Foreign AffiliaTes Statistics (FATS) - Recommendations Manual

193 Pages·2009·8.03 MB·English

1977-0375
M e t h o d o l o g i e s &
W o r k i n g p a p e r s
Foreign AffiliaTes Statistics (FATS)
Recommendations Manual
2009 edition

TTAABBLLEE OOFF CCOONNTTEENNTTSS
IINNTTRROODDUUCCTTIIOONN..........................................................................................................7
II FFAATTSS.................................................................................................................................11
II..11 MMAAIINN CCOONNCCEEPPTTSS AANNDD DDEEFFIINNIITTIIOONNSS......................................................................13
II..11..11 CCOONNCCEEPPTT OOFF TTAARRGGEETT PPOOPPUULLAATTIIOONN................................................................................13
II..11..11..11 FFOORREEIIGGNN AAFFFFIILLIIAATTEESS SSTTAATTIISSTTIICCSS AANNDD FFOORREEIIGGNN AAFFFFIILLIIAATTEESS.....................................................................13
II..11..11..22 CCOONNTTRROOLL.......................................................................................................................................................13
II..11..11..33 FFOORREEIIGGNN CCOONNTTRROOLL........................................................................................................................................16
II..11..11..44 UULLTTIIMMAATTEE CCOONNTTRROOLLLLIINNGG IINNSSTTIITTUUTTIIOONNAALL UUNNIITT ((UUCCII)).................................................................................16
II..11..11..55 SSTTAATTIISSTTIICCAALL UUNNIITT.........................................................................................................................................18
II..11..11..66 CCOONNCCEEPPTT OOFF RREESSIIDDEENNCCYY...............................................................................................................................19
II..11..11..77 NNAATTUURRAALL PPEERRSSOONNSS AASS OOWWNNEERRSS.....................................................................................................................19
II..11..22 AALLLLOOCCAATTIIOONN OOFF VVAALLUUEESS.....................................................................................................20
II..11..22..11 AALLLLOOCCAATTIIOONN BBYY CCOOUUNNTTRRYY............................................................................................................................20
II..11..22..22 AALLLLOOCCAATTIIOONN BBYY AACCTTIIVVIITTYY............................................................................................................................21
II..11..33 RREEFFEERREENNCCEE PPEERRIIOODD...............................................................................................................21
II..11..44 CCUUTT--OOFFFF TTHHRREESSHHOOLLDDSS..........................................................................................................22
II..22 DDEEFFIINNIITTIIOONNSS OOFF CCHHAARRAACCTTEERRIISSTTIICCSS.....................................................................22
II..22..11 NNUUMMBBEERR OOFF EENNTTEERRPPRRIISSEESS...................................................................................................23
11..22..22 TTUURRNNOOVVEERR..................................................................................................................................23
II..22..33 PPRROODDUUCCTTIIOONN VVAALLUUEE..............................................................................................................24
II..22..44 VVAALLUUEE AADDDDEEDD AATT FFAACCTTOORR CCOOSSTT......................................................................................27
II..22..55 TTOOTTAALL PPUURRCCHHAASSEESS OOFF GGOOOODDSS AANNDD SSEERRVVIICCEESS...........................................................29
II..22..66 PPUURRCCHHAASSEESS OOFF GGOOOODDSS AANNDD SSEERRVVIICCEESS PPUURRCCHHAASSEEDD FFOORR RREESSAALLEE IINN TTHHEE
SSAAMMEE CCOONNDDIITTIIOONN AASS RREECCEEIIVVEEDD...................................................................................................31
II..22..77 PPEERRSSOONNNNEELL CCOOSSTTSS..................................................................................................................32
II..22..88 GGRROOSSSS IINNVVEESSTTMMEENNTT IINN TTAANNGGIIBBLLEE GGOOOODDSS...................................................................33
II..22..99 NNUUMMBBEERR OOFF PPEERRSSOONNSS EEMMPPLLOOYYEEDD....................................................................................34
II..22..1100 NNUUMMBBEERR OOFF EEMMPPLLOOYYEEEESS...................................................................................................35
II..22..1111 TTOOTTAALL IINNTTRRAA--MMUURRAALL RR&&DD EEXXPPEENNDDIITTUURREE..............................................................35
II..22..1122 TTOOTTAALL NNUUMMBBEERR OOFF RR&&DD PPEERRSSOONNNNEELL........................................................................36
II..22..1133 EEXXPPOORRTTSS AANNDD IIMMPPOORRTTSS OOFF GGOOOODDSS AANNDD SSEERRVVIICCEESS...............................................36
II..22..1144 IINNTTRRAA--GGRROOUUPP EEXXPPOORRTTSS AANNDD IIMMPPOORRTTSS OOFF GGOOOODDSS AANNDD SSEERRVVIICCEESS.................39
