1. ESTP COURSE ON ECONOMIC AND SOCIAL CLASSIFICATIONS Introductory course Day 1 – first afternoon session ISIC Rev 4 and NACE Rev.2
Marie-Madeleine Fuger INSEE – France Hans Van Hooff CBS - Netherlands

2. ISIC = International Standard Industry Classification
NACE = Nomenclature statistique des Activités économiques dans la Communauté Européenne

3. Development of ISIC and NACE
Plan of session
Development of ISIC and NACE
Purpose and nature
Historical background
Structure and coding
Interpretation

4. ISIC and NACE Purpose and Nature
Classifications of Activities
as they usually are combined
in Statistical Units

5. ISIC and NACE Purpose and Nature
“Similar” activities are grouped together in classes (homogeneous to activity)
What is similar: Criteria:
>>Input (NACE 16: Manufacture of wood/products of wood)
>>Process (NACE 24.5: Casting of metals)
>>Output (NACE 32.4: Manufacture of games and toys)

6. What is not similar, not used as criteria:
Purpose and Nature
What is not similar, not used as criteria:
Legal organization type
Types of markets (market / non-market)
Size
Region
…………………………………………
Assisting Criterion: Ownership (of units or of outputs)

7. Purpose and Nature
Use
No strict application of the three criteria e.g. by NACE-level  would cause categories that are not useful e.g. by process in manufacturing.
So a pragmatic approach
In the past only for statistics, but activity classifications are more and more used for administrative purposes, laws, rules, licenses.

8. ISIC (International Standard Industry Classification)
History
1900: One Classification for occupations and activities of enterprises 
Industry classification:
First version: 1948; Rev.1: 1958; Rev.2: 1968; ISIC Rev.3: 1989; ISIC Rev.4: 2006
First mining, manufacturing.

9. NACE (Nomenclature d’Activités de la Commission Européenne)
History of NACE
Elaboration of NICE between 1961 and 1963
Elaboration of NACE in 1970
Development of NACE Rev.1
Based on ISIC: strong decision taken in the 80’s
Same structure, more details
International harmonization respected
Possible national versions
Legal base (regulation)
Working group NACE: since 1986
Current version NACE Rev.2: 2008

10. NACE (Nomenclature d’Activités de la Commission Européenne)
NACE regulation
All statistics with data on economic activities should use NACE or a derived national level
Supplementary national levels okay, but same frame (concepts, definitions) and same structure
National coding system may be different
National versions approved by the Commission
Pending problem: NACE-structure not fit for all economic studies
Other structures and aggregation needed

11. International situation activity classifications
BIK ÖNACE NAF SBI NAICS NACE NACE-BEL ANZSIC JSIC ISIC CAE Toimialaluokitus SNI CRIC ஒகறஐஊ
Holding
Manufac-
turing of
bikes
Transport
Computer
Sale of bikes

12. ISICNACENationale SIC
ISIC=UN XXXX
NACE=EU XXYY
NACE-BEL=Belgium XXYY.Z
ÖNACE=Austria XXYY.Z
SBI=Netherlands XXYY.Z
BIK Chambres of Commerce XXYY.ZQ
Etc=Etc

13. National classifications
 Today
VN-classification
Japan
EU-classification
AUS/NZ
National classifications
Associated countries

14. National classifications
 
NAICS
VN-classification
Japan
EU-classification
AUS/NZ
National classifications
Associated countries

15. Structure and coding of NACE Rev. 2
21 Sections : 1 letter
88 Divisions : 2 digits
272 Groups : 3 digits
615 Classes : 4 digits
Shared with ISIC Rev.4 02
Schéma d’organisation : emboîtement à tous les niveaux, comme dans la nomenclature actuelle,
L’emboîtement est visible dans le code, mais les lettres des sections ne sont pas rappelées devant les chiffres
La NACE est codifiée comme la CITI (classification internationale type des industries), mais avec un point entre le 2 et le 3ème chiffre
Disparition des sous-sections (propres à la NACE, elles n’existaient qu’en Industrie)
Les groupes et les classes NACE proviennent de l’éclatement de groupes et de classes CITI
Amélioration de la codification nationale : on lit directement la classe NACE dans la sous-classe NAF
02.1
Shared in all member states
02.10

16. NACE Rev. 2 Aggregated structures for national accounts
Fully integrated in ISIC/NACE structure
High level aggregation (10 or 11 categories)
Intermediate aggregation (38 categories)

17. NACE Rev. 2

18. NACE Rev. 2 Tools for Interpretation of NACE:
Explanatory notesexample
Indexes
Computer assisted coding
Case law —> rulings example
Strict links with CPA (*)
Hierarchy : NACE – CPA – CN
Additional correspondence table example
(*) not always true

19. 11.02 Manufacture of wine from grape
This class includes:
- manufacture of wine
- manufacture of sparkling wine
- manufacture of wine from concentrated grape must
This class also includes:
- blending, purification and bottling of wine
- manufacture of low or non-alcoholic wine
This class excludes:
- merely bottling and labelling, see (if performed as part of wholesale) and (if performed on a
fee or contract basis)

22. Thank you!