Post on 14-Jan-2016
Reconciliation
Do You Need Counseling To Succeed?
Timothy Baxter
Special Projects Branch Foreign Trade Division
U.S. Census Bureau
Department of Commerce
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When do you need to reconcile and can differences be resolved?
• Reconciliation is done when there is a significant difference between trading partner’s values.
• Some differences can be resolved. To do so we try to find measurable reasons, and then assign dollar amounts for those reasons that both sides agree are legitimate.
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Common sources of discrepancies
• Valuation of goods• Definition of goods traded• Trade through a third Country• Geographic Coverage• Classification issues• Undercounting or under reporting
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What It Takes To Get Through It
• It takes a lot of resources.
• It takes a lot of time.
• It takes a lot of patience.
• If ( If? ) politics becomes a factor it takes a lot more of the above.
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Is it worth it?Maybe, but I will take some convincing on that.
• On the plus side– Might point out some deficiencies.
• e.g. Need better tracking of exports
– It’s supposed to give you a better sense of what is actually happening in trade, and therefore in your economy.
– Also, better policy making.
• On the not so plus side– You won’t explain all of the difference, and it’s
maybe more accurate to say most.
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Lessons Learned?
• Experience counts.• Sometimes too much reliance on past work.• You don’t find many actual mistakes.• Has to be a cooperative effort, with the same
goals on both sides.• The most successful/efficient reconciliations
are when it’s strictly a technical exercise.• Reconciliations are never strictly technical
exercises.
Counseling any one?
Timothy Baxter
301.763.3255
timothy.baxter@census.gov