II..33 CCOONNFFIIDDEENNTTIIAALLIITTYY...........................................................................................................40
II..44 QQUUAALLIITTYY...............................................................................................................................42
II..44..11 GGEENNEERRAALL AASSPPEECCTTSS.................................................................................................................42
II..44..22 OOBBJJEECCTTIIVVEESS OOFF FFAATTSS QQUUAALLIITTYY RREEPPOORRTTIINNGG.............................................................43
II..44..33 CCOONNTTEENNTT OOFF TTHHEE FFAATTSS QQUUAALLIITTYY RREEPPOORRTTSS..............................................................43
II..44..33..11 RREELLEEVVAANNCCEE...................................................................................................................................................44
II..44..33..22 AACCCCUURRAACCYY....................................................................................................................................................44
II..44..33..33 CCOOHHEERREENNCCEE AANNDD CCOOMMPPAARRAABBIILLIITTYY...............................................................................................................46
II..44..33..44 TTIIMMEELLIINNEESSSS AANNDD PPUUNNCCTTUUAALLIITTYY....................................................................................................................47
II..44..33..55 AACCCCEESSSSIIBBIILLIITTYY AANNDD CCLLAARRIITTYY.......................................................................................................................47
II..44..44 TTIIMMEELLIINNEE AANNDD PPRROOCCEEDDUURREE................................................................................................48
IIII IINNWWAARRDD FFAATTSS.......................................................................................................49
IIII..11 CCOONNCCEEPPTT OOFF TTAARRGGEETT PPOOPPUULLAATTIIOONN.....................................................................51
IIII..22 SSPPEECCIIAALL CCAASSEESS................................................................................................................51
IIII..22..11 GGEENNEERRAALL AASSPPEECCTTSS................................................................................................................51
IIII..22..22 JJOOIINNTT VVEENNTTUURREESS WWIITTHH EEQQUUAALLLLYY SSHHAARREEDD CCOONNTTRROOLL.........................................52
IIII..22..33 MMUULLTTIIPPLLEE MMIINNOORRIITTYY OOWWNNEERRSSHHIIPP..............................................................................53
IIII..33 DDAATTAA SSOOUURRCCEESS................................................................................................................54
IIII..33..11 DDAATTAA SSOOUURRCCEESS FFOORR TTHHEE GGEEOOGGRRAAPPHHIICCAALL BBRREEAAKKDDOOWWNN.....................................54
IIII..33..11..11 SSTTAATTIISSTTIICCAALL RREEGGIISSTTEERRSS..............................................................................................................................54
II.3.1.1.1 BUSINESS REGISTER FOR STATISTICAL PURPOSES.......................................................................................54
II.3.1.1.2 ENTERPRISE GROUP REGISTER.................................................................................................................56
II.3.1.1.3 REGISTER ON FOREIGN ENTERPRISES........................................................................................................56
IIII..33..11..22 SSUURRVVEEYYSS......................................................................................................................................................57
IIII..33..11..33 MMIISSCCEELLLLAANNEEOOUUSS SSOOUURRCCEESS..........................................................................................................................58
II.3.1.3.1 NATIONAL COMPANY REGISTERS..............................................................................................................58
4 FATS Recommendations Manual
II.3.1.3.2 ADMINISTRATIVE SOURCES.......................................................................................................................58
II.3.1.3.3 PRIVATE DATABASES................................................................................................................................58
II.3.1.3.4 OTHER SOURCES.....................................................................................................................................58
IIII..33..22 DDAATTAA SSOOUURRCCEESS FFOORR TTHHEE CCHHAARRAACCTTEERRIISSTTIICCSS AANNDD AACCTTIIVVIITTYY BBRREEAAKKDDOOWWNN58
IIII..44 DDEELLIIVVEERRAABBLLEESS................................................................................................................59
IIII..44..11 LLEEVVEELL OOFF DDEETTAAIILL..................................................................................................................59
IIII..44..22 CCHHAARRAACCTTEERRIISSTTIICCSS................................................................................................................60
