Glossary
Biomass and biomass footprint
Biomass includes all plant or animal material, or material from other organic origin.
Examples include wood, agricultural crops and garden, fruit and vegetable waste, as well as vegetable oil and wool. While biomass serves as a key raw material for manufacturing products, it is of course also a finished product. The footprint of biomass is based on ‘extracted’ weight. Thus, no weight adjustment takes place to a product’s moisture content. As an example, while a strawberry contains more moisture than a grain, both are taken simply by weight.
Border crossing
Goods movements in which the goods physically cross the Dutch national border, without this always involving change of ownership. The international trade figures in this publication are based on the concept of border crossing, unless specified otherwise.
Business demography framework
The Framework for business demography is an enhanced version of the General Business Register in which changes in the methods used have been corrected while maintaining data consistency over time. Renumbering of firms due to purely administrative changes is also corrected, in order to maintain a clear overview of the firms. As a result, the data can be utilised for research that tracks individual firms over time. The Framework also includes information from other statistics and the UCI list.
Change of ownership
Goods transactions in which a Dutch enterprise or person transfers the beneficial ownership of goods to a foreign enterprise or person, and vice versa.
CH4
Methane (= marsh gas). CH4 is formed by incomplete combustion of fuels, leakage from the natural gas network and by fermentation, among other things. Other important sources of this gas include livestock farming and rice cultivation. Methane is a greenhouse gas contributor to global warming and the largest component of natural gas.
CO2
Carbon dioxide. CO2 is released, among other things, from the burning of the carbon element in fuels. It is a greenhouse gas whose increasing concentrations in the atmosphere contribute to an enhanced greenhouse effect, causing a further increase in global temperature.
CO2 equivalents
In order to calculate the combined impact of the different greenhouse gas emissions, emission levels are converted into CO2 equivalents. This conversion is based on the ‘Global Warming Potential’ (GWP), for example the measure of warming that is contributed by each gas to the greenhouse effect.
Greenhouse gas emissions are generally expressed in megatonnes of CO2 equivalents (1 megatonne = 1 million tonnes = 1 billion kilograms). 1 kg of CO2 equivalents equals the effect of 1 kg of CO2 being emitted. According to the new IPCC regulatory standards, effective as of September 2022, the emission of 1 kg of nitrous oxide is equivalent to 265 kg of CO2 equivalents, and the emission of 1 kg of methane is equal to 28 kg of CO2 equivalents.
Consumption footprint
The Dutch consumption footprint comprises all greenhouse gas emissions emitted for the total Dutch consumption.
Control (of enterprises)
The ultimate control of an enterprise (UCI) is determined on the basis of the country where strategic decision-making for this enterprise takes place. This control lies with the Ultimate Controlling Institutional Unit (UCI). Foreign control means that the country of residence of the UCI is a country other than the Netherlands.
Direct domestic expenditures
The Dutch household consumption, government consumption and investments made by households, government and enterprises.
Direct exports
The supply of goods and rendering of services by residents of the Netherlands to other countries (non-residents).
Dutch business economy
The General Business Register (ABR) is based on the Dutch Standard Industrial Classification (SBI), which classifies business units according to their main activity. The Dutch business economy comprises all enterprises listed in the Standard Industrial Classifications (Dutch SBI 2008) sections B up to and including N, exclusive of K plus S95. This delineation is referred to internationally as ‘non-financial business economy’.
Dutch domestic exports
Exports after production in the Netherlands, or after significant processing of foreign-produced goods (taking into account the level of adjustments in the product’s HS code).
Enterprise (business unit) or firm
The actual transactor in the production process, characterised by self-sufficiency with respect to the decisions about that process and by offering its products to third parties. An enterprise comprises one or several legal entities. A distinctive feature is the autonomy in the decision-making with regard to production taking place within this integrated group of entities. The Dutch-based entity of this group whose activities extend across multiple countries is considered an enterprise in itself for the sake of national statistics.
Enterprise (enterprise group)
The statistical unit acting as the financial transactor. In operational terms, the enterprise group is defined as the most comprehensive collection of legal units established in the Netherlands over which control can be exercised and which is homogeneous by institutional sector. An enterprise group may consist of one or more business units. See also: Enterprise (business unit) or firm.
Export earnings
Value of gross exports minus consumption of imported raw materials, semi-manufactured goods and support services.
Exports
The sum of Dutch domestic exports and re-exports.
