§ Sir Thomas ArnoldTo ask the Chancellor of the Exchequer what assessment he has made of the adequacy of the Intrastat system for measuring intra-EC trade.
§ Sir John CopeThe current system of collecting intra-EC trade—Intrastat—which was introduced as a result of the implementation of the single market on 1 January 1993 is radically different to the previous one which was based on customs documentation. Intrastat relies on a declaration by the larger traders of the details of their EC trade. A change of this magnitude has required constant assessment of all aspects of the new system.
A range of performance indicators is being monitored, including both the response levels of businesses required to complete the special returns and the error rates on returns. Both indicators have shown a continuous improvement with targets set for the new system prior to its introduction being met. Currently there is a compliance rate of 95 per cent.; amongst the highest in the EC. Some commentators have suggested there may be a discontinuity in the figures based on past trends and customs is carrying out additional checks and audits. But overall the Instrastat system is meeting operational objectives and is expected to provide timely and reliable statistics. A more general assessment of Intrastat in the context of the single market changes has been conducted by Her Majesty's Customs and Excise and will form part of a policy evaluation review to be published shortly.