Official Statistics

Regional trade in goods statistics disaggregated by smaller geographical areas: explanatory notes 2022

Published 9 November 2023

Summary

HM Revenue & Customs (HMRC) is responsible for collecting the UK鈥檚 international trade in goods data, which are published as two National Statistics series - the 鈥極verseas Trade in Goods Statistics (OTS)鈥 and the 鈥楻egional Trade in Goods Statistics (RTS)鈥. National Statistics are accredited officifal statistics. The RTS is published every three months (quarterly) showing trade at summary product and country level, split by UK regions and devolved administrations.

HMRC introduced the聽Regional Trade in Goods Statistics Disaggregated by Smaller Geographical Areas following requests from users for international trade in goods data at more detailed geographic levels. This聽is an annual official statistics in development publication that subdivide the existing Regional Trade in Goods Statistics (RTS) into smaller UK geographic areas. This release reports on international trade in goods at International Territorial Levels (ITL) 1, 2 and 3 for 2022, and includes Standard International Trade Classification (SITC) 1 and partner country breakdowns at the ITL 2 level.

Official statistics in development

are official statistics that are undergoing further refinement. They were formerly known as 鈥渆xperimental statistics鈥. They may be new or existing statistics, and will be tested with users, in line with standards covering:

  • Trustworthiness
  • Quality
  • Value

To do this we use the same processes used in the production of the (RTS). the RTS is an accredited official statistic that is published monthly.

Our data聽is derived from the high-quality datasets that underpin the OTS which undergo regular extensive validation procedures.

Regional Trade in Goods Statistics Disaggregated by Smaller Geographical Areas is compiled to serve the needs of many users, including:

  • Governments
  • Business community
  • Compilers of other economic statistics
  • Various regional and international organisations
  • Researchers
  • The public

These statistics are also used for:

  • Press queries
  • Parliamentary Questions
  • Freedom of Information requests
  • Other Government Departments who rely on HMRC鈥檚 data to inform evidence-based policies

After several years in consultation with users, these statistics remain in development. This is due to changes in data sources as a result of the UK鈥檚 exit from the EU. For 2023 data that will be published in 2024 we intend to remove the 鈥渙fficial statistics in development鈥 label and instead publish under the 鈥渙fficial statistics鈥 label.

Our statistical practice is regulated by the Office for Statistics Regulation (OSR). OSR sets the standards of trustworthiness, quality, and value in the Code of Practice for Statistics that all producers of official statistics should adhere to.

More information on how HMRC statistics reflect the standards of trustworthiness, quality and value in the is available from the Overseas trade in goods statistics methodology and quality report.

You are welcome to contact us directly by emailing uktradeinfo@hmrc.gov.uk with any comments about how we meet these standards.

Alternatively, you can contact OSR by emailing regulation@statistics.gov.uk or via the OSR website.

More information can be seen on .

Tables in this release

The tables produced in this release are:

  1. Summary of existing聽ITL1聽RTS听诲补迟补
  2. ITL2聽by聽EU聽/聽Non-EU聽and import / export
  3. ITL2聽by聽EU聽/聽Non-EU, import / export and聽SITC聽Section (1-digit)
  4. ITL2聽by聽EU/Non-EU, import / export and Partner Country
  5. ITL3聽by聽EU聽/聽Non-EU聽and import / export

Definitions

Geography

Following the UK鈥檚 withdrawal from the聽EU, a new UK-managed international statistical geography -聽ITL聽(International Territorial Levels) - was introduced from 1st January 2021, replacing the former聽NUTS聽classification. They align with international standards, enabling comparability both over time and internationally. To ensure continued alignment, the聽ITL鈥檚 were established to mirror the聽NUTS聽system. More information on ITL can be found on the .

Partner country

This is the country the UK region exports the goods to or imports the goods from. Only the 99 pre-selected partner countries published in the聽RTS聽are included in this release. Data is available for a country if the country鈥檚 total trade (imports and exports combined) exceeds one per cent of the total trade of that country鈥檚 World Region (based on a historical baseline). This does not apply to聽EU聽countries where data for all member states is available.

