GOODS (CENSUS BASIS)

The Census basis goods data are compiled from the documents collected by the U.S.
Customs and Border Protection and reflect the movement of goods between foreign
countries and the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin
Islands, and U.S. Foreign Trade Zones.  They include government and non-government
shipments of goods, and exclude shipments between the United States and its
territories and possessions, transactions with U.S. military, diplomatic and
consular installations abroad, U.S. goods returned to the United States by its
Armed Forces, personal and household effects of travelers, and in-transit shipments.
The General Imports value reflects the total arrival of merchandise from foreign
countries that immediately enters consumption channels, warehouses, or Foreign
Trade Zones.

For imports, the value reported is the U.S. Customs and Border Protection
appraised value of merchandise; generally, the price paid for merchandise for
export to the United States.  Import duties, freight, insurance, and other charges
incurred in bringing merchandise to the United States are excluded.

Exports are valued at the f.a.s. (free alongside ship) value of merchandise 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.

Revision policy for goods on a Census basis:  Monthly data include actual month's
transactions as well as a small number of transactions for previous months.  Each
month the U.S. Census Bureau revises the aggregate seasonally adjusted (current
and chain-weighted dollar) and unadjusted export, import and trade balance figures,
as well as the end-use totals for the prior month.  SITC and country detail data
are not revised monthly.  The timing adjustment shown in Exhibit 14 is the
difference between monthly data as originally reported and as recompiled.  Quarterly
revisions are made to the chain-weighted dollar series.  In the last month of each
quarter, the current and previous quarter are revised to incorporate the Bureau of
Labor Statistics' monthly revisions to price indexes, which are used to produce the
chained-dollar series and to align Census data with data published by the U.S.
Bureau of Economic Analysis in the National Income and Product Accounts.  Annual
revisions for the months are made in June to reflect corrections received subsequent
to the monthly revisions.  These revisions are reflected in totals, end-use, SITC,
and country summary data.  The monthly end-use, commodity, and country and area data
presented in Exhibits 6-18 in this release are on a Census basis.

U.S./CANADA DATA EXCHANGE AND SUBSTITUTION

The data for U.S. exports to Canada are derived from import data compiled by Canada.
The use of Canada's import data to produce U.S. export data requires several
alignments in order to compare the two series.

1. Coverage - Canadian imports are based on country of origin.  U.S. goods shipped
   from a third country are included.  U.S. exports exclude these foreign shipments.
   For June 2011, these shipments totaled $213.0 million.  U.S. export coverage
   also excludes U.S. postal shipments to Canada.  For June 2011, these shipments
   totaled $12.3 million.

   U.S. import coverage includes shipments of railcars and locomotives from Canada.
   Effective with January 2004 statistics, Canada excludes these shipments from
   its goods exports to the United States, therefore creating coverage differences
   between the two countries for these goods.

2. Valuation - Canadian imports are valued at the point of origin in the United
   States.  However, U.S. exports are valued at the port of exit in the United
   States and include inland freight charges, making the U.S. export value slightly
   larger than the Canadian import value.  Canada requires inland freight to be
   reported separately from the value of the goods.  Combining the inland freight
   and the Canadian reported import value provides a consistent valuation for all
   U.S. exports.  Inland freight charges for June 2011 accounted for 2.4 percent
   of the value of U.S. exports to Canada.

3. Reexports - Unlike Canadian imports, which are based on country of origin, U.S.
   exports include reexports of foreign goods.  Therefore, the aggregate U.S. export
   figure is slightly larger than the Canadian import figure.  For June 2011,
   reexports to Canada were $3,914.9 million.

4. Exchange Rate - Average monthly exchange rates are applied to convert the
   published data to U.S. currency.  For June 2011, the average exchange rate was
   0.9766 Canadian dollars per U.S. dollar.

5. Other - There are other minor differences, which are statistically insignificant,
   such as rounding error.

Canadian Estimates

Effective with January 2001 statistics, the current month data for exports to
Canada contain an estimate for late arrivals and corrections.  The following month,
this estimate is replaced, in the press release tables only, with the actual value
of late receipts and corrections.  This estimate improves the current month data
for exports to Canada and treats late receipts for exports to Canada in a manner
more consistent with the treatment of late receipts for exports to other countries.