Foreign enterprise
A foreign enterprise is classified according to the country where it is ultimately controlled. This is done based on the Ultimate Controlling Institutional Unit (UCI). The UCI is defined as that enterprise which is placed higher up in the chain of control of the Dutch enterprise that is not under the ultimate control of any other firm or enterprise. Foreign control means that the country of residence of the UCI is a country other than the Netherlands.
Foreign subsidiary
If a Dutch enterprise holds a majority stake in a foreign enterprise, this enterprise is a subsidiary of a Dutch enterprise, or a foreign enterprise under Dutch control. There is no minimum amount of investment or minimum share of voting rights in the foreign enterprise. Such investments abroad, made by an enterprise in the Netherlands and under Dutch control (Dutch-owned multinational), are aimed at building up a lasting interest in a foreign enterprise.
Foreign Direct Investment (FDI)
An enterprise receiving direct investments from abroad is an enterprise in which a foreign investor holds at least 10% of the ordinary share capital or the voting rights, or the equivalent thereof. This involves having a controlling interest and substantial influence on the management of the enterprise. Direct investment consists of share capital, participating interests in group enterprises abroad and credit lending.
Fossil fuels and the footprint of fossil fuels
Fossil fuels include petroleum, natural gas and coal. The material footprint only includes primary fuels. Primary fuels are extracted from nature. Secondary fuels make use of primary fuels and thus contribute to the material footprint.
Full-time equivalent (FTE)
A measure of labour volume, calculated by converting all full-time and part-time jobs to full-time jobs. Two half-time jobs (0.5 FTE each) add up to a labour volume of one labour year.
Global value chain
A global value chain or production chain involves all the activities, in one or more countries, necessary to produce goods or services from concept to end products, and to dispose of them after use.
Greenhouse gases
Greenhouse gases absorb part of the heat that is emitted to Earth by solar radiation. Increasing concentrations of greenhouse gases in the atmosphere means that more heat is trapped, causing the Earth’s surface temperature to rise. This is referred to as the enhanced greenhouse effect. The main greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs, PFCs and SF6.
Gross domestic product (GDP)
GDP is a measure for the size of a country’s economy. This is calculated from the sum of the value added by enterprises, households and governments to the goods and services they have used in their production activities. This sum is referred to as the value added at basic prices. To arrive at GDP at market prices, the balance of taxes on production plus subsidies is added as well as the difference between the VAT attributed and VAT paid.
Imports
The supply of goods and rendering of services by other countries (non-residents) to residents of the Netherlands.
Imports for domestic expenditures
Goods, destined for residents of the Netherlands, transported from other countries into the economic territory of the Netherlands. These also include raw materials needed for processing in the production process, semi-manufactured goods, fuels and fixed assets earmarked for investment.
Imports for re-export
Goods and services transported via the Netherlands which are (temporarily) owned by a resident of the Netherlands and subsequently leave the Netherlands without having undergone any significant industrial processing.
Import footprint
The Dutch import footprint of a product comprises everything that happens in the production chain of that product until it comes into the ownership of an enterprise or person in the Netherlands.
Import intensity
The import intensity ratio is an indicator of the degree of international competitive pressure on the local market. It is expressed as a percentage share which shows to what extent domestic demand for goods or services depends on imports from other countries. The higher the import intensity ratio, the larger the contribution of imports in meeting the total demand for goods and services.
Indirect exports (exports through the value chain)
The production of goods and services that are not directly destined for export to a particular country, but which are ultimately incorporated into those exports via other domestic or foreign industries.
Intellectual property
A collective term for rights granted on detailed ideas and concepts, for example patents, trademarks and copyrights.
Intermediate imports
Intermediate imports involve the imports used as inputs in the production process. These inputs include raw materials, semi-manufactured goods, fuels and services. An intermediate product is used during the production process. It is often transformed and then incorporated into the end product. Intermediate goods are therefore used to manufacture other products or services.
International trade in goods
International trade in goods involves residents of the Netherlands who deliver goods to other countries and vice versa. In intra-EU imports, this is the value of the goods including freight and insurance costs up to the Dutch border. In extra-EU imports, this is the value of the goods including freight and insurance costs up to the external border of the European Union. The export value is including freight and insurance costs up to the Dutch border. This is in line with the statistics on International Trade in Goods (ITG). The ITG source statistics use different concepts than the National Accounts. For example, the source statistics are based on border crossing, while the National Accounts are based on change of economic ownership. Integration into the National Accounts also results in additional differences.
