Improving the quality of defence related imports and exports data

Defence Analytical Services & Advice (DASA) publishes statistics on defence exports and imports annually in UK Defence Statistics (UKDS) (Tables 1.13 & 1.14 in 2008). Data are obtained from three different sources: HMRC, SBAC and the UKTI DSO.

There have been problems with the definition, consistency and coverage of defence related exports data over recent years. DASA has endeavoured to ensure that defence exports statistics are "joined up" across Government. The Defence Trade Statistics Working Group (DTSWG) with representatives from across the relevant Government departments was convened in order to review the quality of the data, the issue of trade suppressions on trade statistics and to ensure consistency and definition across Government.

Subject to EU regulations, HMRC collect data on visible (goods) imports and export trade. However some data that are currently collected cannot always be segregated to indicate what is specifically military trade. Trade data are broken down using a standardised EU commodity coding system and while goods in the majority of the commodity codes that are currently employed can be identified as distinctly military or non-military, there are several codes which contain both military and civil trade (dual use). Presently there are no reliable positive identification procedures to determine what proportion of the trade reported in these commodity codes can be classed as military.

Recent developments which have continued to affect the quality of defence related imports and exports data include:

• the impact of changes to the internationally agreed tariff codes used for recording goods exports.
• the nature of a large increase in aerospace sales reported by the Society for British Aerospace Companies (SBAC).
• the feasibility of collecting export and import data via existing departmental surveys.
• the continued robustness of the current methodology.
• the simplification of the EU Intrastat System used to capture intra EU trade flows.

More information outlining progress with these developments, and an assessment of the quality of the underlying data is given in DASA Defence Statistics Bulletin No.8. This is available on the DASA website.

It is important to note that following the dismantling of the Defence Export Services Organisation (DESO) in July 2007, the governance framework which underpins the production and development of defence export and import (deliveries) statistics remains uncertain. These issues are currently the subject of a submission to be considered shortly by ministers in MOD, BERR, DfID and FCO.