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