In addition, if a specific partner country cannot be found under a certain breakdown it may be due to the following:

  • The trade for that combination of variables is between 0 (i.e. no trade) and 拢499,999
  • The trade has been suppressed under our statistical disclosure policy

Standard International Trade Classification (SITC) Section

This is a broad classification system which classifies goods into ten categories. It forms part of the hierarchical聽SITC聽managed and maintained by the聽EU.

Allocation of Trade to Geographical Areas

RTS听诲补迟补 is compiled by merging trade data collected by聽HMRC聽with employment data from the Inter-Departmental Business Register (IDBR). A business鈥 trade is allocated to a region based on the proportion of its employees employed in that region.

We have replicated the employee allocation method for these statistics, so these figures will aggregate to the published聽RTS聽ITL1听蹿颈驳耻谤别蝉. However, certain allocations used in the聽RTS聽e.g. Below Threshold Trade Allocations and Fixed Link Energy allocations are not disaggregated any further than聽ITL1.

Data source changes

UK to聽EU聽exports

Up to 31 December 2020, UK to聽EU聽export statistics were collected via the Intrastat statistical survey, which required traders to declare the value and volume of commodities exported to聽EU聽Member States within the relevant month of physical goods movement.

For goods moving from 1 January 2021, GB to聽EU聽export statistics are compiled directly from customs export declarations made according to the requirements of the Taxation (Cross Border Trade) Act. The customs declaration requirements are more complex than the single monthly aggregated Intrastat return and can result in differences between dates of declaration and actual movement of the goods out of the country.

罢丑别听OTS聽compilation methodology relies upon the acceptance date of the customs export declaration for its inclusion within the relevant month of account, rather than the declared physical movement date used from the Intrastat survey.

Intrastat survey returns continue to be collected for goods exported from Northern Ireland to the聽EU, under the terms of the聽Northern Ireland Protocol.

Both the GB to聽EU聽customs export declaration data and Northern Ireland Intrastat export (dispatch) data are incorporated into the overall UK to聽EU聽export dataset.

As a result of the changes and differences outlined above, there is a break in the timeseries for published UK to聽EU聽export statistics from January 2021. Users are advised to note this change when making comparisons to previous quarters/years.

UK imports from聽EU

For UK imports from the聽EU, the Intrastat survey continued to operate in 2021 for all UK (GB and聽NI) imports (arrivals) from the聽EU, to mitigate the effects of staged customs controls, and to comply with the聽Northern Ireland Protocol.

However, from 1 January 2022, Intrastat only applied for movements of goods between Northern Ireland and the EU. Statistics on movements into GB from the EU have been compiled directly from customs import declarations.

Therefore, from January 2022, the UK鈥檚 goods imports from EU dataset incorporates two data sources: GB鈥檚 goods imports from EU data that is collected via customs declarations and NI鈥檚 goods imports from EU data, collected via Intrastat declarations.

As announced in the Borders Control Statement (UIN HLWS473) on 15 December 2021, the Government extended the current arrangements for moving goods from the island of Ireland to Great Britain for as long as discussions on the Protocol are ongoing.

These temporary arrangements鈥痚nable鈥疘rish traders to continue relying鈥痮n staged customs controls鈥痜or the foreseeable future.鈥疻hile鈥痶hese measures are in place,鈥痠mport statistics鈥痜or鈥痶rade鈥痓etween鈥疓B and Ireland are reported鈥痑s declared and鈥痬ay鈥痭ot鈥痳eflect the鈥痯eriod in which the goods鈥痟ave been鈥痶raded.

Please note that customs import declarations of non-controlled goods imported into GB from Ireland can be deferred for up to 175 days. This may affect the accuracy of trade data for GB imports from Ireland and associated aggregations.

As a result of the changes and differences outlined, there was a break in the time series for published EU to UK import statistics from January 2022.

More information on the recent changes to trade in goods statistics can be found on the UK Trade Info website.

