MONGOLIA- CLASSIFICATION SYSTEM

Ariunaa Khurelbaatar /officer of ESD, MESD/

19-21 March 2013, Chisinau, Moldova

Workshop on International

Classifications

2

I. General information /Revision status and structure/

II. Use of classifications

III. Encountered problems

IV. Future challenges

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

First Last

ISIC 1998 Apr, 2011

CPC 2001 Apr, 2011

COICOP 2005 2005

COPNI - 2011

COFOC 2010 by MOF

Classifications structure

6

I. General information

Classification CPC ISIC COICOP COPNI

Division 10 21 14 9

Subdivision 71 88

Group 325 238 57 24

Subgroup 1268 419

Class 2749 158 29

National subclass 3495 /7 digit/ 510

The new modifications to the CPC 2.0, ISIC 4 in 2011• ISIC

• CPC 1998 2002 2004 2006

ISIC 2 ISIC 3 ISIC 3.1 ISIC 4

CPC 1.0 CPC 1.1 CPC 2.0 CPC 2.0

2011 он2007 он2003 он2001 он

7

2011

ISIC 4

II. Use of Classification

Improved official adoption

Improved official adoption

Classifications usesII. Use of Classifications

No Classification Organizations and Purpose of Use

1 ISIC 4.0 General Authority for State Registration, General Department of Taxation (registration)

2 CPC 2.0General Department of Taxation (VAT report of enterprises)

3 COICOPGDP expenditure approach, Household socio economic survey (former Household income and expenditure survey)

4 COPNI GDP, Establishment census, Business register

5 COFOC NSO, 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 1990-2013 was recalculated in 2011-2013,

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 3.1 7010.Real estate

activities with own or leased property”

ISIC 4.00990.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

THANK YOU FOR YOUR ATTENTION