cpc ver.2 structure scope and boundarystructurechanges and new conceptsapplication rules...
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CPC Ver.2
Structure
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CPC Ver.2 - structure Options for overall structure of the CPC:
Group products based on industry of origin e.g. ISIC based
Group products based on demand e.g. COICOP based
Group products by their characteristics used currently in CPC
CPC Ver.2 uses the last approach Products grouped according to characteristics Groupings often follow industries, but not as a rule Product groups often consider analytical use
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High-level structureSection Title
0 Agriculture, forestry and fishery products
1 Ores and minerals; electricity, gas and water
2 Food products, beverages and tobacco; textiles, apparel and leather products
3 Other transportable goods, except metal products, machinery and equipment
4 Metal products, machinery and equipment
5 Constructions and construction services
6 Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services
7 Financial and related services; real estate services; and rental and leasing services
8 Business and production services
9 Community, social and personal services
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CPC Ver.2
Changes and new concepts
Scope and boundary Structure Changes and new concepts Application rulesApplication rulesStructure Changes and new concepts Application rulesScope and boundary Structure Changes and new concepts Application rulesScope and boundary Structure Changes and new concepts Application rules
CPC – origins of change
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CPCVer.2
HarmonizedSystem 2007
(WCO)
ISIC Rev.4
World Economy
Summary of change
Change in structure Top structure unchanged At lower levels:
introduction of detail reorganization
Change in scope Constructions New concept: originals
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Section Title
0 Agriculture, forestry and fishery products
1 Ores and minerals; electricity, gas and water
2 Food products, beverages and tobacco; textiles, apparel and leather products
3 Other transportable goods, except metal products, machinery and equipment
4 Metal products, machinery and equipment
5 Constructions and construction services
6 Distributive trade services; accommodation, food and beverage serving services; transport services; and electricity, gas and water distribution services
7 Financial and related services; real estate services; and rental and leasing services
8 Business and production services
9 Community, social and personal services
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Significant new detail
Significant new detail
Differentiation of published products
Little change
Computer-related prod.Constructions reintroduced
Restructuring of transport services
Significant new detail
New detail (div. 83, 84, 85)
New detail (health, waste management, audiovisual)
Involved sections: Section 0 – agriculture, forestry and
fishery products Section 2 – food products, beverages and
tobacco; textiles, apparel and leather products
A major complaint by majority of countries (esp. developing countries): Insufficient detail for agricultural products
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Changes for agriculture and food products
Changes for agriculture and food products – relationship with HS
Goods in CPC used to be defined in terms of aggregation of HS classes. Imposed a limitation on the level of detail
possible Unprocessed agricultural products are not
heavily traded internationally. Therefore, HS does not provide much detail in these products.
For CPC Ver.2, the FAO was consulted to advice on necessary detail.
CPC Ver.2 more detailed than HS when it comes to agricultural and food products. Many split links
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CPC Ver1.1 CPC Ver.2
Agricultural products
Divisions 4 4
Groups 17 19
Classes 66 85
Subclasses 83 208
Food products
Divisions 5 9
Groups 23 23
Classes 87 93
Subclasses 111 229
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Substantial increase of detail at lowest level recognition of more types of plants,
animals separation of raw and processed
products separation of meat by type of animal
Some changes make CPC more applicable to individual regions e.g. tropical fruits, sheep, goat, camel
Changes for agriculture and food products
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General motivations for changes: Provide better coverage of outputs Reflect new services Provide more precise definition of services Define services in a way that facilitates
reporting by businesses Group services in a way useful for analysis
Concerns section 5-9 (although these also contain other things than services)
Changes relating to services
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Specific division that have been reviewed: 64-67 Transportation services 71 - Financial services 84 – Telecommunications, broadcasting and
information supply services 88 - Manufacturing services 93 - Human health services 94 - Waste treatment services (etc.)
Changes relating to services
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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 ISIC, the structure reflects the organization Breakdown first by mode of transport,
then by passenger/freight
Changes relating to services:Division 64-67: Transportation
services
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At lower levels of the structure: Within passenger transport, the breakdown
is by local vs. long-distance transport Sightseeing transport services are
recognized separately (and then broken down by mode of transport) In ISIC: no concept of “sightseeing”
Passenger air transport is separated into domestic and international travel
Changes relating to services:Division 64-67: Transportation
services
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Changes relating to services:Division 71: Financial services
CPC Versions 1.0 and 1.1 included an annex with a suggested alternate detail for financial services More detailed than “regular” division 71
This alternate detail has now been incorporated into the regular CPC structure Eliminates need for an annex
In addition, some small detail was added in response to special needs (e.g. travel insurance)
Group Title
711 Financial services, except investment banking, insurance services and pension services
712 Investment banking services
713 Insurance and pension services (excluding reinsurance services), except compulsory social security services
714 Reinsurance services
715 Services auxiliary to financial services other than to insurance and pensions
716 Services auxiliary to insurance and pensions
717 Services of holding financial assets
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Changes relating to services:Division 84: Telecommunications …
Revision mostly affects products related to the on-line distribution of content Part of review of ICT and content product groupings Includes “originals” alongside services of
broadcasting etc. Revises previous understanding of services for
content distribution
Group Title
841 Telephony and other telecommunications services
842 Internet telecommunications services
843 On-line content
844 News agency services
845 Library and archive services
846 Broadcasting, programming and programme distribution services
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Changes relating to services:Division 88: Manufacturing services
A manufacturing unit (defined in ISIC) can provide two types of output: Good (if production is done on own account) Manufacturing service (if production is done on
account of others)
The CPC provides categories for both
Changes relating to services:Division 88: Manufacturing services
In previous versions of the CPC, the detail of manufacturing services was limited Typically one service class responding to one
ISIC division In CPC Ver.2 this detail has been increased
There is now one CPC service category (subclass) for each ISIC Rev.4 manufacturing class
Changes relating to services:Division 88: Manufacturing services Why are these services necessary?