Statistical value threshold in Customs declarations

Customs declarations with commodity line values that fall under the statistical value threshold of 拢873 (in value) and 1,000kg (in net mass) are aggregated into 鈥榣ow value aggregates鈥. We do not receive business, product, or partner country information on these movements. As a result, we cannot assign this trade to a UK region, therefore the value is assigned to the Unallocated-unknown region.

This applies to goods exports from GB to EU countries from 2021, and imports to GB from EU countries from 2022. This is consistent with the RTS methods used for trade with non-EU countries, which are also sourced from customs declarations. As a result of this change, a value increase will be apparent for Unallocated-Unknown for EU flows from the dates specified.

Re-introduction of EU business counts

Due to the recent changes to data sources outlined, as well as changes to the VAT data source, a new method for EU business counts was introduced in the January to March 2022 publication, which resulted in a break in series from previous RTS EU business counts. EU and total business counts from the 2021 data period onwards are therefore not comparable with RTS business counts published prior to 2021.

Prior to 2021,聽EU聽business counts were compiled from Intrastat declarations, while businesses trading below the Intrastat threshold were captured through VAT data. Businesses trading below the Intrastat threshold made up a small percentage of the total trade value but accounted for most of the businesses trading.

From January 2021, changes were made to the VAT data which means that only movements between Northern Ireland and聽EU聽countries are accurately recorded. Further, following聽EU聽Exit, trade between聽GB听补苍诲听EU聽countries is now reported through customs declarations rather than Intrastat. Customs declarations therefore became the main data source for聽GB聽exports to聽EU聽countries from January 2021, and聽GB聽imports from聽EU聽countries from January 2022.

As a result of the changes outlined, a new time series for聽EU聽business counts begins from the data period of January to March 2021.聽EU聽business counts are now compiled in this way:

EU聽exporters from 2021 onwards:

  • GB聽exports to聽EU聽countries via customs export declarations
  • NI聽exports to聽EU聽countries via Intrastat (above threshold) and VAT data (below threshold)

EU聽importers for 2021:

  • UK聽imports from聽EU聽countries were collected via Intrastat
  • NI聽imports from聽EU聽countries for those below the Intrastat threshold collected via VAT data
  • Additional raw customs import declaration data to better capture the聽GB聽imports from聽EU聽countries. Throughout 2021, businesses could defer their聽EU聽imports declarations for up to 175 days, this may impact data quality

EU聽importers for 2022:

  • GB聽imports from聽EU聽countries via customs import declarations
  • NI聽imports from聽EU聽countries via Intrastat (above threshold) and VAT data (below threshold)

Methodology

This release uses the same allocation methodology as the聽RTS聽which means that the main allocation method used for聽ITL1聽in the聽RTS聽has been replicated for聽ITL2听补苍诲听ITL3聽in this release.

RTS听诲补迟补 is compiled by merging trade data collected by聽HMRC聽with employment data from the Inter-Departmental Business Register (IDBR). A business鈥 trade is allocated to a region based on the proportion of its employees employed in that region. Where a trader is not matched with the聽IDBR, its trade is matched with Office for National Statistics postcode data to obtain the region in which the Head Office of the聽Economic Operators Registration and Identification (EORI)聽/聽VAT聽registered business (importer or exporter) is based.

Not all trade can be assigned to one of the 9 English Regions, Wales, Scotland and Northern Ireland. Where appropriate, this is referred to in the tables as the 鈥楿nallocated Trade鈥. Unallocated Trade is split into:

鈥楿nallocated 鈥 Known鈥: where we have virtually full details of the trade, but it is not appropriate to allocate it to a region. This covers:

  • Trade going into or out of the Channel Islands or the Isle of Man
  • Trade carried out by overseas based traders who have a聽VAT聽presence in the UK
  • Trade carried out by the UK Government
  • Parcel post trade that is dealt with centrally (trade collected via customs declarations)

鈥楿nallocated 鈥 Unknown鈥: This includes:

  • Trade where business details submitted are invalid
  • Un-registered businesses (trade collected via customs declarations)
  • Private Individuals (trade collected via customs declarations)
  • Low Value Trade (trade collected via customs declarations)

For specific energy goods only, trade is allocated to the region where the goods enter or leave the UK rather than the location / employment of the business doing the trade. This is because聽HMRC聽receives details of the trade in these goods directly from grid operators rather than the business. The goods concerned are Electrical energy, Natural Gas in a gaseous state and Crude Oil exported directly from offshore oil rigs. Crude Oil imported to the UK and exported from terminals is still allocated to the region of the business. Due to the information available we cannot provide this element at any geographical level below聽ITL1.

