MONGOLIA- CLASSIFICATION SYSTEM Ariunaa Khurelbaatar /officer of ESD, MESD/ March 2013, Chisinau, Moldova Workshop on International Classifications

I.General information /Revision status and structure/ II.Use of classifications III.Encountered problems IV.Future challenges 2 Introduction

3 I.General information Classification Systems For international comparability For harmonization of different framework For better analysis of statistics To facilitate data collection, processing and analysis

International Standard Industrial Classification (ISIC) Central Product Classification (CPC) Classification of Individual Consumption According to Purpose (COICOP) Classification of the Function of Government (COFOG) Classification of the Purposes of NPISH (COPNI) Classification Systems in Mongolia 4 I.General information

55 Implementation of Classifications I.General information Official adoption FirstLast ISIC1998Apr, 2011 CPC2001Apr, 2011 COICOP2005 COPNI-2011 COFOC2010 by MOF

Classifications structure 6 I.General information ClassificationCPCISICCOICOPCOPNI Division Subdivision7188 Group Subgroup Class National subclass 3495 /7 digit/ 510

The new modifications to the CPC 2.0, ISIC 4 in 2011 ISIC CPC ISIC 2ISIC 3ISIC 3.1ISIC 4 CPC 1.0CPC 1.1CPC он2007 он2003 он2001 он ISIC 4 II. Use of Classification Improved o fficial adoption

Classifications uses II. Use of Classifications NoClassificationOrganizations and Purpose of Use 1ISIC 4.0 General Authority for State Registration, General Department of Taxation (registration) 2CPC 2.0 General Department of Taxation (VAT report of enterprises) 3COICOP GDP expenditure approach, Household socio economic survey (former Household income and expenditure survey) 4COPNIGDP, Establishment census, Business register 5COFOCNSO, Ministry of Finance

9 Business register: A double-coding (both old and new codes) based on conversion tables and surveys Structural business statistics short term statistics (monthly and quarterly survey): ISIC 3.1, New ISIC versions, use dual coding planned to 2013 for a short term statistics, National accounts,GDP: use ISIC 4, Time series for was recalculated in , What method do you use for calculating previous years in the new classifications?: Dual coding Benchmark, coefficients (it is in methodology of GDP of Mongolia) Other methods Classifications uses

III. Problems Encountered Outsourcing – manufacturing – Different type of outsourcing (labour, support functions, part or the complete of production process) – A unit classified in Manufacturing can have two types of outputs: a manufactured good a manufacturing service – “Manufacturer” has to be ownership of the good identified in the product classification

III. Problems Encountered Section J: “Information and Communication” Division 58:Publishing activities Division 59:Motion picture, video and television programme production, sound recording and music publishing activities Division 60:Programming and broadcasting activities Division 61:Telecommunications Division 62:Computer programming, consultancy and related activities Division 63:Information service activities

III. Problems Encountered Changing of Terminology Holding company Head office Ancillary units (surveys have to be conducted based on establishments?) R&D Intellectual property

III. Problems Encountered 1. ISIC 3.1 "G","Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods "K","Real estate, renting and business activities" ISIC 4.0 "S","Other service activities”

2. ISIC Real estate activities with own or leased property” ISIC Support activities for other mining and quarrying” 3. D. Manufacturing 22. Publishing, printing and reproduction of recorded media J. Information and communication 58. Publishing activities III. Problems Encountered

IV. Future challenges 1.Develop survey questionnaires for new sectors and updated sectors 2.Update previous time series, recalculating process 3.Usage of newly updated classifications 4.Update CPC more detailed level 5.Manufacturing service index for GDP and other NA’s estimations 6.Mining support service activities for GDP and other NA’s estimations

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