Manual on Statistics of International Trade in Services

2. BPM5 extensions 
(a) Analysis of balance of payments transactions by 
origin and destination 
2.62.  Balance of payments statistics by origin and 
destination are needed for analytical and policy purposes 
and for use in bilateral and multilateral negotiations. 
Country or regional analysis of trade in services, 
whether associated with balance of payments 
transactions, foreign direct investment or FATS, is a 
necessary complement to both product and economic 
activity classification systems.  To the extent feasible, an 
identical geographical basis should be used for all 
related sets of services statistics.  The geographical 
allocation of services transactions in the balance of 
payments is to the country where the provider or 
acquirer of the service is resident. 
                                                 
36 
For additional detail on direct investment concepts and 
definitions, see box 7. 
(b) The Extended Balance of Payments Services 
Classification 
2.63.  The Extended Balance of Payments Services 
Classification has been devised for the Manual based on 
the experience gained with the implementation of the 
Joint Classification. It is a disaggregated sub-system of 
the BPM5 services classification. Annex II shows the 
relationship between EBOPS, the BPM5 classification 
of services and the Joint Classification. Correspondence 
tables are provided in annex III linking the EBOPS with 
CPC Version 1.0, thus providing greater detail and a 
necessary although partial statistical link between 
domestic production and trade in services. The need for 
a convergence of the product classifications of industry 
and trade, for comparative purposes, requires further 
development work to more closely align the structural 
components of EBOPS and CPC. The correspondence 
shown in annex III is an important first step in this 
direction, which clarifies the definition of EBOPS 
through the use of the detailed categories of CPC. As 
described in chapter III, EBOPS contains main 
categories that are identical to the 11 major BPM5 
standard services components, as well as further details 
that are consistent with BPM5.  The harmonization is 
bolstered by the standardization of the coding systems 
for identification and reporting purposes.