The business count is derived from trade declarations and is a count of businesses importing and exporting. Trade declared via Customs declarations will not include businesses whose trade is made up entirely of consignments below the statistical threshold (拢873 and 1000kg).

Where businesses have branches in multiple regions a business will be counted as one in every region they have employees. This represents the actual count of businesses in any region. However, it will mean the sum of the trader count for each region will be greater than that for the UK. This is what is called the 鈥榃hole Number Method鈥 in the聽RTS.

This release is categorised by partner country and聽. (SITC) at section level (1-digit). 罢丑别听SITC聽is a relatively broad classification of goods and is not as detailed as the commodity classification available in the聽OTS.

More information on the聽RTS聽and this release can be found in the聽RTS聽methodology document.

Overseas Trade in Goods Statistics

Data is taken primarily from Customs systems (for UK imports from and exports to聽non-EU聽countries and GB imports from and exports to聽EU聽countries) and the Intrastat survey (for Northern Ireland imports from and exports to聽EU聽countries).聽HMRC聽does not receive information in respect of goods that move wholly within the UK, nor in intangibles and services such as banking or tourism.

The Overseas Trade in Goods Statistics (OTS)聽is published on a Special Trade basis, following changes to the聽methodology聽from May 2016 account onwards. 罢丑别听RTS聽is also published on this basis.

Trade in non-monetary gold (NMG) is included in聽OTS听诲补迟补, however this is excluded from聽RTS听诲补迟补, including this release. This is because the majority of聽NMG聽trade would be assigned to the London region and this would distort the聽RTS听蹿颈驳耻谤别蝉.

Balance of Payments

The Balance of Payments (BoP) figures published by the Office for National Statistics (ONS) are calculated on a different basis to the聽OTS. Therefore, adjustments are made when producing聽BoP聽which means that the聽RTS听补苍诲听BoP聽are not comparable. 罢丑别听ONS聽website provides an overview of聽, and is where you can find their detailed monthly UK Trade Releases.

ONS subnational trade

The ONS produces the which estimates the value of exports and imports of goods and services for 2021 for International Territory Levels 1, 2 and 3. The ONS release is produced on a BoP basis while RTS are compiled on an International Merchandise Trade Statistics (IMTS) basis. There are numerous different methodologies that contribute to the compilation of each set of statistics, but the main one is that RTS are compiled based on goods physically entering or leaving the UK, while the ONS subnational trade are produced on a change of economic ownership basis. Please note that the聽RTS聽disaggregated by smaller geographical area statistics exclude non-monetary gold.

Governance

Currently these statistics are labelled as .

The reasons for this are:

  • to allow us to build in improvements to the methodology, data included, visuals, etc.
  • to allow external users to provide feedback on the publication so that enhancements can be made to future releases
  • changes in data sources as a result of the UK鈥檚 exit from the EU

For more information and guidance on the use of official statistics in development, please visit the () on the聽ONS听飞别产蝉颈迟别.

HMRC聽applies Statistical Disclosure Control (SDC) on all its statistical releases to protect our data providers. Therefore, requests for data relating to other geographies or greater detail are also subject to聽SDC聽so it is unlikely that these can be provided.

Now that the UK has left the聽EU, it is important that our statistics continue to be of high quality and are internationally comparable. All releases continue to be produced in accordance with the UK Statistics Authority鈥檚 Code of Practice for Statistics as well as internationally agreed statistical guidance and standards.

Statistical contact:
M Mastrangelo
别-尘补颈濒听uktradeinfo@hmrc.gov.uk

Next release: November 2024

If using specific facts contained in this release, please check the information is still current.