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Product and Service Classifications 

Product and Service Classifications are the cornerstones against which official trade and production data are collected by customs and national statistical bodies.  

These quantitative data form the basis of NBS's 'Factual' industrial sector profiles .

Anyone who has attempted to unravel the mare's nest of inter-related national and international product/service classification systems will know that extracting accurate and timely data from the systems needs some determination and patience.

For example:

  • Classification systems for sales (production) and trade data are different.  To generate home consumption data (=sales+imports-exports), one has to 'align' two systems that use different numbering systems and descriptions.  

  • Data alignments issues are likely. Taking sales-trade data 'alignments' generated by the statistical authorities at face value will not identify the many anomalies and issues that need to be brought to the attention of the data-gathering authorities..  

  • Detail at a cost.  Data that are published without charge have little relevance to most industries because they are generally provided at a too-broad 4-digit level of classification.  At the very least one needs to purchase data against a 6-digit classification, and in most cases, an 8-digit classification is needed to provide the detail needed.   

  • Data varies with provenance.  Trade data published in the UK are not the same as UK trade data supplied to Europe for publication or the data published by Eurostat.  Even Eurostat data values can vary according to the database they supply the data from!

  • Timeliness is an issue.  While national trade data are usually produced promptly, the same data reflected from Europe are not.  National sales or production data can be published up to a year in arrears - and 2-3 years in arrears if you wait for the same data from Europe!

  • International difficulties arise when one needs to compare data across borders.  There is international agreement as to classification of trade at the 6-digit level, but this rarely provides enough detail.  There is no similar agreement as to classifying production within individual countries, so generating cross-border consumption data can be difficult.

There is good news however. Within the EU, there is agreement as to classification of both production and trade at the 8-digit level,  This means that, for EU countries at least, all aspects of trade and production at a reasonably detailed product level can be determined.  The EU's trade with other World countries (e.g. the USA) can also be determined on the same basis - but only from an EU perspective.

The inter-relationships between some of the classification systems are as indicated below:

 

 

 

Activities

 

Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide

 

ISIC Rev. 3

-----

CPC

----

------------

----

HS

®

SITC Rev.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ß

 

ß

 

 

 

ß

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EU level

 

NACE Rev.1

-----

CPA

----

PRODCOM

----

CN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ß

 

ß

 

ß

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

National level

 

National versions of NACE Rev.1

-----

National versions of CPA

----

National versions of PRODCOM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key:
ISIC International Standard Industrial Classification
NACE 'Nomenclature générale des activités Économiques dans les Communautés Européennes' (General Industrial Classification of Economic Activities within the European Communities)
CPC Central Product Classification
CPA Classification of Products by Activity
PRODCOM Products of the Communities
HS Harmonized Commodity Description and Coding System
CN Combined Nomenclature
SITC Standard International Trade Classification
 

Last modified: November 25, 2003