Eurostat Product classifications used in the region Michael Mietzner Eurostat.

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Eurostat Product classifications used in the region Michael Mietzner Eurostat

Transcript of Eurostat Product classifications used in the region Michael Mietzner Eurostat.

Page 1: Eurostat Product classifications used in the region Michael Mietzner Eurostat.

EurostatEurostat

Product classifications used in the region

Michael MietznerEurostat

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CPA 2008

•Scope•Main structure•Link to HS/CN•Link to ISIC/NACE

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CPA 2008 - scopeCPA has five main functions:

• Harmonisation between world level (CPC) and Europe (CPA and Prodcom)

Link to HS and CN

• For outputs, input-output matrix, also for input used in industries

• Definition of services• Definition of buildings

• Might eventually replace the Classification of Constructions (CC)

• Linking the activity classification NACE (structural business statistics) and CPA (product classification)

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CPA 2008 - scope

• Boundary questions for:• Waste products

(included, even non-produced, irrespective of value)

• Does generally not include used good (such as used cars)

• Assets(produced assets included as products)

• Problem: there are outputs of economic activities, i.e. “products”, that do not fit the definition of goods or services

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Problem:

“intellectual property products”• outputs of a creative process carried out on own

account• They are not services• They are not physical objects• But: they are products

(“intangible goods” – although this concept doesn’t exist)

• Example: R&D originals

• Compromise: group them with services that correspond to activities that create them!

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CPA 2008 – structure

• Follows the NACE Rev. 2 structure down to class level

• …but there are exceptions: 1. Mixed farming2. Fishing and aquaculture3. Furniture4. Construction5. Retail trade

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CPA 2008 – structure

• Options for overall structure of the CPA:• Group products based on industry of

origine.g. NACE, used currently in CPA

• Group products by their characteristicsused currently in CPC

• Group products based on demande.g. COICOP based or by the BEC: s

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CPA 2008 – CN link

• NACE provides basic definitions (building blocks) for services

• For goods – section C (Manufacturing) - the CN provides these building blocks, i.e. each CPA goods subcategory is the sum of CN subheadings

• The CN correspondence replaces explanatory notes in CPA section C

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CPA 2008 – CN link• Problem: CPA provides in some areas

detail beyond CN level:• Agriculture• Fishing and aquaculture• Food manufacturing

Example: Prepared meals and dishes• Iron and steel manufacturing

Example: Casting of steel

• Reason: The 1-1 linking CPA-CN is required for Prodcom, but CN detail decreasing…• Compromise: Secondary links added!

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CPA 2002 CPA 2008 Difference

Overall

Sections 17 21 +4

Divisions 62 88 +26

Groups 223 261 +38

Classes 502 575 +73

Categories 1146 1342 +196

Subcategories 2608 3142 +534

Manufacturing section only

Sections 1 1 +/-0

Divisions 23 24 +1

Groups 103 95 -8

Classes 232 231 -1

Categories 742 770 +28

Subcategories 1666 1746 +80

Other sections

Sections 16 20 +4

Divisions 39 64 +25

Groups 120 166 +46

Classes 270 344 +74

Categories 404 572 +168

Subcategories 942 1396 +454

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Main changesMain changes

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CPA revision

• Main objectives:

• Review detail of CPA• Sectorial review for services

• Focus on products that are outputs of revised/new NACE industries

• Service products• IT products• Originals• Review lower-level detail for analytical

usefulness; add or delete?

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CPA structure changes (1)

• A - Agriculture, forestry and fishery products• Detail

• C - Food products, beverages and tobacco; textiles, apparel and leather products• Detail

• C - Other transportable goods, except metal products, machinery and equipment• Published products (books etc.)

• C - Metal products, machinery and equipment• Computer-related products

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CPC structure changes (1)

• H - Transport and storage services• Restructuring of transport services

• K - Financial and insurance services• New detail

• L - Real estate services• New detail

• N - Rental and leasing services• New detail

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Changes for Changes for agriculture agriculture and food and food productsproducts

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New detail (1)

• Substantial increase at lowest level (categories and subcategories)

• Examples:• For agriculture:

Recognition of more types of plants, animalsSeparation of raw from processed products

• For food products:Separation of meat by type of animal

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New detail (2)

• Problem:• Excessive level of detail in food

manufacturing, below CN level• Substantial increase of Prodcom codes as

well as so-called CN Z-codes

• Solution:• CPC Ver. 2 in some cases more detailed

than CPA 2008

• Likely that new detail in the updated CPC Ver.2 will not reflected in an updated CPA 2014

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CPA 2002 CPA 2008 Difference