They apply in the case of outsourcing The contractor provides a service (e.g.
assembly) Contractor can not 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)
Division 88 - structure
Code Description
88 Manufacturing services on physical inputs owned by others
881 Food, beverage and tobacco manufacturing services
882 Textile, wearing apparel and leather manufacturing services
883 Wood and paper manufacturing services
884 Petroleum, chemical and pharmaceutical product manufacturing services
885 Rubber, plastic and other non-metallic mineral product manufacturing services
886 Basic metal manufacturing services
887 Fabricated metal product, machinery and equipment manufacturing services
888 Transport equipment manufacturing services
889 Other manufacturing services
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Changes relating to services:Division 93: Human health services
Detail has been changed to reflect new detail introduced in ISIC
Veterinary services have been moved out New detailed services respond to needs for
analysis, e.g. in the system of Health Accounts
Group Title
931 Human health services
932 Residential care services for the elderly and disabled
933 Other social services with accommodation
934 Social services without accommodation for the elderly and disabled
935 Other social services without accommodation
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Changes relating to services:Division 94: Waste treatment
services Exact title: “Sewage and waste collection,
treatment and disposal and other environmental protection services”
Number of subclasses increased from 9 to 28, mainly to reflect ISIC Rev.4 changes
Group Title
941 Sewerage, sewage treatment and septic tank cleaning services
942 Waste collection services
943 Waste treatment and disposal services
944 Remediation services
945 Sanitation and similar services
949 Other environmental protection services n.e.c.
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Changes relating to services:Division 94: Waste treatment
services Groups 942 and 943 make distinction between
services related to: Hazardous materials Non-hazardous, recyclable materials Other non-hazardous materials
Group Title
941 Sewerage, sewage treatment and septic tank cleaning services
942 Waste collection services
943 Waste treatment and disposal services
944 Remediation services
945 Sanitation and similar services
949 Other environmental protection services n.e.c.
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Changes relating to services:Division 94: Waste treatment
services
Subclass Title
9421 Collection services of hazardous waste
94211 Collection services of hazardous medical and other biohazardous waste
94212 Collection services of industrial hazardous waste (except medical and other biohazardous waste)
94219 Collection services of other hazardous waste
9422 Collection services of non-hazardous recyclable materials
94221 Collection services of non-hazardous recyclable materials, residential
94229 Collection services of non-hazardous recyclable materials, other
9423 General waste collection services
94231 General waste collection services, residential
94239 General waste collection services, other
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Changes relating to services:Division 94: Waste treatment
services Exact definitions for “hazardous” and “recyclable” will
depend on countries’ definitions What is important here is not type of waste collected,
but the procedures of collection Distinctions should be made with the following
considerations: Collection process specifically set up to address handling of
hazardous materials? (radioactive materials, oil, etc.) Collection process specifically set up to ensure materials
are recycled? (paper, etc.) If no special procedures are used, the waste collection is
“other”.
Important new concept:ORIGINALS
As we saw earlier, intellectual property (IP) products are output of economic activities and within scope of CPC. research results product design sound/video recordings trademarks/franchises computer software
Value lies in information content, not physical form
In the CPC, we talk about originals and content
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Important new concept:ORIGINALS
Originals are outcomes of intellectual or creative activities (before copying or distribution). Value lie in information content. When intellectual/creative activity carried out on own account:
the original is considered the output of that activity. However, when carried out for someone else (“fee/contract
basis”), the output of the activity is considered a service. The original, in this case, is considered output of the client.
Originals are not services Originals are not copies
There is by definition never produced more than one original.
Copying an original is an act of production. A new product (the copy) is being made.
The copies are not originals, but they are often content products (as identified in the alternative aggregation).
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Classification of intellectual property products
Originals are neither goods nor services are classified in part 5-9 of the CPC (i.e., the “services”
part), close to the services with whom they are related e.g. research and development originals found in division 81
– “Research and development services” Content
Can be presented on physical media (disks, books, etc.), in which case the products are classified in CPC part 0-4 as tradeable goods.
Can be provided in a non-physical way over the internet, in which case the products are found in group 843 – “On-line content”
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END OF PRESENTATION