ECONOMIC CLASSIFICATIONS Advanced course Day 1 – third morning session ISIC Rev.4 and NACE Rev.2 Zsófia Ercsey - KSH – Hungary Marie-Madeleine Fuger - INSEE – France Hans Van Hooff - CBS - Netherlands THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

ISIC = International Standard Industry Classification NACE = Nomenclature statistique des Activités économiques dans la Communauté Européenne

ISIC and NACE Plan of session Purpose and nature Historical background Structure and coding Tools for interpretation

ISIC and NACE Purpose and Nature Classifications of Activities as they usually are combined Camping site, supermarket

ISIC and NACE Purpose and Nature “Similar” activities are grouped together in classes (homogeneous to activity) What is similar Criteria: >>Input (NACE 16: Manufacture of wood/products of wood) >>Process (NACE 24.5: Casting of metals) >>Output (NACE 32.4: Manufacture of games and toys)

What is not similar, not used as criteria: Purpose and Nature What is not similar, not used as criteria: Legal organization type Types of markets (market / non-market) Size Region …………………………………………

Purpose and Nature Use No strict application of the three criteria e.g. by NACE-level  would cause categories that are not useful e.g. by process in manufacturing. So a pragmatic approach how the world sees it!!publishers In the past only for statistics, but activity classifications are more and more used for administrative purposes, laws, rules, licenses registration useful for NSI’s!!.

ISIC International Standard Industrial Classification of All Economic Activities History 1900: One Classification for occupations and activities of enterprises  Labour market flexibility Industry classification: First version: 1948; Rev.1: 1958; Rev.2: 1968; ISIC Rev.3: 1989; ISIC Rev.4: 2006 First mining, manufacturing.

0 - Agriculture, Forestry, Hunting and Fishing 02 - Forestry and Logging 03 - Hunting, Trapping and Game Propagation 04 - Fishing 1 - Mining and Quarrying 11 - Coal Mining 12 - Metal Mining 13 - Crude Petroleum and Natural Gas 14 - Stone Quarrying, Clay and Sand Pits 19 - Other Non-Metallic Mining and Quarrying 2-3 - Manufacturing 20 - Food Manufacturing Industries, except Beverage Industries 21 - Beverage Industries 22 - Tobacco Manufactures 23 - Manufacture of Textiles 24 - Manufacture of Footwear, other Wearing Apparel and Made-Up Textile Goods 25 - Manufactures of Wood and Cork, except Manufacture of Furniture 26 - Manufacture of Furniture and Fixtures 27 - Manufacture of Paper and Paper Products 28 - Printing, Publishing and Allied Industries 29 - Manufacture of Leather and Leather and Fur Products except Footwear and other Wearing Apparel 30 - Manufacture of Rubber Products 31 - Manufacture of Chemicals and Chemical Products 32 - Manufacture of Products of Petroleum and Coal 33 - Manufacture of Non-Metallic Mineral Products, except Products of Petroleum and Coal 34 - Basic Metal Industries 35 - Manufacture of Metal Products, except Machinery and Transport Equipment 36 - Manufacture of Machinery, except Electrical Machinery 37 - Manufacture of Electrical Machinery, Apparatus, Appliances and Supplies 38 - Manufacture of Transport Equipment 39 - Miscellaneous Manufacturing Industries 4 - Construction 40 - Construction 5 - Electricity, Gas, Water and Sanitary Services 51 - Electricity, Gas and Steam 52 - Water and Sanitary Services 6 - Commerce 61 - Wholesale and Retail Trade 62 - Banks and other Financial Institutions 63 - Insurance 64 - Real Estate 7 - Transport, Storage and Communication 71 - Transport 72 - Storage and Warehousing 73 - Communication 8 - Services 81 - Government Services 82 - Community Services 83 - Business Services 84 - Recreation Services 85 - Personal Services 9 - Activities not adequately described 90 - Activities not adequately described ISIC Rev.4 ISIC rev.1 1958

NACE (Nomenclature d’Activités de la Commission Européenne) History of NACE Elaboration of NICE between 1961 and 1963 Nomenclature des Industries établies dans les Communautés Européennes Elaboration of NACE in 1970 (but not internationally linked and data translated from national classifications) Development of NACE Rev.1: 1993 Based on ISIC: strong decision taken in the 80’s Same structure, more details International harmonization respected Possible national versions Legal base (regulation) Working group NACE: since 1986 Current version NACE Rev.2: 2008

NACE (Nomenclature d’Activités de la Commission Européenne) NACE regulation All statistics with data on economic activities should use NACE or a derived national level Supplementary national levels okay, but same frame (concepts, definitions) and same structure National coding system may be different National versions approved by the Commission Pending problem: NACE-structure not fit for all economic studies Other structures and aggregation needed Automotive-, energy-, ICT-sector.

International situation activity classifications BIK ÖNACE NAF SBI NAICS NACE NACE-BEL ANZSIC JSIC ISIC CAE Toimialaluokitus SNI CRIC ஒகறஐஊ Holding Manufac- turing of bikes Transport Computer Sale of bikes

ISICNACENational SIC ISIC=UN XXXX NACE=EU XX11,XX12,XX21,XX22 NACE-BEL=Belgium XX11.1 ÖNACE=Austria XX11.2 SBI=Netherlands XX11.3 BIK Chambres of Commerce XX11.22 Etc=Etc

National classifications  Today UN-classification related NAICS derived EU-classification AUS/NZ National classifications Associated countries

Structure and coding of NACE Rev. 2 21 Sections : 1 letter 88 Divisions : 2 digits 272 Groups : 3 digits 615 Classes : 4 digits Shared with ISIC Rev.4 02 Schéma d’organisation : emboîtement à tous les niveaux, comme dans la nomenclature actuelle, L’emboîtement est visible dans le code, mais les lettres des sections ne sont pas rappelées devant les chiffres La NACE est codifiée comme la CITI (classification internationale type des industries), mais avec un point entre le 2 et le 3ème chiffre Disparition des sous-sections (propres à la NACE, elles n’existaient qu’en Industrie) Les groupes et les classes NACE proviennent de l’éclatement de groupes et de classes CITI Amélioration de la codification nationale : on lit directement la classe NACE dans la sous-classe NAF 02.1 Shared in all member states 02.10

Increased detail NACE Rev. 1.1 NACE Rev. 2 ISIC Rev. 4 Divisions 62 88 Groups 224 272 238 Classes 514 615 419 Manufacturing section 103 95 71 242 230 137 Other sections 39 64 121 177 167 385 282

NACE Rev. 2 Aggregated structures for national accounts Fully integrated in ISIC/NACE structure High level aggregation (10 or 11 categories) Intermediate aggregation (38 categories)

NACE Rev. 2

NACE Rev. 2 Tools for interpretation of NACE: Explanatory notesexample Indexes Computer assisted coding Case law —> rulings example Strict links with CPA (*) Hierarchy : NACE – CPA – CN Additional correspondence table example (*) not always true

11.02 Manufacture of wine from grape Explanatory note 11.02 Manufacture of wine from grape This class includes: - manufacture of wine - manufacture of sparkling wine - manufacture of wine from concentrated grape must This class also includes: - blending, purification and bottling of wine - manufacture of low or non-alcoholic wine This class excludes: - merely bottling and labelling, see 46.34 (if performed as part of wholesale) and 82.92 (if performed on a fee or contract basis)

Case law

Link with CPA

Thank you!