Agriculture

Sections 1 1 +/- 0

Divisions 1 1 +/- 0

Groups 4 6 +2

Classes 11 30 +19

Categories 30 65 +35

Subcategories 71 166 +95

Food products

Sections 1 1 +/-0

Divisions 1 1 +/-0

Groups 8 9 +1

Classes 25 25 +/-0

Categories 75 84 +9

Subcategories 148 206 +58

New detail in agriculture and food products

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Changes in Changes in CPA services CPA services categoriescategories

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CPA services (1)

• As part of the CPA revision process, some services have been reviewed in detail

• The goal has always been to:• Provide a complete coverage of

outputs• Reflect new services• Provide better (more precise)

definitions of services• Define services in a way that facilitates

reporting by businesses

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CPA services (2)• Although the CPA does not explicitly define what

services are, they have in general been grouped in sections D-U, however:

• There are also some products in sections D-U that are not services

• Specialised repair, maintenance and installation services are in division 33 in section C (Manufacturing)

• Manufacturing services are (with some exceptions) allocated to the respective manufacturing class in section C

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CPA services (3)

• Specific divisions that have been reviewed in this revision:• H - Transportation and storage services• K - Financial and insurance services• J - Information and communication

services• Q - Human health and social work

services• E - Sewerage, waste management and

remediation services

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CPA services (4)

• At lower levels, some areas have also been reorganized

• For example:• 78 - Employment services

To reflect changes in ISIC/NACE• 71.1 - Architecture and engineering

services and related technical consulting servicesTo reflect reporting practices by businesses

• 79 - Reservation services etc.To reflect changes in ISIC/NACE

• 59 - Audio-visual and related servicesTo reflect changes in ISIC/NACE

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Human health services

• Detail has been changed to reflect new detail introduced in ISIC/NACE

• Veterinary services have been moved out to professional activities

• New detailed services respond to needs for analysis, e.g. in the system of health accounts

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Telecommunications services etc.

• Revision mostly affects products related to the On-line distribution of content• Part of review of ICT and content

products • Includes “originals” products alongside

services of broadcasting etc.• Revises previous understanding of

services for content distribution

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Transportation services

• Transportation services have been grouped in a way that is more useful for analysis:• Interest is primarily for passenger vs.

freight transport• Secondary, split by mode of transport

• In NACE, the structure reflects the organization:• Breakdown first by mode of operation

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Manufacturing services (1)

• Manufacturing services referred to as “Sub-contracted operations as part of manufacturing of…” • Identified as code format XX.YY.9Z

• A manufacturing unit (defined in NACE) can provide two types of output:• Good (if production is done on own account)• Manufacturing service (if production is done

on account of others)• Missing subcategories for these services added

where not already introduced in CPA 2002

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Manufacturing services (2)

• Why are these services necessary?• They apply in the case of outsourcing• The contractor provides a service (e.g. assembly)• Contractor cannot report on the value of the

goods he has produced• He does not sell them on the market• He can only report the fee he has received

from the principal for his work• The data is also important for calculation of short

term indicators (weights for indices of production)

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National versions of the CPA 2008

• Since the introduction of the CPA 2008 there are only three EU Member States with national subdivisions:• Poland• Sweden• Portugal

Reason:• Sufficient product detail in the Procom list• Limitations as to the level of detail of the Combined

Nomenclature

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ProdcomProdcom

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Scope of the Prodcom list

Council Regulation (EEC) No 3924/91 of 19 December 1991 on the establishment of a Community survey of industrial production

Article 2(1):

1. The field covered by the survey referred to in Article 1 shall be that of the activities in sections B and C of the classification of economic activities in the European Community (NACE Rev. 2).

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Scope of the Prodcom list (cont.)

COMMISSION REGULATION (EU) No 907/2012 of 20 August 2012 establishing for 2012 the ‘Prodcom list’ of industrial products provided for by Council Regulation (EEC) No 3924/91

(1) Regulation (EEC) No 3924/91 requires Member States to carry out a Community survey of industrial production. (2) The survey of industrial production must be based on a list of products identifying the industrial production to be surveyed. (3) A list of products is necessary to permit alignment between production statistics and external trade statistics and to afford comparison with the Community product nomenclature CPA.

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Use of Prodcom data

• PRODCOM - industry production• International trade statistics – production• Indices of external trade• Crop statistics - supply balance sheets• Forestry statistics

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Upcoming issues

• CPC Ver.2 is updated• Many tricky changes• Update of CPA 2008 necessary

• Within the boundaries of the NACE Rev. 2 structure…

• Extend CPA structure to an 8-digit structure, incorporating the Prodcom structure• Problem: The Prodcom list is annually updated