IIII..44..33 GGEEOOGGRRAAPPHHIICCAALL BBRREEAAKKDDOOWWNN........................................................................................61
IIII..44..44 AACCTTIIVVIITTYY BBRREEAAKKDDOOWWNN......................................................................................................66
IIII..44..44..11 RREEQQUUEESSTTEEDD LLEEVVEELL OOFF DDEETTAAIILL.....................................................................................................................66
IIII..44..44..22 RREECCOOMMMMEENNDDAATTIIOONN FFOORR FFIINNAANNCCIIAALL AANNDD IINNSSUURRAANNCCEE AACCTTIIVVIITTIIEESS...............................................................69
IIII..55 DDAATTAA TTRRAANNSSMMIISSSSIIOONN...................................................................................................70
IIII..55..11 DDAATTAA TTRRAANNSSMMIISSSSIIOONN GGUUIIDDEELLIINNEESS................................................................................70
IIII..55..11..11 DDEEAADDLLIINNEE AANNDD PPEERRIIOODDIICCIITTYY........................................................................................................................70
IIII..55..11..22 TTEECCHHNNIICCAALL SSPPEECCIIFFIICCAATTIIOONNSS........................................................................................................................70
IIII..55..22 QQUUAALLIITTYY CCHHEECCKKSS..................................................................................................................75
IIII..66 CCOONNFFIIDDEENNTTIIAALLIITTYY TTRREEAATTMMEENNTT............................................................................77
IIIIII OOUUTTWWAARRDD FFAATTSS................................................................................................79
IIIIII..11 CCOONNCCEEPPTT OOFF TTAARRGGEETT PPOOPPUULLAATTIIOONN...................................................................81
IIIIII..11..11 TTAARRGGEETT PPOOPPUULLAATTIIOONN OOFF SSTTAATTIISSTTIICCAALL UUNNIITTSS.......................................................81
IIIIII..11..22 TTAARRGGEETT PPOOPPUULLAATTIIOONN OOFF RREEPPOORRTTIINNGG UUNNIITTSS..........................................................81
IIIIII..22 SSPPEECCIIAALL CCAASSEESS..............................................................................................................82
IIIIII..22..11 GGEENNEERRAALL AASSPPEECCTTSS..............................................................................................................82
IIIIII..22..22 EEQQUUAALLLLYY SSHHAARREEDD CCOONNTTRROOLL.........................................................................................83
IIIIII..22..22..11 5500--5500 JJOOIINNTT VVEENNTTUURREESS...............................................................................................................................83
IIIIII..22..22..22 OOTTHHEERR FFOORRMMSS OOFF EEQQUUAALLLLYY--SSHHAARREEDD OOWWNNEERRSSHHIIPP......................................................................................85
IIIIII..22..33 MMUULLTTIIPPLLEE MMIINNOORRIITTYY OOWWNNEERRSSHHIIPP..............................................................................85
IIIIII..33 DDAATTAA SSOOUURRCCEESS..............................................................................................................87
IIIIII..33..11 SSTTAATTIISSTTIICCAALL RREEGGIISSTTEERRSS.................................................................................................87
IIIIII..33..11..11 BBUUSSIINNEESSSS RREEGGIISSTTEERR FFOORR SSTTAATTIISSTTIICCAALL PPUURRPPOOSSEESS......................................................................................87
IIIIII..33..11..22 EENNTTEERRPPRRIISSEE GGRROOUUPP RREEGGIISSTTEERR..................................................................................................................88
IIIIII..33..11..33 RREEGGIISSTTEERR OONN FFOORREEIIGGNN EENNTTEERRPPRRIISSEESS.........................................................................................................89
IIIIII..33..22 SSUURRVVEEYYSS...................................................................................................................................89
IIIIII..33..22..11 SSPPEECCIIFFIICC FFAATTSS SSUURRVVEEYYSS AANNDD CCOOMMBBIINNEEDD SSUURRVVEEYYSS...................................................................................89
IIIIII..33..22..22 OOTTHHEERR SSUURRVVEEYYSS.........................................................................................................................................89
IIIIII..33..33 MMIISSCCEELLLLAANNEEOOUUSS SSOOUURRCCEESS............................................................................................89
IIIIII..33..33..11 NNAATTIIOONNAALL CCOOMMPPAANNYY RREEGGIISSTTEERRSS...............................................................................................................89
IIIIII..33..33..22 AADDMMIINNIISSTTRRAATTIIVVEE SSOOUURRCCEESS.........................................................................................................................90
