Prodcom Working Group - 21st October 2013 Item 4c - FRIBS : Prodcom Package Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Prodcom Working Group - 21st October 2013 Prodcom Package Elements agreed so far Scope (Nace B and C) List (Specific list – not CPA nor CN) Variables (might still be impacted by sub-contracting) Defining completeness of data collection (90% of each Nace class should be reported) Transmission deadline (T + 6 month) Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Elements still to finalise How better account products manufactured under contract processing? Integration of more services Is definition of statistical unit of importance for Prodcom? Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Concrete question from analyst Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Prodcom Working Group - 21st October 2013 Requirements National production European production values and quantities Burden should be limited on businesses Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Contract processing/sub-contracting/services The sub-contracting activities are activities where the contractor receives raw materials from the principal according to the Nace/CPA definition Terminology issue? Who reports what? Sold values known only from principal Final or intermediate products Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Proposal to the Working Group Sold value (SV) Value/Produced nationally/Sold (own account + final product sub-contracted nationally) Sold quantity (SQ) Quantities/Produced nationally Manufactured quantity (MQ) Quantities/Produced nationally/Sold+Final products of contract processing+Use in other productions Fee received (FR) value of the product produced on national territory and sold on the market during the reference year. quantity of the product produced on national territory and sold on the market during the reference year. Quantity of products done on the national territory, sold as products, reused in further processing, or complete products manufactured based on contract processing. amount received as fee for a manufacturing of complete product on contract processing. Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

In Practice (1/4) Principal and Contractor in same country Can they know residence of contractor? Principal and Contractor in same country Principal do not produce SQ = MQ Fee Received (product level / generic services) MQ for finish products Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Prodcom Working Group - 21st October 2013 In Practice (2/4) Principal and Contractor in same country Principal produces part of products SQ = MQ1+MQ2 Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

In Practice (3/4) Principal and Contractor in different country Sold value will not be recorded even if country Y is in EU In Practice (3/4) Principal and Contractor in different country Principal does not produce But EU MQ is preserved Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Prodcom Working Group - 21st October 2013 Are they able/willing to delineate own production / the one contracted abroad? In Practice (4/4) Principal and Contractor in different country Principal produces part of products SQ = MQ2 Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Prodcom Working Group - 21st October 2013 Services Support of BSDG to increase services Most countries asked for a definition based on CPA. Which criterion to select services from CPA (from certain Nace Div, above a threshold of sold product values) ? Should we have some "not elsewhere specified" services and if yes to which level? Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Impact of definition of Statistical Unit Request from BSDG Current SU in regulation Enterprise Sold Values, Sold quantities should be extracted from billing system. Are SU in the frame of the survey ? -> depend on accuracy of secondary activities. Would other SU (i.e. KAU) be better? Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013

Recap : Elements still to finalise How better account products manufactured under contract processing? Integration of more services Is definition of statistical unit of importance for Prodcom? Item 4c-FRIBS : Prodcom Package Prodcom Working Group - 21st October 2013