International trade in services
International trade in services involves residents of the Netherlands providing economic services to residents of another country and vice versa. Services are products that are generally not tangible, such as transport services, business services and personal, cultural and recreational services. Residents of the Netherlands refers to enterprises and individuals that engage in economic activities from any location in the Netherlands that has been in use for more than one year.
Investments in tangible fixed assets
Goods which are purchased or produced in-company for use as capital assets in the production process as capital goods. This includes goods that have a life span exceeding one year, such as buildings, dwellings, machinery, transport vehicles and the like.
Land use footprint
The land use footprint of Dutch imports is the amount of land used to produce goods and services that are imported by the Netherlands.
Material footprint
The material footprint of Dutch imports is the amount (in terms of weight) of raw materials extracted for all goods and services imported.
Metals and the metal footprint
Metals are all chemical metals, such as iron, aluminium and copper. The metal footprint comprises the total metal ores required. Alloys such as steel contribute only their share of metal ore to the metal footprint.
Multinational
An enterprise with a parent company or subsidiary abroad. See also: foreign subsidiary. A Dutch-owned multinational is an enterprise under ultimate Dutch control with at least one subsidiary (majority stake) abroad. A foreign-owned multinational is a subsidiary that is registered in the Netherlands and is ultimately controlled from the country where the parent company is located.
This category is composed of the following sectors:
B Mining and quarrying
C Manufacturing
D Production and distribution of and trade in electricity, gas, steam and air conditioning supply
E Water supply; sewerage, waste and wastewater management and treatment
F Construction
G Wholesale and retail trade; repair of motor vehicles
H Transportation and storage
I Accommodation and food services
J Information and communication
L Real estate activities
M Consultancy, research and other specialised business services
N Renting and leasing of tangible goods and other business support services
S95 Repair of personal and household goods.
N2O
Nitrous oxide (= laughing gas). N2O is formed during various chemical conversion processes, particularly in agriculture via denitrification processes reinforced by the use of manure and fertiliser and, in the production of nitric acid and in car catalysts. It is a powerful greenhouse gas contributor to global warming.
Non-metallic minerals and the footprint of non-metallic minerals
Other non-metallic minerals include all naturally occurring inorganic substances that are non-metallic. Examples include chalk, limestone, salt and sand.
The weight extracted contributes to the footprint, irrespective of how much moisture the product retains.
Non-multinational
An enterprise without a parent company or subsidiary abroad.
Quasi-transit trade
Quasi-transit trade involves the import of foreign goods that undergo little or no processing upon arrival in the Netherlands and are then exported again. Unlike re-exports, the goods are owned by a foreign enterprise while they are in the Netherlands. Furthermore, at least one of the following administrative tasks must be completed in the Netherlands in order to be deemed quasi-transit trade:
- Upon arrival in the Netherlands, goods from outside the EU are cleared through Customs;
- The goods leave the Netherlands and the EU and an export document is issued by Customs;
- The international goods are kept in storage in the Netherlands for at least one day. This means that the owner must pay VAT and therefore the owner has to register for VAT.
Quasi-transit is not included in Dutch statistics on Dutch trade, but is included in EU statistics on Dutch trade (Eurostat).
Re-exports
Goods which, after being imported into the Netherlands, undergo little or no significant processing before being exported from the Netherlands again. Unlike quasi-transit trade, the goods are (temporarily) owned by a Dutch enterprise while in the Netherlands.
Royalties
Remuneration payments for the ongoing use of someone else’s intellectual property rights. Examples include copyrights, trademark rights and patent rights.
Special Purpose Entity (SPE)
SPEs are subsidiaries of foreign enterprises which are situated in the Netherlands and act as cross-border financial intermediaries between various composite entities of the group in which they operate. The receivables and liabilities of these institutions usually concern direct investments from one country to another via the Netherlands, or channelling of resources collected abroad to the foreign parent company. From 2020, the definition used by the Dutch Central Bank for BFIs has been aligned with the definition used by the IMF for Special Purpose Entities (SPEs): these are companies that make a very limited to no contribution to the real Dutch economy, have no domestic participations and have up to five employees.
Standard Industrial Classification system (SBI)
Industries are categorised by means of the EU’s hierarchical classification of economic activities (Nomenclature statistique des activités économiques dans la Européenne, NACE).
Two-way trader
An enterprise or business establishment which both imports and exports goods and/or services. This is unlike what is called a one-way trader, which is either a one-way importer or a one-way exporter.
Value added
The gross value added equals the production minus intermediate consumption (excluding deductible VAT).