Presentation on theme: "Product classifications used in the region"— Presentation transcript:
1 Product classifications used in the region Michael Mietzner Eurostat
2 CPA 2008ScopeMain structureLink to HS/CNLink to ISIC/NACE
3 CPA 2008 - scope CPA has five main functions: Harmonisation between world level (CPC) and Europe (CPA and Prodcom)Link to HS and CNFor outputs, input-output matrix, also for input used in industriesDefinition of servicesDefinition of buildingsMight eventually replace the Classification of Constructions (CC)Linking the activity classification NACE (structural business statistics) and CPA (product classification)
4 CPA 2008 - scope Boundary questions for: Waste products(included, even non-produced, irrespective of value)Does generally not include used good (such as used cars)Assets(produced assets included as products)Problem: there are outputs of economic activities, i.e. “products”, that do not fit the definition of goods or services
5 Problem: “intellectual property products” outputs of a creative process carried out on own accountThey are not servicesThey are not physical objectsBut: they are products(“intangible goods” – although this concept doesn’t exist)Example: R&D originalsCompromise: group them with services that correspond to activities that create them!
6 CPA 2008 – structureFollows the NACE Rev. 2 structure down to class level…but there are exceptions:Mixed farmingFishing and aquacultureFurnitureConstructionRetail trade
7 CPA 2008 – structure Options for overall structure of the CPA: Group products based on industry of origine.g. NACE, used currently in CPAGroup products by their characteristicsused currently in CPCGroup products based on demande.g. COICOP based or by the BEC: s
8 CPA 2008 – CN linkNACE provides basic definitions (building blocks) for servicesFor goods – section C (Manufacturing) - the CN provides these building blocks, i.e. each CPA goods subcategory is the sum of CN subheadingsThe CN correspondence replaces explanatory notes in CPA section C
9 CPA 2008 – CN linkProblem: CPA provides in some areas detail beyond CN level:AgricultureFishing and aquacultureFood manufacturingExample: Prepared meals and dishesIron and steel manufacturingExample: Casting of steelReason: The 1-1 linking CPA-CN is required for Prodcom, but CN detail decreasing…Compromise: Secondary links added!
10 Manufacturing section only CPA 2002CPA 2008DifferenceOverallSections1721+4Divisions6288+26Groups223261+38Classes502575+73Categories11461342+196Subcategories26083142+534Manufacturing section only1+/-02324+110395-8232231-1742770+2816661746+80Other sections16203964+25120166+46270344+74404572+1689421396+45410
12 CPA revision Main objectives: Review detail of CPA Sectorial review for servicesFocus on products that are outputs of revised/new NACE industriesService productsIT productsOriginalsReview lower-level detail for analytical usefulness; add or delete?
13 CPA structure changes (1) A - Agriculture, forestry and fishery productsDetailC - Food products, beverages and tobacco; textiles, apparel and leather productsC - Other transportable goods, except metal products, machinery and equipmentPublished products (books etc.)C - Metal products, machinery and equipmentComputer-related products
14 CPC structure changes (1) H - Transport and storage servicesRestructuring of transport servicesK - Financial and insurance servicesNew detailL - Real estate servicesN - Rental and leasing services
16 New detail (1)Substantial increase at lowest level (categories and subcategories)Examples:For agriculture:Recognition of more types of plants, animalsSeparation of raw from processed productsFor food products:Separation of meat by type of animal
17 New detail (2)Problem:Excessive level of detail in food manufacturing, below CN levelSubstantial increase of Prodcom codes as well as so-called CN Z-codesSolution:CPC Ver. 2 in some cases more detailed than CPA 2008Likely that new detail in the updated CPC Ver.2 will not reflected in an updated CPA 2014
18 New detail in agriculture and food products CPA 2002CPA 2008DifferenceAgricultureSections1+/- 0DivisionsGroups46+2Classes1130+19Categories65+35Subcategories71166+95Food products+/-089+1257584+9148206+5818
20 CPA services (1)As part of the CPA revision process, some services have been reviewed in detailThe goal has always been to:Provide a complete coverage of outputsReflect new servicesProvide better (more precise) definitions of servicesDefine services in a way that facilitates reporting by businesses