Nonsampling errors

The goods data are a complete enumeration of documents collected by the U.S. Customs
and Border Protection and are not subject to sampling errors.  Quality assurance
procedures are performed at every stage of collection, processing and tabulation;
however, the data are still subject to several types of nonsampling errors.  The
most significant of these include reporting errors, undocumented shipments,
timeliness, data capture errors, and errors in the estimation of low-valued
transactions.

Reporting Errors: Reporting errors are mistakes or omissions made by importers,
exporters or their agents in their import or export declarations.  Most errors
involve missing or invalid commodity classification codes and missing or incorrect
quantities or shipping weights.  They have a negligible effect on aggregate import,
export, and balance of trade statistics.  However, they can affect the detailed
commodity statistics.

Undocumented Shipments: Federal regulations require importers, exporters or their
agents to report all merchandise shipments above established exemption levels.
The U.S. Census Bureau has determined that not all required documents are filed,
particularly for exports.

Timeliness and Data Capture Errors: The U.S. Census Bureau captures import and
export information from administrative documents and through various automated
collection programs.  Documents may be lost, and data may be incorrectly keyed,
coded, or recorded.  Transactions may be included in a subsequent month's statistics
if received late.

Low-valued Transactions: The total values of transactions valued as much as or
below $2,500 for exports and $2,000 ($250 for certain quota items) for imports
are estimated for each country, using factors based on the ratios of low-valued
shipments to individual country totals for past periods.

The U.S. Census Bureau recommends that data users incorporate this information
into their analyses, as nonsampling errors could impact the conclusion drawn from
the results.  For a detailed discussion of errors affecting the goods data, see
"U.S. Merchandise Trade Statistics: A Quality Profile, "available on the internet
at www.census.gov/foreign-trade/aip/index.html#infopapers or from the Foreign Trade
Division, U.S. Census Bureau.

AREA GROUPINGS (See Exhibits 14 and 14A)

North America - Canada, Mexico

Europe - Albania, Andorra, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia
and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe
Islands, Finland, France, Georgia, Germany, Gibraltar, Greece, Hungary, Iceland,
Ireland, Italy, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Liechtenstein, Lithuania,
Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway,
Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, Spain,
Svalbard-Jan Mayen Island, Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan,
Ukraine, United Kingdom, Uzbekistan, Vatican City.

European Union - Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark,
Estonia,Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain,
Sweden, United Kingdom.

Euro Area - Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain.

Pacific Rim - Australia, Brunei, China, Hong Kong, Indonesia, Japan, Korea, Macau,
Malaysia, New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan.

South/Central America - Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas,
Barbados, Belize, Bermuda, Bolivia, Brazil, British Virgin Islands, Cayman Islands,
Chile, Colombia, Costa Rica, Cuba, Curacao, Dominica, Dominican Republic, Ecuador,
El Salvador, Falkland Islands (Islas Malvinas), French Guiana, Grenada, Guadeloupe,
Guatemala, Guyana, Haiti, Honduras, Jamaica, Martinique, Montserrat, Netherlands
Antilles, Nicaragua, Panama, Paraguay, Peru, Sint Maarten, St. Kitts and Nevis,
St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks
and Caicos Islands, Uruguay, Venezuela.

OPEC - Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi
Arabia, United Arab Emirates, Venezuela.

Africa - Algeria, Angola, Benin, Botswana, British Indian Ocean Territories, Burkina
Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo
(Brazzaville), Congo (Kinshasa), Djibouti, Egypt, Equatorial Guinea, Eritrea,
Ethiopia, French Southern and Antarctic Lands, Gabon, Gambia, Ghana, Guinea,
Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi,
Mali, Mauritania, Mauritius, Mayotte, Morocco, Mozambique, Namibia, Niger, Nigeria,
Reunion, Rwanda, St. Helena, Sao Tome and Principe, Senegal, Seychelles, Sierra
Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda,
Western Sahara, Zambia, Zimbabwe.

