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Classification of The Service Trade

The rapidly developing technology in the world played a role in the trade in services as well as the trade of goods. Exactly like the trade of goods, the service trade also contributes to the economy by providing foreign currency inflows to the service exporting country. Many companies that play a role in the service sector in international markets deliver their services to global customers by opening into global markets. In addition to contributing to the economy, the service sector provides employment opportunities to many people working in the business lines of this sector. Besides, 12 main topics are accepted as the basics in the international classification of service trade.

You can find the details of the Service Classification in the table below.


 
Table 1: WTO - GATS SERVICES CLASSIFICATION

1

Vocational Services

2

Communication Services

3

Contracting Services

4

Distribution Services

5

Education Services

6

Environmental Services

7

Financial Services

8

Health and Social Services

9

Tourism and Travel Related Services 

10

Entertainment, Culture and Sports Services

11

Transportation Services

12

Other Services Not Included Elsewhere

 Source: WTO

On the other hand, Expanded Balance of Payments Service Classification-2010 (EBOPS-2010) was launched as a database for the balance of payments service classification reported by member states, aimed at collecting information on international service trade in 2010. EBOPS 2010, in which 7 international organizations, especially the United Nations, OECD, and Eurostat participated, presents an internationally agreed service trade classification. This classification was issued to meet international trade agreements and the needs of countries in the field in question, and also enables more inclusive and more detailed reporting.  Central Banks of the countries prepare service trade reports accordingly. Official reporting on Turkey's trade in services also belongs under this classification.

 

Table 2: Description of the Services in the EBOPS 2010 Classification

EXTENDED BALANCE OF PAYMENTS SERVICES CLASSIFICATION
EBOPS 2010 - EXTENDED BALANCE OF PAYMENTS SERVICES CLASSIFICATION 2010

1

Manufacturing services on physical inputs owned by others

It comprises the assembly, auxiliary processes, labeling, and packaging activities of companies that do not own or manufacture the product.

2

Maintenance and repair services

Maintenance and repair services comprise the maintenance and repair activities of the products. The repair and maintenance services of ships, aircraft, and other means of transportation and the procedures performed during transportation belong under this title. Maintenance and repair related to construction are under the title of Construction Services, computer-related maintenance and repair are under the title of Telecommunication, Computer and Information Services.

3

Transport

All passenger, goods, freight transport and logistics services provided by a country to citizens of another country belong under this title. 9 service delivery formats (sea, air, space, rail, land, international waterway, pipeline, electricity transmission line, and other types of transportation) specified in the EBOPS-2010 classification. Postal services also belong under this title.)

4

Travel

Travel comprises the visits of citizens of other countries to other countries for less than 1 year. This one-year time limit is not subjected to the education and health services. This title is divided into sub-titles: business travel and personal travel (health, education, and other) according to the type of travel.

5

Construction

Construction comprises the construction projects in other countries.

6

Insurance and pension services

Insurance and pension services comprise various insurance and pension transactions for residents abroad

7

Financial Services

Financial Services comprises the services provided by banks, capital markets institutions, factoring companies, credit card companies, and similar financial institutions.

8

Charges for the use of intellectual property

Charges for the use of intellectual property comprises franchising expenses (the brand's grant holder, making its system and brand available to independent investors with an agreement covering certain time, conditions and limits), trademark registration and licenses, licenses required for the use of R&D outputs, licenses required for reproduction and distribution of audiovisual and similar services and computer software.

9

Telecommunications, computer, and information services

Communication services comprise computer services consisting of telecommunication services, software and information services, News Agency services, database services, web search portals.

10

Other business services

Other business services comprise professional and management consultancy services (legal, accounting, auditing, business, and management consultancy and public relations services, marketing and advertising) and technical, commercial and other business services (architecture, engineering, waste, agriculture, mining, operational, etc., consulting)

11

Personal, cultural, and recreational services

Personal, cultural, and recreational services comprise audiovisual (cinema, film, series production, radio, TV programs, and music recordings) and Culture-Entertainment (distance education services, "telemedicine" health services, entertainment, and other recreational services)

12

Government services

Government services comprise public services and international official organization services.

 Source: Manual on Statistics of International Trade in Services 2010

 

Source: The Ministry of Trade of Turkey, www.ticaret.gov.tr

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