Comparing Imports in FOB, CIF Terms of Delivery and Invoice Values and an Example on the Member States of the Economic Cooperation Organization

Foreign trade data and indicators are important resources for many economic analysis. In particular, the Central Bank of the Republic of Türkiye uses these data for the calculation of balance of payments. Export data published by Turkish Statistical Office (TURKSTAT) are calculated according to free on board (FOB terms of delivery) and the import data are calculated according to the cost of goods, insurance and freight (CIF terms of delivery). In the balance of payments account calculated by the Central Bank, export and import is used by FOB terms of delivery. Therefore, imports data should be calculated according to FOB terms of delivery at the same time. However, international methodological studies have concluded that valuation using invoice values is more compatible with the concepts and definitions of the system of national accounts and the balance of payments, and therefore the use of invoice values is recommended. In line with international methodological recommendations, this study compares the import balance values calculated in terms of FOB and CIF terms of delivery with the values calculated in terms of invoice value and reveals the difference between them. For this comparison, import values to the member countries of the Organisation for Economic Co-operation and Development are taken into account.