., IMTS, MSITS).
- BOPCOM decision:
  - Full agreement with recommendation; approved topic to be part of the annotated outline of BPM7.

### GN C.5.1 — Statistical Impact of the Change in Treatment of Operating Leases in Business Accounting
- Public consultation outcome:
  - Overwhelming majority supported recommendation not to change recording standards of economic ownership in BPM6 to align with IFRS 16.
  - BOPCOM members strongly supported maintaining principle of economic ownership.
  - Consensus that IFRS 16 should not lead to methodological changes to the 2008 SNA and BPM6.
  - Additional guidance for compiling lease transactions should be provided in the updated Compilation Guide.
- BOPCOM decision:
  - GN approved and to be combined with GN C.5.2 under one GN—C.5.
  - Combined GN will be part of the annotated outline of BPM7.

### GN C.11 — Valuation of Imports and Exports (CIF-FOB Adjustments)
- AEG preference:
  - Clear preference for using invoice values instead of CIF/FOB adjustments (Option 3) on conceptual grounds.
- CATT position:
  - Supported Option 3 with a lesser majority; concerns about data quality and availability.
- BOPCOM recommendation:
  - Conceptually invoice values are superior.
  - Recommended further investigations to assess access to and quality of data.
  - GZTT to seek volunteer countries from SNA and BPM community to undertake a feasibility test across a large enough sample of countries representing different circumstances before a decision is made.
- Follow-up:
  - Ms. Ribarsky (GZTT) reported work to prepare a testing questionnaire to assess feasibility.
  - Intention to launch testing questionnaire in December 2020/January 2021 with a targeted time frame for response of six months.
  - Preferable outreach to non-European countries.
  - CATT members invited to consider volunteering to participate in testing.

### Revisions to GN calendar to align with 2021 BOPCOM schedule
- 2021 BOPCOM meeting schedule (as reported): February 22–24, June 21–24, and October 26–28 (or October 25–28 if virtual).
- Status and timing of next rounds of GNs:
  - GN C.7 Treatment of Travel Packages, Health-Related Travel, and Taxes and Fees on Passenger Tickets:
    - Reviewed by CATT; under review by drafting team with some delays.
    - Revised draft to be submitted next week; to be submitted for discussion by the February BOPCOM meeting.
    - New CATT members requested copy of draft GN and consolidated CATT comments.
  - GN C.8 Recording Penalties and Fines:
    - First draft sent to Co-Chairs and Secretariat; to be disseminated for CATT consultation soon.
    - Outcome to be coordinated with DITT’s D.15 GN.
    - Intention to finalize in early February for submission to next BOPCOM meeting.
  - C.4 Merchanting and Factoryless Producers; Clarifying Negative Exports in Merchanting; Merchanting of Services:
    - Now scheduled for submission to the June 2021 BOPCOM meeting.
    - Has become a cross-domain issue between CATT and GZTT; authors advised not to postpone preparations.
    - Drafting team engaged and has had first contact with GZTT.
  - GN C.5.2 Economic Ownership in the Context of Financial and Operating Lease Transactions Pertaining, in Particular, to Aircrafts:
    - Initially planned for April; rescheduled for submission to the June 2021 BOPCOM meeting.
    - Preparations started; kickoff meeting with authors to take place next week.
    - Mr. Bailey expressed interest in outcomes from the government finance (GFS) perspective.
  - GN C.6 Trade in Services Classification:
    - Final version rescheduled for submission to the June 2021 BOPCOM meeting.
  - GN C.3 International Trade Classified by Currency (Including for Trade Linked to Long-Term Trade Credits and Advances):
    - Scheduled for submission to the June 2021 BOPCOM.
  - GN C.9 Valuation of Trade Under Long Term Contracts:
    - Scheduled for submission to the June 2021 BOPCOM.
- Participation notes:
  - Mr. McLean (Jamaica) expressed interest in drafting teams for GNs C.6 and C.9; involvement to be considered for C.9.

### Takeaways from the first round of GNs and way forward
- Secretariat and Co-Chairs observations:
  - Appreciation for authors of GNs C.1, C.2, and C.5.1 working under a tight schedule (including holidays) to submit for October 2020 BOPCOM.
  - Importance of timely coordination among various TTs on cross-domain topics to achieve methodological harmonization between SNA and BPM.
  - Public consultation outcomes have crucial impact on BOPCOM decisions.
- Secretariat process notes:
  - Ms. Matei stressed importance of respecting drafting/review schedule and noted complex multi-round review process; sought ways to streamline.
- Member feedback:
  - General satisfaction with coordination and secretariat work; support for continuation including dissemination of consolidated comments on GNs.
  - Some members noted restrictive short format of GNs but appreciated option to add details in annexes.
  - Ms. Borga confirmed uniform standard template imposed by BPTT across BPM TTs.
  - Ms. Frej-Ohlsson noted drafting teams prefer more team meetings rather than extensive email exchanges.
- External coordination suggestions:
  - Mr. Ostolaza (OECD) suggested involving members of the TF-ITS when CATT GNs are posted for public consultation to ensure recognition of TF-ITS role.
  - Eurostat’s Working Group indicated interest in more active participation in review of CATT GNs.
  - Mr. Muryawan (UNSD) praised coordination across working groups and TTs, noting positive impact on timelines for related guides (IMTS and MSITS) and that trade-related issues beyond BPM scope could be addressed in related guides.

### Next meeting
- Next (virtual) CATT meeting tentatively scheduled after the February 2021 BOPCOM meeting at a date to be determined.

### Actions
- Secretariat:
  - circulate the Minutes;
  - circulate the draft GN C.7 and consolidated comments from the CATT to the new members;
  - circulate the updated timetable for CATT GNs.
- Co-chairs:
  - revert on Mr. McLean’s interest to participate in the drafting of GN C9.
- Drafting team of GN C.7:
  - submit the revised GN that incorporates comments from the CATT early next week (November 23–27).
- CATT members:
  - can submit their interest in participating in the testing phase for the GZTT/CATT C.11 by November 30.

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/catt/catt-second-meeting-minutes-november-16-2020.pdf_