Adjustments for Seasonal and Working-Day Variations

Goods are initially classified under the Harmonized System, which describes and
measures the characteristics of goods traded.  Combining trade into approximately
140 export and 140 import end-use categories makes it possible to examine goods
according to their principal uses.  (See Exhibits 7 and 8).  These categories are
used as the basis for computing the seasonal and working-day adjusted data.  These
adjusted data are then summed to the six end-use aggregates for publication
(Exhibit 6).  These data are provided to the U.S. Bureau of Economic Analysis, from
the U.S. Census Bureau, for use in the Balance of Payments and the National Income
and Product Accounts.

The seasonal adjustment procedure is based on a model that estimates the monthly
movements as percentages above or below the general level of each end-use commodity
series (unlike other methods that redistribute the actual series values over the
calendar year).  Because of the extremely variable movements of the data series
for aircraft, users studying data trends may wish to analyze aircraft separately
from other trade.

Adjustments for Price Change

Data adjusted for seasonal variation on a chained-dollar basis (2005 base year)
are presented in Exhibits 10 and 11.  This adjustment for price change is done
using the Fisher chain-weighted methodology.  The deflators are primarily based
upon the monthly price indexes published by the Bureau of Labor Statistics using
techniques developed for the National Income and Product Accounts by the U.S. Bureau
of Economic Analysis.

SITC Data

Goods data appearing in Exhibit 15 are classified in terms of the Standard
International Trade Classification (SITC) Revision 3.  Agricultural goods consist
of non-marine food products and other products of agriculture which have not passed
through complex processes of manufacture, such as raw hides and skins, fats and oils,
and wine.  A few goods such as essential oils, starches, casein, and albumin,
considered to be agricultural by the U.S. Department of Agriculture, have been
excluded from agricultural goods and are included in manufactured goods where they
are classified in the SITC.

Manufactured goods conform to the SITC sections that include chemicals and related
products; manufactured goods classified chiefly by material; machinery and transport
equipment; miscellaneous manufactured articles; and goods and transactions not
classified elsewhere.

Reexports are foreign merchandise entering the country as imports, and at the time
of exportation are in substantially the same condition as when imported.  Reexports,
included in overall export totals, appear as separate line items in Exhibit 15.

Advanced Technology Products (ATP)

About 500 of some 22,000 commodity classification codes used in reporting U.S.
merchandise trade are identified as "advanced technology" codes and they meet the
following criteria:

1. The code contains products whose technology is from a recognized high technology
   field (e.g., biotechnology).

2. These products represent leading edge technology in that field.

3. Such products constitute a significant part of all items covered in the selected
   classification code.

The aggregation of the goods results in a measure of advanced technology trade which
appears in Exhibits 16 and 16A.  This product and commodity-based measure of advanced
technology differs from broader NAICS industry-based measures which include all goods
produced by a particular industry group, regardless of the level of technology
embodied in the goods.

GOODS (BALANCE OF PAYMENTS BASIS)

Goods on a Census basis are adjusted by the U.S. Bureau of Economic Analysis (BEA)
to a balance of payments basis to align the data with the concepts and definitions
used to prepare the international and national economic accounts.  These adjustments,
which are applied separately to exports and imports, are necessary to supplement
coverage of the Census basis data, to eliminate duplication of transactions recorded
elsewhere in the international accounts, and to value transactions according to
a standard definition.  They include both additions to and deductions from goods
on a Census basis and are presented in this release as "Net Adjustments."
Adjustments that exhibit significant seasonal patterns are seasonally adjusted.
BEA also publishes more detailed quarterly and annual statistics for Net Adjustments
in a standard table of the U.S. international transactions accounts, Table 2. U.S.
Trade in Goods.  (See the BEA Web site at www.bea.gov/international/bp_web
or the January, April, July, and October issues of the Survey of Current Business).

The export adjustments include:

   Exports under U.S. military sales contracts - This adjustment reflects the net
   amount of two separate adjustments.  BEA first deducts goods identified in the
   Census data as exports under the U.S. Foreign Military Sales program.  BEA then
   adds primary source data for these exports, which are reported to BEA by the
   U.S. Department of Defense.

   Gold exports, nonmonetary - This addition is made for gold that is purchased
   by foreign official agencies from private dealers in the United States and held
   at the Federal Reserve Bank of New York.  The Census data only include gold
   that leaves the U.S. customs territory.