IIIIII..33..33..33 PPRRIIVVAATTEE DDAATTAABBAASSEESS...................................................................................................................................90
IIIIII..33..33..44 OOTTHHEERR SSOOUURRCCEESS.........................................................................................................................................90
IIIIII..44 DDEELLIIVVEERRAABBLLEESS..............................................................................................................90
IIIIII..44..11 LLEEVVEELL OOFF DDEETTAAIILL................................................................................................................90
IIIIII..44..22 CCHHAARRAACCTTEERRIISSTTIICCSS..............................................................................................................92
IIIIII..44..22..11 LLIISSTT OOFF RREEQQUUIIRREEMMEENNTTSS AANNDD MMEEAASSUURREEMMEENNTT UUNNIITTSS...................................................................................92
IIIIII..44..22..22 RREECCOOMMMMEENNDDAATTIIOONNSS FFOORR TTHHEE AAPPPPLLIICCAATTIIOONN OOFF TTHHEE DDEEFFIINNIITTIIOONNSS............................................................94
IIIIII..44..33 GGEEOOGGRRAAPPHHIICCAALL BBRREEAAKKDDOOWWNN......................................................................................97
IIIIII..44..44 AACCTTIIVVIITTYY BBRREEAAKKDDOOWWNN.................................................................................................102
IIIIII..44..44..11 RREEQQUUEESSTTEEDD LLEEVVEELL OOFF DDEETTAAIILL..................................................................................................................102
IIIIII..44..44..22 RREECCOOMMMMEENNDDAATTIIOONNSS FFOORR CCOOMMPPIILLAATTIIOONN OOFF FFIINNAANNCCIIAALL AANNDD IINNSSUURRAANNCCEE AACCTTIIVVIITTIIEESS.............................106
IIIIII..55 DDAATTAA TTRRAANNSSMMIISSSSIIOONN...............................................................................................106
IIIIII..55..11 DDAATTAA TTRRAANNSSMMIISSSSIIOONN GGUUIIDDEELLIINNEESS............................................................................106
IIIIII..55..11..11 DDEEAADDLLIINNEE AANNDD PPEERRIIOODDIICCIITTYY....................................................................................................................106
IIIIII..55..11..22 TTEECCHHNNIICCAALL SSPPEECCIIFFIICCAATTIIOONNSS....................................................................................................................107
IIIIII..55..22 QQUUAALLIITTYY CCHHEECCKKSS FFOORR DDAATTAA IINNTTEEGGRRIITTYY...............................................................113
IIIIII..66 CCOONNFFIIDDEENNTTIIAALLIITTYY TTRREEAATTMMEENNTT........................................................................116
AABBBBRREEVVIIAATTIIOONNSS.....................................................................................................119
BBIIBBLLIIOOGGRRAAPPHHYY.......................................................................................................123
AANNNNEEXXEESS.......................................................................................................................127
FATS Recommendations Manual 5
6 FATS Recommendations Manual
IINNTTRROODDUUCCTTIIOONN

FATS Recommendations Manual 7
8 FATS Recommendations Manual
LLEEGGAALL BBAASSIISS
Regulation (EC) No 716/2007 of the European Parliament and the Council (EC) of 20 June 2007 on
the structure and activity of foreign affiliates1 — the so-called FATS Regulation (FATS-R) — is the
regulatory framework for the provision of foreign affiliates statistics (FATS) in the European
Economic Area (EEA)2 (see Annex 1).
Article 7 of the FATS Regulation (FATS-R) makes provision to ‘publish a recommendations manual
which contains the relevant definitions and supplementary guidance concerning the Community
statistics produced pursuant to this Regulation.’
OOBBJJEECCTTIIVVEE OOFF TTHHIISS MMAANNUUAALL
This manual provides a common methodological framework for anyone working on the collection,
compilation, transmission and analysis of FATS. As such, it will make significant contributions to data
quality and comparability. The target audience are FATS compilers, including statisticians in National
Statistical Institutes, National Central Banks, Eurostat and other international organisations. The
manual can be used also by users as background information.
This FATS Recommendations manual aims at laying down the methodology and guidelines for the
collection and compilation of inward and outward FATS. Member States of the European Union have
to provide information to Eurostat according to the FATS-R, the implementing and amending FATS
Commission Regulations and the recommendations given in this manual. Full implementation of these
recommendations will help to ensure that FATS are compiled and maintained on a consistent basis in
all Member States; hence comparability and quality should be assured.
The manual goes beyond the provisions in the FATS-R to push further to a harmonised methodology
by identifying and recommending best practices. It also includes information on the experiences of
Member States that can be useful for countries setting up their own data collections.
