This section presents data on the flow of goods, services, and capital between the United States and other countries; changes in official reserve assets of the United States; international investments; and foreign assistance programs.

The Bureau of Economic Analysis publishescurrent figures on U.S. international transactions and the U.S. international investment position in its monthly Surveyof Current Business. Statistics for the foreign aid programs are presented by the Agency for International Development (AID) in its annual U.S. Overseas Loans and Grants and Assistance from International Organizations and by the Department of Agriculture in its Foreign Agricultural Trade of the United States.

The principal source of merchandise import and export data is the U.S. Census Bureau. Current data are presented monthly in U.S. International Trade in Goods and Services report Series FT 900. Census Bureau Catalog & Guide and the Guide to Foreign Trade Statistics lists the Bureau’s monthly and annual products andservices in this field. In addition, the InternationalTrade Administration and the Bureau of Economic Analysis present summary as well as selected commodity and countrydata for U.S. foreign trade in theU.S. Foreign Trade Highlightsand the Surveyof Current Business,respectively. The merchandise trade data in the latter source include balance of payments adjustments to the Census Bureau data. The Treasury Department’s Monthly Treasury Statement of Receipts and Outlays of the United States Government contains information on import duties.

International accounts-The internationaltransactions tables (Nos. 1307 to 1309) show, for given time periods, the transfer of goods, services, grants, and financial assets and liabilities between the United States and the rest of the world. The international investment position table (No. 1310) presents, for specific dates, the value of U.S. investments abroad and of foreign investments in the United States. The movement of foreign and U.S. capital as presented in the balance of payments is not the only factor affecting the total value of foreign investments. Among the other factors are changes in the valuation of assets or liabilities, including changes in prices of securities, defaults, expropriations, and write-offs.

Direct investment abroad means the ownership or control, directly or indirectly, by one person of 10 percent or more of the voting securities of an incorporated business enterprise or an equivalent interest in an unincorporated business enterprise. Direct investment position is the value of U.S. parents claims on the equity of and receivables due from foreign affiliates, less foreign affiliates receivables due from their U.S. parent’s. Income consists of parents shares in the earnings of their affiliates’ plus net interest received by parents’ on intercompany accounts, less withholding taxes on dividends and interest.

Foreign aid-Foreign assistance is divided into three major categories-grants(military supplies and services and other grants), credits, and other assistance (through net accumulation of foreign currency claims from the sale of agricultural commodities). Grantsare transfers for which no payment is expected (other than a limited percentage of the foreign currency "counterpart" funds generated by the grant), or which at most involve an obligation on the part of the receiver to extend aid to the UnitedStates or other countries to achieve a common objective. Creditsare loan disbursements or transfers under other agreements which give rise to specific obligations to repay, over a periodof years, usually with interest. All known returns to the U.S. Government stemming from grants and credits (reverse grants, returns of grants, and payments of principal)are taken into account in net grants and net credits, but no allowance is made for interest or commissions. Otherassistance represents the transfer of U.S. farm products in exchange for foreign currencies (plus, since enactment of Public Law 87- 128, currency claims from principal and interest collected on credits extended under the farm products program), less the Government’s disbursements of the currencies as grants, credits, or for purchases.The net acquisition of currencies represents net transfers of resources to foreign countries under the agricultural programs, in addition to those classified as grants or credits.

The basic instrument for extending military aid to friendly nations has been the Mutual Defense Assistance Program authorized by the Congress in 1949. Prior to 1952, economic and technical aid was authorized in the Foreign Assistance Act of 1948, the 1950 Act for International Development, and other legislation which set up programs for specific countries. In 1952, these economic, technical, and military aid programs were combine under the Mutual Security Act, which in turn was followed by the Foreign Assistance Act passed in 1961. Appropriations to provide military assistance were also made in the Department of Defense Appropriation Act (rather than the Foreign Assistance Appropriation Act) beginning in 1966 for certain countries in Southeast Asia and in other legislation concerning program for specific countries (such as Israel). Figures on activity under the Foreign Assistance Act as reported in the Foreign Grants and Credits series differ from data published by AID or its immediate predecessors, due largely to differences in reporting, timing, and treatment of particular items.

Exports-The Census Bureau compiles export data primarily from Shipper’s Export Declarations required to be filed with customs officials for shipments leaving the United States. They include U.S. exports under mutual security programs and exclude shipments to U.S. Armed Forces for their own use.

The value reported in the export statistics is generally equivalent to a free alongside ship (f.a.s.) value at the U.S. port of export, based on the transaction price, including inland freight, insurance, and other charges incurred in placing the merchandise alongside the carrier at the U.S. port of exportation. This value, as defined, excludes the cost of loading merchandise aboard the exporting carrier and also excludes freight, insurance, and any other charges or transportation and other costs beyond the U.S. port of exportation. The country of destination is defined as the country of ultimate destination or country where the merchandise is to be consumed, further processed, or manufactured, as known to the shipper at the time of exportation. When ultimate destination is not known, the shipment is statistically credited to the last country to which the shipper knows the merchandise will be shipped in the same form as exported.

Effective January 1990, the United States began substituting Canadian import statistics for U.S. exports to Canada. As a result of the data exchange between the United States and Canada, the United States has adopted the Canadian import exemption level for its export statistics based on shipments to Canada.

Data are estimated for shipments valued under $2,501 to all countries, except Canada, using factors based on the ratios of low-valued shipments to individual country totals.

Prior to 1989, exports were based on Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. These statistics were retabulated and published using Schedule E, Standard International Trade Classification, Revision 2. Beginning in 1989, Schedule B classifications were based on the Harmonized System and made to coincide with the Standard International Trade Classification, Revision 3. This revision will affect the comparability of most export series beginning with the 1989 data for commodities.

Imports-The Census Bureau compiles import data from various customs forms required to be filed with customs officials. Data on import values are presented ontwo bases in this section: The c.i.f. (cost, insurance, and freight) and the customs import value (as appraised by the U.S. Customs Service in accordance with legal requirements of the Tariff Act of 1930, as amended). This latter valuation, primarily used for collection of import duties, frequently does not reflect the actual transaction value. Country of origin is definedas country where the merchandise was grown, mined, or manufactured. If country of origin is unknown, country of shipment is reported.

Imports are classified either as "General imports" or "Imports for consumption." General imports are a combination of entries for immediate consumption, entries into customs bonded warehouses, andentries into U.S. Foreign Trade Zones, thus generally reflecting total arrivals of merchandise. Imports for consumption are a combination of entries for immediate consumption, withdrawals from warehouses for consumption, and entries of merchandise into U.S. customs territory from U.S.Foreign Trade Zones, thus generally reflecting the total of the commodities entered into U.S. consumption channels

Prior to 1989, imports were based on the Tariff Schedule of the United States Annotated. The statistics were retabulated and published using Schedule A, Standard International Trade Classification, Revision 2. Beginning in 1989, the statistics are based on the Harmonized Tariff Schedule of the United States, which coincides with the Standard International Trade Classification, Revision 3. This revision will affect the comparability of most import series beginning with the 1989 data.

Area coverage-Except as noted, the geographic area covered by the export and import trade statistics is the United States Customs area (includes the 50 states, the District of Columbia, and Puerto Rico), the U.S. Virgin Islands (effective January 1981), and U.S. Foreign Trade Zones (effective July 1982). Data for selected tables and total values for 1980 have been revised to reflect the U.S. Virgin Islands’ trade with foreign countries, where possible.

Statistical reliability-For a discussion of statistical collection and estimation, sampling procedures, and measures of statistical reliability applicable to Census Bureau data, see Appendix III.