ESTP COURSE ON ECONOMIC AND SOCIAL CLASSIFICATIONS Introductory course Day 1 – first afternoon session ISIC Rev 4 and NACE Rev.2 Marie-Madeleine Fuger INSEE – France Hans Van Hooff CBS - Netherlands

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

Development of ISIC and NACE Plan of session Development of ISIC and NACE Purpose and nature Historical background Structure and coding Interpretation

ISIC and NACE Purpose and Nature Classifications of Activities as they usually are combined in Statistical Units

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 ………………………………………… Assisting Criterion: Ownership (of units or of outputs)

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 In the past only for statistics, but activity classifications are more and more used for administrative purposes, laws, rules, licenses.

ISIC (International Standard Industry Classification) History 1900: One Classification for occupations and activities of enterprises  Industry classification: First version: 1948; Rev.1: 1958; Rev.2: 1968; ISIC Rev.3: 1989; ISIC Rev.4: 2006 First mining, manufacturing.

NACE (Nomenclature d’Activités de la Commission Européenne) History of NACE Elaboration of NICE between 1961 and 1963 Elaboration of NACE in 1970 Development of NACE Rev.1 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

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Nationale SIC ISIC=UN XXXX NACE=EU XXYY NACE-BEL=Belgium XXYY.Z ÖNACE=Austria XXYY.Z SBI=Netherlands XXYY.Z BIK Chambres of Commerce XXYY.ZQ Etc=Etc

National classifications  Today VN-classification Japan EU-classification AUS/NZ National classifications Associated countries

National classifications   NAICS VN-classification Japan 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

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 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)

Thank you!