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Product classifications used in the region

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Presentation on theme: "Product classifications used in the region"— Presentation transcript:

1 Product classifications used in the region
Michael Mietzner Eurostat

2 CPA 2008 Scope Main structure Link to HS/CN Link 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 CN For outputs, input-output matrix, also for input used in industries Definition of services Definition of buildings Might 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 account They are not services They are not physical objects But: they are products (“intangible goods” – although this concept doesn’t exist) Example: R&D originals Compromise: group them with services that correspond to activities that create them!

6 CPA 2008 – structure Follows the NACE Rev. 2 structure down to class level …but there are exceptions: Mixed farming Fishing and aquaculture Furniture Construction Retail trade

7 CPA 2008 – structure Options for overall structure of the CPA:
Group products based on industry of origin e.g. NACE, used currently in CPA Group products by their characteristics used currently in CPC Group products based on demand e.g. COICOP based or by the BEC: s

8 CPA 2008 – CN link NACE provides basic definitions (building blocks) for services For goods – section C (Manufacturing) - the CN provides these building blocks, i.e. each CPA goods subcategory is the sum of CN subheadings The CN correspondence replaces explanatory notes in CPA section C

9 CPA 2008 – CN link Problem: CPA provides in some areas detail beyond CN level: Agriculture Fishing and aquaculture Food manufacturing Example: Prepared meals and dishes Iron and steel manufacturing Example: Casting of steel Reason: The 1-1 linking CPA-CN is required for Prodcom, but CN detail decreasing… Compromise: Secondary links added!

10 Manufacturing section only
CPA 2002 CPA 2008 Difference Overall Sections 17 21 +4 Divisions 62 88 +26 Groups 223 261 +38 Classes 502 575 +73 Categories 1146 1342 +196 Subcategories 2608 3142 +534 Manufacturing section only 1 +/-0 23 24 +1 103 95 -8 232 231 -1 742 770 +28 1666 1746 +80 Other sections 16 20 39 64 +25 120 166 +46 270 344 +74 404 572 +168 942 1396 +454 10

11 Main changes

12 CPA revision Main objectives: Review detail of CPA
Sectorial review for services Focus on products that are outputs of revised/new NACE industries Service products IT products Originals Review lower-level detail for analytical usefulness; add or delete?

13 CPA structure changes (1)
A - Agriculture, forestry and fishery products Detail C - Food products, beverages and tobacco; textiles, apparel and leather products C - Other transportable goods, except metal products, machinery and equipment Published products (books etc.) C - Metal products, machinery and equipment Computer-related products

14 CPC structure changes (1)
H - Transport and storage services Restructuring of transport services K - Financial and insurance services New detail L - Real estate services N - Rental and leasing services

15 Changes for agriculture and food products

16 New detail (1) Substantial increase at lowest level (categories and subcategories) Examples: For agriculture: Recognition of more types of plants, animals Separation of raw from processed products For food products: Separation of meat by type of animal

17 New detail (2) Problem: Excessive level of detail in food manufacturing, below CN level Substantial increase of Prodcom codes as well as so-called CN Z-codes Solution: CPC Ver. 2 in some cases more detailed than CPA 2008 Likely 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 2002 CPA 2008 Difference Agriculture Sections 1 +/- 0 Divisions Groups 4 6 +2 Classes 11 30 +19 Categories 65 +35 Subcategories 71 166 +95 Food products +/-0 8 9 +1 25 75 84 +9 148 206 +58 18

19 Changes in CPA services categories

20 CPA services (1) As part of the CPA revision process, some services have been reviewed in detail The goal has always been to: Provide a complete coverage of outputs Reflect new services Provide better (more precise) definitions of services Define 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 services Specialised 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 services K - Financial and insurance services J - Information and communication services Q - Human health and social work services E - Sewerage, waste management and remediation services

23 CPA services (4) At lower levels, some areas have also been reorganized For example: 78 - Employment services To reflect changes in ISIC/NACE Architecture and engineering services and related technical consulting services To reflect reporting practices by businesses 79 - Reservation services etc. 59 - Audio-visual and related services

24 Human health services Detail has been changed to reflect new detail introduced in ISIC/NACE Veterinary services have been moved out to professional activities New 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 content Part of review of ICT and content products Includes “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 transport Secondary, split by mode of transport In 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.9Z A 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 outsourcing The contractor provides a service (e.g. assembly) Contractor cannot report on the value of the goods he has produced He does not sell them on the market He can only report the fee he has received from the principal for his work The 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: Poland Sweden Portugal Reason: Sufficient product detail in the Procom list Limitations as to the level of detail of the Combined Nomenclature

30 Prodcom

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 production Article 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 – production Indices of external trade Crop statistics - supply balance sheets Forestry statistics

34 Upcoming issues CPC Ver.2 is updated Many tricky changes
Update of CPA 2008 necessary Within the boundaries of the NACE Rev. 2 structure… Extend CPA structure to an 8-digit structure, incorporating the Prodcom structure Problem: The Prodcom list is annually updated

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