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20.1.        Introduction.  The present chapter defines and provides examples of goods for processing (sect. A), while also explaining why certain transactions and activities are excluded from this category (sect. B). Information on the treatment of goods for processing in 2008 SNA/BPM6 is provided in section C. Challenges in the identification of trade in goods for processing, including goods for processing where no change of ownership takes place, are described in section D. Section E provides examples of country experiences in the identification of goods for processing. This chapter is linked in particular to chapter XXI, which covers trade between related parties, and chapter XXIII, which discusses the recording of trade in ships and aircraft. 

20.2.        Importance of identifying goods for processing. The issue of goods for processing has gained increased attention in recent years, as the production of goods is now frequently spread out across multiple countries, in what are often described as global value chains. This is having significant impact on employment and on the value added generated in the countries that participate in the production process, and raises important issues about the long-term competitiveness of specific sectors of national economies. Therefore, the separate identification and provision of further information on goods for processing are of great analytical importance. The urgent need to improve the availability and the quality of data on goods for processing is also a consequence of the need to identify, for the purposes of national accounts and balance-of-payments systems, goods for processing where no change of ownership of the goods takes place, in view of the recent change in the statistical treatment of such goods in those systems. It is expected that, over time, most countries will be able to provide more information on goods for processing and to improve its quality. However, owing to the issues detailed below, that information will often have limitations of which users should be made aware in the metadata.