1. Training course on International Trade in Goods Statistics
Classifications
The Integrated System of Classifications
The HS and the CN
EU Geonomenclature
Eurostat metadata server RAMON
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

2. Training course on International Trade in Goods Statistics
The Integrated System of Classifications
PRODUCTS
ACTIVITIES
ISIC Rev. 4
CPC Ver. 2
HS 2012
SITC
Rev. 4
BEC
Global Level
NACE Rev. 2
CPA 2008
PRODCOM CN
MIG
EU Level
National
version of
NACE
National
version of
CPA
National
version of
PRODCOM
National
Level
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

3. Training course on International Trade in Goods Statistics
General remarks on classifications
Transposition and correlation tables
Are important for:
Time series
Long time analysis
Economic and statistical comparisons
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

4. Training course on International Trade in Goods Statistics
General remarks on classifications
Concern classifications such as:
SITC: Standard International Trade Classification (Rev.4)
NACE: Statistical Classification of Economic Activities in the European Union (Rev. 2)
CPA: Statistical classification of products by activity in the European Union
PRODCOM: Community Production
BEC (Broad Economic Categories), MIG (Main Industrial Groupings)….
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

5. Training course on International Trade in Goods Statistics
General remarks on classifications
Were strongly affected by OPERATION 2007
Major update of all main statistical classifications at world level: HS, ISIC, CPC, SITC, with:
strong impact on EU classifications CN, NACE, CPA, PRODCOM, ….
strong impact on all main transposition tables
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

6. Training course on International Trade in Goods Statistics
General remarks on classifications
Classifications for international trade in goods
2 types of classifications
Product classification
HS: Harmonized System (World level – HS6 subheadings in HS 2012)
CN: Combined Nomenclature (EU level – CN8 subheadings in CN 2013)
TARIC: Integrated Tariff of European Union (EU level, imports only, ~ subheadings)
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

7. Training course on International Trade in Goods Statistics
General remarks on classification
Country classification
ISO : World level standard
GEONOM: Nomenclature of countries and territories for the external trade statistics of the Union and statistics of trade between Member States: ~250 codes
GEONOM:
Is the EU standard
Is based on ISO Standard, with slight differences for EU reasons
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

8. Harmonized System (HS)
Maintained by the World Customs Organization (WCO) - also HS Explanatory Notes (HSEN) and Classification Opinions
Revised every five years, next 2017
COM (DG TAXUD) represents EU at WCO
EU Customs Code Committee – HS sector
HS subheadings – 6 first digits of CN 8 digit codes
22 Apr - 26 Apr 2013
Training course on international Trade in Goods Statistics

9. Combined Nomenclature (CN): Management
Commission Regulation CN published every October
Amendments reflect technological and commercial developments, needs of EU policies and simplification
HS changes are directly transposed into CN resulting in considerable CN restructuring (in 2007&2012, 10% of codes changed)
EU Customs Code Committee – CN sector (TAXUD/ESTAT)
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

10. Combined Nomenclature (CN): Classification
Principle: uniform application in EU27
Binding Tariff Information (BTI) can be requested from Customs of any MS, valid in whole EU but only for the holder
EU Customs Code Committee – classification sectors (Mechanical, Agricultural, Chemical, Textiles etc.)
Classification problems may be escalated to the Committee (diverging BTIs, no bilateral agreement)
Possible remedies: - Classification Regulation - CN Explanatory Note (CNEN) - Statement in the minutes of the Committee
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

11. Training course on International Trade in Goods Statistics
Classification Aids
Self-explanatory texts in EN&FR&DE (and national translations) are self-contained descriptions of codes
TARIC search (subdivides CN, 10 digit codes)
BTI database
ECICS chemical inventory
3CE Online CN search engine eurostat.prod.3ceonline.com
UK Customs classification guides
CN Explanatory Notes (new consolidated version in summer 2013) Remark: hyperlinks work clicking in slide show mode
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

