1. United Nations Statistics Division Impact of the HS 2012 amendments on CPC Version 2

2.  The detailed HS categories have been used as the building blocks for the goods categories of CPC  Recent revision of HS is taking place in 2012; CPC is mandated to be reviewed every five years  In order to assess impact from HS 2012, a table entailing every affected CPC subclass and recommended resolution has been prepared Background

3. Overall impact on CPC Ver.2  Scenario 1: Only an update of CPC-HS link would be required  Scenario 2: No change to the written CPC-HS link  Scenario 3: Changes in HS are not compatible with CPC structure; 8 complex cases have been summarized

4. Overall impact on CPC Ver.2  Complex cases: Case 1: Smoked aquatic invertebrate products Case 2: Sanitary towels etc. Case 3: Non-chemically defined products Case 4: Water-jet cutting machines Case 5: Image projectors etc. Case 6: Biodiesel Case 7: Hazardous chemicals and pesticides Case 8: Edible fish offal

5. Recommended options  Option 1: Updating CPC-HS link only Advantage: CPC structure unchanged Disadvantage: partial links appear  Option 2: Incorporate HS changes into CPC tructure Advantage: without creating partial links Disadvantage: CPC structure and explanatory notes revised

6. Questions to the Expert Group  How to handle high-impact cases?  Whether a change to the CPC itself is necessary?