   Goods procured in U.S. ports by foreign carriers - This addition is made for
   foreign air and ocean carriers' fuel purchases in U.S. ports.

   Low-value transactions - This addition is made to phase in a revised Census
   Bureau methodology for low-value goods for statistics prior to 2010.  The revised
   methodology was implemented for goods on a Census basis beginning with statistics
   for 2010.

   Other adjustments to exports include:

   Deductions for equipment repairs (parts and labor), developed motion picture
   film, and military grant-aid.  Additions for sales of fish caught in U.S.
   territorial waters, exports of electricity to Mexico, private gift parcels,
   and vessels and oil rigs for which ownership changes.

The import adjustments include:

   Gold imports, nonmonetary - This addition is made for gold sold by foreign
   official agencies to private purchasers out of stock held at the Federal Reserve
   Bank of New York.  The Census data only include gold that enters the U.S. customs
   territory.

   Goods procured in foreign ports by U.S. carriers - This addition is made for
   U.S. air and ocean carriers' fuel purchases in foreign ports.

   Imports by U.S. military agencies - This adjustment reflects the net amount
   of two separate adjustments.  BEA first deducts goods (petroleum and
   non-petroleum) identified in the Census data as imports by U.S. military agencies.
   BEA then adds primary source data for purchases of petroleum abroad by U.S.
   military agencies, which are reported to BEA by the U.S. Department of Defense.
   Non-petroleum imports are included, along with imports of services by U.S.
   military agencies, in the services category direct defense expenditures.

   Inland freight in Canada and Mexico - This addition is made for inland freight
   in Canada and Mexico.  Imports of goods from all countries should be valued
   at the customs value - the value at the foreign port of export including inland
   freight charges.  For imports from Canada and Mexico, this should be the cost
   of the goods at the U.S. border.  However, the customs value for imports for
   certain Canadian and Mexican goods is the point of origin in Canada or Mexico.
   BEA makes an addition for the inland freight charges of transporting these goods
   to the U.S. border to make the value comparable to the customs value reported
   for imports from other countries.

   Low-value transactions - This addition is made to phase in a revised Census
   Bureau methodology for low-value goods for statistics prior to 2010.  The revised
   methodology was implemented for goods on a Census basis beginning with statistics
   for 2010.

   Other adjustments made to imports include:

   Deductions for equipment repairs (parts and labor), repairs to U.S. vessels
   abroad, and developed motion picture film.  Additions for non-reported imports
   of locomotives and railcars, imports of electricity from Mexico, conversion
   of vessels for commercial use, and valuation of software imports at market value.

SERVICES

The services statistics cover transactions between foreign countries and the 50
states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and other
U.S. territories and possessions.  Transactions with U.S. military, diplomatic,
and consular installations abroad are excluded because they are considered to be
part of the U.S. economy.

Services statistics are based on quarterly, annual, and benchmark surveys and
information obtained from monthly government and industry reports.  Services are
seasonally adjusted when statistically significant seasonal patterns are present.
No monthly country or area detail is available due to the lack of adequate source
data.

Services are shown in seven broad categories.  The types of services for exports
and imports are the same for six of the categories.  For the seventh, the export
category is transfers under U.S. military sales contracts and the import category
is direct defense expenditures.  The following is a brief description of the types
of services included in each category:

   Travel - Purchases of services and goods by U.S. travelers abroad and by foreign
   visitors to the United States.  A traveler is defined as a person who stays
   for a period of less than 1 year in a country of which the person is not a

   resident.  Includes cruise fares and expenditures for food, lodging, recreation,
   gifts, and other items incidental to a foreign visit.

   Passenger fares - Fares paid by residents of one country to transportation
   carriers of other countries.  Receipts consist of fares received by U.S. carriers
   from foreign residents for travel between the United States and foreign countries
   and between two foreign points.  Payments consist of fares paid by U.S. residents
   to foreign carriers for travel between the United States and foreign countries.
   Excludes cruise fares, which are included in travel.

   Other transportation - Transactions include freight charges for the transportation
   of goods to and from the United States, operating expenses that transportation
   companies incur in foreign ports, postal services, and payments for vessel charter
   and aircraft leasing with crew.  Excludes air and ocean carriers' fuel purchases
   in foreign ports, which are included in exports and imports of goods on a balance
   of payments (BOP) basis.