The manual is in three parts:
• Part I covers guidelines for the compilation of both inward and outward FATS; in particular the
main concepts, definitions of target population and characteristics.
• Parts II and III deal with particular questions on inward and outward FATS compilation.
This FATS manual is harmonised with Chapter 3 of the Handbook of Economic Globalisation
Indicators (HEGI), which deals with the economic activity of multinational enterprises, in order to
ensure international comparability. Consistency is ensured wherever possible with the latest version of
the Manual on Statistics in International Trade in Services (MSITS) developed and published jointly
by the European Commission, the International Monetary Fund, the OECD, the United Nations, the
United Conference on Trade and Development and the World Trade Organisation, and the 4th edition
of the OECD Benchmark Definition of Foreign Direct Investment (hereinafter referred to as BMD4),
in particular Chapter 8, FDI and globalisation.
Results of the data collection for both inward and outward FATS are disseminated in Eurostat’s free-
of-charge database.
Inward FATS:

1 OJ L 171, 29.6.2007, p. 17.
2 The contracting parties to the EEA Agreement are three of the four EFTA states — Iceland, Liechtenstein and Norway — and the 27 EU
Member States along with the European Community.
FATS Recommendations Manual 9
Outward FATS:

NNEEEEDD AANNDD VVAALLIIDDIITTYY OOFF TTHHIISS 22NNDD EEDDIITTIIOONN
After adoption of the FATS-R all the necessary implementing measures need to be laid down as
stipulated in Article 9 of the FATS-R. These implementing measures concern:
• setting out the appropriate format and procedure for the transmission of results by Member States;
• granting derogations to Member States;
• adapting definitions in Annexes I and II, adapting the level of detail in Annex III, and making any
consequential changes in Annexes I and II;
• implementing the results of the pilot studies, pursuant to Article 5;
• defining proper common quality standards and the contents and periodicity of the quality reports,
pursuant to Article 6.
Three Commission Regulations amending and implementing the FATS-R were adopted by the
Commission of the European Communities in 2008 and 2009:
• Commission Regulation (EC) No 364/20083 of 23 April 2008 implementing Regulation (EC) No
716/2007 of the European Parliament and of the Council, as regards the technical format for the
transmission of foreign affiliates statistics and the derogations to be granted to Member States (see
Annex 2).
• Commission Regulation (EC) No 747/20084 of 30 July 2008 amending Regulation (EC) No
716/2007 of the European Parliament and of the Council on Community statistics on the structure
and activity of foreign affiliates, as regards the definitions of characteristics and the
implementation of NACE Rev. 2 (see Annex 3).
• Commission Regulation (EC) No 834/20095 of 11 September 2009 implementing Regulation (EC)
No 716/2007 of the European Parliament and of the Council on Community statistics on the
structure and activity of foreign affiliates, as regards the quality reports.
Several new underlying regulations have been adopted and other underlying regulations have been
recast or amended:
• Regulation (EC) No 295/2008 of the European Parliament and of the Council of 11 March 2008
6
concerning structural business statistics which repeals Regulation (EC, Euratom) No 58/97;
• Commission Regulation (EC) No 250/20097 of 11 March 2009 implementing Regulation (EC) No
295/2008 of the European Parliament and of the Council as regards the definitions of
characteristics, the technical format for the transmission of data, the double reporting
requirements for NACE Rev.1.1 and NACE Rev.2 and derogations to be granted for structural
business statistics;
• Regulation (EC) No 177/2008 of the European Parliament and of the Council of 20 February
2008 establishing a common framework for business registers for statistical purposes and
repealing Council Regulation (EEC) No 2186/938.
This second edition of the FATS Recommendations manual comes into effect from reference
year 2008 onwards as major new or repealing regulations entered into force in reference year 2008,
e.g. the definitions of characteristics or the implementation of NACE Rev.2 for inward FATS. More
detailed information will be given in each chapter where appropriate.
The revision of the present manual was carried out by Michaela Grell ([email protected])
and Gita Vergina ([email protected]) in close cooperation with the FATS Joint Working
Group (FATS JWG).

3 OJ L112, 24.04.2008, p. 14.
4 OJ L 202, 30.07.2008, p. 20.
5 OJ L 241, 12.09.2009, p. 3.
6 OJ L 97, 09.04.2008, p. 13.
7 OJ L 86, 31.03.2009, p. 1.
8 OJ L 61, 05.03.2008, p. 6.
10 FATS Recommendations Manual