Manual on Statistics of International Trade in Services

particularly relevant where majority ownership by 
foreigners is restricted. 
63
These and other special cases will be discussed in detail in the 
forthcoming OECD manual of economic globalisation 
indicators. 
4.23. The present 
Manual
is consistent with BPM5 
and BD3 in including in FATS statistics all types of 
firms, including the so-called special purpose entities 
(SPEs), if they otherwise meet the criteria for selection.
Whatever their structure (e.g., holding company, base 
company, regional headquarters) or purpose (e.g., 
administration, management of foreign exchange risk, 
facilitation of financing of investment), SPEs are an 
integral part of the structure of the direct investment 
network, and their activities and products should be 
included, as appropriate, in the compilation of FATS 
statistics.
64
4.24. Statistics on foreign affiliates owned by 
residents of the compiling economy should include all 
majority-owned foreign affiliates, irrespective of 
whether the affiliate is held directly or indirectly and 
irrespective of whether the direct investor in the 
compiling economy is the ultimate owner or is, instead, 
an intermediate owner in an ownership chain.
65
However, because the activities of an affiliate held 
through an ownership chain could be recorded in the 
outward FATS statistics of the countries of both the 
ultimate and intermediate owners, countries are 
encouraged to indicate the aggregate share of FATS 
variables accounted for by foreign affiliates for which 
the compiling country is an intermediate rather than 
final owner. 
2. Types of producers 
4.25. Because FATS as used in the present 
Manual
stands for foreign affiliates trade in 
services
, it might be 
expected that FATS statistics should cover producers of 
services only. However, the 
Manual
recommends that 
producers of goods be covered as well. Some firms 
produce both goods and services, and it is only by 
coverage of all producers that the activities of producers 
for which provision of services is a secondary activity 
would be reflected in the statistics. In addition, coverage 
of all producers allows for the activities of services 
producers to be examined in the context of statistics 
covering all firms. As explained in paragraph 4.39 
below, the method for attributing and presenting FATS 
variables by activity and, to the extent possible, selected 
64
For a detailed discussion of the SPE concept and for 
additional examples, see BD3, annex 3. 
65 
For information on the concept of indirect ownership, 
ownership chains and company structure generally as they 
relate to direct investment, see paras. 12–19 of BD3 and paras. 
685–692 of the IMF 
Balance of Payments Compilation Guide. 

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60 
ones by product, rather than the limitation of the universe 
of producers to service producers alone, is the mechanism 
recommended for isolating services from goods.