The nature of transaction shall identify the different characteristics which are required to determine the scope of trade in goods based on customs declarations, in order to reconcile trade statistics for Balance of Payments and National Accounts purposes and for other characteristics of statistical relevance.

The data on the nature of transaction shall be coded as specified in Annex II. F1The Commissioners for Her Majesty's Revenue and Customs shall apply the codes in column A or a combination of the codes in column A and their subdivisions in column B indicated in that Annex.