United Nations Statistics Division CPC Ver.2 Changes for agriculture and food products

2 History In previous version of CPC:In previous version of CPC: Section 0 – Agriculture, forestry and fishery productsSection 0 – Agriculture, forestry and fishery products Section 2 – Food products, beverages and tobacco; textiles, apparel and leather productsSection 2 – Food products, beverages and tobacco; textiles, apparel and leather products Here: consider only Divisions 21-25Here: consider only Divisions Major complaint by majority of countries, esp. developing countries:Major complaint by majority of countries, esp. developing countries: Insufficient detail for agricultural productsInsufficient detail for agricultural products

3 History (2) Goods in the CPC 1.1 and earlier were defined in terms of the Harmonized SystemGoods in the CPC 1.1 and earlier were defined in terms of the Harmonized System This limits the detail that is possible in CPCThis limits the detail that is possible in CPC Unprocessed agricultural products are not heavily traded internationallyUnprocessed agricultural products are not heavily traded internationally Processing is done locallyProcessing is done locally

4 History (3) Example for products that were not recognized in HS:Example for products that were not recognized in HS: Sugar caneSugar cane --Other Sugar beet Other : -Seaweeds and other algae Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cichorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included

5 History (4) The limitation of detail has made the CPC less useful for application in agricultureThe limitation of detail has made the CPC less useful for application in agriculture For CPC Ver.2, the FAO was consulted to advise on necessary detailFor CPC Ver.2, the FAO was consulted to advise on necessary detail This has resulted in various drafts that were subsequently refinedThis has resulted in various drafts that were subsequently refined

6 New detail CPC Ver.2CPC Ver Subclasses 9387 Classes 23 Groups 55 Divisions Food products Subclasses 8566 Classes 1917 Groups 44 Divisions Agricultural products

7 New Detail (2) Substantial increase at lowest level (subclasses)Substantial increase at lowest level (subclasses) Examples:Examples: For agriculture:For agriculture: Recognition of more types of plants, animalsRecognition of more types of plants, animals Separation of raw from processed productsSeparation of raw from processed products For food products:For food products: Separation of meat by type of animalSeparation of meat by type of animal

8 New detail (3) Some of the changes make CPC categories more applicable to individual regionsSome of the changes make CPC categories more applicable to individual regions E.g. tropical fruits, sheep, goat, camelE.g. tropical fruits, sheep, goat, camel Some changes are relevant to policy interestsSome changes are relevant to policy interests E.g. BSE (mad cow disease)E.g. BSE (mad cow disease)

9 CPC-HS link How is the CPC-HS link affected by this?How is the CPC-HS link affected by this? Many CPC subclasses now refer to parts of HS codes onlyMany CPC subclasses now refer to parts of HS codes only 100 in Section 0100 in Section 0 88 in Section 288 in Section 2 Often aligned with HS at class levelOften aligned with HS at class level Explicit explanatory notes are provided in these casesExplicit explanatory notes are provided in these cases This newly created detail has also been submitted as proposals for the next HS revisionThis newly created detail has also been submitted as proposals for the next HS revision If accepted, alignment between CPC and HS will improveIf accepted, alignment between CPC and HS will improve

10 Applying the classification Generally, for goods in section 0-4, exact classification should always be in terms of the corresponding categories in the Harmonized System.Generally, for goods in section 0-4, exact classification should always be in terms of the corresponding categories in the Harmonized System. When the relevant HS code is split (like often happens in section 0 and 21-25):When the relevant HS code is split (like often happens in section 0 and 21-25): First, the correct HS code should have been establishedFirst, the correct HS code should have been established Then identify the CPC subclasses that links to this codeThen identify the CPC subclasses that links to this code Then choose correct CPC subclass based on the CPC explanatory notes (index is also helpful)Then choose correct CPC subclass based on the CPC explanatory notes (index is also helpful)

11 Example Where in the CPC do we classify unroasted chicory roots?Where in the CPC do we classify unroasted chicory roots? HS code: Where in the CPC does it link?HS code: Where in the CPC does it link? – Locust beans01391 – Locust beans – Stimulant, spice and aromatic crops n.e.c – Stimulant, spice and aromatic crops n.e.c – Sugar cane01802 – Sugar cane – Other sugar crops n.e.c – Other sugar crops n.e.c – Other raw vegetable materials, n.e.c – Other raw vegetable materials, n.e.c. We must consult the CPC Explanatory NotesWe must consult the CPC Explanatory Notes

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13 Section 0 – Agriculture, forestry and fishery products Division titles remain mostly the same (except text in red):Division titles remain mostly the same (except text in red): 01 - Products of agriculture, horticulture and market gardening 01 - Products of agriculture, horticulture and market gardening 02 - Live animals and animal products (excluding meat) 02 - Live animals and animal products (excluding meat) 03 - Forestry and logging products 03 - Forestry and logging products 04 - Fish and other fishing products 04 - Fish and other fishing products