12. Training course on International Trade in Goods Statistics
Thank you! Questions?
Jussi Ala-Kihniä Unit G4 Global Transactions
22 Apr - 26 Apr 2013
Training course on International Trade in Goods Statistics

13. Classification of a product (1)
The Combined Nomenclature
is based on the HS, and is the base of TARIC
is a mixed nomenclature: tariff and statistical nomenclature,
is a multi-purpose nomenclature that reflects:
Tariff commitments from the EU vis a vis Third countries
EU imports or exports requirements
Statistical requirements

14. Classification of a product (1)
Specifically, the CN allows:
Monitoring trade agreements and trade negotiations,
Managing CAP and Common Fishery Policy,
Managing other policies, such as environment, health, industrial policies, analysing the development of the internal market and the integration of European economies,
and

15. Classification of a product (1)
Satisfying the needs for statistical information in the economic domain:
measuring trade,
monitoring economic trends and development of market shares of EU industry,
anticipating economic developments,
measuring the competitiveness of the EU economy and EU enterprises,
protecting EU industry (i.e. anti-dumping rules)
Is a detailed classification: codes (2013)

16. CN-subheading (2 dashes)
Classification of a product (2)
Level
Name of the level
Code 1 2 3 4 5 6
section
chapter
heading
subheading (1 dash)
subheading (2 dashes)
CN-subheading (2 dashes)
roman figures (I – XXI)
2 digits (01-97) (without 77)
4 digits
6 digits (or no code) e.g
6 digits e.g
8 digits e.g

17. Classification of a product (2)
Highest level (4 digits)
Lower level (intermediate subheading / digits
Lower level digits
EU level (CN) digits

18. Classification of a product (2)
the distinction between the products is made by :
the material a product is made of
the function a product fulfills
the degree of processing of a product
the essential parts of the HS are :
the code
the nomenclature text (including dashes)
the section and chapter notes
the general rules for the interpretation

19. Classification of a product (3)
These parts are legally binding.
None of these parts can be understood without the other parts.
The explanatory notes are not legally binding.
Notes to sections and chapters:
exclusions
inclusions
definitions
decisions

20. General Rule 1 The legal bases for classifications are:
terms of headings
section and chapter notes
general rules

21. General Rule 2 General Rule 2a) General Rule 2b)
Inclusion of incomplete or unfinished goods
Inclusion of unassembled or disassembled goods
General Rule 2b)
Mixtures or combinations of different materials or substances
Goods consisting of two or more materials

22. General Rule 3 General Rule 3a) General Rule 3b)
Classification according to the most specific description (on heading level)
General Rule 3b)
Refers to:
mixtures
composite goods of different materials
composite goods of different components
sets put up for retail sale

23. General Rule 3 General Rule 3b)
Classification according to what gives the whole its essential character
Factors defining the essential character:
nature of the material or the component
bulk, quantity, weight
value
role of the constituent material

24. General Rule 3 General Rule 3b) Goods made up of different components:
inseparable or separable components
adapted to one another and mutually complementary
form a whole
normally not offered for sale separately
in general put in a common packing

25. General Rule 3 General Rule 3b) General Rule 3c)
Goods put up in sets for retail sale:
at least two different articles or different headings
to meet a particular need or specific activity
for direct sale to users (packing)
General Rule 3c)
Last in numerical order

26. General Rule 4 Classification under appropriate heading:
To which they are most akin (in practice never applied)

27. General Rule 5 General Rule 5a) General Rule 5b)
For cases, boxes and similar containers:
specially shaped
suitable for long-term use
presented with the articles
normally sold with
do not give the whole its essential character
General Rule 5b)
Packing materials and packing containers
Applies to containers which are normally used
Not binding for containers for repetitive use

28. General Rule 6
Classification in subheadings (according to terms of subheadings + subheadings notes)
Application of the general rules mutatis mutandis