Use of ISIC for non-statistical purposes Brazilian experience Expert Group Meeting on International Statistical Classifications 6-8 September 2017, New York

CNAE – Classificação Nacional de Atividades Econômicas ISIC provides the basis of the Brazilian Classification of Economic Activities (CNAE). The current national activity classification is used in the production of statistics by type of economic activity, and by the Public Administration, in the identification of economic activity in business registers and records of legal entity.

History of the CNAE The CNAE resulted from a process of reviewing the classifications of economic activities in the 1990’s, more extensive than the periodic updating and improvement procedures previously adopted by IBGE as a part the planning of economic censuses. New approach to classification work:           - shared work, led by IBGE           - CNAE officialization - Official Gazette 12/26/1994           - institutional arrangement: National Classification Commission           - management of CNAE by IBGE           - commitment to international harmonization

From CNAE to CNAE-Subclasses The subclasses of the CNAE constitute the fifth level of the CNAE 2.0. This level was established to be used in the registers and records of the public administration in the three spheres of government in order to standardize the identification codes of the productive units of the country. The first version of the CNAE subclasses was defined in 1998, under the name CNAE-Fiscal. In 2007, the structure of the CNAE underwent a comprehensive review, resulting in version 2.0. The fifth level of detail of the CNAE (the subclasses) no longer has the reference to fiscal use (CNAE-Fiscal), being treated in a broader way, as a detail for specific use of the Public Administration. The current version 2.2 of the CNAE-Subclasses was prepared, effective as of January 2015.

Official statistics produced by IBGE Gain of quality and articulation Advantages of the CNAE-Subclasses Official statistics produced by IBGE + The information of business registers and registrations of legal entities of the Public Administration, in the three spheres of government Gain of quality and articulation

Controversies Demand for frequent revisions, necessary for the identification of activities in Public Administration records. Demand for greater detail in the structure of the classification with the objective of legal identification of the economic activity carried out by the productive unit.

Challenge To convince public administration bodies write rules and laws using descriptions of activities and not codes, which in fact constitute an aggregate of activities that often should not be subject to the same sanitary rules, risk of accidents at work, control of environmental risk, etc.