5331.0 - Balance of Payments and International Investment Position, Australia: Concepts, Sources and Methods, 2011  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 08/03/2011   
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The Balance of Payments and International Investment Position Manual Sixth edition states that:


    10.30 The principle for valuation of general merchandise is the market value of goods at the point of uniform valuation. The point of uniform valuation is at the customs frontier of the economy from which the goods are first exported, that is, free on board (FOB). Market value is discussed in paragraphs 3.67–3.80.

    10.31 The terms of delivery of goods are the responsibility of the buyer and seller of goods under each contract. The arrangements made between exporters and importers vary. As a result, transaction prices agreed between exporters and importers include varying amounts of distribution costs, including none, some, or all of wholesaling, transport, insurance, and taxes. An example is given in Box 10.2. Data from international transactions reporting systems and business surveys use transaction prices, and so have a variable mix of valuation bases.

    10.35 In some cases an estimate of a marketprice equivalent price may need to be made. (See paragraphs 3.71–3.79 for more details.) For example, barter trade, aid goods, provision of goods and services between affiliated enterprises, under- or overinvoicing, goods on consignment or for auction, or where goods change ownership but a final price is determined later may require adjustment to the goods value. Such adjustments may also require corresponding financial account items, such as trade credit; in the case of goods supplied by direct investors to their direct investment enterprise below cost or without charge, the corresponding entry is direct investment equity.

    General merchandise

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