   Royalties and license fees - Transactions for the rights to use, the rights
   to reproduce or distribute, and the outright sale of intellectual property,
   such as patents, techniques, processes, formulas, designs, know-how, trademarks,
   copyrights, franchises, and manufacturing rights.  The term "royalties" generally
   refers to payments for the use of copyrights or trademarks; the term "license
   fees" generally refers to payments for the use of patents or industrial processes.
   Includes fees for the rights to distribute film and television recordings.
   Includes transactions with both affiliated (related parties) and unaffiliated
   foreign residents.

   Other private services - Transactions consist of education services; financial
   services (includes fees and commissions and excludes investment income); insurance
   services; telecommunications services (includes transmission services and
   value-added services); business, professional, and technical services (includes
   advertising services; computer and data processing services; database and other
   information services; research, development, and testing services; management,
   consulting, and public relations services; legal services; construction services;
   architectural and engineering services; mining services; industrial engineering
   services; installation, maintenance, and repair of equipment; and medical
   services); and other services.  Includes transactions with both affiliated
   (related parties) and unaffiliated foreign residents.

   Transfers under U.S. military sales contracts (Exports only) - Transactions
   include exports of services, such as training services and repair services,
   provided by U.S. government military agencies through grants and the U.S. Foreign
   Military Sales (FMS) program.  Includes exports of goods that are commingled
   in the source data and cannot be separately identified.  Excludes exports of
   goods under the FMS program, which are included in exports of goods on a BOP
   basis.

   Direct defense expenditures (Imports only) - Transactions include expenditures
   by U.S. military agencies abroad, including expenditures by U.S. personnel,
   payments of wages to foreign residents, construction expenditures, payments
   for foreign contractual services, and procurement of foreign goods.  Excludes
   petroleum purchases abroad, which are included in imports of goods on a BOP
   basis.

   U.S. government miscellaneous services - Transactions of U.S. government
   nonmilitary agencies with foreign residents.  Most of these transactions involve
   the provision of services to, or purchases of services from, foreigners.  Some
   goods transactions are also included.

Revision policy for goods on a balance of payments basis and for services:  Each
month, a preliminary estimate for the current month and a revised estimate for
the immediately preceding month are released. After the initial revision, no further
revisions are made to a month until more complete source data become available
in March, June, September, and December.  The releases in March, June, September,
and December contain revised estimates for the previous six months.  The release
in March also contains revisions for all months of the previous year in order to
align the seasonally adjusted monthly data with annual totals.  The release in
June also contains annual revisions, which reflect updated source data, changes
in definitions and classifications, and changes in estimating methodologies.

U.S. INTERNATIONAL TRANSACTIONS ACCOUNTS

Quarterly and annual estimates of goods on a balance of payments basis and services
are included in the U.S. international transactions accounts, which are published
in news releases in March, June, September, and December and in the Survey of
Current Business in the January, April, July, and October issues.  The next release
of the international transactions accounts is scheduled for September 15, 2011.
The Survey of Current Business is available online at www.bea.gov/scb/index.htm
or from the Superintendent of Documents, U.S. Government Printing Office, Washington,
D.C. 20402.

MONTHLY RELEASE SCHEDULE

Month    Date        Day

Jan      03-10-11    Thursday
Feb      04-12-11    Tuesday
Mar      05-11-11    Wednesday
Apr      06-09-11    Thursday
May      07-12-11    Tuesday
Jun      08-11-11    Thursday
Jul      09-08-11    Thursday
Aug      10-13-11    Thursday
Sep      11-10-11    Thursday
Oct      12-09-11    Friday

ELECTRONIC AVAILABILITY

The FT-900 and supplement are available on the following:

INTERNET The U.S. International Trade in Goods and Services reports are available
at www.census.gov/ft900 or www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm.

Additional data and information on goods are obtainable from: Foreign Trade Division,
U.S. Census Bureau, Washington, D.C.  20233

Additional data and information on services are obtainable from: Balance of Payments
Division, U.S. Bureau of Economic Analysis, Washington, D.C. 20230

• Information Section
  (PDF) 
• Information Section
  (TXT) 

• Interactive Tables