14 Division 01 - Products of agriculture, horticulture and market gardening In CPC v – Cereals 012 – Vegetables 013 – Fruits and nuts 014 – Oilseeds and oleaginous fruits 015 – Living plants; cut flowers and flower buds; flower seeds and fruit seeds; vegetable seeds 016 – Beverages and spice crops 017 – Unmanufactured tobacco 018 – Plants used for sugar manufacturing 019 – Raw vegetable materials n.e.c. In CPC v2 011 – Cereals 012 – Vegetables 013 – Fruits and nuts 014 – Oilseeds and oleaginous fruits 015 – Edible roots and tubers with high starch or inulin content 016 – Stimulant, spice and aromatic crops 017 – Pulses (dried leguminous vegetables) 018 – Sugar crops 019 – Forage products, fibres, living plants, cut flowers and flower buds, unmanufactured tobacco, and natural rubber

15 Division 02 - Live animals and animal products (excluding meat) In CPC v – Live animals 029 – Other animal products In CPC v2 021 – Live animals 022 – Raw milk 023 – Eggs of hens or other birds in shell, fresh 024 – Reproductive material of animals 029 – Other animal products

16 Division 03 - Forestry and logging products In CPC v – Wood in the rough 032 – Natural gums 039 – Other forestry products In CPC v2 031 – Wood in the rough 032 – Non-wood forest products

17 Division 04 - Fish and other fishing products In CPC v – Fishes, live, fresh or chilled 042 – Crustaceans, not frozen; oysters; other aquatic invertebrates, live, fresh or chilled 049 – Other aquatic animals In CPC v2 041 – Fishes, live, fresh or chilled 042 – Crustaceans, not frozen; oysters; other molluscs and aquatic invertebrates, live, fresh or chilled 049 – Other aquatic plants and animals

18 Section 2 division – Food products, beverages and tobacco Division titles remain mostly the same (except text in red):Division titles remain mostly the same (except text in red): 21 - Meat, fish, fruit, vegetables, oils and fats 21 - Meat, fish, fruit, vegetables, oils and fats 22 - Dairy products and egg products 22 - Dairy products and egg products 23 - Grain mill products, starches and starch products; other food products 23 - Grain mill products, starches and starch products; other food products 24 - Beverages 24 - Beverages 25 - Tobacco products 25 - Tobacco products

19 Division 21 - Meat, fish, fruit, vegetables, oils and fats In CPC v – Meat and meat products 212 – Prepared and preserved fish 213 – Prepared and preserved vegetables 214 – Fruit juices and vegetable juices 215 – Prepared and preserved fruits and nuts 216 – Animal and vegetable oils and fats 217 – Cotton linters 218 – Oil-cake and other residues resulting from the extraction of vegetable fats or oils; flours and meals of oil seeds or oleaginous fruits, except those of mustard; vegetable waxes, except triglycerides; degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes In CPC v2 211 – Meat and meat products 212 – Prepared and preserved fish, crustaceans, molluscs and other aquatic invertebrates 213 – Prepared and preserved vegetables, pulses and potatoes 214 – Prepared and preserved fruit and nuts 215 – Animal and vegetable oils and fats 216 – Cotton linters 217 – Oil-cake and other solid residues, of vegetable fats or oils

20 Division 22 - Dairy products and egg products In CPC v – Processed liquid milk and cream 229 – Other dairy products In CPC v2 221 – Processed liquid milk and cream 222 – Other dairy products 223 – Eggs, in shell, preserved or cooked

21 Division 23 - Grain mill products; starches and starch products; other food products In CPC v – Grain mill products 232 – Starches and starch products; sugars and sugar syrups n.e.c. 233 – Preparations used in animal feeding 234 – Bakery products 235 – Sugar 236 – Cocoa, chocolate and sugar confectionery 237 – Macaroni, noodles, couscous and similar farinaceous products 239 – Food products n.e.c. In CPC v2 231 – Grain mill products 232 – Starches and starch products; sugars and sugar syrups n.e.c. 233 – Preparations used in animal feedings 234 – Bakery products 235 – Sugar 236 – Cocoa, chocolate and sugar confectionery 237 – Macaroni, noodles, couscous and similar 239 – Food products n.e.c.

22 Division 24 - Beverages In CPC v – Ethyl alcohol; spirits, liqueurs and other spirituous beverages 241 – Ethyl alcohol; spirits, liqueurs and other spirituous beverages 242 – Wines 242 – Wines 243 – Malt liquors and malt 243 – Malt liquors and malt 244 – Soft drinks; bottled mineral waters 244 – Soft drinks; bottled mineral waters In CPC v2 241 – Ethyl alcohol; spirits, liqueurs and other spirituous beverages 242 – Wines 243 – Malt liquors and malt 244 – Soft drinks; bottled mineral waters

23 Division 25 - Tobacco products In CPC v – Tobacco products 250 – Tobacco products In CPC v2 250 – Tobacco products 250 – Tobacco products