## CATT Third Meeting (March 15, 2021) — Summary of Discussions

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**Canonical URL:** [CATT Third Meeting (March 15, 2021) — Summary of Discussions](https://www.imf.org/-/media/files/data/statistics/bpm6/catt/catt-third-meeting-minutes-march-15-2021.pdf)

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### Attendees
- IMF: Ms. Maria Borga, Ms. Silvia Matei, Ms. Kristy Howell, Mr. Malik Bani Hani, Mr. Kenneth Egesa, Mr. Borys Cotto, Mr. Thomas Alexander, Mr. David Stephen Bailey, and Ms. Tatiana Carandang.
- Eurostat: Ms. Lena Frej-Ohlsson, Mr. Robert Leisch, and Ms. Laura Wahrig.
- Country representatives: Ms. Silvia Amiel (Argentina), Ms. Baby Mogapi (Botswana), Mr. Thiago Vieira (Brazil), Mr. Denis Caron (Canada), Mr. Casper Winther (Denmark), Mr. Jens Walter (Germany), Mr. Andrea Carboni (Italy), Mr. Esmond McLean (Jamaica), Mr. Gerardo Durand Alcántara (Mexico), Ms. Angela Gherman–Cernei (Moldova), Mr. Mounir Rhandi (Morocco), Mr. Robert Pupynin, Ms. Angsupalee Wacharakiat (Thailand), and Ms. Patricia Abaroa (USA).
- Other International Organizations: Mr. Rodolfo Ostolaza (OECD), Mr. Markie Muryawan (UNSD), Mr. Joao Fonseca (IPSASB), and Mr. Bedri Zymeri (World Bank).

### Changes in CATT composition
- New members: Mr. Andrea Carboni (Italy), Ms. Patricia Abaroa (USA), Mr. Joao Fonseca (IPSASB), and Mr. Thomas Alexander (IMF) replacing Ms. Jennifer Ribarsky and representing the national accounts (NA) perspective.
- Organizational changes: Mr. Bedri Zymeri moved from Central Bank of the Republic of Kosovo to World Bank.
- Departure: Ms. Consuelo Soto Crovetto (Peru).

### Overview of work accomplished and outcomes from BOPCOM
- The CATT Co-Chairs (Ms. Borga and Ms. Frej-Ohlsson) presented an overview of CATT work to date and summarized outcomes of the public consultation and the February 2021 BOPCOM meeting for the CATT Guidance Note (GN) C.8 Recording penalties and fines.
- Updates provided on reasons for postponement of C.7 Treatment of Travel Packages Health-Related, Travel and Taxes and Fees on Passengers Tickets and on progress post BOPCOM/AEG October 2020 meetings for cross-domain GZTT/CATT GN C.11 The Valuation of Imports and Exports of Goods in the International Standards (CIF to FOB Adjustment).

### Key discussion points (GN-specific)
- GN C.8 Recording penalties and fines:
  - C.8 was not approved pending clarification on whether fines and penalties should affect the income of DIEs and therefore GNI.
  - Drafting team to consult with the Advisory Expert Group on National Accounts (AEG) to ensure consistency with national accounts.
  - Ms. Wahrig offered additional GFS-perspective comments.
  - Issue raised about impact of fines on net income of a DIE and on income tax, including cases of resulting negative income due to payment of fines.
  - GN debates whether paid fines and penalties should impact profits according to BOP recording standards independently of business account statements; additional changes to the GN can be made.
  - GN C.8 will be revised post-BOPCOM and subsequently sent to the AEG for consultation.
- C.7 Treatment of travel packages, health-related travel, and taxes and fees on passenger tickets:
  - Postponement due to inconsistencies concerning the treatment of tour operators in BPM6/2008 SNA and ESA 2010.
  - Resolution pending outcomes from C.1 and C.4 to ensure holistic revision and avoid inconsistent treatment in new manuals.
  - Practical difficulties when distinguishing intertwined travel sub-components (e.g., health-leisure packages) and separating travel agencies and tour operator transactions.
- GZTT/CATT C.11 Valuation of imports and exports (CIF to FOB adjustment):
  - A joint GZTT/CATT survey for BOP and NA communities has been launched; the deadline for collecting responses is April 12.
  - Jamaica offered to participate in Stage II research on practical feasibility of adopting invoice values for trade.
  - Secretariat to circulate the survey link and a pdf version; OECD to share the link with WPTGS.
- C.1 Recording transactor-based components of services (travel, construction and government goods under services):
  - Revised version incorporating BOPCOM recommendations will be circulated again; members may provide further comments.
  - Secretariat to share all previously circulated/discussed GNs with new members.
- C.2 Goods and services account by (trading) enterprise characteristics:
  - GN almost finalized; outstanding minor issue on harmonized definitions of applied thresholds for foreign influence and foreign ownership of enterprises.
  - C.3 and C.11 are related; outcome of C.3 depends on C.11 and availability of invoice values.
- C.9 Valuation of trade under long term contracts:
  - Decision to drop GN due to limited availability of additional information beyond initial issues raised by Australia.
  - Alternative: consider topic for the list of Clarification Notes.
  - IMF to consult FITT to determine whether GN F.4 Financial derivatives covers relevant clarifications.
- Other GNs:
  - C.5.2 Economic ownership in the context of financial and operating lease transactions (notably aircrafts) is under Secretariat review and will be submitted for CATT review shortly.
  - C.3 International trade classified by currency (including trade linked to long-term trade credits and advances) is under CATT review; members invited to provide comments before the deadline.

### Takeaways from experience to date
- Main lessons learned and appreciation for drafting teams and cooperative work across teams were highlighted.
- Emphasis on timely coordination among various task teams on cross-domain topics to achieve comprehensive methodological harmonization with the SNA and GFS.
- Positive feedback on coordination and secretariat work throughout the process.
- Next (virtual) meeting tentatively scheduled after the June 2021 BOPCOM meeting at a date to be determined.

### Actions
- Secretariat:
  - Circulate the Minutes.
  - Circulate information related to the launching of the public consultation of the GN on "Valuation of Imports and Exports of Goods in the International Standards (CIF to FOB Adjustment);"
  - Circulate the GNs previously discussed in BOPCOM or recently reviewed to new CATT members.
  - Incorporate correction in the power point presentation to update the status of GN C.8, and circulate to membership.
- IMF:
  - Investigate with the FITT whether the related GN of Financial derivatives (F.4) covers clarifications relevant for C.9.
- Mr. Ostolaza (OECD):
  - Share the link to the trade invoice survey with the WPTGS community.
- CATT members:
  - Participate in the survey related to the public consultation on GN C11 and submit interest in participating in Stage II, as applicable.

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_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/catt/catt-third-meeting-minutes-march-15-2021.pdf_