21 CPA services (2)Although the CPA does not explicitly define what services are, they have in general been grouped in sections D-U, however:There are also some products in sections D-U that are not servicesSpecialised repair, maintenance and installation services are in division 33 in section C (Manufacturing)Manufacturing services are (with some exceptions) allocated to the respective manufacturing class in section C
22 CPA services (3)Specific divisions that have been reviewed in this revision:H - Transportation and storage servicesK - Financial and insurance servicesJ - Information and communication servicesQ - Human health and social work servicesE - Sewerage, waste management and remediation services
23 CPA services (4)At lower levels, some areas have also been reorganizedFor example:78 - Employment servicesTo reflect changes in ISIC/NACEArchitecture and engineering services and related technical consulting servicesTo reflect reporting practices by businesses79 - Reservation services etc.59 - Audio-visual and related services
24 Human health servicesDetail has been changed to reflect new detail introduced in ISIC/NACEVeterinary services have been moved out to professional activitiesNew detailed services respond to needs for analysis, e.g. in the system of health accounts
25 Telecommunications services etc. Revision mostly affects products related to the On-line distribution of contentPart of review of ICT and content productsIncludes “originals” products alongside services of broadcasting etc.Revises previous understanding of services for content distribution
26 Transportation services Transportation services have been grouped in a way that is more useful for analysis:Interest is primarily for passenger vs. freight transportSecondary, split by mode of transportIn NACE, the structure reflects the organization:Breakdown first by mode of operation
27 Manufacturing services (1) Manufacturing services referred to as “Sub-contracted operations as part of manufacturing of…”Identified as code format XX.YY.9ZA manufacturing unit (defined in NACE) can provide two types of output:Good (if production is done on own account)Manufacturing service (if production is done on account of others)Missing subcategories for these services added where not already introduced in CPA 2002
28 Manufacturing services (2) Why are these services necessary?They apply in the case of outsourcingThe contractor provides a service (e.g. assembly)Contractor cannot report on the value of the goods he has producedHe does not sell them on the marketHe can only report the fee he has received from the principal for his workThe data is also important for calculation of short term indicators (weights for indices of production)
29 National versions of the CPA 2008 Since the introduction of the CPA 2008 there are only three EU Member States with national subdivisions:PolandSwedenPortugalReason:Sufficient product detail in the Procom listLimitations as to the level of detail of the Combined Nomenclature
31 Scope of the Prodcom list Council Regulation (EEC) No 3924/91 of 19 December 1991 on the establishment of a Community survey of industrial productionArticle 2(1):1. The field covered by the survey referred to in Article 1 shall be that of the activities in sections B and C of the classification of economic activities in the European Community (NACE Rev. 2).
32 Scope of the Prodcom list (cont.) COMMISSION REGULATION (EU) No 907/2012 of 20 August 2012 establishing for 2012 the ‘Prodcom list’ of industrial products provided for by Council Regulation (EEC) No 3924/91 (1) Regulation (EEC) No 3924/91 requires Member States to carry out a Community survey of industrial production. (2) The survey of industrial production must be based on a list of products identifying the industrial production to be surveyed. (3) A list of products is necessary to permit alignment between production statistics and external trade statistics and to afford comparison with the Community product nomenclature CPA.
33 Use of Prodcom data PRODCOM - industry production International trade statistics – productionIndices of external tradeCrop statistics - supply balance sheetsForestry statistics
34 Upcoming issues CPC Ver.2 is updated Many tricky changes Update of CPA 2008 necessaryWithin the boundaries of the NACE Rev. 2 structure…Extend CPA structure to an 8-digit structure, incorporating the Prodcom structureProblem: The Prodcom list is annually updated